The Leon reporter. (Leon, Iowa) 1887-1930, 1899-12-21
THE NEW CURRENCY slLl.

The republican party are evidently
determined to push the currency bill
through at this session of congress.
The worst feature Of this bill aS propos-
ed is that it will l-place the entire control
of our circulating medium in the hands
of the banking element. 1t will place
in their hands q monopoly greater than
that enjoyed by the steel trust or the
Standard Oil trust. 1t does not seem
possible that the people could be 80
blind as they. are in this matter. There
is demand for about two billion and a
half Of money to do the business Of the
country. To supply that demand there
is supply Of gold offrom eight hundred
million to one billion dollars. The re.
mainder must be credit money.
What would be the feeling in the
country if congress should pass law
which would say to certain class OF
men: "We reserve the right to let the
| people grow 40 per cent. of what wheat
they need for food, but we give to you
the privilege of growing and selling all
the rest, and will prohibit anyone else
from growing Dushel more under
heavy penalty" This would be patent
to all as the most outrageous piece Of
legislation that was ever enacted. Yet
| it is no worse than the currency plan
proposed. The Dawes currency scheme
proposes that gold vii! be made the
standard of value. 1t proposes to make
all our silver money simply promises 10
pay in gold. 1t proposes TO retire all
the paper money now in circLl ton
Then ii proposes TO grant to the banks
the right to issue bank currency re
.leenable in gold ut the option Of the
banker. or when he is forced 10. Ii
provides for division Of the treasury
Idepartment into two departments. One
TO be department Of issue and re,lemp.
ton. This department will be entirely
separate from the one which will pay
the ex xpsnses Of the government. a.
the banking business, coming of money,
redemption Of paper and silver money,
and other things pertaining to our cur.
rency system will be transacted through
this department.
/ The plan by which the paper money
/ is to be withdrawn is as follows: The
bill provides that as fast as treasury
notes or other government money is
presented for redemption it shah be re-
deemed in gold and the notes held in
the treasury and not be re-issued except
in payment for gold coin. It's further
proviued that should these notes come
in SO rapidly that the gold coin in the
treasury becomes exhausted. the sec.
retary of the treasury shall be empower.
ed to sell gold bonds bearing interest
at the rate of 8 per cent. in order to get
gold with which to pay them. Thus all
the government paper money can pc
redeemed and gold bonds issued in pay
ment for gold with which to purchase
them, and the process will leave the
currency contracted to the amount o.
every dollar which has been redeemed
The promoters Of this scheme say 1t vii
not have the effect of contracting the
currency. Let us see: Suppose there
is a billion dollars worth Of gold in tn,
country and also billion dollars worth
of paper money. Under this act til,
banks begin to send the paper none.
in for redemption. The treasury begin
to borrow gold to redeem them, AMI
continues to do SO until the entir
billion dollars worth Of gold has beel
borrowed and the paper money al
redeemed. What do we find to be tn
condition? The paper money is al
withdrawn from circulation and tn
gold that has been borrowed ha
simply returned to the place it wa
!. before it was borrowed. Thus, .wher
there were two billion dollars Of none
/ lin circulation Zone Of gold and anothe
of paper there is now only one billio
of gold. What is this if not contraction
i "But, the friends Of this bill will ga,
! "the paper money is not likely to }
! sent in for redemption" It most ce
tainly will, for it will be to the interel
/ Of banking associations to have it ser
! In. There are two reasons why this
81. First: 1t will give them an oppo
tunity to invest in the gold bonds ths
will have to be issued to get the gold
redeem the paper. thus making MI
investment for rich clients who ha,
money to invest in safe holding