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The Commoner.
VOLUME 7, NUMBER 4
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for InHlnnco, llio emperor should Ihhiio n decree
abolishing Ilia legislative body, nullifying Hie con
stitution mid assorting the arbitrary powdi form
erly exercised In his name by (ho tthogun, ho
would have to Hiipport llio decree with a largo
army. This would, to a great extent, abMorb the
revenues now devoted lo education and lo tho
euro of unfortunates, while by discouraging tho
people It would reduce their productive energy
and lessen Ihe revenue.s of the government. As
Ihe resistance to the emperor's decree would be
greatest among Ihe educated classes, he would"
feel thai self-preHorvalion required Ihe discourag
ing of public instruction. In other words, while
under free government the tendency is toward the
elevation of the people, under arbitrary govern
ment Ihe tendency Is toward the degradation of
the people. If intellectual advancement begins
before the establishment of popular government
It Is sure lo bring a clash between the sovereign
find the people. So sure is this conflict that those
who believe in the theory that governments rest
upon Ihe consent of the governed can, bv the en
couragement of education, undermine the despot
isms of the world.
China Is another illustration of a nation mov
ing from unlimited monarchy to constitutional
government. The Celestial empire has been so
confident of Ihe superiority of its civilization over
the civilization of the west that it slept on even
after the awakening In Japan. But the students,
who, In Increasing nuinnors, studied in foreign
lands corroborated the report brought back by
the diplomats, and the best informed of the Chi
nese began to show symptoms of intelligent dis
content. Newspapers began to spring up In the
larger cities, founded not so much for the distri
bution of 'general Information, as for tho prop
agation of reform ideas. At lirst, the editors
wrote at their peril and a number of them had to
take refuge under foreign Hags, but the work of
rolorin has gone on. The demand for political
relorms has kept, pace wlfh -the spread of educa
tion and a national spirit is developing. One
eiuiso of. tho backwardness of China has been the
iM?,UM,,l'i! rtfrHowshlp among the people.
The Individual has had Utile sympathy will those
outside of hs family, the civil servant has S
ttle interest in Uie people whom ho served, and
mvIZ . w "S,!! HC(,IU(,0(1 !ilV m th0 bidden
Ulj, has had little communication with the civil
servants and none whatever with the people. Ka
man looked out for himself and the d Herein ,, X
ot the empire were strangers to each other The
national spirit, while now directed against o
foreigner, is itself a foreign grow n o ioxe's
appealed to the feeling of brotherhood whei tluw
sought to expel those who taught the doetr ie
of brotherhood, and in addressing lioiv argmne s
LU!earrrofltJhoi;o",an t0 thC fiHienSt
uu. uaiuih oi tlio Iloxer movement nald an un
conscious tribute to the theory wh cl must ult
niately bring China into harmony w tl he rest
of the world, viz., that the people rule. The vorv
agitation aga nst foreign hion iL f" ,y
those ideas -known among" tbc eop i nd l0tt
will contribute more to the miwih nr l,s
than the clash between "honf Sid tho ZstH
formerly prevailed. This is llh strniiii Z A
fact that China is today send! g tttan s o?
students to Japan and inviting hundreds of tonn?,
crs from Japan, notwithstanding e fact t lu t but"
a few years ago she suffered a humil I this ele t
has aroused Chinese Chris h ,s to ! clT
the Chinese Christians alinolV m ?01' lroilbl,ss
empress seized the rein J ,mi ' tho tlwagor
in contlnement Atwtomi'to?' m,t h
Dower. nt the 'reform B, ll !10llncf08crvntlvcs to
n foothold in Uie J, J1 (1 se-,,lml such
empress is herself ' roisldo! ll W tho 'ager
of a constitution she hi o , "Lmmi u,Wtlon
ore to various com. trloS to f ut ?,m"ision
upon the subject, "vl lie in Jul .hor ,nfwwon
later at Washington is 25 ll(i i;,l,n08e n,i"
orlininal code ami I r ul n" S revising the
io Penal laws of EuroK 'ZS W,tU
THE ASSET CURRENCY BILL SCHEME
last summer. The senate and house were in ses
sion some eight months but the subject was not
considered. Now congress js convened for a three
months' session and all of tho energies that tho
banking fraternity can command arc being put
forth lo push the bill through. Why were Ihe
linanciers (pilot during an eight months' session
and why are thej so active during the three
months' session? Tho answer is easy. Tho long
session came before the election; tho present ses
sion is held after the election, and the financiers,
1 olio wing their invariable rule, are attempting to
steal a march upon the people. Tho scheme was
de berately laid; It is being studiously carried out;
will it succeed?
The present bill is put forward as a means of
securing an elastic currency. What is an elastic
currency l A currency which can be contracted
and expanded, but by whom? By the bankers
of course. Has this subject ever been up before?
Many times. Has congress ever expressed itself
upon the subject? Very clearly. There is 'i
clause In the national banking law which pro
II s the retirement of more than three million
dollars in any one month or a maximum of thirtv-
ift'lie !?"STn " ycnr; Why Was Ulslt rfBe put
In thoio.' lo prevent a contraction of the cur
rency by the banks. Up to 1800 wo oiilv hid
about two hundred and ten millions of doll" 2
of national bank currency outstanding. With the
no" benfor ! !rPVUl!li0nS pcr ,nontE jt "ot
possible for tho bankers to contract that cur
rency more than about fifteen nor n vo
This limitation has been kept upon he b ffi
until now, and the fact that it has been To t
shows that the public has not been wIHui- to
The ,0. Tkin'H "VHil ihc ono10s Power
i no bill now under consideration permits in
ssue of nearly forty ,)01. C011t inoro c j "
the banks, and this new currency they cm not
words'Z;1;:'1!' in retiro at win -
oi us, tliey ask to bo empowered to exorcise n
SK ulolf!'0"3 "'"" Umt "I'M- l's boon
uuiustea to tliem tor years. What has liannpiuxl
in recent years to justify this hicrS so i i
donee in the bankers? Have not the roceift "
vestigations tended to lessen rather than to '
JiJ ; Dls of aet currency do not
i"1l"!,ci;In ny lle worse than other people
but is it fair to assume that they are so much
better than others as to be entrusted ??i 5q
Mhcintr'vT M,UBtP,0B ""osliSS
amended so as to make It certai n wh2?UbtlI5S8 be
surancc of tho gover nent JrllS tlle ls'
or only a condttiona onC but ?TSmi'iUteG
guarantee the government m s 'pro ee to 1SS S
the notes from tho nota ni n, i , i ro cnect
no special tm
in the case of the present ffiEJSJ? i IUl ll8
The measure befor0P congress lS ? n nm?k n?t0'
The advocates of an asset rS-onnv omvom
sisting for several wfliK?,, ave,u in
allowed to issue upoi tLir nstt, . if 8l,0llId bo
much opposition to this that Uie prese nlVT R
isrtre?s
emergency currenev nnri nn yJ s called an
tax laid upon it IsfntScleao Vi?ol? bf.,ng tho
when the emergency is ovi. ?. J tirement
fact many of Uie banks win fH i 2s a mnttor oi
keep the currency out nil t hi 1" lt 'mahe
that do no? Z t P rolltabft X Ule banks
for reduction of U ePtnx S onlS te!a mi8llUo
may be kept out all of the Ume currency
o0 of de
protection of depositors v ml? 8ecure th0
the banks oppose Us tS Tlteo fmul bnt
further increase the risk 5 n 10ytPl,l)0se to still
their assets the basis of nLvZTJ by lnaWng
that these notes are emereenev in? .The fact
the danger rather than lessens it Z ti, h,lcre,ls
notes by the bank will be a si in of ,i? l8SUe r
unless human nature ehanfro L 1!stross. "!
bank WIU lle uT, g-a'S
the bank than to relieve any stringency in tho
locality. If bank depositors were made absolutely
secure, money would be drawn from hiding aril
bank deposits would be increased; an einenron
currency is likely to drive money into hiding ind
decrease bank deposits.
The banks, according to the bill, are to pav
three per cent interest on Uie notes outstanding
but tins is only temporary. It is a' concessio to
rvUraTffh0S0i 'Vb have opposed lui asset "up
rency. It Uie plan succeeds, we may exneet
demund-ofter the next election, not Ltorlfoi
a reduction of the rate of interest. After the
election of 1800 the bankers demanded and secum
a reduction in the tax on national hank notes No
a word was said about Uiis 1n tho campaign bu
the favor was demanded and granted when tZ
campaign was over. The bankers went tiirom' l,
the campaign shouting that there was mo ev
enough and when the election was over thev je
S and secured tlie right to issue thTfaco
value of the bonds instead of ninety per cent and
needed d it on U,e ground that momoney was
Ten years ago Uie banking fratermtv irmlstofi
jis needed was confidence. Now with more tli-in
titty per cent increase in the per capita cfrcui
tion, they are asking for still more ioney-not
government money-.not primary monev--bu
XT andVbffty -Cmi iSSU at a PS Villein'
?i t i ' T wllat 1S worse, all the nowsnaners
which the banks control are joining in the chorn
Fir4t it is ZZlCy 1)e t0 tbl'ee obJo7tSn;
J nst, it is a matter of favoritism. If an ordimrv
citizen owns bonds, he has had the money invoked
e t the bnfl-ahn mUSt be tisiiea.withhe inter
est Uio bank, however, on Uie oUier hand fq n
C'fr o'r'n "1itS. b0nSs S io 'So
un. luce aIue of the bonds in bank notoq Tin
SS se'ihe'bU' SI, rn ? 3 ie
vos nient nt , it "0t W" t0 m"e any !n
Jui i I , ' Its cnpltnl Is tlio seenritv unon
ll S 1 s securlty IW Issuing now lln-
i uSlSKSS uotes ana the sver,"no''t
, 'Pi? S.oeoiul WectIon to tne bank of issue te
of tui'n?8 tbe banks a control-om- Se volume
pJimSi? in5y' imd as llus bGeu shownT Uidpres
SStoS! tCUded t0 Very lary increase tS?s
thovernment-ln,011.,18 that tbe surrender of
tie hands of u,e w f iS8UiDff money into
wlmt thov roi bankors Slves to those bankers
Son's fln?ncSW?n,fa VeSted luterest in tue "
wonlcess taou" cmTeney " be aD lcment ot
at sso'-ssss4 'vrraT i -
ST. Ki ,5t?Sr'5:
there will be mom money to ?T S U,'at
of crons? Whv nn n. oan for lc moving
duction of thoZ , y ,not advocate a re
in oinaiV thSTavlLbeii8SUed on the bouds
bonds to be issued raon'n 2nI,l,,lte thft
for instance. Uie banks ?wiS J jsency? Jf,
enty-iive per cent n ?i,l e alIowed to issue scv
in ordinary times and ftii V?lu,0 of tue bonds
twenty-five per cent i,n,fed to lssue other
payment of Tta? wjlic," r!1 Upon tIie
at the end of ComSi,?,, bonds
suit would be secumi tw p?rio? tbe same re
posed? Because wnn?t1Wby is tm not pro
bank. Whei Svct I Ms ,?C5 tJbe Profl' of "ie
do 'somettilnB in which " ZTf nmt
once point out that banking it n Pritj tb6y nt
Ss s&n-ss
Ployd0 ttVifaS
lowed to come Into tli? tent ofhit? nS0.b a1'
of Uie camel will appear 1 a18 tim the rest
is the thing desired mwi r' An ass.et currency
tax, not. for SnoreoSpfnT, a58 curi'ency without
emcigoncios but for the permanent
n.ttqwatyrymyg'
4 a u4n t
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