Hutchinson gazette., 1900-05-03
THAT "soUND MONEY" FAKE.
~ the Government Must Guarantee Ma
tionAl Bank Money Why Not hsue
All Money ltselfY

A great deal has been said and
written In the last four yenrs about
"sound money" but what was oN-
actly meant by the term none of its
most earnest advocates, as far as we
have been able TO learn, have sue
ceeded in explaining, The term has
catchy sound, and that seems TO
have been the principal object OF its
use.
If Il may be judged from the work
OF the most ardent advocates OF
sound money, we ought to hnd 1t In
The currency law recently enacted
by its friends in congress, We only
find in that law provision for u pro-
longed national debt and It's In
crease drawing 1.-TWO per cent In
terest," to be used us security for the
payment of national bank currency In
case national banks fail to have suIli-
cicnt assets to liquidatc their cur
rency debt which hus been circulated
as money
TO common sense view that does
not hnyc the appearance Of very
sound kind of money, If the govern
ment must stand rs surety for this
bank money aud pledge It's credit
for Its payment in some other kind
of money, II seems far more sensible
for the government to issue It's own
notes in place Of issuing paper cur
rency In ihe name Of the first ma.
tionnl banI, Of Owl Creek, or the SEE
ond national bank Of Ruccoon Hollow,
and having the presidents and cash,
iers of these institutions sign the
bills for the sake Of Identifying their
issue when the balIEs become iusol'
vent or their charters expire,
II the government ISSUED the cur"
rcncy with Uncle Sum's signature IN
place Of Che president and cashier Of
the aforesaid Owl Creek aud Coon
Hollow banks, there would be no ne.
cessty for government bonds for se.
curity. Uncle Sans known wealth,
power and importance in the world
would answer ms prlnclpaI aud security
and prcatly simplify the business. II
Uncle sam as surety Is competent
and necessary TO make the currency
of the national banks "sound money -
Uncle Sam MS principal would crr-
tninIy serve every purpose Of making
money sound.
This postulatc not being denied
md because il can't be denied with,
out the sound money man Is con-
founded by his own theory and ur-
plment. chen There would be no fur
ther use for national bonds for a
basis or security ON which to issue
currency. Having no further use for
bonds to serve as money basis, the
next most sensible and busincss-liko
step for the government TO take would
he to offer legal tender currency in
exchange for the bonds, TO those
who owned bonds, whether banks or
individuals The national banks
could call in-or the government
would-ther circulation, deliver their
bonds receive Uncle Sans legal tcn-
der grecnbacks and go about their
business OF banking or whatever else
they chose. No national bank charter
would then be required, \ state char
ter with state regulation would au-
swer every purpose and the govern
ment would he "out of the banking
business" and what would be of in
fnitely more Importance the banks
would be out of the government busi-
ness.
If the principal, which is required
to stand bchind and go security for
the national banks in order to make
their money sound, dispensed with
his agents and issued the currency
direct. II would be the very soundcst
Of "sound money" As sound and
stronc ms tbc government itself,
nut pnld, Wbot nbout ooIdq An
VOC vbot ohont 10 rhn hopl,s
wouldn't want rnId os tbcv ,youId
bovo M uotoe IA rodnem Thn nconIo
wouldn't vont urv roId us ,hcv
wonld make All their EXCHANGES with
tbo uoycrpm,ri n,nrr. nono, nc thry
now do and ho,r h,cn loino for oyor
n third of n rrntuy lut our for.
cion trodI How con,d br ooy.
ornmcnt c,rr .ri olonu without rollq
vnu tho uo,,.rn,n,n, i.., , nndor