Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1907-01-30

NC nave Dc1Olo 10, ulidCi Soh-
gresham Fowler's frank, report
made by him from the Committee
on Banking and Currency in favor
of credit currency.
Mr.. Fowler and a majority Of his
committee are republicans, and they
make an ingenious argument in fav-
or Of a still greater expansion Of the
money of the country. Just think
what changes the past ten years
have wrought? In 1896 the repub-
lican leaders and the Cleveland de-
mocrats were scarce money men.
They wanted gold and gold alone
for a circ ulating medium.
And at that time the real democrats,
under the leadership of William j.
Bryan, were pleading in the name
of humanity and ruined industries
for more money, for a larger circu-
lating medium.
Money is the likelihood Of business,
and when of sufficient volume to
mike all necessary exchanges the
body polite expands with healthy
growth. But when the volume is
insufficient, and when the trend is
in the direction Of still further con-
traction, business depression, panics
and financial disasters are certain
results.
That being true, the power to de-
termine what shall be nsed as mon
ey is one of the most important al
tributes of government, an attribute
which cannot be safely delegated in
any manner, for the following rea-
sons:
j. Because money is a measure
of values, and the lower to change
its volume carries with it the power
to change the measure. Should con-
gress delegate to the banks the pow
er to increase or diminish the coun-
try's circulating medium, they might
double our present per capita and
make it $66 instead of S33. In
that event the purchasing power Of
dollar would be reduced one half.
1t would then take two dollars to 90
as far as one dollar does at the pres
ent time. Such an increase would
work hardship on the creditor
class, especially if the change was
brought about suddenly, but il
would not create such ar-reachine
disaster as a decided shrinkage in
the volume Of circulating medium.
If the supposed increase was to be
"a permanent, business interests woulc
soon adjust themselves toithe chang
ed standard, but not otherwise.
2. Should the country's money
standard be made subject to the
wish or whim Of a syndicate of big
bankers, it would create baneful
uncertainty. 1t would place too
much power in the hands of a spe-
cial class. If our per capita Of cir
culating medium should be reduced
from $33 what it is at present, tc
S2l, what it was ten years ago, we
would have return of the financial
conditions Of ten years ago.
3. There is but one legitimate
source from which this country can
draw its circulating medium. and
that source is the power conferred
upon congress by the constitution
This power gives congress the right
not alone to coin ordinary money
metals, but also to make a paper
currency and clothe it with debt
paying attributes Let congress dc
its duty, and private credit will dc
the rest.
Under the proposed law the ma
tional banks might not be able a
any one time, to increase or decreas,
the country's money supply NOR,
than 10 per cent, but even such ;
change as that could be so manipula
ted so as to work all kinds of injustice
A ten per cent shrinkage in the eli
culating medium would add 10 pc
cent. to every promissory note q
other promise to pay money.
Money is one thing, and credit
quite different thing.
Money is legal tender for til
payment of debts under the laws q
The country where it circulatet
ofeult constitutes the basis of 80 pc
cent. of our business transaction.
and will take care of itself if the 90,
eminent furnishes enough money
transact the other 10 per cent.
Credits in the form of check,
drafts and certificates of deposi
circulate freely and perform in ever
stage the Office Of money. They nee
no government Endorsement, and til
government should not lend its cree
it to such paper.
1t is quite probable that the den
ocratic members of congress will OF