Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1900-11-30
Which, Money or Bank Credits?

Which, Money or Bank Credits?
The controller of the currency re-
ports 1888 National banks organized
up to Oct. 80, 1900, in the seven
months since the new financial bill
went into opera ton. OF these II
were in Minnesota, 30 in Iowa, 10 in.
Wisconsin; s in North Dakota and 3
in South Dakota. The aggregate
capital of the new banks is $40, o2a GOO.
There were at that date $685. nation
al banks with an aggregate capital OF
$685., SOP, 395 with 1901, l32, $50 in bonds
to secure circulation, given at s29S-
S29, 1876. The 80 new banks in Iowa,
the controller reports have an aggrc-
gate capital of S3200G0. The entire
money or the country OF all descrlp-
tions is reported at Il little above So,
O0O, O0o, 600 the loans at $1,000 000,0e0
four times the amount of money in
the United States. Secretary Gage
says the business of the country is
done on bank credits, instead of mon
ey. What does this mean to the bus
mess of the country? 1t means that
Sc, 900 100000 of bank credits wind
is exchanged for a like sum of interest
bearing notes and obligatiors, we'll
secured and payable atspccitied times.
at per centinterest it means tax of
S4S0,000,000 year which the business
of the country gives in exchange for
these bank credits. Is it any wonder
that there are more than 10000 bust
ness failures in the United States an
nually? During the years when the
United States was issuing the money
and paying it out directly for the or
binary expenses of the government
the business failures were only 525 an
nually.
The contention of the banks for
sound money was simply an effort to
obtain the right to issue the, paper..
money Of thecountry ,sana4 TO perpetu-
ate its public debt. Both objects they
have attained and the money employ
ed in business enterprises, and for
payment of labor must be obtained
through the banks not a dollar of
which is lawful tender.
The annual expenditures of the |
government were $500, 100000. If the
COMMENT was issuing the money in
stead of turning this function of SOW
ereignty over to the banks, and pay
ing it out for supplies, for salaries and
for the various kinds of service rend-
cred the government, that amount
could be put in circulation direct
from the federal treasury. 1t need
not be based upon bonds for it's re-
demption but upon the sovereign
power of tho government to levy and
collect taxes. Such money instead Of
being promise to pay" would be a
"promise to receive" and its form
might be: "This note for one dollar is
lawful money for the payment of all
dues public and private"
The uses of money are a medium Of
exchange for such articles as one may
need and for the payment of debts in
cured in their procurement and fol
taxes due to the state or the nation,
Over $500, 100000 could be redeemed
annually in payment of taxes collect
ed for the federal government and a!
much more for local taxes county ant
state. This would enable the buSin
esS of the country to be conducted fol
cash instead of on bank credits, as Mr.
Gage says it now is done, and save t.
the industries and business of the
country, $3.50, 900, now paid to the
banks annually for the use of banl
credits-for wind.
The present iniquitious money sys
tenn that enables The banks to exploi
the people at their pleasure has th
sanction of Cleveland Of Don M. Dick
inson, of Villas, of Whitney, of Da
Lamont and of all the socalled demo
Gratis who have been voting the reput
lican ticket, for the past four year
and who are now anxious to reorgan
ize the democratic party upon thes
republican lines. The true democrat
ic theory is that the government is
sue all the money of the countr
whether gold, silver, copper or nicke
and that whatever it issues as none,
it receive as money, at it's face valu
in payment of all dues of the govern
ment. The money trust under col
troll of the bankers should be destro
ed by the government assuming tt
function confided to it exclusively /
the constitution. Money, transports
ton, intelligence, mail and telegrap
service, and public utilities should /
under government control. This
democratic and democrats should ste
forward in their advocacy.
The Tariff and its Friends.
George D. Roberts, director of I'll