The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-11-29

ing problems, are as old as com:
merce, and nearly as old as barter
The struggle of rthe redemption of
specie payments in 1873 brought
forth the very propositions for an
easy way out of our difficulties,
which had been advanced in Eng
land in 1916 and rejected by the
sound money men of that time under
Peel and Huskisson.
Again after resumption, and even
before, when Stanley Matthews I'M
dertook to establish a bi-metallic cur
rency, he used the same arguments
used by Pendleton and the Green
hackers in 1S6S-1S70.
We may expect this winter a flood
of bills in which fiatism will be con-
cealed by various devices, but all
resting finally on the assumption that
the government can create money out
of white paper.
One of the first to enter the arena
is Senator Bailey, of Texas, who
wants his relation to the Standard
Oil company forgotten, and who is
ready to regain popularity by assail-
ing the banks and suggesting a plan
for securing more paper money. Mr..
Bailey says:
MY plan for aiding the finances
of the country is to have every bank
or person holding a government bond
deposit the bond in the national
treasury when he wishes to get in
exchange government notes, the
bonds while they are in the treasury
to draw no interest. Thus we would
ri LOT in nH i'm
as our national debt
That was one of the favorite de-
vices of the Greenback era. 1t was
said to be automatic; one day a
bond, the next paper dollar; presto
change, g. bond again. When money
was abundant and no one wanted it
the government to take it and pay
interest at the rate of 3.65. or a cent
day for every hundred dollars, as
it would be easy to calculate.
Every man was to be his own bank
of issue-provided he had the bond
But, waving the objection to this
patent device for increasing and con-
trolling the currency, how is the cot
ton planter. the mill owner. the en-
ployer with a great pay roll, to get
these government bonds? They only
pay per cent interest, and cotton
planters want more for their money
when they have any to lend.
These bonds are out of the market
because they can now be used as Sc.
curity for national bank notes, and
are used as security for national
| bank notes. and are used for thai
purpose and to secure deposits. As
an economic measure this scheme was
advanced, examined and rejected {
generation ago; as relief measure
it is meaningless because the poo
men who need money most have M
! per cent bonds.
Another scheme is government
workshops, experimental with by thu
| French Socialists more than half
century ago and abandoned. At ;
meeting of the National Federation
of Labor at Norfolk resolutions wer
introduced calling upon congress, il
the event of an industrial crisis fol
| lowing the financial panic to fin
ways and means to ameliorate tn
crisis by issuing money with interes
to states, counties and cities for tn
purpose of building highways
schools, bridges and public utilities
provided, however, that such work b
done at union wages under the eigh
hour law The money proposed t
be loaned to be returned in easy in
stallments."
The money" is merely fiat money
the men so employed must be paid b
other men at work in the fields an
factories. You cannot coin
vacuum; you cannot create some
thing out of nothing; you cannot ge
more out of a reservoir than you pu
: in it; you cannot avert an industrial
crisis by an edict of government
only the men engaged in profitabl
labor can support men engaged in I'm
profitable labor.
The governments and l.
we are the government. If it is t
support you or employ you it is tn
man in the composing room, in tn
brick yard, in the corn field, VIII
pays the piper.-Louisville Post