Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1912-03-22
McLAURIN ON MONEY.
Marlboro Statesman Discusses Inter-
esting Subject.

Marlboro Statesman Discusses Inter.
estins Subject.
Former Senator John L. McLaurin,
who has taken large interest in the
state cotton warehouse plan, says the
Columbia State, has written an inter-
esting letter to Harry D. Calhoun,
president Of the Home bank Of Barn.
we'll, who wrote Mr.. McLaurin, suggest
ing, among other things, that the new
national currency and banking law
should enable the government to lend
money, at stated interest, to all banks
to the amount of their surplus, but not
to exceed their capital. All the south
needs, said Mr.. Calhoun, is capital to
properly utilize It's natural resources
and advantages. Mr.. McLaurin's reply
follows:
Mr.. McLaurin's Letter.
Bennettsville, March IA, 1912.
Harry D. Calhoun, Barnwell.
My Dear Sir: Yours Of the 18th inst,
and contents noted. I thought possi-
bly, you had seen a public letter in
which 1 stated my opposition to the
Aldrich bill.
believe that money should be is
sued by the government as nearly d.
rect to the people as possible. 1t be-
longs to the people; 1t Is made by their
agent, the government, whose fiat i'm
parts legal tender, without which 1t Is
not money. If you would solve the
problem Of the predatory rich," un-
derpaid labor and depressed agricul-
tural products, study the subtle pro-
cess involving in the making, Issuing
and control of money. The true eco
nomic function Of money Is as a meas
ure of value in exchanging the fruits
of labor. It's actual function under
our present system is in fixing, not
measuring, value. We are on the sin
gle g5id standard, and theoretically
every paper and silver dollar Is re-
deemable in gold. If this be true,
then IL the volume Of gold does not In
crease as fast as the products Of the
country increase prices decline; per
contra, If the volume of gold increases
more rapidly than the products, then
prices advance In the first case we
have with advancing prices a wave of
prosperity, in the second case we have
with falling prices wave Of depres-
sion, resulting sometimes, as In 1907,
in a panic. The scarcity Of gold In the
eighties caused us to cry out for BIZ
metalism. The discovery Of gold in the
Klondike and the perfection Of many
chemical and mechanical improve
ments gave us the advancing prices
and prosperity that reached its height
in 1901; then the tide turned and busi-
ness so far outstripped gold production
that it took the panic Of 1907 to restore
the equilibrium. Those who demone-
tized silver have given us sound
money" and a currency system so in
flexible that our prosperity depends
not upon how much we make but upon
the amount of gold that the mines of
the country yield.
The Aldrich bill Is certainly an ef-
fort to impart elasticity to our system,
and is a recognition of the fact that
fiat money is the real money that is
carrying on the commerce and main
tanning the civilization of the world.
To that extent l favor the bill. The
theory that nothing but gold is money
is relic Of barbarism under which
it will not be possible much longer to
hold productive labor in bondage.
The fundamental objection to the
Aldrich bill is the abdication by the
government of its sovereign power to
issue money, and the ceding of all OF
it's fiscal powers to a private corpora
ton in no sense responsible to the
people. l believe that it would mean
the total subversion of popular gov
ernment. They call this corporation
"the National Reserve association" but
1t Is actually huge central bank, the
very thought Of which would make
"Old Hickory" turn over in his grave.
taxes as paid are turned over to this
central bank. The 2 per cent circula-
ton bonds are retired, and instead OF
the present national bank notes, this
central bank issues it's own notes, and
let them out on approved collateral to
banks who are members Of this Ma
tional Reserve association. You are
mistaken as to state banks not being
allowed to participate. They are on
the same footing as national banks.
There Is no use expressing myself on
what / think should be done. Nobody
cares what think. 1t is to some pur-
pose, however, to forecast what is go
ing to happen and take advantage OF
it. In some form bill from the mon
etary commission will become a law.
1t is likely many features Of the AL
drich bill are to be retained, and there
are some excellent ideas i'm 1t, q more
flexible currency system and more and
more of the business Of the world done
on paper 1t Is evident, too, that the
section whose assets are represented by
bonds and stocks are determined that
they shall be used as the basis of our
future currency system.
Why Not?
When you reflect what a United
States Steel or railroad bond really
represents, l would like to know why
a collateral representing 50 many
pounds Of cotton is not as good as one
representing so many pounds of steel
rails. What better basis for a curren-