Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1899-10-12
DOUBLE PURPOSE OF GOLD ADVOCATES.
Why the Retirement of Greenbacks
Would Benefit Only Money Hold
erE-If the Greenback is Good
Enough to Stand Behind the Bank
Note. 1t is Good Enough to Stand
Alone.

necessary effect of such law woulC
be to create greater demand for gold
which would then be the only none.
legally available for the payment o
debts, and thus aid the money-ownins
class and injure the wealth-producins
class.
The second purpose of the advocate:
of the gold standard is to make banl
notes the only credit money.
In response 10 your invitation I beg
to submit a few arguments in support
of the greenback as against the banf
note. The greenback is issued by the
government and the volume of sucf
money is determined by the people act
Ing through their representatives. The
supreme court has held that sucl
money can be made legal tender
When a man has greenbacks in his
pocket he has money which is availa
bic 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 sill
YER were at a premium. bank notes
circulated on a level with greenoacl<s
and were never worth any more; the
reason being that national bank notes
ere payable in lawful money ana the
greenback being money land at the
| same tine 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 n nun
| dred per cent, talk about dishonesty
of debtor, whether the debtor be an
individual or the government, who
would redeem his obligations in any
| thing but the dearest money.
| Bank Notes Backing.
The bank note has been good be-
| cause It has behind it the bonds and
| the ereenbacks issued by the govern
ment. If the greenback is good
enough to stand behind the bank note.
| it is. good enough to stand alone with
put am bank note in front of it.
\ national bank currency is obiec-
tionab.e because it is gross favoritism
EXTENDED to few. A bill reported by
the house committee on coinage,
weights and measures in the last con-
gress provided:
ssFirst-That the treasurer of the
United States pay out gold coin in re-
demption of greenbacks and treasury
notes.
s'Second-That the secretary of the
treasury have authority to issue gold
bends, drawing not more than three
Der cent. to secure the gold to main
tain gold redemption.
''Chird-That national banks be al
lowed to deposit bonds and receive
bank notes up to the par value of the
bonds so deposited.
..Fourth-That the tax on national
banks be reduced
If this plan goes into operation, the
difference in its effect upon the in
1ividual and the national bank may be
stated as follows. The greenbacks are
TO be retired and bonds issued. This
will mean an increase in taxes to pay
the interest upon the bonds. The in
dividual who enjoys no special prlvi-
lege will find his taxes increased, while
the national bank that enjoys special
privileges will find its taxes dimin-
ished.
other Reasons.
Second-If the individual buys a
bond at par, Ne will lose the use of his
money and must content himself with
the three per cent. interest. If ma
tional bank invests it's bonds at par it
can deposit the bonds and secure banA
notes to the face value of bonds, thus
securing a return on its 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 10th eats
its cake and keeps it. This IS fayorit-
ism that ought not to be tolerated in
o government which recognizes the
doctrine of equality before the law.
The moment the government begins to
coufer special privileges, those in Il
position to profit by favoritism begin
to clamor for legislation immediately
in their interest, and as result the
iEstrumentalitfes of government are
USED for private gain and the true pur-
pcsa of government forgotten.
There is another objection to ma
tions! bank currency, namely, tha* the
national banks are given control over
the volume of credit money. Power to
issue money should never be intrusted
to private individuals or private cor
poratin1s. jefferson was an opponent
of banes of issue. and in one of his
letters declared that his opposition
was so persistent that he had been de-
ncunced as maniac by those bankers
who desired to secure this privilege
from the government Benton, IN
summing up the work of Jackson, gave
emphasis to his fight with the national
bank, and compared his work with the
work of Cicero, saying that, when he
destroyed the bank conspiracy, he
saved America as Cicero had saved
Rome. by overthrowing the conspira-
cy of Catalina.
Wendell Phillips has SO well de-
scribed the danger of allowing indi-
viduals to control the volume CT money
that I quote from a speech made by
him few years before his death:
Wendell Phillips' Views.
"In other words, it was the cur
rency which. rightly arranged. opened