Grover Cleveland, I think, once said, that however money might be created, the middle-man, by trusts, monopolies, and speculations, would take the advantage and oppress the poor and needy, just the same.
If you think the above questions worthy of notice, please answer in your February number.
I am glad to note the contemplated improvement in your Magazine. I will do my best to get you more subscribers.
Yours respectfully,
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ANSWER
The National Banks now have outstanding notes to the amount of $550,000,000 in round numbers. If the privilege of issuing these notes as money were taken away from the National Banks, the paper money now in circulation would be reduced to $550, 000,000. Suppose the Government should issue an equal sum in its own notes to take the place of the National Bank notes—how could the Government put its own notes into circulation?
(1) It could immediately put the entire amount in circulation by applying it to the part payment of the public debt. We are the richest nation on earth: the richest that history knows anything about—yet we keep ourselves mortgaged with a perpetual National Debt because the favored few demand bonds to bank on. If National Banks were abolished, as real Democracy always sought to do, there would be no further excuse for keeping the Bond-Mortgage on the National estate.
(2) It could put the entire amount $550, 000,000, in circulation gradually by paying the national expenses with it.
(3) It could put the money in circulation by building Government railroads with it.