Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1899-11-29
BANK NOTE DESPOTISM:-
ferrinH the Greenback-Sees
Gross Favoritlsm.

sire to make gold the only legal tender
for the payment of debts, public and
private. 1 have discussed this question
on former occasions and pointed out
that the necessary effect of such law
would be to create greater demand
for gold, which would then be the only
money legally available for the pay
ment of debts, and thus aid the money
owning class and injure the wealth
producing class.
The second purpose of the advocates
of the gold standard is to make bank
notes the only credit money.
In response to your invitation, I beg
to submit few arguments in support
Of the greenback as against the bank
note. The greenback is issued by the
government, and the volume of such
money is determined by the people, act
ing through their representatives. The
supreme court has held that such
money can be made g. legal tender.
When man has greenbacks 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 premium, bank notes circu-
lated on level with greenbacks, and
were never worth any more; the rea-
son being that national bank notes are
payable in lawful money, and the green
back being lawful money (and at that
time the cheapest money! was used by
the banks for the redemption of bank
notes. It is interesting now to hear
these same bankers, who redeemed
bank notes in paper when gold and sill
yer were at premium of over hun
dred per cent, talk about the dishon-
esty of a debtor, whether the debtor be
an individual or the government, who
would redeem his obligations in any
thing but the dearest money.
The bank note has been good be-
cause it has had behind it the bonds
and greenbacks issued by the govern
ment. If the greenback is good enough
to stand behind the bank note, it is good
enough to stand alone without any
bank note in front of it.
A national bank currency is objec-
tionable because it is gross fayoritism
extended to few. A bill reported by
the house committee on coinage,
weights and measures in the last con-
gress provided: First - That the
treasurer of the United States pay out
gold coin in redemption of greenbacks
and treasury notes; second, that the
secretary of the treasury have author
ity 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 it's ef-
feet upon the individual and the ma
tional bank may be stated as follows:
The greenbacks are to 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
it's tax diminished. Second-If the in.
dividual buys bond at par, he will lose
the use of his money and must content
himself with the three per cent. inter-
est. If national bank invests it's
bonds at par it 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 it's money back and draws interest
besides. The individual must eat his
cake or keep it. The national bank both
eats it's cake and keeps it. This is ia
voritism that ought not to be tolerated
in government which recognizes the
doctrine of equality before the law.
The moment the government begins to
confer special privileges those in po-
sition to profit by favoritism begin to
clamor for legislation Immediately in
their interest, and as result the in
strumentalities of government are
used for private gain and the true pur-
pose of government forgotten.
There is another objection to the ma
tional bank currency, namely: That
the national banks are given control
over the volume of credit money. Pow
er to issue money should never be in
%r,,efo1 ~ r,r;vo q n1;v;1,,o1s or rr;vo<o
corporations. Jefferson was an oppo-
nent of banks of issue, and in one of his
letters declared that his opposition was
so persistent that he had been de-
nounced as maniac by those bankers
who desired to secure this privilege
from the government. Benton, in sum-
ming up the work of Jackson, gave en-
phasis to his fight with the national
bank, and compared his work with the
work of Cicero, saying that when he de-
stroyed the bank conspiracy he saved
America, as Cicero had saved Rome by
overthrowing the conspiracy of Cata-
line.
Wendell Phillips has so we'll de-
scribed the danger of allowing private
individuals to control the volume of
money that quote from speech made
by him few years before his death:
I'm other words, it was the currency
which, rightly arranged, opened ma
tons well springs, found work. for
willing hands to do, and filled them
with a just return, while honest capital,
daily larger and more secure, minis
tered to a glad prosperity. Or it was
currency, wickedly and selfishly Jug,
gled, that made merchants bankrupt
and starved labor into discomfort and