Mexico Missouri message., 1899-11-09


| have discussed this question on
former occasions and have pointed
out that the necessary effect of such
a law would be to create greater
demand for gold, which would then
be the only money legally availa-
bile for the payment of debts, and
thus aid the money-owning class
and lnjurc the wealth producing
ing class.
The second purpose Of the advo-
Gates of the gold standard is to
make bank notes the only credit
money,
lbeg to submit few arguments in
support of the greenback rs against
the banknotc. The former is issued
by the Government and the vol
ume of such money is determined
by the people, acting through
their representatives. The Su-
preme Court has held that such n
money can be made Il legal tender.
When II 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 cred
itor is willing to accept the money
During the war, when gold and
silver were at II premium. bank
notes circulated on Il level with
greenbacks and were never worth
any more: the reason being that
national bank notes are payable
in lawful money and the green
backs being money land at that
time the cheapest money! was
used by the bank for the rcdcmp-
ton of bank notes. 1t is interest
ing now to hear these same bank
ers who redeemed bank notes in
paper when gold and silver were
Mt premium of over hundred
per cent, talk about the dishonesty
of II debtor, whether the debtor be-
an individual or the Government,
who would redeem his obligations
III anything but the dearest money.
BANK NOTES BACKING.
The bank note has been good
because it has behind it the bonds
and the grcenbacks issued by the
Government. If the grcenback is
good enough to stand behind the
bank note it is good enough to
stand alone without amy bank note
in front of it.
A national bank currency is
Objectionable because it is gross
favoritiSm extended to a few. A
bill reported by the House Com
mittee on Coinage, Weights and
Measures in the last Congress
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 authority to
issue gold bonds, drawing not
more than 3 per cent, to secure
the gold to maintain gold rcdemp-
ton.
Third-That national banks be
allowed to deposit bonds and re-
eve bank notes up to par value
of the bonds so deposited
Fourth-That the tax on ma
tional banks be reduced
II this plan goes into operation,
the difference in its effects upon
the national bank may be stated rs
follows: The grcenbacks are to
he retired and bonds issued. This
will mean IN increase in taxes to
pay the interest upon the bonds.
The individual who enjoys no
special privilege will find his taxes
increased, while the national bank
that ENJOYS special privileges will
find its taxes diminished,
OTHER REASONS.
Sccond-If the individual buys
II bond at par, he will lose the use
of his money and must content
himself with the 3 per cent inter
est. If u national bank invests its
capital i'll bonds at par it can de
post the bonds and secure bank
notes to the face value of the bonds,
thus securing Il return on its invcS-
ment, and III addition to that il
can draw 3 per cent interest upon