Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-22
Music Cabinet Free With All Pianos Until December "a.
$500 (the price of Mr.. 'Bryan's presence)
to pay for a balloon ascension.
Use Of Emergency Money.

While was at Marquette, Mich, last
summer found in the state penitentiary
system of currency which is very much
the same as the clearing house certificates
that were recently introduced to relieve
the money panic. Every prisoner is able
to earn a little money in the shops by
close attention to hi: work and by work.
ing overtime, and his earnings are
credited to him upon the books of the
disbursing officer. He Is allowed to spend
the money as he pleases. He can send
1t to his family or use 1t to purchase
luxuries and necessaries that are not
provided by the prison regulations. The
cells of men who have been condemned
for life are decorated and furnished with
comforts in that way. One life prisoner
has monograph; others have musical
instruments and various other things to
make their prison experience less mo-
notonous.
When prisoner has credit on the books
he is given printed scrip in denominations
of 10 cents and multiplies as hi"h as ST.
which is legal tender at the prison store
and in transactions between the prisoners
1t fulfills every function Of money inside
the institution, but is absolutely worth
less outside and the warden would not re-
deem bill if 1t were brought to him by
an outsider for obvious reasons. About
81. 800 of this currency is now outstanding,
which is 6 per cent per capita of the
prisoners.
During the panic of 1857 the mining
companies on Lake Superior issued cur
rency which was in circulation until 1874
when the government at Washington sent
an agent of the internal revenue bureau
up there to make an Investigation and re-
port He brought back a statement that
more than $1O0.OOOOOO of this scrip had
been issued by the mining companies dur
ing the seventeen years. and the commits
sioner OF internal revenue assessed and
attempted to collect a retroactive tax of
10 per cent on that amount. The mining
companies refused to pay it and the At
torney General was instructed to bring
suit to recover $10OOO.O0O from them.
Peter White. the first citizen of the Lake
| Superior country. and the oldest fnhabi-
| tant came down to Washington. and with
| the aid of Senator Chandler of Michigan
persuaded Congress to pass an act re-
| lieving the mining companies from this
| tax.
William J. Gordon of Cleveland was the
| inventor Of this Iron money" as 1t was
called. He designed the bills. which were
neatly engraved and printed in small de-
nominations and were signed by the presi-
dents and treasurers of the different min
| ing companies. which used them to pay
their employees. The banks in that part
of the country accepted it as readily as
greenbacks When they had accumu-
lated several thousand dollars they sorted
out the notes according to the companies
which had issued them and presented
them for payment. They usually received
a ninety-day draft with interest, which
was forwarded to Cleveland or wherever
the headquarters of the company happen
ed to be.
This iron money helped to relieve sit
nation which otherwise would have
paralyzed the mining industry on Lake
Superior The issues ceased in 1872.
when there was no longer any necessity
for Them but the scrip remained in cir
culation until it's use was forbidden by the
federal government. But for that inter-
vention come of it might be in circulation
vet. Samples have been and now hang
upon the walls of the offices Of several
mining companies and banks. l was told
that the profit from the loss or destruction
OF iron money was very small because its
circulation was confined to the shore south
of Lake Superior and was very active.