Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1900-03-29
A GOLD STANDARD.


basis. 1t was a great day for Nc
Kinley and, incidentally, some
thing of a day for the seventy
millions of other people in the
United States 1t put the country
on a single gold standard, although
it has generally been regarded as
being more or less on that stand
ard since 1873 OF course if gold
at some future date should 60
above par the country would be a
few no'ches below the gold stand
ard.
But the bill does some other
things. 1t provides for the coral
ling Of the gTeenbacks and the
treasury notes. The greenbacks
have always been popular with
the people, and they were not eK-
pensive. But they were supposed
to have set an endless chain in op-
GRAFTON ald run rather wild.
Hence the government lie author
ICED to sell bonds and buy them il,
# the gold does not come to hand
in some other way. OF course the
country will have 10 pay interest
on these bonds, while the green
backs cost nothing. But the coun-
try is used to paying bills, and
United States bonds are very
handy things to have around a
house or a bank.
Then again the new financial
bill makes the rough places smooth
and the steep hills plain for the
national banks. Il permits them
to issue notes to The full amount
of their capital, and to the full
amount of the bonds which they
deposit for security-heretofore
they have been restricted to ninety
per cent-and it reduces the tax
on their circulation from one per
cent to one fourth of that amount.
Thus these banks can hold bonds
on which the government is to pay
them two per cent Interests under
the new issue, and which are ex-
empt from all taxation, and they
eau issue notes TO take the place
-oEeReEy dollar invested in the
bonds. And thus for once a
scheme has been devised by whica
man can eat his cake and keep
IT. Il is beautiful idea-for the
banker.
But this is a small turn for the
banker compared with the other
thing which the bill does for him.
1t virtually gives him control OF
the volume OF the country's eur
rency. And nobody need be told
that the man, or set OF men, who
controls the volume of currency
controls the situation. He can
contract the currency and send
prices down, or be csa initiate the
currency and send prices up.
What be will do, now that the bill
puts this vast power in his hands
is a very interesting question.
The bonds now held by the nation
al banks amount to 1926, 900, 900;
the ten per cent increase which the
law allows sauld add s2S, ,000. 600
10 the circulation. The capital of
these banks is in round numbers
$500, 100000. II they want TO is
sue up to the full extent Of their
capital, they could give us some
thing more than $500, ,000. 900 Of an
addition.
Bat suppose that when the cam
paigu is past and the summer end
ed. the trust magnstes and mighty
moneyed men. who largely own
and control the leading banks,
should want to lower the price of
stocks in order to get possession OF
great properties, what would they
need TO do but contract the cur
rency and thus produce financial
stringeucy and tight money
market" And then sgain sup
pose they wanted 10 "clean mp
few hundred millions" by a raise
in prices, what would they need
10 de but iuhate the currency? 1t
is a frightful power 20 put IN the
hands of the money king; but
then it is not good form 10 be
frightened about anything. What
will be done can better be told sf-
ter awhile; bui il is 10 be hoped
that ii will not be told in the tears
and tribulstions of the last hall
dozen years.
Again, gold is the only full legal
tender, and with greenbacks and
treasury notes shut up, and ma
tioaal bank noies let loose, the
peoDle will be doing business with
n1s kisds0f money while they are
cosapsllfd to pay their debts in
5foth<r lind of money. So that
III -tiIl kn r,lauinn