Mexico weekly ledger., 1898-03-03
MR.. CLOSES.
The st. Louis Lawyer Sums Up His
Argument With Mr.. Cauthorn-
Talks About Jefferson
and jackson.

usage in controversies of this kind, of
allowing the affirmative the opening
and closing speech, I shall proceed to
bring the matter to a close by summing
up the argument in as %succinct and
terse a as AN. For the pur-
pose of eliminating irrelevant matter
and simplifying the argument, / will
simply state the principal tenets Of
the different schools of finance repre-
sented by Mr.. Cauthorn and myself as
they have been disclosed by this dis
| cussion.
/ desire to say in justice to Mr.. eau
thorn that, in my opinion, he has
stated his position with great force
and perspicuity. Hence, In summing
up his arguments, / shall try to con
fine myself to his own language.
THE PoPULIsTIC VIEW.
Mr.. Cauthorn rests bis case upon the
following propositions:
First. "It is plain that all the
property in the United States belongs
to the government"
Second. "The Populistic idea is
opposed to issuing paper money re-
deemable in any other kind of money;
we claim that one dollar is as good as
another, made SO by the fiat of seventy
millions of people backed by sixty
billions OF wealth."
Third. He proposes to issue money
son all the gold and silver, lead, zinc,
copper and coalthere ia in the hills,
and ON the hills themselves"
l submit that this is a fair, compre-
hensive and complete statement of
the Populistic doctrine of finance. 1t
is the very quintessence of Populism.
With Mr.. Cauthorn's permission 1
would suggest that the application of
the principle be carried a little fur
Their. In view of the fact that all the
real estate in the country is to be made
the basis of the currency and since
real estate in its legal Specification
has an indefinite extent upwards as
well as downwards-as Blackstone
puts it s'cujus est solem, ejus est usque I'D
coelum," (who owns the soil owns ii
as far as heayen)-I would recommend
that greenbacks be issued on that part
of the heavens included in the boun-
dry lines of the United States projected
on the celestial sphere, and il these
greenbacks are ''notto be redeemed in
any other kind OF money" as Mr.. eau
thorn proposes, 1 fail to see why those
issued on the stars and the signs OF
the zodiac would not be as valuable as
those ''based ON the hills themselves
Under this theory there would be no
difference between money based on
the eternal stars and money based on
the eternal hills.
THE DEMOCRATIC VIEW.
In contradistinction to this theory, !
have laid down in this controversy
and still Eai1.ain the following prin-
ciples:
First. That money is not a creation
of the law, but was originated by indi-
viduals in the course of trade; is an
instrument of trade and should be
developed in response to the demands
of trade.
Second. That all paper money
should be based upon coin or property
easily convertible into coin.
Third. That under the Federal
Constitution the government has no
right to make paper money legal ten
der for the payment of debts and that
its only function is to stamp the prec-
ious metals, thereby attesting their
weight and fneness, solely for the
purposes of convenience in trade.
!, Fourth. That the government
should Immediately retire from the
banking business and thereby retire
the banks from the governing bust
ness.
Fifth. That a system of bank note
currency based upon commercia,
assets (coin, demand notes, bills 81
exchange, etc. should be substituted
in place of the retired demand obliga.
tions of the government (greenbackl
and Sherman notes. and Nationa
Bank notes based On bonds.
Sixth. To illustrate by example
take, for instance, the organization
under the law 1 propose, of a bank Of
issue in the town of Mexico. Let the
amount of the capital stock be $780,.
900. This amount would be required
to be paid in lawful money Of the
United States. In the ordinary course
of business, if the community had con
fidence in its management, this bank
would in a short time have $50, 900 oil
deposits. Its assets would then be
5000, 600. q am speaking generally
and in round numbers for the purpose
of iil~ustration). OF course, the 5000,
600 would not remain In money, but
in thirty and sixty day notes and othe,
credits. On these assets the banh
could issue, say $4,000 of its OWE
, notes. The bank notes, of course,
would be uniform throughout the
entire country. The stockholders
would be doubly liable for all the
liabilities of the bank. This banh
would contribute to a general redemp.
ton fund held by the Treasurer of the
, United States, which would be made
up by contributions from all the bank.
!, of issue in the United States for the
purpose of redeeming notes Of failee
banks. In case the bank failed, It'd
outstanding notes would be a first lier
/, on all the assets OF the bank. This
system would possess the following
advantages:
:. (a.) The people of Mexico ant
Audrain county would not be depend.
emit upon the money centers for cur.
rency.
Il CO. The issue would be uniform
stable and elastic.
i (c.) The people Of the community
, would ecure their currency at practi'
caIly the same rate Of interest paid By
r the business men Of the large cities.
;, Id When the bank Is organizet
!, Its capital stock would not have to bs
sent OF to the East for the purpose Of
i buyipg bonds, rs Ia now the case. bu1