Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-24
Are Not Currency.


ing to give the masses of the people the
opportunity of holding government Sc
curities.
Are Not Currency.
To-day, as 1 have said. we have $780,
900, 900 in the banks, and therefore, by
any fair Inference or construction of the
statute, the sale of these certificates Is
unlawful.
again, am not aware of any statute
by which they can be construed to be
lawful basis for hank note circulation.
However this may be, the most unfor-
tunate incident. to my mind, is the fact
that they are to be printed in the size
of our present bank bills and coin GER
Enthusiastically with the intent and
purpose that they would circulate as
currency. OF course. it is clear that mas
much as they were to draw interest and
be sold to the people in the form of a
popular loan, it was never contemplated
to deliver to the buyer a little certlnclte
the size of a dollar till. 1t was to be an
investment drawing interest, and. there
fore, in the nature of bond and not a
piece of currency. If it were not for tne
interest clause, which may and probabiy
will bring about their return that the
holder may collect the interest, we should
have forced into our circulation $780,
600, COO of pure fat, or greenback. cur
rency and, as 1t is, having been printed
in the form of bank bills and not In tn:
form of bond, will not this be the actual
effect upon the country until teey are re-
tired?
Fighting Fiat Money.
"It Is stated that the government will
not tolerate them as reserve in national
banks; but the fact that the question has
arisen shows the danger of its issuance
in this form. Although national bank
may not be permitted to hold them, will
not state bank or trust company seek
them anxiously and earnestly. and hold
them as a part of their reserves in order
that they may be earning per cent in
terest on their reserves instead of moth
ing, as would be the case If they should
hold gold, which Is the only true and
proper reserve for the bank to hold?
Now, it is perfectly clear that in the
event that this is done to the extent that
1t is done-just that much gold must be
driven out Of the reserves and out of the
country.
1.-The thoughtful and patriotic men OF
the country have been fighting f1atisn
certainly ever since the civil war. Gen
Grant had the good sense and courage tc
veto a greenback bill when the sentiment
of the country seemed to be for it, an6
SO did President Hayes, although 1t was
| the policy expressed by Congress.
"We went through the tragedy of a sill
| yer craze and fought the battle Of the
standards, little thinking that so soon we
| would again be confronted with this same
madness in another but slightly modified
form. Fortunately, the American people
| the wage earners who wanted an hones
| dollar, and those who did not want theil
property taken away by legislation, car
well and wildly remember 1899.
| 1.-The present experience Is Only an.
| other startling instance that ought tt
warn US to convert our present green
| backs into gold certificates and teach tn.
| present generation, and all who comt
after us, that there can be but one homes
reserve, and that in our country is golt
coin, because gold Is our standard O
value, and therefore gold is its own re-
| d~emer"