Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1908-02-14
FOUNDED ON DEBT ALONE

u WV DAD
The three plans for me easing the
currency which are being m.ost con-
sidercd are, first the NmerIcan bankers
plan; second, the Aldrich plan; third.
the Cage plan Tue bankers plan is to
extend the present bond.sec:rrd cir
cuIHtiop; the Aldrich plan recommends
the issuance OF United States notes, in
times Of emergency, to National banks,
which us borrowers shall pl, dye APP
proved stocks and bonds ether than
United STATES bonds. Mr.. Gage Tex
Secretary Gngc) proposes that IN times
Of emergency the national mike may
borrow from the Government, United
States notes, but that the collateral
shall be cool commercial paper, nj
though the banks may be permitted to
secure not more than % per cent OF
their loan by satisfactory stocks and
bonds. We do not pretend in this
article to c~Giticise either plan, but
merely tu call nit ntion tC the fact that
neither plan cnnt"mplatcs my time
when behind the banks there will never
be any government bonI.. The present
law gives the bank % cents on every 81
III bonds deposited with IT, it gives it,
moreover, the interest on the govern
ment bond. The proposition nov is to
either extend this on more bonds, or to
get the notes from the U S. government
on such state or local securities us some
one, perhaps IL bank examiner, might
approve. Every one of the plans con-
template that the money must coms
from the national treasury, tina the
national banker shall borrow it at a low
percentage and loan it at a percentage,
two or three times ,s great and to keep
this going there Is no time III the future
when any national banking contem-
plates that the government can be ex-
tricated from debt. We are told that
when the immediate call Tor money shall
have passed, the bankers Will hasten to
return the none! To stop the interest.
That may he true, but we see no found
alton for that belief Tor with this money
on which the banks will be paying say
3 per cent how long before they will
seek to return it when they can loan
their depositors' money for from s to
T. per cent or send it to eastern cities to
loan on call fol from 10 To GO per cent
per day? But it IL not Of tnc dozen
featurco II this that We care to speak
today. Rather il ID the evident purpose
under il all 20 never permit the govern
ment to extricate itself from an interest
bearing debt. One chief reason why
the national banks fought the remone-
~tizatIoD Of silver so ~iiercely was the fear
that with it reU,onctiLed the government
would continue to call III it's bonds go
rapidly that it wonld soon be difficult
t" get them for national bank securities.
And rs soon as silver was finally killed,
when tie country was deplorably poor
we cav Il syndicate Of bankers, at the
head Of whom was the great J. Picrpont
Morgan, who ls now being pictured MS n
second savior Of the world, crowd daily
on the treasury Of the United States all
the grcohbarks they could gather up
aud demand gold Tor them. Wa all
KNOW that Secretary Carlisle could have
stopped the rush W an hour 10y tender
ng the coined dollars which lay III mil
lions III the treasury mud winch had
escaped tie warfare upon liver bullion,
but he did not please to do il, rather he
paid out the gold Tor the gu,cnbacks,
which was again iIj ont III guycT nmcUt
expenses and at once returned md more
goll demanded until the gold reserve
was reduced so luw that Mr.. Cleveland
and MIR. Carlisle were iOiccd to issue
800, 900 900 NOR bonds and these were
III turn cold !" tue eainc !. l.. Morgan
syndicate AZ % cents aud ~ sixty days
were worth sl.lS. IL il any wonder
that Mr.. Carlisle wW Immediately upon
the expiration 81 nis oil given II
plncc III New York which has enabled
him every ycni s,ucc Ia make more
money than lac had ~ hls neiivc state
during all the previous years Of his lie?
u al means that the purpose ~ that
when to improve ttr NJ ssiasirii river
at a coat OF $50 ,0DO coo the bonds Of
the government must hc issucd Dor the
anonnt 20 'hn, the people will have "a
pay twice toI the work, once 10 prn.
cirnl md nvnin ~ interest. II means the
-nmc method Ia build II nay,: The sumc
nc,hod ~ BENG rdrsucd to construc,
'hr Pan I'M cnnnl, AMI unf bcliof Is thu,
should iht Sc bond ,uu down too low
lose 'nuc p%ntr"tic rDnncicrs would
force Il var upon OIr country 10 90 q
ne" stock ISSUED. And eiiIl behind /,
all there ia nothing that my ~ the M
rrctenda Ia my security except tho
property and labor Oi the pcopIc ,c
whom they look &c meet all The PRINCIPAL
aud the interest. Cannot some brain in
tho country III limo n bnnk ing systcm
TINT does moi, depend upon the country
beng cTorlnstinely in debt Ia give il
cTistenccS-Goodwiu's Weekly.