Natchitoches populist., 1898-06-03
EXPLOSIVE FINANCE.
REDEEMABLE BANK NOTES AND
DISCOUNTS.
These Are Always Dangerous and Always
Breeders of PaniGs u Gage and His
Associates Attempting to Fasten spuri-
Gus Money ON Country.

Associates Attempting to Fasten Spurl-
Gus Money ON Country.
| Paper issues redeemable in coin and
the loaning of banking deposits, called
bank credits, are the explosives Of
finance and the breeders of panic, ac-
cording to the Silver knight Watch
man. Money redeemable in other
money and the compound loaning Of
deposits have been the cause of every
financial panic of which we have any
record. Redeemable paper and bank
credit furnish for the time being ad-
ditional means for the purchase of
property, and in that way temporarily
cause rise in prices. If such credits
could be made permanent, and not
abused by excessive issues, they might
have no bad effects. But all paper
which is not money but convertible in
to money, and all bank credits which
are not based upon like quantity of
real money held by the bank issuing
the credit, are the sources of panic,
bankruptcy, and ruin.
The credits which pass for the time
being as money, initiate prices, encour-
age imports and force the export of
coin, which prevents the forthcoming
OF money when demand is made to
meet the paper promises. The time
must come, sooner or later, when real
money cannot be had to meet out
standing promises. When the first
crash comes the community is brought
face to face with q vast volume of
credits which they have been dealing
in as money, but which are not money,
and cannot be made good for want of
money for redemption.
The history of bank issues and bank
credits of every description in Europe
and America is history Of imitation,
robbery and collapse. Men of sense
ought to know that there must be some
relation between promises to pay
money and the money with which to
make payment, and that human nature
is such that If people are allowed to
issue promises to pay, and increase
their wealth in that way, they will do
so without regard to the fate of their
victims, who, when the crash comes,
hold their promises AS long as money
manipulators are allowed to issue pa
per and pass it of as money and draw
interest on their debts, they will do so,
and while they are doing this, they will /
initiate the Pharisees of old, whose pc
culiarities are described in the New
Testament.
Banker Gage, his associates and the
entire money manipulating forces of
the United States and London are now
engaged in trying to fasten upon this
country volume Of spurious money
which they insist shall be redeemabble
in gold. They expect to deceive the
country by the pretense that the hun
dreds and perhaps thousands OF mil
lions of credit which they will issue is
as good as gold because they promise to
redeem it in gold. The promise they
make is precisely the same as that |
which has been made in every instance
where credit money has been issued |
and repudiated after it had served the
purpose of robbing the community.
There are some who admit that bank |
credit of every description issued by |
private persons or corporations is dan
gerous, because it always ends in col I
lapse.
But they say the government can is |
sue credit money with perfect safety.
We deny that proposition in toto. Mark |
the difference between silver coin and
silver certificates ard greenbacks and
treasury notes. Silver coin is full legal
tender, redeemable in nothing. Silver
certificates are legal tender for the pay
ment of public dues, and they are re-
ieemable in silver coin which Is in the
.reasury, dollar for dollar. These GER
.ificates have given the government no
No obligation was created by
he issue of silver coin, nor by the issue
If silver certificates, except to safely
Keep the silver coin for their redenap-
ion. Both are issued by the power of
he government to create money, and
Then that power is exercised there is
10 after-clap about 1t any more than
here is an after-claI' In the passage of
my other law. But the greenbacks
ire credit money They are legal ten
ler and that makes them as good as
my other real money while they are
tut, but the United States has promised
o redeem them in gold or silver coin
t the option of the government. The
xecutive department. has given away
II sold that option. We do moi believe
hey are fools enough to give it away.
ecause it Is worth hundreds of mil
ions. But ever president, from Hayes
0 Mckinley, has insisted contrary to
aw that the creditor was entitled to
emand gold for greenbacks! Behold
he calamities resulting from the power
the bondholder ttD demand gold for
reenbacks. If that power had not
cen conceded to the creditor it would
ave been impossible for MIR. Cleveland
} have frightened the banks and the
immunity and brought on the panic of