Freeland tribune. (Freeland, Pa.) 1888-1921, 1900-02-19
MR.. BRYAN ON PAPER.
NATIONAL BANKERS CON-
SPIRACY LAID BARE.
The Gold Standard Enables Them to
Retain Their Issue of National Cur
rency" - Shall Government or Bank
Directors Issue Our Money?

desire to make gold the only legal ten
der for the payment of debts, public
and private. have discussed this
question on former occasions and
pointed out that the necessary effect
OF such law would be to create
greater demand for gold, which would
then be the only money legally avail
able for the payment of debts, and
thus aid the money-owning class and
injure the wealth-producing class.
The second purpose of the advocates
Of the gold standard is to make bank
notes the only credit money.
In response to your invitation l beg
to submit few arguments in support
of the greenback as against the bank
note. The greenback is issued by the
government, 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 legal tender.
When a man has greenbacks in his
pocket he has money which is avail
able for the payment of his debts; If
he has bank notes, his money is only
good when the creditor is willing to
accept the money.
During the war, when gold and sill
yer were at a 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 cheapest money! was
used by the banks for the redemption
of bank notes. 1t is interesting now
to hear these same bankers, who re-
deemed bank notes in paper when gold
and silver were at a premium of over
100 per cent, talk about the dishonesty
of a debtor, whether the debtor be an
individual or the government. who
would redeem his obligations in any
thing but the dearest money.
The bank note has been good be-
cause it had behind it the bonds and
the greenbacks issued by the govern
ment. If 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 objec-
tionable because it is gross favoritism
extended to few. A bill reported by
the house committee on coinage,
weights and measures in the last con-
gress 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 author
ity to issue gold bonds, drawing not
more than 3 per cent, to secure the
gold to maintain gold redemption;
third, that national banks be allowed
to deposit bonds and receive bank
notes up to the par value of the bonds
SO deposited 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 be stated as
follows: The greenbacks are to be re-
tired and bonds issued. This will mean
an increase in taxes to pay the inter-
est upon the bonds. The individual
who enjoys no special privileges will
find his taxes increased, while the ma
tional bank, that enjoys special privi
leges, will find its tax diminished. Sec
ond-If the individual buys bond at
par, he will lose the use of his money
and must content himself with the
3 per cent interest. If a national
bank invests it's capital in bonds at
par 1t can deposit the bonds and secure
bank notes to the face value of the
bonds, thus securing return of its
investment and in addition to that it
can draw 3 per cent interest upon
the bonds. In other words, the indi-
vidual parts with his money and draws
interest while the national bank gets
its money back and draws interest be-
sides. The individual must eat his cake
or keep it. The national bank both
eats its cake and keeps it. This is ia
voritism that ought not to be tolerated
in a government which recognizes the
doctrine of equality before the law.
The moment the government begins
to confer special privileges, those in a
position to profit by favoritism begin
to clamor for legislation Immediately
in their interest, and as a result the
iHslr ulneHldlllleS OF government are
used for private gain and the true pur-
pose of government forgotten.
There Is another objection to ma
tional bank currency, namely: That
the national banks are given control
over the volume of credit money.
Power to issue money should never be
entrusted to private individuals or
private corporations. Jefferson 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 a maniac by
those bankers who desired to secure
this privilege 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 overthrow
ing the conspiracy of Cataline