The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1919-05-01

tHoh ZIG COioiiSS, lHulN luudily, lSSueu
treasury notes provisions for issuing
which were made by the Legislature
Of each colony respectively. AS a rule
the treasury notes we're regarded with
suspicion and accepted under protest.
However, when once introduced. they
proved more convenient than Goldfish
or wampum and we're continued by
the different colonies with varied sue
cess.
There was one very noted instance
which proved very much dieffrcnt
from all the others and a success from
its inception. The Colony of Penn
sylvania, at the suggestion of Benja-
min Franklin, issued its notes and
made them receivable for taxes and
all dues to the Colony and when 20
tired" Franklin Is entitled to credit
for having the clearest vision for a
democratic system of finance of any
statesman either in his time or since.
Every person interested at all in fin
ance or banking and currency should
study closely the history of that issue.
In 1928 the first issue of a few thous-
and was made as an experiment. In
1925 business had SO increased there
was a demand for more. The Colo
NAL Legislature authorized a further
issue. Again in 1928, many of the
notes having been cancelled and re-
tired by having been received for
taxes and dues to the Colony and,
also, there being a further increase
in the business of the Colony, a BIN
lature for an issue of 100000 more
of the notes.
About this same time d bill was In
troduced in the Parliament of Eng
land to prohibit any further issue of
these notes in the Colony. The Col
ony sen Ren. Franklin to England to
prevent the passage of this bill. Moth
ing in the life of Franklin shows the
ability and clear intellect of this man
more than his contention, s~ingle-hand-
ed and alone, with the Parliament of
England and coming off completely
victorious.
When Franklin made his protest
and asked that the bill do hot pass,
they told him, IF Pennsylvania on
tinues to issue such notes it will ruin
your country for it will drive gold out
of your Colony" Franklin answered,
IF driving gold o. of the country
would ruin it, it was ruined long be-
fore we issued any of these notes for
we had no gold" In his further ar
gument he said: Before issuing the
notes as | walked down the streets
eating my roll, | saw placards in the
windows For Rent For Sale and
the buildings ~unoccupied and in need
of repair, and laboring men on the
no work to be had. Whereas, now the
placards are gone from the windows,
the buildings are repaired and rented
and new one being built. The labor
ing men are now employed and the
people are happy"
Franklin was successful in prevent
ing the passage of the bill and the
notes continued to circulate for fifty
four years or until the Federation OF
the Colonies. Listen: Thos notes
were always worth 100 cents and were
redeemed at par. The reason for this
stable value is the fact that they were
made Receivable for taxes and all
dues to the Colony"
Our Federal Constitution makes
provision for a national currency in
the following terse language. Con
gress shall have power to coin money
and regulate the value thereof and Of
foreign coins" (Const. Art. /; Sec.
81. 1t also prohibits any of the states
from coming money or issuing cur
rency in language just as terse and
mandatory. mo state shall coin
money, emit bills of crtdit, or make
anything but gold and silver a tender
In payment of debt" (Const. Art.
1; Sec. 10.
It would seem that hat language
was plain enough that "The wayfar-
ing man, though a fool, need not err
therein" However, those plain pro-
vi6ions of the constitution have never
been complied with except in one in
stance (Which will be explained later)
and we will now see how easy it was
to set the constitution aside and Al
augurate the banking system.
Alexander Hamilton was made Sec
rotary of the treasury and his first
act was to recommend to congress
that they grant a charter to a United
States bank and authorize the states
to charter banks. and congress made
a law in line with his suggestion.
Under that law the U. S. bank and
each of the state banks could issue
bank notes at the rate of three dol
lars for one dollar deposited as. Sc
curity. The state banks were to have
their deposit for security for their cir
ctflation placed in the u. S. bank and
report to that bank periodically.
Those state bank notes were the
only currency this country had up to
the time of the civil war in 1861.
II NAV no d%ifRcult for the raader