Year: 1878




He is thoroughly honest man, always think.
ing for himself and always with the courage of
MS convictions; brave man, always ready to
defend his opinions, and he intends that they
shall always ba right; but he has the green
back rabies badly. just after reading their
platform met him one day and said:


see, Mr.. Blank, that in your platform you
say that all money should be paper made by
the government, not redeemable, ard issued
directly to the people. How can that be? do
not understand the process.


Well, we mean that the government shall
pay out the money directly to the people, for
all government Indebtedness of whatever kind
and in that way it will come into circulation
among the people.


But in that way very little of this so-cal,ed
money could possibly enter into general circu.
lation, because the government requires to be-
constantly supplied with an amount of money
equal to its wants The money paid out by
the government on account of its indebtedness
must go back again into the treasury imme-
diately in the shape of duties and taxes, so that
the enormous needs of the manufacturing.
commercial and business community could not
be supplied in that way.


But how is the business community supplied
with money now?


Through the banks largely and mostly. Sur
plus money of many people is invested in
banks, and this finds its way into the thousand
channels of business in exchange for business
notes. bills of exchange, drafts, and secur-
ity of bills of lading, and in other ways. And
great deal of money finds its way into circu.
iation on security of mortgages of real and per.
sonal property.


Very well, let the same thing be done BY the
government.


Then it is a part of your system that govern.
ment shall perform all the functions of banks
Of deposit, loan and discount?


Yes, that's what we mean. The large protits
on this business should go into the national
treasury and not into the pockets of these
bloated bond holders and bankers, who live by
shaving the people.


But the profits of the banks are only wages
they receive in exchange for the most impor-
tant work they do; it is wages for their work,
just as your weekly pay is wages for your work.
The question whether the banks are paid too
highly, is quite different matter and NAV
fairly be discussed upon its merits; and very
likely their wages may we'll be cut down like
those OF other workers. But then their place
in the business Of the country is very impor-
tant; without them, commercial affairs could
q hot pe carried on, except by the richest men;
oy those whose fortunes are already made.


w nat! not IL the government should SIZE % in
to their place and perform precisely the same
services to the business world that the banks
now do?


Then understand that you are quite in ear
Iest in proposing that government shall come
In and stand in the relation to the business
lending your so-called money to the people
on notes, drafts. and other securities of what.
ever sort?


Yes, that is our plan, and why not?
one oo]ectlon to it, as it seems to me, is that
1t would put the business and business men of
the country into the hands of the government,
to be dealt with according to its notions of ex.
pedlency or ambitious views and personal inter-
ess of its members.


But then the banks have this power now; if
1t IS dangerous power, why should they have
it?


The government, to which your plan would
entrust this power, is controlled by a single
Will, at most by that of very few men, the
ch,efs OF the government; and the will-the
policy OF the government could be enforced up-
on the business of the whole country. But the
banks are isolated establishments, each one do
ing business in its own way, with reference to
the interests of its own stockholders. The in
terests OF the banks are identical with those of
the business community, with no private or
personal interests to be promoted, except per-
haps Oh small scale, and IN exceptional cases.
:! have known cases where the acts and votes of
oank customers have been largely influenced
and sometimes controlled By unscrupuleus
bank officers for personal and private ends.
Ambitious partisans in the management of
great banks have great power which they may
exert for purposes. l have known some
shameful cases of this sort. This power is in
separable from the control of great capital; but
as the matter now stands the mischief of it |
will be, must be, e,confined to isolated cases and
few localities, but your plan proposes to put |
the entire business OF the country under the |
control of a single will. |


But we want to save to the government the |
enormous profit now going to bank stOckhold- |
ers In the shape of dividends, thus reducing |
taxation by SO much.


These profits may be too large, I say nothing
are only pay for services rendered; |
TOO high pay, possibly, but then mere |
wages like those of any other work. |
ing man or like the profits on manufacturing |
This work, as WORK, must be performed by some.
body; at present, bank directors, themselves |
perform this enormous amount of |
work and assume this great responsibility with |
out pay. If your plan should be adopted, there |
must be created at once, an immense number
Ct office holders in addition to the great army of |





and influential places would bs scrambled |
for as other offices are struggled for |
now and they would be highly paid. |
These places like other offices would |
be prizes with which to reward partsans /
for party services, and thus the entire business
interests OF the country would be at the mercy
Of such men. You propose that 1,6OO,O00,00
Of greenbacks shall be issued at once to the |
people, and that they shall not bear on their
lace any promise to pay; it is expressly under
stood that they are never to be paid You say
they will be good for their face, because the
credit of the country is good. But it is not |
matter of credit at all, because the government
8 in no way to be responsible for them. IL
1oes not matter whether the sgner of note be
In good or bad credit if the note does not con-
Jain promise to pay. You say these green
backs will be good because they are to be re-
,eived by government for all dues. If the
quantity were no greater than would be re-
luired for this purpose it might be so, but their
value would run down precisely as the quantity
'hall exceed that amount This greenback
cheme has been tried many times always with |
he same result, a failure, sometimes disas-
rous failure, and it is not possible in the ma.
ure of things that there can be any other ont
'ome to this experiment of yours. IL seems to
ne to be great folly that men utterly Ignorant
# all matters of finance, however honest
hey may be, should assume to control the
inancial affairs of great people, Intimately |
connected as those affairs are with the business
interests OF the entire nation aud with those of
he world. N ID.