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more, I am, being in accord with the constitution, also In harmony with
the views and opinions of the patriotic framers of that immortal instru ment touching what is good ana safe for the people of this country. lam content with my associates in opinion and the gentleman is welcome to the choice he has made. My contention is that congress shall exercise the power which the constitution confers upon it and which the courts say is conferred upon it, and that it shall not farm out this power tp pritate corporations to be operated for their private gain. To dw so is to ab dicate the power conferred by the constitution and the result cannot be other than pernicious. ' The colonel describes how a national bank is established but told only one half of the story. I will give the reader both sides of the case and let him judge between ns. The colonel said: “A man who wants to start a bank pats in a certain amount of capi tal, and whether a man is a populist, democrat or a republican, if he has the capital he can get a bank charter. If he wants to issue notes, he does what? He first buys a United States bond, that costs, upon an average, one hundred and fourteen dollars for every hundred dollars of bonds. He must put up one hundred and fourteen dollars in money for the purchase of one hundred dollars in bonds. Then he takes his bonds and deposits them with the government at Washington, and on that one hundred four teen dollars of bonds he gets ninety cents, or ninety dollars of bank notes, tliat is all. He has to put up one hundred and fourteen dollars in hard money before he can get ninety dollars of bank notes, and then five per cent upon the p'ar of that issue must be deposited at Washington as security for the general issue of the notes; so that he gets eighty-five dol lars in money for one hundred and fourteen dollars of investment. Be fore he went into the business he had one hundred and fourteen dollars to lend, and after he had gone into the business he has eighty-five dollars to lend. Now that is the fact—no theory about that. Now where is the great advantage to this grasping, eat-all of the republican party?” Now what are the facts? Five gentlemen want to start a national bank. They put up one hundred and fourteen thousand dollars to pur chase that one hundred thousand dollar bond. That bond is deposited with the comptroller and in due time the bank is chartered and in full operation. Now let us stay with this bond for a little while and see whether or not it is a profitable investment in and of itself. In the first place the bond is still the property of the newly organized bank and is re ceipted for and held in trust for them by the government. It draws 4 per cent interest which is now payable quarterly to the bank. (See sec. 26 national bank act.) Now 4 per cent on the SIOO,OOO yields them $4,000 per annum They reap four crops of interest per year. . Every three months a kind and benificent government sends the bank a check for SI,OOO for accrued interest. This the bank immediately re-loans to the people, thus compounding the interest charge. Now it is true that the bank gets no interest on che $14,000 which it paid in pretniuih upon the bond. But the bond is, principle, interest and premium, exempt from all kinds of taxes, national, state and municipal. This exemption is worth two per cent more on the face of the bond. Now taking the rate of inter est on the face of tfye bond, quarterly compounding, exemp tions from taxation, together with the certainties of payment, and it us, tf we stop right here, a better investment and yields by far a better return than the same amount of capital, on the average, invested in agriculture or other productive pursuits. Will Col. Woodford have the temerity to deny this ? But we are not yet done with this investment. In addition to its quar terly interest, its compounding and its exemptions from taxation on its bond, the bank receives from this same kind government $90,000 in na tional bank notes at a tax of one per cent per annum, payable half year ly. This it loans out to the people for its own benefit at the lawful rate of interest where the bank is located. Now, what is this but a gift to the owners of that bond ? The original bond investment was of itself a profit able one, as we have conclusively shown. So this is the truth beyond cavil: The government—she people—have taxed themselves to make this $90,000 in bank bills; have imparted to them the money function; guar anteed their redemption, and have then thrown them into the lap of the banker and empowered him to loan their own money back to them at a rate of interest which is eight or ten timeß in excess of that which the banker paid them for it. There is absolutely no escape for the gallant colonel in this contro versy'. What becomes, I ask, of his statement that the bank, after it had purchased the bond, had but $85,000 to lend? Was he trifling with the creduli yof the people, or was he playing with words? It is clear that there are two loans here—one represented by the bond and the other by the s9o,ooo—and both are at interest. Why did not the gentleman frank ly say so? Let us keep nothing back here. Turn on-the light and let the people know the whole truth. The five per cent on circulation which the bank deposits with the treasurer, cannot be properly deducted from the $90,000, because the law expressly states that it is to be counted as a part of their reserve funds, which all prudently managed banks, whether national or private, are required to keep. And besides, local and private deposits compensate for the full sUm of their reserves and tenfold more. But the gentleman says that the national bank notes have always been good, that no bank bill ever became worthless or depreciated, and that this is the result of the security which they are compelled to give. Have national bank bills ever stood at a premium over greenbacks? I ut terly deny that national bank money is good or that it has been kept good through all these years because of the security which the banks have hypothecated. It matters not to the bill holder whether the note is pro tested for non-payment 6r not. The bank may refuse to redeem its bills and the bank itself cease to exist, as many banks have done, and still the national bank note will remain at par. Why? Because the government— the people—stand pledged by law to redeem them in greenbacks whether the bank will redeem them or not. The pledged bond certainly did not keep the notes good, for these bank notes cannot be redeemed with bonds, neither by the bank nor the government, but must be paid in lawful mon ey. The government secures the bill holder* and the only security which the bank gives to Uncle Sam is his own interest-bearing note which they hold against him and which he is at present unable to pay. Now, the ability of the government td redeem the bank notes is not improved by its outstanding bonds and the fact that it is heavily in debt. On the contrary its ability to redeem the notes would be immeasurably improved if. it had not an outstanding bond in the world. With all of his ingenuity th« gentleman will not venture to dispute this proposition. An other suggestion must be apparent to a reflective mind. These bank notes have not been kept good and reliable money through all these years by the high rate of interest which the people have been compelled to pay for their use. They were just as good when the banker received them from the government at a tax of one per cent as they were after the peo ple had borrowed them from the banker at ten per cent. Their circulating value was neither improved nor diminished by the rate of interest which the respective parties were required to pay. Now, would not these notes be just as good if the government had put them out at the same rate of tax through loans to people engaged in productive industry? There need not be anv more money issued in the one case than in the other, for the gentleman will not claim that there should in any event be less issued than is neccessary to transact the business of the country. Under either sys tem the amount issued must be strictly limited. The constitution makes congress the sole judge as to the limit, while the national bank act leaves it to the discretion of a few favored money loaners and usury sharks who are engaged in business on private account. Why pass by all the people who are engaged in industrial pursuits and confine the distribution ex clusively to moneylenders? Has usury become the cherished industry in our Christian economy, and usurers the sole beloved objects of public solicitude? Is it not about time that the long favored classes should be willing to share the benefactions of government with those who produce all our wealth, bear all the great burdens of the world, and who must finally be relied upon to fight the battles of the republic? Now, if the average amount of money which has been issued to the banks since 1864 had been issued to the producers of wealth at the same rate of tax, instead of being bestowed upon the bankers, we would have had the same quantity of money in circulation, plus that which the bank ers have wontonlv retired, and a vast deal more of material property, while the profits resulting from the use of this money would have remain ed in the hands of the producers instead of flowing into the coffers of id lers and money changers. The security of the bill holder would have re mained precisely the same and the government would have been just as able to redeem the notes. But if Col. Woodford were to present himself at the treasury department with a hundred thousand dollar four per cent bond and should state to the secretary that he wished to deposit the bond and to draw $90,000 in currency to be expended in productive industry and the development of the country, he would be turned away with deri sion. He would be quickly told that he is not engaged in the kind of busi ness which the government wishes to encourage, that if he would procure the $90,000 he must organize a bank and engage in loaning money at high rates of interest ;—that if he would do this the government would stand good for the redemption of his note*—otherwise he could have no notes and must look out for himself. This is a wicked discrimination, wholly unjustifiable from the standpoint of sound morals, good govern ment and' the precepts of the Christian religion. It places a premium up on money loaning and a burden ahd a stigma upon industry. It is essen tially Pagan and vile. It savors of caste and is aristocratic and wholly -un-American. f ' THE POPULIST CONTENTION. Now the populist contention is this: That the government of the United States shall issue the money In obedience to the mandate of theconstitution. That in the exercise of this its exclusive preogative, it limit the amount to be issued to the wants of productive indnstfy and legitimate trade; and that it shall destaMgte the channel throttgh which this money Shall reach the great body of the people for whose usalt is intended, at the lowest possible cost. If congress can prescribe what iecurity a banker shall give, why may it not designate what shall be hypothecated by fc producer? If a government bond is good security for a given amount of notes advanced to the bank, why would not a pledge of that Which alone makes the bond good- land and its staple products—be gdod security also? The whole world is bank ing upon the industry of the people-upon the earth and its products-and the greater the industry the greater the product and the better becomes our security m all departments of trade. Under the populist theory the government would be doubly secured. The treasury would have the pro perty hypothecated to secure the return of the loan, while the people, who really constitute the government, would have the money in their own hands, which is the best possible security to the public. But this whole matter of security, this channel through which the money shall reach the people, the rate of interest which it shall bear, and the whole range of details, are q uestions wisely left bo the discretion of congress. Under the system now in vogue the people create the money, guarantee its redemption, and then let the bankers have it at one per cent Then m turn they borrow back their own mouey wt exorbitant rates of in terest. The populists think that the banker, who is a middleman per forms no necessary function in the transaction; that he is an intruder and an expensive and unnecessary luxury; and that a more economical and humane system could be devised. We hold that inasmuch as the power to create our money is vested solely in congress, there can be no such a thing as bank of issue, and that we should have only banks of discount and deposit. We believe with Jef ferson, that “The power over the currency should be taken from the banks and restored to the government to whom it belongs.” We believe also with Jackson that “the banks cannot be relied upon to keep the currency uniform in amount.” Uniformity in the volume of money is essential to business stability. The attitude of the banks for a quarter of a century towards our currency constitutes a startling corroboration of the wis dom of President Jackson’s declaration. HE IS AFRAID TO TRUST CONGRESS. But the gentleman is unwilling to trust the congress of t*he United States chosen to represent the people. He prefers to trust the business welfare and the regulation of the volume of our money to the will of pro fessional money lenders who are self appointed and who are engaged in the banking business for private gain. Doubtless the same suggestion was made in the constitutional convention, bat it was not thought well of, for the makers and builders of the constitution insisted upon clothing con gress, and did so clothe it, with this very power. That question is settled, is res judicata, as the lawyers call it, until the constitution is changed. I submit also that the experience of the American people with the national banks has not been sucu as to convince them that congress nan safely ab dicate in their behalf. The people are not so in love with the British sys tem of finance, represented by these pet banks, that they are willing to fasten upon themselves and posterity a perpetual national debt which, like the sacred crocodile, periodically becomes enraged and eats up its keepers and those who feed it. ASSIGNATS AND CONTINENTAL MONEY. But the gentleman has undertaken to plead for the indefensible and we may expect him to stray wider of the mark as he proceeds. Continu ing he says: “The World records just two instances of the issuance of money on the populist and Weaver theory by two governments. The Frence govern ment many years ago issued paper money, and they called them assignats based upon the wealth of a French monarchy. When the monarchy went down the assignat currency went up, (laughter) and any man who had a franc of it in his pocket could not have got a sou for it. A republic whose name you may remember, it was the United States of America—is there anything familiar in the sound?—decided during the revolutionary war that they would use the favorite phrases of the populists and com the credit of the United States, and they issued the Continental currency. Be hind It was the pledge of the great people; behind it was the baptism of the revolutionary struggle; behind it was all that would make money sacred to the thought ol the American people; but if you had a basket filled with Continental currency tonight how many loaves of bread or ad mission tickets to a populist lecture could you buy with it?” (Applause.) The distinguished gentleman is as widely at fault in his knowledge of history as he is unfortunate in his grasp of the constitutional phase of the controversy and the principles of sound political economy. The French assignats were not issued by the monareny but were issued by the revolutionary government after the overthrow of the monarchy under Louis XVI. The monarchy fell before the assignats rose, and so tne witticism of the gentiemaiT was based upon a misunderstanding of a plain ebapter in history. Extensive issues of this currency were made by the revolutionary government when it was at war with fate, famine and royalty a* home and with the combined armies of Europe which were then invading her territory. It was based upon the landed estates of the Church, which had been confiscated by revolutionary decrees. It was the resort of an enraged people in desperate straits. Gold, like a coward, had, as usual, taken refuge in the strong boxes of royalty throughout Europe, its unpatriotic owners taken shelter T>eneath the shadow of neighboring thrones and were awaiting the slaughter of the people by famine and sword. Thin money was like the rude pikes and implements of war which were improvised for the insurgents by the blacksmiths and coppersmiths of Paris. It was an engine of war. It arose with the tumult and followed the storming of the Bastile. It was a part of the revolution, the insur rection against tyranny. All Europe fell to counterfeiting it and placed it in circulation through her invading armies. No one could tell the count erfeit from the genuine. When the revolution had spent its force —had lit erally drowned itself in blood, everything connected with it came to an end, the empire rose under the first Napoleon and the confiscated estates were restored. But what did this revolutionary paper accomplish for the French people? It enabled them, single handed and alone, to overthrow royalty at home and to drive back Cimmerian Europe by a single hercu lean effort. It may be asserted with historic accuracy that royalty was overthrown in France and the invading armies of Europe kept in check and defeated by the assignats and the Marseilles hymn. The revolution ary government issued the assignats which served admirably their tem porary purpose, while Col. Bouget de Lille Ci ined the impassioned valor of the French people into resistless song. So of our glorious old Conti nental money. It was indespensible and our last resort at the time. All to its memory, and all hail to the Franklins, the Adams’s, the Pat rick Henry a and their compeeis who gave it to the world I It gave us our liberties 1 It gave to mankind in value received three-fold more than it ever cost. And so of the assignats. The destruction of the Bastile alone by that revolution was worth more to the liberty of the world than every dollar of all the assignats ever issued even if every franc had been pure gold. But the revolutionary government of France passed away and ail of its policies were overthrown, its financial edicts along with the rest. Can any sane man expect that the paper money of a country would re main good when the government which issued it ceases to exist? Would our national bank money for which the gentleman so eloquently pleads, or the bonds upon which it is based, be of any more value, if the govern ment were stricken from the face of the earth? This was the case with our Colonial government which issued our Continental money. It ceased to exist. At the close of the war for independence it found itself with an empty treasury, stripped of every source of revenue and without any power to levy and collect taxes/ Each colony was an independent soverinty. And it was to avoid these very difficulties that our present strong federal gov ernment, which is clothed with certain clearly defined powers in this re spect, was formed. But I agree with the gentleman that the modern world records two instances of the issuance of paper money upon the populist theory. But he has unfortunately overlooked the two that are exactly in point, al though he was contemporay with one and should, as a student, be entire ly familiar with the other. WVe will examine them separately. THE TRIAL IN ENGLAND. From 1793 to 1796, England * met with unbroken disaster. She had been forced ignominiously from Flanders, Holland and the north of Ger many. French valor, stimulated by revolution and the assignats, had scored a victory at Toulon, captured the city and forced the British to re tire before its victorious guns, To add to her distress, a frightful finan cial rigor of prolonged duration, which had to be relieved by government loans to business classes, siezed upon the channels of trade and finally culminated in a run upon the bank. Driven by disaster to the very brink of ruin, the government was forced at length to suspend payments and to resort to an exclusive paper currency. This she did in the spring of 1797 immediately following the collapse of the revolutionary government ih France. Let one of the ablest historians of modern times, Sir Archibald Alison, describe the effect which the issuance of this (populist) paper had upon the destinies of Great Britain and the.map of the world. Speaking of the period immediately following the suspension of Bpecie payments and the issuance of this paper, Mr. Alison says: > , “The next v eighteen years of the war, from 1797, to 1815, were, as all the world knows, the most glorious, and taken as a whole the most pros perous which great Britain bad ever known. Ushered in by a combina tion of circumstances the most calamitous, both with reference to external security and internal industry, it terminated in a blaze of glory and flood °* prosperity which have never, since the beginning of tie world, descended npon any nation. Hardly had the ran on the bank saaken to its center the whole fabnc of our commercial industry, and the mutinies at the Nore, paralysed the arm of oar aavfel defenders, when the victories of St. Vincent and Camperdown again restored to us the do nunion of the seas; and ere long the thunderbolts of thk Nile and Trafal j&vaJ strangth of the enemy, and the\victories of Wel lington first arrested and at length broke his military power. Prosperity, universal and unheard of, pervaded every department of the empire. Our colomad possessions encircled the earth, the whole WestTlndian Islands ' had fallen into our hands; an empire of sixty millions oilmen in Hindos ta^®?k^ owled / 1 ? d our rule; Java was added to our eastern possessions, and the flag of France had disappeared from every station beyond the sea. Agriculture, commerce and manufacture at home had increased in an un- Pf’JJ'l 1le d ratio; the landed proprietors were in affluance; wealth to an nn neard of extent had been created among the farmers; the soil, daily in creasing in fertility and breadth of cultivated land had become almost adequate to the maintenance of the rapidly increasing population: our exports, imports and tonage had more than doubled since the war began. nf th« wir i ß . l3 u a^ d -1 814, bein S the twentieth and twenty-first of the war, Great Britain had above a million of men in arms in Europe remitted 11,000,000 pounds yearly in subsidies to cont£ nental powers. Yet was this prodigious and unheard of expenditure so * ex bausting either the. capital or the resources of the country, commenoement of at * IoWCT rate tha “ that at The Waste of Energy. \ On our way to So. Dakota, last week, to address the great ducamp ment there, we passed by miles of the Minnesota river, as it tumbled over and around the rocks. “What a crime,” we thought to ourself, “to permit this vast poVer to go to waste.” And then the mind wandered over the fields, the hilld and valleys, and our ear heard the ripple of the rill and the rush of the riling river 1 “Every mile of these streams, means power inconceivable,” ckme to our lips. T For, mind you, friends, not a drop of water falls a hair’s breadth without a power, vast and boundless in the aggregate—and to or for which Nature finds the “compensation.” \ Steam requires coal; muscle requires food; springs must be batteries recharged. Bub here,in this infinite fall offwater, no “compensating force” is required. The ocean, the lakes, and the sun furnish the “compensation” power 1 The water evaporates—the clouds form—the rain falls—the rivers run—there you have it. And what about this Minnesota River, we were passing?—one of thous ands? Why, we were being propelled with a hundred horse-power steam pressure!—in a locomotive. And yet-there in that meandering stream, within every five miles of its tortuous length, was power enough, wasted to move ten such trains 1 Yes, and all it wanted was a wire a dozen rods or a dozen miles in length, here and there. And machinery ?Oh a trifle—why, a big undershot wheel stretching across the stream, say 75 feet, every 40 rods, dipping down two feet by its “bucket-paddles,” would each furnish enough electricity to send a train whirling through the country! The river beds, for a distance of ten feet could be floored with masonry, so the paddles would take all the water. The wheels could have a diameter of thirty feet. We never pass a rollicking creek, singing its watery jubilee on its mer ry way to the sea-but we think-“ There, $250 of carpentry work would light all the farm houses, churches, schoolhouses and barns in the town ship—so far as the power was concerned!” Oh, we’re approaching an age when life will be worth living, if we can only get rid of the plutes, and study genuine civilization! There isn t a rain that falls, nor a day of sunshine, but that God makes the power for man to create light, heat, cook his meals and warm his home—without a gallon of oil, or a stick of wood, a pound of coal, or even a fireplace. In the cities people are already cooking by electricity right on the damask covered table where they eat—and no heat unless wanted sent into the room. A creek that flows enough to run a simple feed mill—or for that mat ter-a wind mill-would do the “hull business” for a family, when you can spare a couple o’hundred dollars to put in the plant! How to Irrigate the Great Central Basin! Be nothing unless original. In fact you cannot be anything unless original. No use trying to block your way up the flights of the Pegasian flume unless you make a discovery. We hereby lay claim to a disk-cover which will hide the sun’s face in modest comparison. The great central basin of the American continent is rendered in a measure worthless on account of lack of rain. In fact an entire territory is called Aridzona for that reason. The destructive influence of rain—no, the want of it—extends over vast areas east of the “middle basin,” even into Dakota, Nebraska and Kansas. Without any information on the subject we put the acreage of land which needs moisture to make it val uable, at 350,000,000 acres, now worthless, otherwise worth *3,500.000 - 000 ’ * The best way to treat a disease, if you can, is to ascertain the cause remove the cause—and let the patient recover. What is the cause of the arid basin? Why the mountains—the Rock ies—form a line of “precipitation.” All moisture falls on the other side— none can tall on this side for hundreds and even a thousand miles, under ordinarv circumstances. Well, how will you remove the cause? Gentlemen, blow up—no, blow down— the Rockies with dynamite, etc. 1 Although this information is worth $3,500,000,000, we don’t charge a cent for it! State of Ohio, CiW of Toledo, Lucas County. Frank J. Cheney makes oath that he is the senior partner of the firm of F. J. Cheney & Co., doing business in the City of Toledo, Countv and State aforesaid, and that said firm will pay the sum of ONE HUNDRED DQLLARS for each and every case of Catarrh that cannot be cured by the use of Hall’s Catarrh Cure. FRANK J. CHENEY. Sworn to before me and suscribed in my presence, this 6th dav of December, A. D. 1886. J f BEAL 1 A. W. GLEASON 1 I Notary Public. Hall’s Catarrh Cure is taken internally and acts directly on the blood and mucous surfaces of the system. Send for testimonials, free. F. J. CHENEY & CO., Toledo, 0. I®*Sold by Druggists, 75. By moonlight. “How beautiful is night! In full orbed glory, yonder moon divine Rolls through the dark blue depths, Beneath her steady ray The watery circle spreads Like the round ocean.” When steamboat travel was the only means of reaching the country on the Upper Mississippi, the beauties of Lake Pepin, and its tragic legend of Maiden Rock, were known to all tourists, and celebrated in prose and verse. The coming of the railroads, and the passion of our hurrying Americans for night travel, have caused these charming scenes to be miss ed by thousands who would have wondered and admired. In these de lightful nights the travelers who are fortunate enough to choose the even ing trains of the Burlington Route from Minneapolis and St. Pnul to Chi cago or St. Louis, can, by consulting the almanac, and selecting a moon light night for the journey—say the latter half of this month or next—en joy one of the lovliest sights provided for the pleasure of man. The grand ly turreted shores, casting deep shadows far out on the waters, the ripples glancing silver in the radiance of the moon, the villages dimly seen on either side, all go to make up a picture never to be forgotten. The lake is reached about ten o’clock in the evening, and the Burlington runs in full view of it for thirty miles. For any further particulars, address W. J. C. Kenyon, Gen. Pass. Agent, St. Paul, Minn. CONTINUED IN OUR NE&T.