The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-10-15
Bank-Note DesPotism.

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The advocates Of the gold standard have
| g. double purpose; First, they desire to
| make gold the only legal tender for the
payment of debts, public and private.
have discussed this question on former
| occasions and pointed out that the neces-
sary effect of such law would be to
| create a greater demand for gold, which
would then be the only money legally
| available for the payment of debts and
| thus aid the money owning class and In
jure the wealth producing class.
! The second purpose Of the advocate OF
| the gold standard Is to make bank notes
| the only credit money,
In response to your invitation, I beg to
submit a few arguments in support OF
| the greenback as against the bank note
| The greenback Is issued by the govern
ment, and the volume Of such money is
| determined by the people, acting through
| their representatives The supreme court
| has held that such money can be made
! a legal tender. When man has green
| backs 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 &C
| cept the money.
During the war, when gold and silver
were at premium, bank notes circulated
| on a level with greenbacks and were
| never worth any more; the reason being
| that national bank notes are payable In
| lawful money, and the greenback being
! lawful money (and at that time the cheap
est money! was used by the banks for
| the redemption of bank notes. 1t is inter-
| esting now to hear these same bankers.
how,
| gold and silver were at a premium Of
| over 100 per cent, talk about the dishon-
| esty of debtor, whether the debtor be
an individual or the government, who
| would redeem his obligations in anything
/ but the dearest money.
The bank note has been good because 1t
| has had behind it the bonds and the
greenbacks issued by the government. II
| the greenback is good enough to stand
| behind the bank note 1t is good enough
| to stand alone without any bank note in
| front of it.
| A national bank currency Is objection
| able because 1t Is gross favoritism ex-
| tended to a few. A bill reported by the
| house committee on coinage, weights and
| measures In the last congress provided
| F'irst3that the treasurer of the United
| States pay out gofd In redemption of
| greenbacks and treasury notes; second,
|
| authority 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
| llp to the par value of the notes so depos-
! tied; fourth that the tax on national
| banks be reduced. If this plan goes into
| operation, the difference In Its effect upon
| the individual and the national bank may
ha OF ted hQ ore ire
| TO be retired and bonds issued. This will
| mean an increase 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
| individual buys a bond at par, he will
| lose the use of his money and must con-
| tent himself with the three per cent in
terest. IF national bank invests Its cap
| ital in bonds at par 1t can deposit the
bonds to secure bank notes to the face
value Of the bonds, thus securing return
of its investment, and In addition to that
1t 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 In
dlvidual must eat his cake or keep 1t.
The national bank both eats it's cake and
keeps It, This Is favortism 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 position to profit by favoritism be-
gin to cfamor for legislation Immediately
in their interest, and as a result the
instrumentaliues of government are used
for private gain and the true purpose of
government forgotten.
There is another objection to national
bank currency, namely: That the national
banks are given control over the volume
of credit money. Power to issue money
should never be intrusted to private in
dividuals or private corporations. Jeffer-
son was an opponent of banks of ISSUE
and in one Of his letters declared that his
opposition was so persistent that he had
been denounced as maniac by those
bankers who desired TO secure this privi-
lege 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 conspiracy of Catalina.
Wendell Phillips has so we'll desc ibed
the danger of allowing private indi yiduals
to control the volume of money that 1
quote from speech made by him a few
years before his death:
In other words, it was the currency
which, rightly arranged, opened ma
TONS we'll springs, found work for will
ing hands to do. and filled them with a
just return, While honest capital, daily
larger and more secure, ministered to a
glad prosperity. Or 1t was currency,
wickedly and sel6shly juggled that
made merchants bankrupt and starved
labor into discomfort and slavery, while
capital added house to house and field 10
field, and gathered into its misery hands
all the wealth left in ruined land"
The first question, thereto e, In N in
dustrial nation is: Where ought control
of the currency to rest? In whose hands
can this almost omnipotent power be
trusted? Every writer of political &C n
omy, from Aristotle to Adam Smith, al
lows that change in the currency alters
the price of every ounce and yard Ct
merchandise and every foot of land.
Whom can We trust with this despotism;
At present the banks and the money
kings WELD this power. They ewn the
yardstick and can make it long or
shorter, as they please. They ewn