New-York tribune., 1922-02-05

The theory is that the government il.
sell could issue money without the in
terventiOn of fiscal agents basing it on
the faith and credit of the nation and
limited only by the taxable values of
the land. This, it claims, is the real
basis Of money, whatever it's nature But
control of the volume of money in cir
culation has since the organization OF
the United States Bank in 1916 (thc
bank fought by President Jackson;
been delegated to fiscal agents who
have administered the toast for their
private profit"
French Tried Scheme
The French government tried this
scheme in the days of the Revolution.
Almost every one knows what hap
pened to the "assignates" thus issued
Those who don't, can form a good idea
by looking at the Russian ruble to day.
And the French government of that
day, having ''conhscated the choice
lands of the mobiles, had better .nand
security" behind the "assignats" than
any government has since had or viii
have
Andhow should government tissue"
money-to whom and for what? By
what process would it put it into Cir
culation?"
How would some one who did not d.
rectly work for the government get
some of this money into his hands?
Is there to be periodical free dis
trbution?"
HAS no attempt been made to remedy
this situation? Yes. The national
bank act of the Civil War period was
intended to supply a legal tender cur
Df c,,f@sr,orf I:r
tributed as to supply local needs. Ma
tional banks were encouraged. They
were given the right to issue money"
based on the deposit Of government
bonds. Other banks of issue we're
driven out of business by the levy of d
prohibitive tax of 10 per cent on their
circulation, leaving the national banks
a monopoly in this field
illegal Tender''
The national bank act was not in
tended to supply a illegal tender cur
rency." The proof of this is that the
baAknotes issued under this act were
not and are not legal tender" money.
with what result? The volume of
money in circulation was restricted to
the limit necessary to maintain high
interest rates. Few. if any, banks ap-
preached the limit of their authorized
circulation, eXcusing their delinquency
by claiming the demand did not war
rant it,
The fact is that interest rates were
not ''high." In the middle and late
and in the civilized world generally fell
to lower level than ever before re-
corded in history-and this after the
Recommendation" Of silver
What kind Of history is this man
writing?
Glow about the Federal Reserve sys-
tenn? The Federal Reserve system is
modification of the plan presented by
Senator Aldrich for a Federal reserve
association in which the money issu-
ing power was to be centralized in one
great bank owned and operated by the
money trust This plan was evolved
by an international banking house in
Wall Street. The Federal Reserve sys-
TEN established regional banks, broad
ening the power of issue to include, in
addition to government bonds, other
public and commercial obligations as Il
base. 1t is capitalized by national and
state banks each of which could de-
mand sufficient volume Of notes made
4 legal tender by the government. for
local needs on deposit of approved sc-
curities."
Neither Federal Reserve notes nor
Federal Reserve Bank notes are legal
tender" currency!
'But the mandatory provisions Of
the law were nullified by the Federal
Reserve Board by the exaction of pro-
hibltive rediscount rates. Not only was
this restriction effected, but an arbi-
trary retirement of notes issued was
decided on, and it is due to this that
there is money shortage to-day
Discount Rates L0wcr
SO completely was the act "nullifcd"
by the exaction of "prohibitive redis-
count rates" that there were put into
circulation in five years something
over $50 per capita in Federal Reserve