The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-01-09

i
volume OF money was necessary before
prosperity could come to our cOaafry
we proposed the free coinage OF gold and
silver and the Issue Of all paper nancy
ny the National government a. the true
plan, and nominated for president an able.
Conservative, distinguished and patrietic
cillzcn or Nebraska.
The adherents of that platform were de
nounced As anarchists, repudlators aud
enemies of the government We were told
In that campaign that we had money
enough, all We needed was the gold stand
ara ana confidence. BY the use OF a,se
chnrges, corrupt methods and intimidation
o. labor, aided by democratic diSorgnniEa.
won.
Hardly had the smoke OF battle cleared
away before the gold standard advocates
went into ecstasy over the large discover
les Of gold Id tho Klondikc.
Next, they bad compton ut over the
vast output Of gold in South Africa and
hernlded 10 the world that these gald
delds with improved scientific methods in
mining gold. had solved the problem Of y
sufhcient volume Of primary money sud
settled tho cause OF silver what about
enoughy
In 1900 the republican party changed
'front.' on that proposition and In Its plat
FORM congratulated the country upon the
addition of more than three hundred init
lions TO our circulation
Thus my friends. whether were right
or wrong IN our remedy in 1895 We were
greater volume Of money while the gold
stnudard advocates were wrong both as
TO their remedy and their contention
When congress met. bllndlr suhservient
tn the money lords, II proceeded TO pa IS
bill 20 more firmly dx the gold standard
upon tho country
In doing So. incidentally II course. the
use Of silver as money Of ultimate ret2mp.
non was abandoned; all debts, public and
private, were made In eject payable in
gold; the legal tender notes became prac-
nn and lfsaNs e. vI1I
National debt was refunded aud a bonus,
In the way Of premiums on bonds and in
tercst charges, given bankers and bond
holders Of over two hundred nillion Of dol
lars, redemption division was created to
retire large part 81 our circulation. sill
Yer dollars and silver certificates were
made practically gold demands against the
government; a reduction OF over a million
dollars in the tax on circulation was pre-
scnted the National banks; small banks
were authorized in cities Of a certain Pop
were protected from competition hy for
bidding the organization Of small National
banks therein and the power TO issue
upon the bankers agent. known as the sec
rotary of the treasury
They then said everything was lovely
anu the country safe. and yet IT now seems
Ihe secretary Of the treasury tells MS
In his last annual report. Our financial
system is made for fair weather and not
he done
All, my friends. the greedy ewes of
syarice, with appetite whctted nv past
favors. and lively expectation Of fayors
to come, have become fixed upon The large
sums Of money IN the United states treas-
nry. minis and suhtreasurics
The banks now own about four hundred
and FIFTY million Of United States bonds
upou which they draw interest. and upon
which they issue notes 70 loan ~ int est
TO the extent of three hundred and thirty
IN hi al ..
and loan at interest; from time to time
tho government presents them gifts Of
some eight or ten million Of dollars In
the way of anticipated interest aud
premiums upon bonds issued ~ bar and
called in before due; they get interest on
bonds Interest their circulation based
on the bonds, interest on government dc.
posits. interest on private deposits, an,
ucipated interest and bond premiums and
Fct they now want us TO fence the earth
which they already own,
Their latest demands as voiced by their
representatives, the treasurer and comp
troller of the currency, are:
l. More stringent laws to fix the gold
standard and make silver redeemablo IN
>. The abolition Of the United states
suhtreasuries and the deposit of the sums
now held by them approxlmatinE four hun
dred million OF dollars IN favored banks.
rency.
Mr.. A, b. Stickney, president Of the
NtHHhGb NlthA W tSttln RAILWAY. before the
American Bankers association in October
last, made the principal address His
wants We're moderate
"A banking system, consisting OF con
trail bank In the chief commercial civ.
with branches In each Of the commercial
centers. constituting the head and back
nohe or tue system. The central bank to
De the bank OF the banks and the bank OF
the government. The subtreasuries 10 be
abolished and the central bank to hold the
g3ld reserves Of all the other banks and
OF tue nation. The reserves Of tho other
/ banks to consist of credits on tho ledger or
the central bank Sub-systemS IL be
formed with heads in commercial centers
and branches over The country An evIst
Ing laws restricting the business Of swan
ping credits and combining bank to one
locality to he repealed "
should congress grant these concessions
suppose II might do for . beginning
me comptroller of the currency, MIR.
kidGley, shortly after his appointment. on
pressed himself as fayorng 'abolishing the
funds in banks; the retirement Of green.
backs, and the establishment of n t7nited
states bank, similar to the Bank of Eng.
h iamu, s'ntlhg that he got his views from
| heredlty' his grandfather having been an
9thter in the United States bank. which
jackson broke up.
Mr. Gage comes to, the front in his last
annual report and admits the present sys.
rem 10 be defective. good only in fair
weather The mdical evil which ho cnIls
attention to is that banks in time OF stress
!
! hiring on financial crisis. lie calls atten,
! ton To the fact that In Isa3' when the
| hanks forced haudatlon by theli, debtors
| or over SI0D0O0,pG. n cir actual cash In
| vaults increased S50.OOOOO0
Now as to his remedy. Clearly he -lets
| II appear that he shares the views 81 Ny
Stickney and Mr.. Rldgiey. for strong
central bank with branches backed Ly IN,
! government. He doubts the Willingness ot
| the people to 20 that far so he contents
himself with suggesting reciprocal relation.
! among the banks pholishinc the Sub.treas
uries. deposltlnG their contents with hank,
and giving them the privilege Of lssninf
asset currency.
! viii quote literally the startling nrono
sltlon ~ Mr.. Gage relative to asset cur
rency
He recommends that any National hank
ing association which shall deposit RI ne
cent Of lis capital in the form ~ T-ntfet
states bonds nj their par value, and 20 no,
cent Of it's capital in United States Lego
tender notes. with the treasurer Of IN,
United states. as Securty therefor sinai
he entitled to issue itS circulating notes I,
an amount eanal 70 It's paid IN and uni,n
paired capital.
Ills nlan provides for the payment semi
annually N tho treasurer Of the Unite,
states ~ one eighth ~ per cent or csn
itnl stock as. n "a~srautee fund fer th,
! notes ~ insolvcnt banks,
10 illustrate; under his plan Eve citizen
! ~ Nebraska having only S50o{0 dosirnu
I ~ AMI 4.