The independent. [volume] (Lincoln, Neb.) 1902-1907, 1906-02-08
Plans to Prevent a Panic


Lincoln. ILL., Jan. 23-To the Editor of The
Independent: suggest the following plan to pre-
vent panic: If we must have a national (com-
modify base for money, why shall we in
sist that it be confined to gold alone? | would
suggest that We stop the coinage of gold
private accounts and issue full legal tender
treasury note in such volume and denominations
as may be demanded by the legitimate trade
and commerce of the United States" Let this
be the only paper currency recognized by law.
Make it a full legal tender for any and every
debt that may be contracted under the folds Of
the American flag. Make it "redeemabe on de-
mand' in any and every commodity produced in
the United States at it's market value, including
both gold and silver bullion
The clause touching redeemability could be
omitted to advantage, but for the ingrained SUI
perstition of some good people that money must
be redeemed in COIN to be of any value.
This, in my humble judgment will be alb.
solute perfection in money and make it impos-
sibe to gain wealth merely by swapping dollars.
John Sherman said that it required about $780,
100000 of new money to be put in circulation
each year to keep even pace with the increasing
business and population. (See speech on repeal
of BlandAllisOn act in 1900 Mr.. Sherman may
not be infallbe in his judgment on that ques-
ton, but we may clearly indicate the need of
more or less money by the average level of prices
on twenty to forty staple commodities produced
in the United States for period of, say thirty
or forty years This plan of regulating the
amount Of new money to be issued each month
or year, would be as responsive to the wants
of commerce, the steam engine is to it's gov
ernor. But if it be objected that government
paper would be unsafe CD without coin behind
it, would suggest plan No. as follows:
Stop the coinage of gold on private accounts
and require the secretary of the treasury to
buy each month not less than five, nor than
ten millions of dollars worth of bullion, gold
and silver, and coin it fast as purchased at
the present ratio OF 16 to Though preferably 1914
to y and to buy that which is the cheapest at
time of purchase, j. e, gold, at 81 and silver at
Is cents per ounce; gold at SIC and silver at
81 per ounce or gold at $40 and silver at $1.25
per ounce and continue thus to buy and mint
so long as either metal remained at below,
par, l. e., gold $2067 and silver at $129 per
ounce It may be objected that we cannot buy
gold at $12 per ounce when silver is Is cents
Let us see: I would buy 100000 ounces of
silver at a cost of 100000 / would coin this
into $12,929,292 Of full legal tender money, of
present weight and fineness. With this would
buy $4,000 ounces of gold at par; !. e. $20.67
per ounce or possibly less in competition with
silver. But $750000O is the cost of 625,000 ounces
of gold which is just $12 per ounce.
BY this method we may be able to add new
money to the circulation needed and will not
be compelled to depend the uncertain and
irregular output of our mines, nor to asset cur
rency based nothing but wind" / believe
this to be feasible, honest and practical plan
to supply the people with money either made OF
the metal ITSELF or paper money based all
commodities produced in the United States at
their market values, including both gold and
silver bullion. l respectfully solicit honest crit
icsm from any