The Birmingham age-herald., 1913-11-09

The farmers demanded government
money, $50 per capita OF population to
be the limit Of the issue. The material
must be gold and silver coin at the
ratio of sixteen ounces of silver to
notes, known as Rreenbacks, issued di-
rect from the government
The coincident financial policy of tho
farmers included The total extinction of
the national bank OF issue 30 that the
wisdom of the government, while fix
ing the burden OF taxation and dis
bursting the tax receipts at discretion,
should also fix the material in which
taxes were to be paid and determine
the volume of currency to be put in cir
culation, best calculated to promote the
energies of the people by which the
government must be supported and on
which its character and stability de-
pended.
The counter monetary theory was the
maintenance of national banks of issue,
private corporations set up by indi-
viduals for purpose of individual profit.
The legally organized "banle of is
sue" was under no legal obligation
to issue its notes. to pass as currency.
The charter conveyed the right to is
sue such notes but the question of
advantage to the bank controlled. Tho
business proper of the bank was in the
field OF deposit and discount. IL the
directory believed a greater volume of
currency could be- loaned with profit
than was brought IN by depositors. then
at.1 At,1x, Il har, a
the full prerogative of it's charter and
manufacture and lend its own notes.
The farmers argued that the substi-
tuition of bank note currency for a
government currency was tantamount
TO double tax on the body OF pro-
ducers. In this view the entire class
of wage earners concurred. All the
several organizations of farmers and
wage earners united in opposition to
the policy of substituting bank cur
rency for government currency.
Under the law there could be no bank
of issue and no bank currency except
that founded on the interest bearing
bonded debt OF the government at
Washington. Who must pay interest on
that debt? The producing part of the
population, of course. When the bank
issued its notes and paid them out In
January in loans to individuals, to Ia
poT employing coTpOrdtiOHs, 10 Uunic-
ipaifties. to railroads, to state gov
ernments, who must pay the interest
on the bank notes? Certainly there was
no payee in the premises except the
producers who had just paid the De-
cember interest on the government
bonds on which the bank currency rest.
ed. The double interest payment was
palpable.
The Individual or the company OF
persons with 100000 in the notes OF
the First National bank of Bingville
could go to the treasury at Washing
ton and exchange them for 100000 in
interest bearing government bonds,
face value.
tain, practically for the asking, a char
ter for the Springfield First National
bank. If the Springfield First National
desired to issue a currency of its own
the simple requirement of the law
would be fulfilled by depositing. say
100000 Of bonds with the treasurer
OF the United States. Currency of the
First National of Springfield would
then be put in circulation as money
equal to the best in the realm, to the
limit of $4,000.
The Springfield National would draw
the interest semi-annually on the non
taxable government bonds. kept in the
fireproof vaults at Washington with
out expense to the owner. and would
draw interest and discount charges OF
the currency issued on the bonds as
fast as the borrowers might pay. The
bonds would be on deposit only, the
little remaining in the depositor S
bank.
The farmers and wage earners OBJ
tected to the institution known as the