. VOLUME 3", NUMBER aj,
nation "which yourVr system makes between the
banker and tho rest of tho people, and you ara
asked to explain why tho administration should
always yearn .for tho financier and, yet bo indif
ferent to the manner in which the financier treats
his customer. ,
SixthHave you evor read Jefferson's opinion
of a bank currenqy? Ho declared that banks of
issue were moro dangerous than standing armies.
He pointed out that their power to contract and
expand tho currency enabled them to increase or
decroaso prices at will, j When you know the spec
ulative tendency of the dayand tho embezzle
ments .which appear after every marked fall in
stocks always reveals this how can you doubt
that this power to change tho volumo of currency
and thus affect prices will bo seized upon by
those who stand at the head of tho banking in
terests? If-you say that the law can reduce to
narrow limits the power of tho banks, to expand
or contract tho currency, does that not destroy
the flexibility that thoso prate, about who want a
rubber currency? How can you have flexibility
without vesting somewhere tho power to contract
and expand? Is it not dangerous to vest .this
power In tho banks, and allow 'them to use it for
thoir own profit? And if authority is given to tho
secretary of- the treasury to control them, can you
explain why it is safer to allow this official to
control the vc io of bank currency than it would
bo to control the volumo of greenbacks?
Metallic money is a flexible currency. Tho
amount can be increased by coinage or import
and it can be decreased by melting or export. Tho
paper portion of tho currency must bo either fixed
in amount or flexible. If it is flexible there must
be a power somewhero which will detorinlne tho
conditions upon which it can bo expanded, or con
tracted. If in your next report you advocate a
flexible paper currency would it bo out of placo
to ask you to give your reasons for trusting this
almost omnipotent power to those frail and human
members of society who engage in tho banking
business and who are as constantly tempted to
look after their own interests, as those engaged in
any other business?
VSeventh In what respect would an asset cur
rency, such as you have advocated, be superior to
an emergency currency issued by tho government
to any one who would present a government bond
and indicate a willingness to forego the Interest .
on the bond while the currency was outstanding
In, this way the government would loan upon Its
own obligations to any one who had a govern
ment obligation; it" would Bavo interest upon the
bond while the currency was outstanding, and the
man who drew the currency would bo interested
in returning it when the stress was over. Such a
plan would give relief to the public directly with
out tho intervention of bankers. It is true that
business men might bo tempted to put their ac
cumulations in bonds which could be thus util
ized when needed instead of In the banks, but
unless tho government is being run in tho Inter
est of the bankers this ought to be no objection to
tho plan. Greenbacks thus issued would be a le
gal tender, would not increase tho obligations of
banks, and would not shako credit
When the debt is paid ol the government can
.still issue an emergency currency if desired. .
If tho asset currency is safer and better for
the people, you are the proper one to point It- out
The case may be stated in a few words. Thero
is a grave suspicion that the asset currency, now
called an emergency currency, is merely the fore
runner of a permanent asset currency, and this
suspicion is increased by tho fact that you in
your last report announced that the time had com
when the people nad to decide whether they would
have a permanent national debt as a basis for
bank notes, or provide some other bafcis. The
advocates of a bank currency recognize that it
The Coinmonor.
would be difficult to defend a permanent national
debt upon which the people would pay Interest
merely to give the banks a chance to issue notes
upon which ,they (tho banks) would draw interest
Is not this emergency currency the "nose(of
the camel?" Qr, If that illustration has a foreign
Jlayor, Js it not tho edge of tho wedge? a It not
intended to establish the principles of an asset
currency upon -which tho banks can expand later?
if you believe In the right of the people to
self-government, will you not admit that they havo
a right to know the purpose of the asset currency
bill? If you believe in the capacity of the people
for self-government, do you not believe that they
are capable of considering and deciding. this ques
tion after a fair understanding of all the matters
connected . with it? If such a currency is wise,
how is it arid why is it that no republican con
vention outlines a plan or specifically indorses
the principle? And in this connection it may not
be out of place to ask why it. Is that the republi
can party has not for the 'last twenty-five years
stated specifically in advance of an election tho
financial policy which tho leaders of the republi
can parly intended-to pursue after tho, election?
If you, Mr. Secretary, will answer the ques
tions above submitted either in a speech and I
read your many speeches with pleasure or in an
interview and you are frequently interviewed
or in a government report The .Commoner will bo
glad to publish your answer and to give it tho
consideration which,, because of your official posi
tion, your utterances deserve.
THE COMMONER.
Selfishness Admitted."
Those who are in favor of turning the cur
rency of the country over to national banks as
sume, as a rule, that thV banks will exercise in a
patriotic way the authority conferred upon them.
Occasionally a republican paper is candid enough
to admit that the banker acts purely from selfish
motives, and such an admission Is worth repro
ducing for the benefit of those who may ignor
antly hold a different opinion.
The Lincoln (Neb.) Daily Star is one of the
most candid of republican papers, and in a re
cent issue it had the following in regard to banks:
"But a man who engages in banking, the
same as those who engage in farming, mer
chandizing, manufacturing, etc., does so for
the purpose of making money for himself.
That is why he puts up United States bonds
as security for circulation because he ex
pects to make a profit on the bank notes.
When he can make a distinctly greater profit
by recovering the bonds and selling them ho
will ordinarily do it If a farmer could -secure
from the government circulating notes on
tho security of warehouse receipts for his
stored grain, and if the price of grain should
subsequently rise so that he could make much
greater profit by recovering his warehouse
receipts and selling the groin, he would cer
tainly do it. That is to say, he would do just
what the banker is doing all within his legal
rights.
"It is a simple plain matter of business.
There is not a particle of sentiment in it
Tho Banker and the farmer act on the same
general considerations of interest and upon
the same conditions of human nature."
The Star is correct, in saying that "is a sim
ple, plain matter of business," but if the banker
is going to exercise the power for his own' ad
vantage, why give him a power that can be used
against farmers and merchants, and people in
other occupations? If he is going to sell his
bonds, and withdraw circulation every time he
can make a profit by selling tne bonds, will not
the currency fluctuate in such a way as to jeo
pardize the interests of the public? Must tho
security of the people be endangered whenever
tho bank has a chance, to speculate and make, mdro
that way than in ordinary banking? If the pub
lic generally understood that the banker is as self-
, -
ish as other p;oplo, arid that he will use for his
own advantage power put into his hands, there
would be few outside of tho bankers' association
'who. would be in favor of turning the financial
'system, of tho United States over to the financiers,
L,aw-ilade Value.
In an editorial recently printed in The Com
moner and entitled, "Tho Monetary Peril," it was
said that: "The monometallist overlooks the fact
that what Is at onco intrinsic value is in part the
metal value created by law-mado demand. Tho
monetary use of gold Is its principal use and if
this use were withdrawn, -tho-market price would
necessarily fail." v ;
An El Paso, Tex., reader of The Commoner
says that "this paragraph points out an argument
against the Bihgle gold standard that is not, I
think, sufficiently emphasized by the advocates' of
bimetallism. That gold is not principally valua
ble on account of any intrinsic value. inherent with
tho metal itself does not seem to enter the mind
of the average monometallist while they are con
tinually harping upon tho law-made value of sil
ver. It occurs to tho writer that converts from
the single gold standard might be made among
the honest and patriotic portion of our opponents
by proving to them that a great part of what they
are taught to consider intrinsic value of gold is
onto", law-made value and would disappear at once
if the nations ol the world should unite in de
preciating that metal as they have done in the
case of silver. What would gold be worth now if
it should immediately be demonetized by all tho
nations that have demonetizrd silver? The cham
pions of bimetallism have been thrown upon tho
defensive to such an extent that-in" trying to teach
the people what would happen to silver if its free
and unlimited coinage should" be 'enacted, they
have not laid -sufficient k stress upon ...what would
happen to gold if its free arid unlimited coinage
should be curtailed or entirely suspended."
Eyes are Opening.
The Sioux City Tribune, a newspaper that in
recent years has supported the republican party,
has. concluded that "the banks that are on tho
insldo of Wall street financiering are now asking
for fiat money, but under the control of tho
banks." And tho Tribune has come to the con
clusion that "the country will probably decide on
two things at an early day: to abolisn a tariff so
high that monopoly may find shelter behind it,
and to curtail tho privileges of the national
banks."
The Sioux City Tribune seems to have reached
this conclusion becau 3 as it explains: "The Chi
cago Tribune, a newspaper owned and edited by
multi-millionaires, Ib responsible for the statement
that the recent tremendous slump in Wall street
was the direct result of a policy Inaugurated by
the great financi-rs, and managed "by J. Pierpont
Morgan, for the purpose of reducing prices.
Prices were pounded aown, lower ana -lower, un
til solid railroad stocks were bought on less than
a 6 per cent basis. Then they took an upturn of
10 to 20 points. Many of these stocks Weie
leaded on the public by Mr. Morgan. Steel stocis
was sold to employes of the steel trust at moro
than double the price it now brings. This was
dono ostensibly for tho benefit of the more than
3UU,U00 employes. History will judge it diiferently."
JJJ
Cleveland and the Income Tax.
A reader of The Commoner has called men
tion to a publication which .-laims that Mr. Clee
land secured the adoption of tho income tax na
ture of the Wilson bill. As the editor of The Com
moner was then a member ot the ways andJ$tf&n9
committee and assisted in preparing udrincomo
tax .measure he knows whereof fie sJKis wUea
he says tllat Mr. Cleveland was nodKy not r
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