Every effort is now being put forth by the banks to have the greenbacks retired. So long as they continue to be issued by the government the banks have not complete control of the money of the country. This movement to retire the greenbacks was begun directly after the Civil War. At that time the bankers said: “It will not do to allow the greenback, as it is called, to circulate as money for any length of time, for we cannot control that.” Hugh McCulloch, then Secretary of the Treasury, acting on the bankers’ suggestion, said: “The first thing to be done is to establish the policy of contraction.” It was done, and we had the panic of 1873, on account of which thousands lost their homes. The panic aroused the people and caused the bankers to pause in their conspiracy. The Greenback party came and $346,000,000 in greenbacks were saved from destruction. But in the meantime the bankers had silver secretly demonetized. In 1878, however, it was partially restored by the Bland-Allison law. But the bankers were still at work. In October, 1877, the famous Buell circular letter was sent to the bankers throughout the country. “It is advisable,” said this circular, “to do all in your power to sustain such prominent daily and weekly newspapers, especially the agricultural and religious press, as will oppose the issuing of greenback paper money, and that you also withhold patronage or favors from all applicants who are not willing to oppose the government issue of money. Let the government issue the coin and the banks issue the paper money of the country, for then we can better protect each other.”
In March, 1893, the American Bankers’ Association sent out to all the national banks what is known as the “panic circular.” In view of the present efforts on the part of the banks to retire the greenbacks, this circular furnishes some very good reading matter:
Dear Sir: The interests of national bankers require immediate financial legislation by Congress. Silver, silver certificates and Treasury notes must be retired and national bank-notes upon a gold basis made the only money. This will require the authorization of from $500,000,000 to $1,000,000,000 of new bonds as a basis of circulation. You will at once retire one-third of your circulation and call in one-half of your loans. Be careful to make a money stringency felt among your patrons, especially among influential business men. Advocate an extra session of Congress for the repeal of the purchasing clause of the Sherman law, and act with the other banks of your city in securing a large petition to Congress for its unconditional repeal, as per accompanying form. Use personal influence with congressmen and particularly let your wishes be known to senators. The future life of national banks as safe investments depends upon immediate action, as there is an increasing sentiment in favor of government legal tender notes and silver coinage.
Does anyone but the bankers themselves, and their paid agents, believe for a moment that it would be safe to surrender the control of the currency of the country into the hands of men who would put out such a circular as that? May we not conjecture what they would do when once they had us in their power? If there are those who are in doubt about this question, or the patriotism and honesty of the national bankers, let them read the history of the panics of 1873 and 1893, both of which were precipitated by the bankers. Let the government take the bankers at their word and compel them to keep in their banks a reserve gold fund for the redemption of their own notes. Abolish the gold reserve in the Treasury and make every greenback a perpetual, absolute money, receivable for all dues to the United States, and a legal tender for the payment of private debts. In other words, put the banks where the government is now, if they are to issue any notes at all, and give the government the prerogatives which the banks now want, and some of which they already have. Instead of the government loaning money to the banks at one-fourth of one per cent., let it loan it to the people direct at two per cent. Instead of the government maintaining a large supply of gold for the benefit of the banks, let the banks furnish their own gold for the redemption of their notes, and compel them to maintain a 100-cent reserve, for a note that has only 50 cents behind it is worse than any 50-cent dollar that the banker has ever conjured in his mind. Money issued by the banks and that issued by the government are entirely different propositions. If the banks have proved anything they have proved too much. They have proved that the government credit is the best in the world, that it will even make the note of a dishonest banker good. They have proved that it would not be safe to place the control of the currency into their hands, for they might at any time issue another panic circular asking the banks to call in “one-third of their circulation and one-half of their loans,” and a lot of other mean things that an honest man and a patriot would not do. The question is now up, and it is nearing the climax where the people must decide as to whether the banks will control the currency of the country, and through it the business of the country, or whether the power shall remain in the hands of the people, as Jefferson says, “where it belongs.”
A Family Necessity
“JAMES,” said Mrs. Talkyerdeth, as she discontentedly jabbed her hatpins into the hat she had just taken off, “one of us has got to be operated on.”
“Wha-at!” ejaculated Mr. Talkyerdeth, sitting up with a jolt.