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CURRENCY REFORM. REAL INWARDNESS OF THE CRY OF THE SMOOTH FINANCIERS. Infnmr *• MeClerr Bill. WTM^h It* Snpportern Will K* DUonm. “The Tlfrrrai Han Come Ilnelf Wllh 1 All Her Whelpe.” Senator Henry Wilson, Feb. 18. 1862. referred to the efforts of onr govern ment, then in peril, to relieve its finan cial distress through the legal tender act in theee words, “It is a struggle bet ween the brokers, jobbers and money changera on the one side and the people of tiie United States on the other. ’’ Hugh McCulloch, in his report ns comptroller of the currency in 1864, wrote, “Hostility to the government has been as decidedly manifested in the effort that has been made in the com mercial metropolis of the nation to de preciate the money hs it has' been by the enemy in the field. ” William Pitt Fessenden reported, as secretary of the treasury in 1864, that “the solution of the problem (the vio lent fluctuations in the price of gold) may be found in the unpatriotic and criminal efforts of specuh tors to raise the price of coin regardless of the in jury inflicted upon tho country or de siring to inflict it. ” Thomas Jefferson wrote to John Tay lor in 1816. “1 sincerely believe with you that banking establishments are more dangerous than standing armies. ’ When Jackson protested in his mes sago of 1882 against the “exclusive privileges, which undertake to make the rich richer and the potent more power ful. ” Nicholas Biddle, president of the United States bank, wrote “As to the president's message, 1 am delighted with it It has all the fury of a chained panther biting the bars of his cage. It is really a manifesto of anarchy, snch as Marut or Robespierre might have is sued to the mob of the Faubourg St Antoine, and my hope is it will con tribute to relieve the country from the dominion of these miserable people. ’’ The United States hank went down under Jackson’s attack, but Benton well prophesied from tire floor of the senate “The tigress has been driven from her lair, but she has not been killed. She will come forth again sur rounded by all her whelps. ” These are the utterances of earlier statesmen who attempted to defend the people against the aggressions of those who. as Jefferson said in 1816, “have an interest as distinct from that of the community as that of drones is from that of bees. ” There yet remains a Democratic party which is pledged to this work. There are yet public men willing to de vote themselves to the same defense of the popular rights, even though they realize that there was no idle threat in the utterance of the president of the New York State Bankers’ association, April 27, 1895, “The politician, high or low, who today turns from the straight course of Bound money and the gold standard stabs dead once for all his every chance of political success, especially if he wants to be president.” The money forces are now organized and have their headquarters at Indian apolis, where tho Wall street dominion will not be so apparent. They have a large establishment devoted to propa ganda work and, though a voluntary association, have had sufficient influ ence to secure recognition in a special message of President McKinley to con gress. They have their own representa tive at the head of the United States treasury, whose special mission is dem onstrated by the fact that he was ap pointed by a Republican and protec tionist president when he was a free trader and called himself a Democrat It is common knowledge that President Cleveland was urged to appoint the same gentlemen to the same place in 1898 What Secretary Gage’s miesion is he himself has made clear He calls it “currency reform,” a euphemism for “currency revolution. ” The sum and substance of this so called reform ap pears in the secretary’s testimony before the banking and currency committee, the culmination of which may be found in the banking measure now pending before the house of representatives (house bill No. 10,289). This bill proposes to retire all govern ment paper and to place our currency system under the exclusive control of the united banks As the gold standard defenders have dubbed their ruinous product “sound money,” so they now put forward this cataclysmal scheme under the innocent title “currency re form. ” In no Republican newspaper, in no utterance of Republican leaders, in the late campaign has there been even an inadvertent reference to this banking bill. Its existence is ignored, and “currency reform” is its synonym. In the recent monetary debate at Oma ha two members of the banking and currency committee of the house were put forward to oppose government is sues of paper—Mr McCleary, who has given his name to tho bill, and Mr Fowler, whose name the bill atone time bore. Under repeated challenges and tannts these gentlemen declined to dis cuss their own measure or even to mention it That such silence was pre concerted needs no proof i In the recent political campaign no champions or this Tanking measure sp peared on the Republican platform, al though challenges were issued from Democratic quarters to indorse or re pudiate the bill now pending before congress. In Massachusetts it was de liberately and repeatedly charged by Democrats that it was the Republican purpose to smuggle this great measure through the campaign without inform ing the Republican constituency of its nature Yet no Republican senator, congTeeawran or newspaper would speak or publish a line concerning the bill Yet, with Republican success in the election, the same newspapers are teem ing with surmises whether the presi dent will call an extra session of con gress lor the sole purpose of securing “currency reform. ” Plainly, a matter which is of suffi cient importance to call for an extra session of congress is of sufficient im portance to be explained to the voters. Yet at the end of a congressional cam paign ninoty-nine-one-hundredths of the people are ignorant of the contents and purport of the measure which con stitutes “currency reform,” in the ad ministration’s meaning of the phrase It ought, indeed, to be apparent now that there was a preconcerted plan to keep the voters in ignorance of the new banking scheme, and one need not go far to find the reason Nine-tenths of the people, regardless of party, would oppose this measure if they understood it. * * * If the bill passes the Fifty-sixth con gress. its passage will be a deliberate deception of the Republican voters There is no line in the Republican plat form of 1896 which foreshadows such a measure. The treasury is filled with gold to repletion; the revenues will be ample when the war expenditures cease; the treasury balance is too large; the gold standard is established to the ut most limit of its devoteek Why, then, should there be any “currency re form V They who ask this question are uninatructed. From the very beginning the gold standard has covered the plan of the bankers to obtain absolute con trol of the currency eystein of tho Unit ed States. Secretary Gage is the prod uct of that plan, and the president must reckon with bis political obliga tions incurred without the knowledge or consent of the people The Indian apolis movement is the money power organized with a purpose. It is “the tigress with all her whelps” come for her prey, as Benton promised. The charter of the United States bank was a small matter compared with this. That bank was one of many; this is a matter of many in one. OhV'whole currency sys tem is to be taken from the control of the people, and the united banks are to assume command of it. They propose to maintain the gold standard and gold redemption of their own notes, to regu late the rates of interest, to control the volume of money, and all this without responsibility to the people. This is a stupendous plan, bnt it can not now be misunderstood. The house bill No. 10,289 was framed at request of Secretary Gage, and the Indianapolis authorities, in an address to the busi ness men of the United States, say “The recommendations (of this bill) in clude the features of reform sought by the monetary commission in its report. Every advocate of change in our cur rency laws and every citizen and busi ness man who seeks safe and stable things in finance should immediately recognize the vital importance of com plete support of the measure.” The great banks of New York and their as sociates are afteT a great prize. The Republican leaders see the danger of yielding to their demands, and no doubt there will be a contest within the ad ministration ranks- We await the re sult. The essential points of the proposed banking measure are as follows: Pro vision is made for a division of issue and redemption in the treasury, which is to take charge of redemption and ex changes of money with funds delivered for the purpose by the secretary of the treasury. All obligations of the govern ment are to be paid in gold, and even the 460,000.000 silver dollars are made redeemable in gold by the treasury on demand. It may be noted here that the claim of relief to the treasury from the so called “endless chain’’ of note redemp tions must be stamped as a mere pre tense, when one of the first provisions of the bill is an addition to the govern ment’s redeemable obligations of silver dollars amounting to more than the total of the United States notes and treasury notes combined. This first step, then, increases from $445,000,000 to the euormous total of $909,000,000, the liability of the treasury to redeem in gold. It will be found upon critical exam ination that the alleged retirement of the United States notes is really only a substitution of other notes, identical with the old notes, with the simple ad dition of a bunk’s promise to redeem the notes on demand in gold. If the banks should be unable or unwilling at any time to redeem these substituted notes, they will be thrown upon the government treasury for redemption, just as the United States notes may now be presented. The note bo issued as a substitute for the United States note is called a “na tional reserve” note, identical in form with the greenback, but containing the gromiae of the national bank to which {he note ia issued to pay the same In gold on demand. These “reserve" notes are issued to the banks in exchange for a like amount of United States notes, delivered by the bank to the treasury A 5 per cent fund is deposited by the banks to secure the redemption of these “reserve” notes. It is apparent that this substitution is a mere subterfuge, as the govern ment remains liable for the redemption of all the reserve notes if the banks re fuse to redeem them. As such refusal would occur at any time when gold is scarce, the government would be com pelled to assume its liability at the worst possible moment Bond sales at such a time would be at a sacrifice, and perhaps sufficient gold could not then be obtained at any sacrifice. At the same time the repudiating banks could throw silver upon the government for redemption Thus in the final analysis the government’s present obligation to redeem currently $445,000,000 in notes is changed to a liability to redeem $900,000,000 in a time of gold famine. The scheme reaches the summit of folly But the price to be paid for the bank’s indorsement of the United States notes is even more to be deprecated. The banks are to receive the privilege of issuing 80 per cent of the amount of their capital in notes secured only by the assets of the bank. A 5 per cent “guarantee fund” for these so called “currency” notes is deposited in gold in the treasury, but as this fund is only applicable upon default of the bank to pay gold for its notes such a deposit cannot be called “security. " It is mere ly a stored asset of the bank, to be ap plied to the note in process of liquida tion. Other banks may be assessed 1 per cent in a single year toward this security fund, but in case of a general suspension of gold payments by the banks such a levy would not raise an appreciable amount toward the redemp tion of the hundreds of millions of un secured bank currenoy It should be said in passing that the present bond secured note is to be con tinued for a time, but as the bond se curity may be entirely withdrawn in eight years, such a temporary provision is not worth discussing in connection with the ultimate and permanent con ditions. In concrete form the note issning power is as follows: A bank with #ll,- 000,000 capital may deliver to the treasury $400,000 in United States notes and receive $400,000 in reserve notes It may then have $BOO,OOO in circula tion notes and operate with $1,200,000 in notes, together with its remaining capital of $600,000, a total of $1,800,- 000. Their $1,200,000 of notes must be paid on demand in gold. If such pay ment be refused, the bank is to be placed in liquidation It is apparent however, that no such paocess is possi ble in case of a genera] suspension of gold payments, as the concurrent liqui dation of all the banks, when the money of these banks constituted the nation’s currency, would create widespread ruin. The limit of unsecured circulation, not subject to special tax, is 80 per cent of the bank’s capital. The present capital of the national banks is $640,000,000 But state banks are invited by the bill to enter the system. Such banks have a reported capital of $325,000,000, thus presenting a capitalization of nearly $1,000,000,000 and note issuing power of $800,000,000 The surplus and un divided profits of such banks now amount to over $500,000,000, which may be capitalized. Thus $1,000,000,- 000 of note issuing power may fairly be contemplated. * * * Furthermore, it is familiar that the process of attracting money by raising the rate of interest means only a reduc tion in the price of goods. Thus our staple industries must pay the cost of the needed gold in products. But if this process were otherwise possible it is only conceivable when the of the coun try are combined into a practical mo nopoly. Thousands of banks, acting in dependently, will destroy any interest rate. If they can be compelled to con form, such controlling force is the real ization of a banking trust. Such indeed seems to be the necessary result of this banking measure, if it is not its main purpose. The bill provides for the establishment of branch banka It is clear that such a provision is a roving commission of piracy against the small banka They must obey the orders of the master banks under pen alty of competition from the latter, with their large capital and deposits to back them. The very authority to enter any community with a branch would give the great banks the power speedily to convert the small banks into branchea Another provision of the bill is equal ly effieacioua Each country bank is compelled to have a redemption agent in the clearing house city of its district, and its notes cannot be paid over the counter of a bank in another clearing house district unless the issuing bank has a redemptive agency in the district Thus, if a local bank desires the gen eral circulation of its notes in the coun try it must through its own clearing house bank secure agencies throughout the country. Its notes will thus remain in general circulation and in bank re serves in ordinary times. But if any bank should offend the great banks its notes could be collected at once and sent in mass for redemption. This (Continued on Page 4.) Gainesville, Jefferson & Southern Railroad. SAMUEL C. DUNLAP, Receiver. Time table No. 12, taking effect 5. 50 a. m., Jan. 6, 1899, MAIN LIME NORTH BOUND. Between Social Circle BOUND, Read Downward an d Gainesville. Read Upward. First Class. " First Class. 93 91 8s 83 81 STATIONS. 82 84 86 j 92 94 x r>y M ." y n e" y % “*>' only only Sun Sun Sun j • Sun Sun Sun only' only 5 ’ D am a m am pm Lv. Ar. am pm Ip m am 2 1100 74511 00 450 SOCIAL CIRCLE 9153306 05 c, •>„ £ 2 Hl5 80211 20 505 GRESHAM 855 3 10 5 45 9 ,r. 2 3 1130 820 1140 525 MONROE. 835 250 5 c D 5 BS3 620 Us -811 45 8551205 5 43 CAMPTON 815 3 30 4 55 „ 5 P 1168 9151220 5 57 BETHLEHEM BuO 216 4 35 ->o a —l2 15 93512 40 615 WINDER 745 300 4 15 807-^- 9 55 l 50 7 40 12 25 4 04 S7 12 30 10 10 202 633 735 I 3 07 3 50 754 88 daily 1345 J' 233 6 4 HObCHTUN 710115033 0 7 39 “~ ex 108 11 10 2507 08 HICKORY IREE. 645u25 3 0 5 719 Sun ~ bun a m - 640 1 15 11 15 300 715 BELLMONT 640 11 20 3 00 7 14 tTo 645 1 20am 306 720 KLONDIKE 635 11 14pm 7097 05 650 125 310 725 CANDLER 630 11 10 * 7 05 700 710 145 335 745 GAINESVILLE. 6 10 10 45 6 45 640 m P m 'P m Ipm Ar. Lv. a m ami ain pm 87 19 fBSTB3TBi i— j82j84i86 192,88 No. 82 will run to Social Circle regardless of No, 83, but Respect ing No. 85. No. 84 will run to Social Circle regardless of No. 81, No. 83 will run to Winder regardless of No. 84, but Rerp’t’g No. 86. No. 84 will run to Winder regardless of No. 83, but Resp’t’g N0.’85. No. 92 will run to Social Circle regardles of No. 91. No. 84 will approach Belmont with traiu under full control, ex pecting to find No. 85 using main track. JEFFERSON BRANCH. Time Table No. 12, taking effect 5.50 am., Jan. 6, 1899. NORTH BOUND Between Jefferson and SOUTH BOUND Read Downward Bellmont. Read Upward. First Class. First Class. 89 STATIONS. Dally Daily Daily Daily except except e xcept except Bnn Sun Sun sun P. M. A. M. Lv. Ar. Pi M. A mT 310 550 JEFFERSON 800 12 10 I 235 615 PENVERGRASS 788 11 40 300 640 BELLMONT 715 11 20 PM. AM. Ar. v.P. M. A. M. 89 I 87' 1 88 j 90 No 90 will run to Jefferson regardless of No. 89. No. 90 will wait at Belmont until 12 30 for delayed No. 94 from Gainesville. African Limbless > Cotton Seed Free.... Anyone who sends one dollar for a year’s subscription to the At lanta Semi-Weekly Journal can get postpaid one pound of the cele brated African Limbless Cotton Seed without charge. A pound of these seed will plant one-fifth of an acre, and with proper attention should yield enough to plant a crop. The seed were tested in a list of thirty varieties by the Georgia Experiment Station and a bulletin recently issued by Director Red ding shows that the African Limbless Cotton produced 70 pounds more per acre than any other variety, and 161 pounds more per acre than the average of thirty leading varieties. The African Limbless Cotton produced 780 pounds of lint per acre, which is nearly four times the average on the farms of the South. This shows what high fertilization and thorough culture will do with these excellent Seed. The value of the product, counting cotton at 5 cents and seed at 13 cents a bushel, was over $45 per acre. The cost of fertilizers used was $4.77 per acre. The Journal does not guarantee results, but the result of the test at the Experiment Station makes it worth a farmer’s while to test these seed when he can get them for nothing. The Journal brings you the NEWS OF THE WORLD TWICE A WEEK with hundreds of articles of special interest about the farm, the household, juvenile topics, etc., and every southern farmer should have the paper. You don’t have to wait a week for the news, but get it twice as often as you do in the weeklies, which charge the same price. AGENTS WANTED EVERYWHERE. Send for a sample copy. Address, k THE JOURNAL, Atlanta, Ga. t . v The Jackson Economist and The Semi-Weekly Jovrnal 1 year "Frank’s Cough Cure is the best I ever used.” —Jtob’t L Taylor. .FEMALE i FRIEND; CfilfirT Conpnfl (slE) j I BUILDS UP RUN DOWN , \ MEN AND WO/lEN. J Manufactured only by MARBLE CITY DRDG CO., Knoxville. Tenn. i For- Sale by "Winder Drug Co*