The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-08-12
EBT Is ENTHRoNED.
Tn owe which Fosters Debtshou id
he Broker - Five Years
of Panic.

We have passed through i've years
of ~panic-ive years of unexcelled bust
ness depression and universal suffer
ing-five years OF the suspension Of
general prosperity.
Why? Our banking system secures
q minimum volume of money In the
country. This requires business to be
done upon a credit rather than a cash
basis. It's greatest profits. are real
lied from loaningdeposits-money not
It's own. A nominal capital only is
thus required.
What has been the effect? When the
panic of 1893 was precipitated, from
the best estimates, the bank and saw
ings credits amounted to over eight
times 100000. 900 actually held by
these institutions. The whole business
and industry of the country rested
upon about four billions of confidence
currency, or. in other words. o. credit.
This must inevitably follow under a
narrow, limited supply Of money. Debt
becomes a necessity
What was the result? The expan-
sion became so great that banks failed
to pay their depositors. The whole
ISOLATION. refused accommodations
and demanded payment of its call
loans. The supply was thus cut off,
and the debtor could not respond. The
high tension of credit, snapped sud
denly. causing n Panic. What saved the
whole system was the issue and use
among the banks themselves Of clear
ing house loan oertificates-a species
OF currency which would not have
beentolerated by individual merchants
in failing circumstances for n single
day. The people went under and are
still down. The same thing will occur
periodically under such n system.
What gain. but years OF hard times?
We see what a power there is in such
n system TO exrand and contract the
currency. Then inflated to its highest
capacity. now. crr.ailed 10 it's lowest
limit. When the banker speaks OF "re-
stored confidence" he simply means
the restored ability OF the people to
commence this deceitful scheme OF
borrowing again.
The great question then Is. shall we
foster this nor bid system of credit.
based upon a limited supply of money.
or shall il be radically changed so that
there car be a volume Of money ade-
quate TO carry on all business upon a
cash basis. as in France. where gen
eral pauics are unknown.
Tf+ln 1o.+- .Alto,-
must not be limited in noun by
statute law. IL must be governed BY
the economic law of supply and de-
mand. The coinage OF the money
metals must be equally rec at the
standard ratio. The governme must
issue all paper money direct. This is
progressive. Private corporations
must not usNp the money functions
OF the government. This is retrogres-
sivc. There must be no monetary al
liances with nations not In full SYM
pathy with these theories. There must
be no compromise upon these vital
points.
II these principles had been in oper-
alton. the present panic would not
have occurred. Why? Because We
would have had the full per capita Of
money required. 1t would have been
more evenly and justly distributed. 1t
could not have been monopolized by
banks and capitalists as now. We
would not have been all over in debt.
The people. and not the banks. would
have boarded the money. If the panic
had been a speculative furry as might
occur. the effect would have soon been
over. The people would have unlocked
their boards and the temporary strin-
gency would have been soon relieved.
Now. there Is about SOC, OOO. 900 OF
money and currency In the treasury,
and most Of the balance is tied up in
great bundles in the vaults OF the
banks. leaving a small per capita in
actual circulation. In the meantime
the panic is still on. sitting enterprise,
and making laggards and towards Of
the people.
Under the gold standard of credit
the terms investment" money 20
have a siren charm. They are
very profusely added In our newspa
pers and show windows. We have been
educated TO the notion that the dee per
we are In debt the NOR prosperous we
are. The government is most foolish
ly run into a war debt Of hundreds OF
millions. really in tine interest Of the
banks. They talk about n popular !
loan. Nine-tenths Of the people have
money TO invest in bonds. What
they desire Is money-not bonds. They
ask for bread and arc offered es
But many with fixed incomes cannot
realize this. unless they study the
question. which many OF us do not do.
The government might have in
creased Its present volume of over 44s.-
600, 900 legal tender demand notes.-the
best money ever created by this or any
other nation-and thus have relieved
the country from the panic.
Surely II might have coined s4O0,-
100000 Of the seigniorage. monthly.
and added about si5.OOO.0o0 to the vol
ume Of money within agar. But no!
II would have brought n little more
money into more immediate circula-
ton and eascd up the money market;
varcs and furnfxbcf tvnrk rnr