The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-09-01

country. In both of these contentious
they were right. but, unfortunately,
they have not heretofore generally
recognized the fact that everything ac-
tually used as medium Of exchange"
is-and must be recognized as-mon-
ey; and this failure has enabled their
opponents to befog and mislead the
masses.
These opponents have rung the
changes long and loud on rag money
"fifty-cent dollar" etc, and still as
sert that they alone are in favor OF
sound money" honest money" etc.,
while the fact is that their system
compels the people to depend upon the
most unsound and dishonest money
with which any country was ever
cursed THE Hocus Pocus Money.
Book" (p. SD shows that, under this
system-for which the republican and
democratic parties are alike response
BILE, and which both are pledged 10
support-the aggregate per capita vol
ume Of money in circulation last year
was S103e3; but of this $73.42 was
hocus pocus money, leaving only $3O.21
Of real money. During the preceding
seven years, real money-the kind that
circulates among the people-increased
| only $3.50; but hocus pOcus money
which only bank patrons can use-in-
creased S40.37-or five times as much.
! Without going into any argument.
it is sufficient to say that the gold
standard system land the bimetalic
! system alsO) necessitates the use of
hocus DOcus money In more than
three-fourth Of our business transac-
] tiOns-which is the reason why all
bankers favor metallic standard; and
| submit that the political parties that
sustain that system can rightly be
called "hocus pOcus money parties"
This describes them more correctly
than soft money party" rag money
party" which they so delight to use,
does us. Will it not be well to rub
| it into them?
The most appropriate monetary des-
| ignation of the peoples party is/"the
real money party" or the honest
money party" The constitution COM
mands congress to regulate the value
of money" and to do this the guam
titative theory, and the law of supply
and demand. make it absolutely nee
essary that it shall be able to fix the
aggregate quantity Of money available
fer use from time to time, without any
outside interference whatever.
AS the expansion and contraction of
hocus pocus money has exactly the
same effect On business, prices and
values that contracting and expanding
real money has, it is self-evident that
congress must have power to "regu-
late all kinds if it has to regulate
any kind. and the only way to so
regulate hocus pocus money as to
prevent its affecting the value of real
money is to suppress it altogether 1t
is absurd to talk about congress "regu-
lating" the value of money SO long as
$4,000 banking institutions are per-
mitted to daily expand and contract
the kind of money with which three
fourths of the business of the country
: is transacted.
In view OF the change for the worse
in financial affairs that has long been
going on, and the general fear of a
monetary crisis or long period of in
! creaslng business depression, ii should
bt huuCu lCic thdts SlttC tue duOULiDn
OF the federal constitution. there has
: never been sufficient increase in the
quantity OF real money backed by the
general government TO materially in-
fate prices. but there have been many
periods when the quantity of hocus
pocus money used by bankers has been
Q increased sufficiently TO materially
r raise priees-and to make that rise an
. excuse for bowling against an alleged
Imitation" Of real money. and 20 de-
mand lts contraction.
Nor Is this all--nor even the most
important fact in this connection fol
a Il Is also true that every commercial
: panic ever known has been caused en-.
n tlrely by q contraction Of the volume
! OF hocus pocus money. all OF which
|. Is short-liyed Indeed. II can truth.
: fully be said that all OF the eyill
a charged against cheap money, In thii
il country have been due entirely to IN,
y use of hocus pocus money as a sub
/. st,Snte for real money.
MI will not argue these points at thi
q time but. In view ot the threateninl