The commonwealth. (Greenwood, Miss.) 1896-1923, 1899-11-17
BANK NOTE DESpOTISM.


have a double purpose. FIRST they ut
sire to make yold the only legal teude
for the pay meut ul debts, public an,
private. | have discussed this qurstiu.
on former occasions aud pointed on
that the necessary effect of such a laN
would he to create a greater dtmau,
for gold, which would then be the oul,
money legally available for the pay
mcut of debts, and thus aid the money
owning class and iuiurc the wealth
producing class.
The second purpose OF the advocate
Of the gold standard is TO make banI
notes the only credit money.
In response to your invitation, | hel
to submit a few arguments in supper
If the g]reenback rs against the banl
note. The ]greenbaCk is issued 10y thu
government, and the volume of sucl
money is determined by the people, act
ing through their representatives. Ih'
supreme court has held that such {
money can he made Il legal tender
When a man has grecnbacks in his
pocket he has money which is available
for the payment Of his debts: if he has
bank notes his money is only GOOD
when the creditor is willing to accept
The money.
During the war, when gold and silver
were at a premium. bank notes cirCu.
lated on a level with ~grecubacks, and
were never worth any more. the rca,
son being that national bank notes are
payable in lawful money, and the green
back being lawful money (aud at that
time the cheapest money! was used by
the banks for the redemption of bank
notes. 1t is interesting now to hear
these same bankers, who redeemed
bank notes in paper when gold and sill
yer were at a premium of over a hun
bred per cent, talk about the dishon-
csty of n debtor. whether the debtor be
an individual or the government, who
would redeem his obligations in any
thing but the dearest money,
The bank not, has been good be
cause it has had behind it the bonds
and grecubackS issued by the govern
ment. If the grcenbock Is good enough
to stand behind the bank note, il is good
enough 10 stand alone without any
bank note in front of it.
A national bank currency is objec-
tionahle because it is gross favoritism
extended to Il few. 4 bill reported by
the house committee on coinage,
weights and measures in the last som
grcss provided: First - That the
treasurer of the United States pay out
gold coin in redemption Of grcenbacks
and treasury notes; second. that the
secretary of the treasury have author
ily to issue gold bonds, drawing not
more than three per cent, to secure the
gold to maintain gold redemption;
third, that national banks be allowed to
deposit bonds and receive bank notes
up to the par value Of the bonds so de.
posted: fourth, that the tax on nation-
Al banks be reduced. If this plan goes
into operation, the difference in its eff
feet upon the individual and the ma
tional bank may be stated as follows:
The grecnbacks are 10 be retired and
bonds issued. This will mean an in
crease in taxes TO pay the interest upon
the bonds. The individual who enjoys
no special privileges will find his taxes
increased, while the national bank,
that enjoys special privileges, will find
its tax diminished. S~ccond-If the in.
diyidual buys Il bond at par, hc will lose
the use Of his money and must content
himself with the three per cont. inter
est. # a national bank invests its
bonds at par ii can deposit the bonds
and secure bank notes to the face value
Of the bonds, thus securing a return Of
it's investment, and in addition to that,
it can draw three per cent. interest
upon the bonds. In other words, the !
individual parts with his money and
draws interest while the national bank
gets its money back and draws interest
besides. The individual must eat his
cake or keep it. The national bank both
eats its cake and keeps it. This ia IA
yOritism hat ought not to be tolerated
in a government which recognizes the
doctrine Of equality before the law.
The moment the government begins 10
confer special privileges those in a pc
sition to profit by fayoritism begin to
for legislation Immediately r.
their interest, and as a result the in
s1rumentalitics of government are
used for private gain and the true pur
pose of government forgotten.