""l^i ■^iJ'V .V^\V v^'^S^V Vu^^ ^y£Ay^/^^^^Si^. ^:< MONEY FOUND: Recovered From Its Hiding-Places, and Put Into Circulation Through Confidence In Government Banks. BY THOMAS E. HILL, Author of "Hill's Manual of Social and Business Forms," '^Hill's Album of Biography," "Hill's Guide," "The Hill Banking System," etc., etc. REVISED EDITION WITH A Glossary of Financial Terms, AND GENERAL INFORMATION RELATING TO FINANCE. CHICAGO: CHARLES H. KERR & COMPANY 1894. Copyright 1893 by Charles H. Kerr and Company All Rights Reserved o PREFACE. No apologj' is necessary for the writing of this book. There come periods when mone}- goes into hiding and business of all kinds is depressed. It is then that the workman is discharged and the people who are com- pelled to go into enforced idleness are obliged to sell, in order to maintain existence, their properties at a great reduction in value, while the people who have money at command at these times, buy at their own price and thus rapidly increase their fortunes. Like the arrival of a pestilence among the ignorant and savage nations, the people have come to regard these periods of business depression as inevitable, and during the seasons of financial panic stand in mute wonderment at the general prostration of bus- iness, feeling themselves powerless to avert the ca- lamity. The writer of this is clear in his convictions that these conditions need not exist; that the cause is eas- ily understood, and the remedy for this disturbance may be as easily applied. Under these circumstances duty demands the writing and the publishing of this book. Full in the belief that the general public will ac- cept the theory here advanced and that its practical application will be beneficial to the people, this work is given to the public. 389241 INDEX TO CONTENTS. Accepted; terra used in accepting draft.. 97 Acquaintances at banks SO Air, heated, expanded, hurricanes 72 All should have a fair chance 95 Alloy, in metals ., 9" Ample opportunity tor all financiers 95 Anarchy and revolution IS Animals; used as money. 1' Appraisement of property, made often... 65 Argentine Republic monetary system 86 Army of men employed "^'^ Army of men making fine roads. 76 Assay; examination of ores 97 Atmosphere cooled, cyclone impossible.. .72 Atmosphere; hole in it, makes hurricii.ne.73 Attention diverted by side issues 22 Banks; f.acts about 97 Bank, the heart of commerce 11 Bank and heart; difference 16 Bank of England 84, 98 Bank of North America 84 Bank examiner; his duties 98 Bank failures; number of 98 Bank failures; causes of 98 Banks : private and state banks 97 Banks and people; different interests 16 Banks fail; virhy? 25 Bank wants all it can get 16 Banks ; anybody can open them 25 Banks safe; cessation of crime 62 Banks and branch banks; sufficient 94 Bank owners smile 19 Bank; an indispensible institution 20 Bank officers; number, sal-iries 31 Bank officers; how selected 78 Bank commissioners; how elected 78 Bank failure; small, result 13 Banker, a necessity 20 Banker against us; not for us 21 Banker gives no security 25 Banker laughs and goes on 21 Banker polite under new conditions 37 Banker not in business for health 28 Banker and his "own customers" 37 Banker; his general information 28 Bankers' great fortunes ; how made 34 Bankers' influence in state legislature — 42 Bankers' big words about finance 28 Bankers opposed to low interest 44 Bankers cold, austere, "money tight.". . . .37 Bankers go into government employ 79 Bankers not to blame, of course 21 Banking less difficult under government. 79 Banking independ nt of gdvernment- 94 Banking conducted at cost 47 Banking not conducted for money iiiak'^ 93 Banking; present system of 13 Banking defined 9S Banking; nothing abstruse about it 28 Banking; expense of. 32 Banking conducted for good of all 93 Banking; present system to blame, crime 62 Banking skill not so necessary 79 Banking universal: bankers in demand. ..79 Banking as it is done to day 94 Banking; cause of criminal conditions.. ..62 Banking; cause of overflowing prisons. ...62 Bankrupt national banks 115 Bankruptcy; if interest too low 46 Bill of exchange 98 Bi-metallism 98 Body and heart in harmony 16 Body; loss of confidence in heart 17 Borrowers favor 4 per cent interest 46 Borrowers, no security; how get money.. 80 Borrowing money from gov't bank 38 Borrowing money ; limit of 61 Broken banks; freedom from 39 Bullion; what it consists cf 98 Business stagnation; why 28 Business with checks; possibilities .55 Business without monej' ; how do it! 51 Business revival; the idle employed 42 Capital of United States Bank 85 Certificate of Deposit 99 Certified check 99 Character not neccessary in banking 25 Chattel mortgages and big interest 35 Chattel mortgage shark abolished 40 Check; check passed, captures thief 60 Checks become the money 39 Checks of various denominations 53 Checks, not Imperative at all times 58 Checks; how many can be circulated 64 Checks; instead of gold and silver 63 Checks; good only when stamped 54 INDEX TO CONTENTS Checks: after paid out, go where! 56 Check-book 53, 99 Check-book; coupon form 52 Check-book; if lost 57 Check-book; taken from bank 38 Christ and the money changers 20 Circulation, deranged; result 13 Circulation, 8 5uO per person 65 Circulation, most important 68 Circulation, based on actual resources,.. .91 Circulation, based on actual value 65 Circulation of money, good times 14 Circulation, which gives life 14 Civilization tends to co-operation 81 Civilization ; greatest advance in 62 Clearing house 99 Clearing house certificates 99 Clergyman can shorten his sermons 78 Coins and history of coinage 99, 100 Coins in the United States 100 Coins of foreign nations... 100, 101 Collateral security 101 Confidence; loss of ; result 17 Confidence in the government 26 Confidence restored 85 Conservative in loaning money 91 Consols 101 Contest for political office 77 Continental money; why depreciate! 87 Copper 101 Currency 101 Currency certificates 101 Custody of money by government 91 Cyclones abolished 72 Cyclones; how produced 72 Dangers in fmanee,claimcd by goldbugs. 90 Debenture bonds 101 Demonetizing 101 Deposit money borrowed 38 Deposits each year; how much 31 Depositors favor :) per cent 46 Distribution of money; must be regular.. 14 D rafts 102 Drouth prevented; good crops assured... .72 Duties on imports 102 Eagle 102 Educating the people 95 Electric conditions produced by drouth... 72 Election of bank conmiissioners 78 Employment given on public works 69 Employment, without holding office 77 Employment for everybody 77 Endorsements on notes when borrowing. 80 Exchange 102 Expenditures of the government 108 Expense of government banking 32 Evaporation, makes cyclone impossible.. .72 Evaporation; prevent it; result 13 Facts: imjiortant, relating to monej' 97 Farmers permitted to improve 77 Farmers relieved from rond tax 76 Farmer saves interest; builds new house. 41 Farthing , 102 Favoritism in banking abolished 80 Fiat 102 Field to be fertilized 10 Finance; usually mysterious 97 Finances of the United States 105 Financi d history of the United States... 102 Financial legislation on coinage 104 Financial legislation, by bankers 43 Financial panics 9 Financial panic; cause of 89 Financial ; anic; w.o prospers by it! i4 Financial schemes; how is this dilferent..86 Financial conditions, prosperous for all. .40 Financial quacks 91 Financial system; soundest in the world.. 06 Five twenty bonds 105 First bank of note in United States 84 Fiscal year 105 Floods become greater every year 71 Floods, the cause of them 70 Floods; how to prevent ihem 71 Folly of asking for what cannot get 46 Fractional currency 105 Free coinage, results 23 Free coinage of silver .. .106 Free trade ; i esults 23 Funding five-twenties into ten-forties 106 Gambling; less desire for 77 Glossary of financial terms 97 Gold 106 Gold, silver and copper as money 11 Gold; value of one ton 107 Gold: weight of one million dollars 107 Goldbugs; what they demand 89 Government banks; I ow many! 30 Gov't banks require no expenditure 82 Government banking easily inaugurated. 82 G'ov't bunking would insure loyaity 82 Gov't bonds and money circulation 92 Government bonds; interest 92 Government bonds 108 Gov't bonds: what becomes of them? 91 Government says what shall be mo ey — 14 Government flood commissioner 71 Government free from eomplicatio i 93 Government invests no money 82 Government ownership; paternalism 81 Government ownership of railroads 81 Governme t ownership of banks 82 Gov't receipts and expenditures luS Government; simply custodian of money .93 Government supposed ownership; 85 Government revenue; sources of H)8 Government ownership and public debt.. 91 Gov't ownership; stealing impossible 51 Government straight banking business. . .94 Gold in foreign exchansfe 67 Gold; would come from its hiding 67 Goldbugs and greenbackers; difference... 89 Gold certificates 106 Gobi; what becomes of it? 67 Gold and silver: total production 106 Gold and silver; from earliest times 107 INDEX TO CONTENTS Gold; weight of cubic foot 107 Gold; total since 1493 107 Gold , amount from each state 1 07 Gold and silver iu United States 107 Gold nuggets; largest 106 Gold lower in value, through abundance. 67 Gold more abundant than now 67 Gold from all countries 106 Gold mining would go forward 67 Greenback party; when originated 89 Greenbackers; principle they advocate.. ..89 Guarantee companies to assist borrower.. 80 Hard times; causes assigned ..22 Hard times; freedom from 39 Heart: independent from body 17 Heart, intent on getting more blood 17 Heart weak: body dies 13 Heart laughs in its sleeve, 18 Highway robbery of money impossible.. ,50 Hill banking system 109 His share of reasonable comforts 95 Hot, dry air and electricity 72 How inaugurate government banking 95 Human effort, what waste! 9 Hurricanes; cause of them 72 Identification by your check 53 Identification checks; who take them 54 Idlers; demand for thoir work 9 Idleness; people standing in 9 Immigrants shutout; rtsult 23 Individual banking and disloyalty .86 Individualism and paternalism; 8.1 Industries revived; conditions better 77 Inflated money system 86 Inflation; wild and extravagant 65 Ingot 109 Injury from too low an interest 69 Interest; a just equitable rate 48 Interest; and large commission besides. ..19 Interest defined; brief history 109 Interest high; why so continually? 42 Interest high; low; which is best? 42 Interest; how high keep it! 45 Interest on deposits; how much? 30 Interest to be charged 33 I n terest ; rat es of in each state 1 09 Interest; what right to take it? 47 Interest; why not abolish it? 45 Interest; uniform rates; why not? 36 .Tails are filled with criminals 62 Juices in plant; circulation 12 Kindest of feeling towards bankers 95 Lakes at Glen Ellyn 74 Lake; $500 for each one constructed 71 Lakes; purity of their waters 74 Lakes; number in each count.v 71 Lakes; appropriations for them 71 Lakes; numerous purposes they serve 71 Latin Union 110 Law on banking dictated by bankers S3 Law on coinage for 100 years 104 Lawyers in Congress Ill Leather used as money 11 Legislation on banking by bankers 83 Letrer of credit Ill Life and property unsafe 61 Loaning money; rules for 79 Loaning money on good security 64 Loan money on what security ? 91 Loans; 81 on S2 worth actual wealth 64 Man in the savage state 81 Managers of banks, how appointed 78 Manipula i n of money for private profit.13 Jlediuni of exchange; where Is it? 10 Jlen; hungry horde of 9 Jlerchants complain 10 Mint, where located Ill Millions one hundred to suppress floods. .70 Million-! hiddtn in safety depositories 21 Missing link; what is it? 10 Moisture evupoi'ated; air cooled 73 Money; what is it? 1 12 Money; the blood of commerce 11 Money carried cultivates thievtry 61 Money; how to make ii abundant 29 Money scarce; Why? 28 Money sent, but never carried. 59 Money plenty, bui never transported 59 Mone.v; constant abundance of 39 Money in government bank; no robberies.40 Money; means of circulating it 16 Money borrowed from government bank. .38 Money; :i mount in United States 33 Money; no sure means of circulation 68 Money; increase of volume not necessary .68 Money enough to do business w ith 90 Mone.v hidden; why? ...24 Money withdrawn from bank; hidden 19 Money; how borrow from government 37 Money loaned over and over 38 Money; safe place to keep it 61 Money; not carried . only checks 38 Money; where kept 24 Money; none carried 51 Money; borrowed by United States.. .102, 103 Money that cannot be lost 57 Money loaner; an iiutoorat 42 Money; kinds of in United States 105 Money in United States treasury, 1893. ..105 Money, circulation of 13 Money order 113 Money, in various countries 113 Money chronology 112 Money; similar in action to blood 12 Money; amount for each person Ill Money loaners; quietly sitting around 44 Monty borrowed, rituined to bank '-'8 M'iney, under poltical control, why not?78 Money nbundmt without making more. .63 Money in rircul.ition in United States 105 Money reeovereil I'roin bankrupt banks. .11.5 Money brokers abidished 40 Money kept about home ; danger * • INDEX TO CONTENTS Mnney ; important statistical, facts 97 Money made on other people's money 82 Money, in case of war >-'2 Money; amount for eaoli baiilc iiJ Money loaners opposid to low interest — 40 Money transported no more ;iy Money; result of lack of circulation 12 Money; how much in circulation U4 Money; how much can be borrowed 64 Money; more; no remedy 15 Mono-nietallism 113 Monopo y of profits of money 21 Multitude; ragged 9 Murder from present system of banking.. 61 National banks; number of 115 National bank notes 114 National bank failure statement 1 14 Nature piovides regular cireula'Jon 14 National banks, without money 1 14 National banks; how organized 113 Newsboy's selling papers for checks 54 Newspapers bought with c lecks 54 Never thought on the subject 83 Nickel 115 Number of counties in United States 70 Office seeker, can find other employment.77 Ollicials in banks; how selected 78 Outstanding; meaning of word 115 Paper, used as money 11 Paper money; method of issuing 92 Paper money may transmit disease 52 Paper money in different countries 115 Passbook 116 Paternalism and individualism 81 Paternalism in Government 81 Paj ing traveling expen^es by c ecks 55 Penny; its history 116 Pennies, nickels and silver preferred 55 People are averse to thinking 83 People favor :5 and 4 per cent 46 People fooled by politicians 27 People that do as grandfather did 83 People blinded by side issues 24 People fools, banker imt to blame 21 People's loss of confidence 19 Pickpocket must quit business 58 Plants; stop ciiculatioii; result 13 Planetary system; circulation in 12 Plenty and comfort t at may be 10 Political party; cause of failure 48 Politicians would run the banking 78 Politics relieved of corruption 77 Poor people pay enormous interest 35 Poor people borrow, cheaply as rich 39 Poor man benefited; how! 41 Postal currency; its convenience 52 Postal ■ avings ban'.cs; how many? 30 Post ige stamps; uniform price P6 Postmasters; their salaries 31 Pound ]]6 Price advanced during the war; why! 89 private banking for private profit 83 Profi t to Government from hanking 36 Profits in banking 32 Profit enormuus to government 47 Profit on banKing; how use t 69 Proposition made by some financiers 92 Prospt-ri.y ad .ed by good crops 72 Protective tariff; results 23 Protection of self; first law 47 Public debt 116 Public debt and expenditures 117 Public dei>t; United States 116 Public debt; United States, Aug. 1893.. ..105 Purchases all made by checks 54 Quack doctor; his remedy 15 t^iuaiitity of metal 118 Railroad trains no longer held up 50 Rain determinesjdirection^f wind; why! 73 Refunding certificates 118 Requisites in oi-der to borrow money 80 Revenues of the Government 108 Right; what is it about interest 47 Rivers to be made navigable 10 Roads nearly impassable, 9 Roads good; how to get them 75 Roads ma:le from banking profit 75 Roadways superb made without taxation.75 Robbery must cease 59 Safety deposi tories 118 Safety depositories; expense abolished... 40 Salaries of officers in banks 31 Savings banks 118 Security for borrowed money ..38 Seigniorage 118 Selling property that has been stolen .59 Sight draft lis Silver ii8 Silver coinage 118 Silver; amount from each state 107 Silver from all countiies 106 Silver; weight of one million dollars 107 Silver in Great Britain 119 Silver in Canada 118 Silver; free coinage of : effect 67 Silver question iu 1893 explained 119 Sinking fund 120 Society unprotected against thieves HI Social evil abolished; men can marry 78 Specie i>ayments 120 Start right first 47 State banks; regulation governing them. 97 Stealing abolished 50 Stealing, as a profession 59 Sterling 120 Stockholders in banks; no preference 80 Stocks and bonds 120 Subsidiary silver coins 121 Sub-treasury scheme 23 Sub-treasury .'scheme and .Argentine 93 Surplus government money 69 Taxes becoming heavier, through crifne..62 Temptation to thievery 62 Theories about liard times 22 INDEX TO CONTENTS Theft of personal property , 59 Thieves; theircapture certain 50 Think, friends, think 2ii Tile drai age causes rapid outflow 70 Thief; how identitied and captured 60 Tliieves; no present means of capture 60 Tiade dollar 121 Tramps; the roads they travel 9 Travel without money; how? 52 Travel unsafe, because money carried 61 Treasury notes 121 Trees set by roadsides 76 Tiees stand uncut 10 Troy weight 121 United States Bank 84 United States bank; second 85 Unit coin of various countries KXJ United States notes 121 Volume of money increased; no beneflt...90 Warehouse receipts 121 Water will evaporate and prevent drouth.71 Wa'er evaporated producing rains 71 Water; stop circul ition; result 13 I Wealth of United States in 1890 65 I Wealth; amount of per capita 65 I Wealth: SI t)00 per capita in country 65 Weight of coins , 99 Western people; their troubles; 35 Western farmers; their outlook 35 Winds from north, suppressed, possibly.. 73 Winters made warmer, possibly 74 Winds suppressed 73 What system can be more secure 91 Why not government banking before? 83 Why bank profits go to individuals 83 Why millionaire bankers take profits 83 Work ; vain search for , 9 Work to be done 10 Your interest and our interest 95 CHAPTER I. WORK ON EVERY SIDE TO BE DONE, HOUSES TO BE BUILT, FIELDS TO BE TILLED, ROADS TO BE IMPROVED, GREAT IM- PROVEMENTS TO BE CARRIED FORWARD WORKMEN ON ALL SIDES TO DO THIS WORK, WHO NOW STAND IN IDLENESS. WHY NOT GIVE THEM IMMEDIATE EMPLOYMENT? Reader, you have doubtless seen, during the years when financial panics have prevailed, great numbers of people standing in idleness because of being dis- charged from manufactories and other places where their labors were apparently not required. At the same time there could be seen, all over the country, in the pocirer districts of the great cities and in the inferior hoiines of the rural population, the evident demand for the work of these idlers, in order that people might have the reasonable comforts of life. In the public parks of the cities lounged a ragged multitude, on the main traveled roads of the country districts tramped a hungry horde of men — all idle. The roads over which the tramps traveled were almost impassable, the house where the beggar got a scanty dinner was lacking in nearly all the conveniences which make home desirable. What waste of human effort! With half the labor the tramps expend in going from one portion of the country to another, in the vain search for work, those roads, over which thej' walked, would have turned to 9 lO WORK ON EVERY HAND TO BE DONE boulevards. A quarter of the time, which the me- chanics waste in idleness, expended in production, and every person would be well fed, clothing would be abundant, and the homes of the people would be comfortable and luxurious. What evident lack of proper management! On every hand is the work to be done, rivers to be made navi- gable, fields to be fertilized, roads to be improved, houses to be built. The raw materials are waiting for the workmen, the trees stand uncut in the forest, the ore is waiting for the miner, the clay is ready to be moulded into brick and the millions of acres of fertile lands are untilled; and all this while the hundreds of thousands of idle workmen, properly directed and given full opportunity for active employment, would change these conditions, bringing plenty and comfort where there is at present enforced idleness and desti- tution. Is it possible to radically reform this order of things? Let us see. Here is a great store filled to repletion with products of every description that tend to make life comfortable. Within a mile of this is a neigh- borhood where all of these goods are immediately re- quired by several thousand people. The merchant complains because he cannot sell these goods; the people complain because they cannot buy them. There is a missing link here: What is it? The means and the medium of exchange are ab- sent. What is the medium of exchange and where is it? CHAPTER II. WHAT IS MONEY? WHAT WILL BE THE MONEY OF THE IUTUR&? MONEY THE BLOOD OF COMMERCE, THE BANK THE HEART. — THE HEART i\IUST BE STRONG AND BLOOD CIRCULATE FREELY OR SICKNESS AND DEATH RESULT. — QUANTITY NOT SO IMPORTANT AS REGULARITY OF CIRCU- lATION IN ORDER TO SECURE HEALTH. liny article which may be selected by a people as a me ins of exchange, may be termed mone}'. The an- cients used their lower animals for this purpose, an ox being worth a certain number of sheep, etc. After- waiids leather, as a representative of animals, came into use; and subsequently gold, silver and copper coins were adopted by the civilized world. As civ- ilization has gone forward, in the most advanced na- tions, paper has largely come to represent coin. 'The inference is, as we compare the past with the pres- ent, that the great bulk of the medium of exchange, denominated money, will not be a commodity like metal, which is subject to fluctuations in value, but will be paper. Whatever is adopted, that article should have the widest opportunity for circulation. Money is to the Nation what blood is to the phys- ical system. It may be termed the blood of com- merce while the heart is the bank. Money performs n s(?rvice, in the commercial affairs of the country, 11 12 SERVICE WHICH MONEY PERFORMS very similar to blood in the bod3^ It must have the privilege of coming with regularity from the extremes of the country to the heart, which is the bank, to be there, in abundance, ready, as it is required, to go back again to the extremes. In its action it is remarkably like the workings of the heart. As blood goes out through the arteries it is fresh, strong and gives vigor to the bod}'. Having done its appointed work it comes quietl}' back in the veins to be vivified by the fresh air of the lungs, and thence to start afresh again, out from the heart giving health and strength through the arteries. In like manner fresh, bright money goes out from the bank through the arteries of commerce, giving life and vigor to enterprise, and prosperity to the people. When its mission is accomplished, for which it went from the bank, it quietly returns through other chan- nels to the bank to go forth subsequently carrying hope, life and activity. If anything occurs to impede the circulation of the blood, if anything happens whereby each and every part of the physical body may not obtain all the blood required, sickness begins and death may be the result. If any cause prevents money from coming freely into the bank, whereby it can go out and circu- late freely to an}' part of the country, sickness begins in commercial affairs, and death to the Nation may be the result. In a study of circulation in the planetary system, juices in the plant, sap in the tree, water on the earth, blood in the body, and money through the ave- nues of commerce, we see that circulation is life, stag- nation is death. Stop for an instant motion in the DISASTERS FROM STOPPAGE OF CIRCULATION I3 planets, and chaos would result. Cease the flow of fluid in the plant, and it withers. Prevent the circulation of sap in the tree and the branches dry and the leaves fall. Stop the flow of water and it becomes foul — the earth parches and death to all living things is the near result. Weaken the heart and the body dies. Weaken the bank, stop the circulation of money, and the prosperity of a Nation, resulting from its commer- cial activity, comes to a close. Examine further, and we see that the power of movement in the planetary system exists in the uni- verse itself; so the power of circulation of the juices belongs tothe plant, to the tree, to the body; but the power for circulating money that should belong to the Nation does not belong to the Nation. It is taken into the possession of individuals and so ma- nipulated for their private profit, through the present system of banking, as to impede the regular circula- tion with certain distress resulting in all the avenues of business. The power of propulsion which gives life to all that which we have mentioned, in order to have healthy circulation, must belong to that with which it is connected. This is evident in the fact that the slightest deviation from regular circulation may have ver}' serious results. Prevent the usual evapora- ation of ponds and swamps by tile draining, running all the water rapidly out of a large area of country, and drouth is the consequence. A slight cut may kill the tree, a small derangement of the circulation of the blood in the foot or the hand may cause death; and the failure of a small bank in a distant state may so derange the circulation of money in that region as to precipitate a financial panic, causing general stag- 14 NO MEANS OF REGULAR CIRCULATION nation and distress in business throughout the counl:ry. The lesson is that to secure health in earth life, in plant life, in physical life, in commercial life there must be absolutely regular circulation. This must come from a strong heart having the power to circu- late the fluids, or the medium of exchange, through all parts of the body. This leads up to an examination of our means of circulating money. Investigation shows that we have no means of uniform and regular distribution. Our Government determines what shall be money, stamps the value upon pieces of copper, nickel, silver, gold and paper, but makes no provision for ensuring circu- lation. Nature provides a means whereby tliere is tegular distribution of the fluids in the tree and in the bocjy ; but money, which is exactly analogous in its effect on commerce, to blood in the physical system, is left by the Nation to go whither it will according to i;he pleasure, the whim, the speculative tendencies, and the scheming manipulations of financiers. Sometimes for a little period it will circulate freely and we are in an era of what is called good times. Again through the schemes and speculations of indi- viduals it goes almost out of circulation to the sor- row and misery of large classes of people who are pros- pered by its free distribution. It is seen by a study of the various circulating mediums which give health and life that quantity of that which circulates is not so important as regularity of distri- bution. Thus the person whose hands and feet are becoming cold cannot have health brought back by the injection of a large amount of more blood into the sys- QUACK DOCTORS AND QUACK FINANCIERS 15 tern. The quack doctor may suggest that as a remedy but the skilful physician administers a medicine calcu- lated to quicken the feeble action of the heart and re- store regular circulation. As with the heart and the flow of blood, so with the distribution of money. If times are good at one por- tion of the year, when money is circulating freely, and hard at another portion of the same year, it is clearly not because of lack of quantity of money, but because of lack of distribution of money. To propose, therefore, as a remedy for hard times, that a large additional amount of metal or paper money shall be brought into existence, when there are no means of circulating even that which is in existence, is like injecting a quart of blood into the man's arm, expecting a cure when the heart is so weak it cannot circulate the blood already in the system. CHAPTER III. SUPPOSE THE HEART TO BE A SEPARATE INSTITUTION FROM THE BODY THE HEART DETERISHNED TO GET ALL THE BLOOD, AND THE BODY TRYING TO RETAIN POSSESSION OF ITS OWN BLOOD — BODY BECOMES SUSPICIOUS — REFU- SES TO LET HEART HAVE MORE BLOOD — RESULT. ' This brings us to a consideration of the means by which money circulates. As stated before, mone}-' is the blood of commerce, the bank is the heart. E^tch is to the Nation what blood and the heart are to the physical system. The heart circulates blood, the bank circulates money. The only difference is that i|he heart and blood both belong to and are a part -^f nhe physical system. In monetary circulation, hov er, the money belongs to the people and the means Ct c:ir- culating it belongs to private individuals. While the body, heart and blood all wor': in harmony, with uniformity of circulation, excellc;nt health may be depended on, as long as the physical laws are obeyed. But not so with the people and the banks. To each other these are unfortunately in opposi- tion. Like the buyer and the seller, each war*- to get the most it is possible from the other. The de- positor wants all the interest he can get from the bank. The bank generally insists upon paying no interest to the depositor, but exacts all the interest it is possible to obtain from the borrower. IG BANKS IN OPPOSITION TO THE PEOPLE 17 The relation existing betvveen the bank and the peo- ple is th: same as would be illustrated by the physical body ha ag possession of the blood, which is com- pelled to circulate through a heart which is separate and independent of the body; this heart being estab- lished as a blood-making enterprise for profit, the in- tention being to acquire all the blood it is possible to get from the body while the blood passes through the heart. If the enterprise of establishing an independent heart is as successful as it proposes to be, the heart will come into the possession of all the blood in the body, and the body will have no blood left; or, if the heart does not get entire possession very soon, it can so manipulate the blood that it will not circulate; and thus it can make the body so sick that it will be glad to sell out to the heart for a small price. In any event the heart, being established as a blood-making enterxrise, and all blood being compelled to pass th»' vgh it, and the heart, having control of the law- ma>>Hng power, can so regulate matters as to get pos- se, on of all the blood. Ik in the endeavor to make blood for itself too rap- idly,' the heart should overdo the business, get out of order, and not send the blood which has been de- posited in the heart back to the bod}', which yet owns some of the blood; and the body should lose confi- de. ;'^'?-in the heartand refuse todeposit any more blood therein, but, on the contrary, should withdraw what blood it had in the heart and hide the same, then there would be great trouble because stoppage of en- tire circulation means certain death. In this case the body is seen to be terribly sick l8 THE BANK HAS THE ADVANTAGE yet powerless. It has lost confidence in the heart and refuses to trust but very little of its blood to its care. It has become panic-stricken and has hidden the most of its blood wherever it can find lodging place. The distressing effect of such withdrawal of circu- lation of blood from all parts of the body is at once seen. The result is a determination of the different portions of the body, dependent upon regular circula- tion, to trample down all law and take blood wherever they can find it. This talk, which means anarchy and revolution, ex- cites great fear in the feverish portions of the body where the blood is being hidden, the ultimate being a compromise, fixed up between the ruling portions of the body and the heart, by which blood is let out from its hiding-place and allowed to circulate more freely through the heart. Through all this trouble the heart has laughed in its sleeve. It knew that the body had no means of circulating blood except through itself. Having had all the opportunities for getting a large share of the blood into its own possession, and being able to dic- tate the law regulating its management, it could laugh while it witnessed the distress and got big interest for such blood as it furnished from time to time to the starving portions of the body that required some blood. In this is seen the condition of the finances in this country. The people are the Nation — the bod}'. The money which they possess is the blood. The heart is the bank: an institution which is established inde- pendent of the people for the purpose of absorbing and getting into its own possession the people's money as MAKES A BANKER SMILE IQ rapidly as possible. Through bad management and failure to pay back the money which is given the bank, the people have lost confidence. They have withdrawn their money from the bank and hidden it. With the majority of bank owners this only causes a smile. They have the most of the money in their own possession. They know it ever money does cir- culate again it must pass through their hands, and they can get all the interest the law allows; and hav- ing large monied interests at stake they usually con- trol legislation in manner such as to secure an)' law they want. Until money does freely circulate they can get this legal interest and a large commission be- sides, for money that they loan. Thus, it is all the same to them whether they loan much money at a lower rate of interest, or loan less at a higher rate. CHAPTER IV. OUR MONEY TURNED OVER TO INDIVIDUALS WHO HAVE A MONOPOLY ON ALL THE PROFIT ARISING FROM THE CIR- CULATION OF MONEY HOW ATTENTION IS DIVERTED FROM THE REAL ISSUE BY DUST THROWN IN THE PEOPLE'S EYES. In saying this there is no especial reason for ill-will to be expressed toward the present banks. Long be- fore Christ drove out the money-changers in the Tem- ple, the banker had been a necessity. As a means of circulating money, and the only means of regular money distribution, the bank is an indispensable in- stitution to-day. That the managers of banks should protect their own interest through legislation, and otherwise, is to be expected. People in all other vo- cations do the same. Of that, therefore, we must not complain. But that with which we may justly find fault is the relation which the banker holds to us. It is as if our cashier was acting independently of us and making all the money he could from us through his position, we paying him interest when we get money from him, he taking our money, giving us no security and no bond that he will return what he gets; he steadily tak- ing in large quantities of our money, using it for speculation, unwisely loaning it, stealing it, becoming bankrupt and failing to return the money we give 30 WE ARE FOOLS AND THE BANKERS KNOW IT 21 him; we losing all confidence in him, taking our money away from him and hiding it, and yet being obliged ultimately to bring it back to him because we have no other means of doing business. To the ordinary observer this would seem to be a most unfortunate position in which to place ourselves, and yet this is the way we are s'tuated in our rela- tion to the bank. We place our money in the hands of our banker, who is interested in making money from us and not for us. Through heavy losses, by him, we lose confidence and we quit him. We hide our money; we stop business. We are finally starved out and have to come back to him. We make no law compelling him to do any better in the future. He stays right along. He laughs and continues to do business for all the profit he can get out of us. He knew we would have to return because we had no other alternative. He has a monopoly on all the profit there is in the circulation of mone}'. Why is this? Because we do not know any better. The banker is not to blame because we have no more intelligence. He finds the people without the facilities for the distribution of mone}'. There is need of a cus- todian who will keep the people's money where the borrower can have access to it. He assumes the re- sponsibility. We permit him to occupy the place. Surely the banker can not be blamed if the law is easy with him. It is not his business to pass more restrictions upon himself. And the people — well, when the time comes that money ceases to circulate and the times are hard, the dust is thrown in their eyes and their attention is diverted by other issues, one hobbyist filling their minds with the idea that the cause of 22 BANKERS PROCLAIMING THAT MONEV IS TIGHT hard times is an excessive tax pla.ced on all goods in the shape of tariff. Another individual is equally cer- tain that the cause of our distress is the probability that the tariff laws may be repealed. A third is pos- itive that the refusal to purchase an}' more silver would be the salvation of the country. Another is emphatic in his assertion that the free and unlimited purchase of silver bullion and the coinage of the same into silver mone}' will save the country. And so the contest goes forward, one calling the other a free sil- ver crank, the other retorting by pronouncing his op- ponent a goldbug. Amidst all this dust, and fuss, and fume, about tariff, free-trade, gold reserve, free coinage, immigration, the Chinese, the sub-treasury and other issues, which are holding the attention of the masses, the banker is attending to his business, is proclaiming that money is very tight, is keeping as neutral as possible, while he gets big interest on what money he loans and is rapidly doubling his fortune through buying property, that has depreciated during the financial panic, at a quarter of the price which it will be worth when the panic blows over. CHAPTER V. THE GREAT ISSUES: PROTECTION, FREE TRADE, RESTRICTED IMMIGRATION, SILVER, FREE COINAGE, SUB-TREASURY AND OTHER SCHEMES WHAT CAN SAVE THE COUNTRY IF NO MONEY CIRCULATES ? Let us examine the force of these various arguments. Suppose we have a high protective tariff? Admitted that it will protect home industry and raise the rate of wages; how can wages be paid and goods be bought at the advanced price, if no money circulates? Suppose we have free-trade, and goods can come into the country from abroad in great abundance at a cheap price; how can they be bought when there is no opportunity to work and no money circulates? Suppose we have free coinage and we increase the quantity of silver money by a thousand million dollars, how would the people get this mone}' if we have no means of circulation? Suppose we shut out every Chinaman, every Po- lander, and every Italian from coming into this country in the future; how will that enrich the people now here if we have no means of circulating money? Suppose the sub-treasury scheme were to prevail and farmers could borrow direct from the government, on their produce as security, 80 per cent on its face val- ue, at 2 per cent interest. What would very soon 23 24 HUNDREDS OF MILLIONS OF DOLLARS HIDDEN become of this money if we have no means of circula- tion? Free coinage, which is calculated to increase the volume of money, and the sub-treasury plan designed for the same object, it is thus seen would be of no avail so long as we have no means of circulating this increased amount of money. The people should understand that their eyes are simply blinded by the advance of these various issues as remedies for the distressed conditions in business, which prevail during the times of a financial panic. There is another issue of vastly greater importance for the people to consider, and that is, how to secure regular and uniform circulation of the money already in existence. It should be understood that there are, at the pres- ent time, and all the time, hundreds of millions of dollars hidden in safety depositories, in safes, stock- ings and the people's pockets that do not have any circulation, because they are thus hidden. This great amount is vastly increased at times when banks are failing in large numbers throughout the country. It is then that the people become panic-stricken. They fear they will lose their money if it is left in the bank any longer and they go forthwith to get that which they have deposited there. The money thus taken is withdrawn from circulation. Why is this money withdrawn? Because the}' fear that the bank is unsafe. They lack confidence in the institution from the fact that others have failed. They fear this bank will go the same way. This may be one of the soundest of institutions conducted by honest and the best of bankers but the panic impels the de- BANK GIVES NO SECURITY 25 positors to make a run on the place in such great numbers, and so rapidly as to compel it to close its doors. This failure adds volume to the wave of business trouble and the increasing flood carries down one bank after another, and one enterprise after another, until the land lies strewn with the wrecks of what might have been successful and prosperous but for the panic, begotten of lack of confidence in the banking institu- tions of the country. Why this lack of confidence? Because banks fail. Why do banks fail? Because the system upon which they are conducted is at fault. To illustrate: An3'body may open a bank. The owner, or owners, may be one person or more, ma}^ be honest or dishon- est; no certificate of character is required. There may be money in the bank and there may be no money placed there by the proprietors. The peo- ple are compelled to go to some bank anyway and this bank may secure their confidence to such an extent that one million dollars are there on deposit. The proprietors assume the responsibility of caring for this without giving one cent of security for it. This large amount of money, representing the hard toil of thousands of people, may be all lost and the proprie- tors of the bank not be held in the least responsible. What an injustice! And yet the attention of the people is so occupied with other issues that the}' do not think of an expedient whereby they might be se- cured against the immense losses from bank failures which precipitate the financial panics of the country. How the people are blinded! How the people are running wildly about the grounds crying fire, fire. 26 CONFIDENCE IN THE GOVERNMENT without knowing where the smoke is coming from! Panic-stricken, in distress, and yet do not know the cause. Stop a moment, friends, and think. Think: one min- ute of serious thought is often worth more than an hour of skurrying around in ignorance. The panic will sink the ship; ten minutes of careful planning may save it. Think. Do you know that you feel safe concerning that greenback in your pocket? Do you have any anxiety about that postoffice order you have in your possession? Are you rushing over to the United States treasury to draw the money on that gold or silver certificate of deposit you have in your pocketbook? Not at all. Why? Because you feel sure that it is as good as the gold. Why do you feel so sure? Because the Government guarantees its payment. The Government. Ah, the Government. You have perfect confidence in the Government? Of course you have. Every foot of land and penny's worth of prop- erty under the stars and stripes can be taxed for the support of the Government and the payment of its debts. You may well have confidence in the Government. Would you run to draw 3'our money from the bank if all its deposits were guaranteed by the Govern- ment? Never. On the contrary, if you had any more money you would put it into the bank as the safest place wherein you could keep it. CHAPTER VI. THE PEOPLE OVERWHELMED WITH FINANCIAL TALK RELAT^ ING TO "specie BASIS," "tEN-FORTYS, " "bI-METALLISM, " "outstanding certificates," "funding bonds," and such phrases as induce them to think that finance and BANKING ARE TOO GREAT FOR THEM TO UNDERSTAND THE SUBJECT VERY EASILY UNDERSTOOD. Ah, here is a discovery. Let us enquire further. We ask a thousand people — a hundred thousand — if they would have perfect confidence in a bank guaran- teed by the Government and they all answer in the affirmative. Here is a revelation. The wonder is, in a study of Nature — in the perfect mechanism of the human sys- tem, heart and blood all belonging to the body, that we could not have thought before that the bank holds the same relation to the Nation that the heart does to the body, and that the bank should belong to the Gov- ernment, that all its deposits should be guaranteed by the Government, and thus the bank be made absolutely safe — confidence be restored and there be no more withdrawal and hiding of money and no more financial panic. Can it be that this is all there is to the financial question? Yes, this is all. Do not let the politician fool you with these outside issues that have nothing to do with 27 28 BANKING EASILY UNDERSTOOD the finances and the circulation of money. Do not let the banker confuse you with a quantity of high sound- ing bank talk about "funding" the "five-twenties" into the "ten-forties, " "bi-metallism, " "monometallism, " gold reserves," "clearing house certificates," and "currency vouchers"— all calculated to convey the impression that he is deeply versed in a knowledge of finance. The facts are that while the banker is generally a polished and an intelligent man his vocation has never caused him to investigate a system of finance that would be in the interest of the entire people. He could not be expected to espouse a plan of finance that would prevent him from getting all the money he could in his occupation. He is not following the bus- iness for his health. So far as his knowledge of finance is concerned, it consists, of necessity, in information about the reliability of individuals who may wish to obtain money at his bank and the value of securities which may be left by the borrower. There is nothing very abstruse about the subject of banking. It is not difficult to understand. The bank is simply a place where we leave our money and take no security. It is a place where we give security and borrow other people's money if they have left it there. If the people do not leave their money at the bank we do not borrow. The banker gets a certain per cent for all the money which he lends and herein lies his profit. This is all there is to it. If the banker fails to re- turn the money which we deposit we lose confidence in banks in general. This universal loss of confidence hides nearly all money and the result is stagnation in business. CONFIDENCE IN THE GOVERNMENT BANK 29 Anything that will inspire confidence — absolute confidence in the bank, will bring out all the hidden money and into the bank — an}' system of finance that will do that will add hundreds of millions of dollars to our volume of currency and through regular circu- lation, the result of confidence, commercial prosper- ity v/ill be assured. We have seen that everybody will trust the bank that is guaranteed by the Government. It is clearly evident therefore, that all that is necessary then, is for the Government to guarantee the depositors that the money which shall be left at the bank shall be given to them when they ask for it. The easiest method to accomplish that,will be for the Government to establish and own the bank. CHAPTER VII. THE GOVERNMENT TO OWN AND MANAGE ALL BANKS. — HOW TO GET THE MONEY WITH WHICH TO DO BUSINESS — QUES- TIONS AND ANSWERS RELATING TO EXPENSE AND PROFIT FROM THE GOVERNMENT DOING ITS OWN BANKING BUSI- NESS THE ABSOLUTE SECURITY OF BANKS THE LOW INTEREST TO BORROWERS, AND THE IMMENSE PROFIT TO THE GOVERNMENT. ''What! the Government own the banks and do the banking for the people? What plan would you sug- gest?" "That the Government shall establish 3,000 banks evenly distributed at various central points in the United States, being at the rate of one bank for each 22,000 inhabitants. "That there shall be 40,000 postmasters authorized to receive money from people on deposit in localities where there are no banks, which money so received by postmasters shall be sent to the bank to be loaned to those who may wish to borrow." "How would you induce people who have long had their gold, silver and paper money hidden in places where it is now safe and easily accessible to them, to bring their money out from their safe hiding places?" "We will allow them 3 per cent interest, per annum, on long time deposits. To the person who shall check out his deposits pretty frequently we will pay no in- 30 EXPENSE OF GOVERNMENT BANKING 3I terest, but to those who allow their money to remain in the bank, three or more months, without drawing upon it, we will pay interest." "What do you think would be the total amount of deposits each year on which interest would' have to be paid?" "No one can tell that with any degree of certainty. A safe estimate would be $5,000,000,000." "And the interest on that amount at 3 per cent would be $150,000,000 annually?" "Yes." "And your 40,000 postmasters, what are you going to pay them?" "We will allow them, each $2,000 per annum, mak- ing a total of $80,000,000 to postmasters each year for collection of moneys from the people in the back dis- tricts. Thus you see like the rivulet that runs to the brook, the brook to the river and the river to the ocean, so the smallest driblets of money will be gath- ered into the loaning depositories to be in readiness for use by those who wish to borrow." "Yes, true, but your banks, what are you going to pay them for doing the business?" "We will pay them liberally and as follows: To I President per year $ 8,000 " I Cashier 5,000 " 3 Appraisers each $3,000 g,ooo " 4 Assistant Appraisers, each $2,500 10,000 " 4 bookkeepers, each 2,000 8,000 '' 4 Assistant bookkeepers, 1,200 4,800 " 10 clerks, each 1,000 10,000 ' Miscellaneous 5,200 Total $60,000. 32 HOW COULD WE PAY EXPENSES? Banks, of course, in some localities might require a larger force, in other places the number of clerks might be less." ' "Is not this a very large amount of money to be paid for the conducting of the banking system of the country in behalf of the people? Let us see the fig- ures representing the total cost to the Government of conducting its own banking." "Very well; here you have them: Interest on $5,000,000,000 of deposits at 3 per cent per annum $150,000,000 Salaries of 40,000 postmasters at $2,000 each 80,000,000 Expense of conducting 3,000 banks at $60,000 each 180,000,000 Total annual expense of conducting the banking $410,000,000 "Four hundred and ten millions of expense in con- ducting the hanking system of the country. How could the Government pay its expenses were it to take con- trol of the banks?" "Very easily indeed, and have an immense profit besides. If it is legitimate for the Government to accept of revenue from imports, spirits, tobacco, the sale of postage stamps and money-orders, it would be equally legitimate to accept revenue for the use of money which might be loaned. Were the Government to establish its 3,000 banks as a depository for all the money in the country it is safe to presume that nearly all the money in the country would come into these banks." HOW MUCH MONEY HAVE WE? 33 "How much money have we in the United States?" "According to the United States Treasury report of 1892 there were in the hands of the people, $i,6oo, 000,000 which were known to be in banks and in gen- eral circulation. At a very low estimate there are $400,000,000 of money hidden; thus making $2,000,- 000,000 which would come almost immediately into the Government banks to be loaned. This distributed among the 3,000 banks gives each about $670,000 as a capital with which to begin operations. This money is all in readiness to begin banking with — no new money would have to be made for this purpose because checks here serve as money. This system proposes to do banking in the same manner that the banker now does business; take the people's money on deposit and loan it to customers who wish to borrow." "What interest would you charge?" "We would make a uniform interest charge in all parts of the United States of 4 per cent per annum." "You have only $2,000,000,000 to loan, the interest on which would be only $80,000,000. This out of your $410,000,000 would leave you behind in your running expenses $330,000,000." "Ah yes, apparently so; but do not go so fast in your estimate. We shall employ the best of banking talent to manage the Government banks and we pro- pose to do as the successful banker does to day — loan this money over and over. "Tlius, for illustration, a bank of the present time has 1,000 customers, and $10,000 in the bank. We will suppose it is a prosperous year; there is no finan- cial panic abroad, everything is moving smoothly in finance and the bank has the complete confidence of the people. 34 HOW BANKERS MAKE THEIR MONEY "Jones borrows $i,ooo; pays it to Smith who depos- its it in the bank. This money is now ready tO' be loaned to Brown who pays it to Snow, who deposits it in the bank. The bank pays nothing on its sliort time deposits but charges, say, seven per cent as in- terest to the borrowers. In a short time that money has been loaned out ten times to as many customers, each paying seven per cept, which is 70 per cent in- terest, or $700 for the use of that $1,000 one year; and if business is moving along smoothly, and nobody is taking out and hiding his money, the amount of deposit will just about equal the amount which is bor- rowed, so that the $10,000 in the bank in the beginning is there at the end of the year. "This is the Avay bankers make their great fortunes. Not by loaning money once, but by loaning deposits over and over. "Thus see the report of one of the large National banks. Capital stock, $1,000,000. Deposits, $20,000,- 000. Loans $15,000,000. They pay no interest on that $15,000,000 of deposits but they get, on the av- erage, 6 per cent per annum interest on the $15,000,- 000 of loans. Figure the profit to that bank on loan- ing $15,000,000 which has not cost the bank a cent of interest. Profit to the bank in twelve months, $900,- 000. That is the reason why bank shares of $100 in some popular banks are worth from $300 to $1,800 each; because there is such enormous profit in bank ing — getting the people's money for nothing and loan- ing it at a good, round interest. "Under Government ownership of banks we propose to be much more liberal. We are going to give the people tlie advantage of its benefits from the very first. EXCESSIVE INTEREST ABOLISHED 35 In the beginning we estimate, in paying 3 per cent on time deposits, that we will distribute among the peo- ple $150,000,000 annually in interest. Following this we propose to reduce the average rate of interest throughout the (Jnited States one half, by charging only four per cent per annum. "On chattel mortgages, poor people, who cannot af- ford it, are pa3nng from 20 to 60 per cent per annum throughout the entire land. In the middle states, on the best of landed security, interest rules at from 6 to 8 per cent, besides a commission to the money broker, of two or three per cent, for his trouble in finding the money. Throughout the Northwest the interest rates run from 8 to 12 per cent and a commission besides. "An unfortunate fact about this is that, even with the best of security, the poorer the people the more inter- est they have to pay. John Smith who is well sit- uated down in Massachusetts can get money at 5 per cent. His brother James, who has been unfortunate in business, in his effort to begin again, settles with his family on a farm in Dakota. All seems bright be- fore him until he finds his profits cut off by a 12 per cent interest. This is an outrage and everybody ought to see it. "With cyclones, hurricanes and grasshoppers devas- tating the lands, with drouth and low prices making the profits uncertain, the 8 and 12 per cent interest plaster has been steadily at work, summer and win- ter, the farmer and his famil}' denying themselves all the common enjoyments of life in order to pay this in- terest and retain possession of their little properties. "Nothing has so greatly retarded the Northwest, in its development, as an exorbitant interest which has con- 36 HINDRANCES TO PROGRESS tinually settled, like a dark cloud, over the face of the entire country. We propose to reduce the rates of interest to 4 per cent, through Government control of banks, making it possible for James Smith, on good security, to borrow money in Dakota as cheaply as his brother John does in Massachusetts. He buys postage stamps and mone}' orders as cheaply as his brother does, why should he not get his money as cheaply? "Why? Yes; why? Simply because the people of this country have allowed the financial legislation to be controlled by a set of men who were interested in the loaning of money for their own personal profit. "We propose to change this condition of affairs by placing the rate of interest at a uniform standard! of 4 per cent." "Yes. Well, please tell us how 3'ou are going to pay your expenses of ^410,000,000 per year, which is the cost of conducting the banking of the country?" "We can show you very easily and how we will make an enormous profit besides. We shall have $2,- 000,000,000 immediately deposited in our banks by the people. We will loan this over and over, as it is borrowed and deposited, again and a^ain. During the year, at a very low estimate, it will be loaned over ten times, so that the amount of money we shall loan will be $20,000,000,000. The interest on that sum is $800,000,000. We subtract $410,000,000 from that and we have left, as a clean profit, $390,000,000 per annum. " CHAPTER VIII. HOW WE WOULD BORROW FROM A GOVERNMENT BANK — BANK OFFICIAL NO LOXGER COLD AND AUSTERE — ONLY WISHES TO KNOW WHAT SECURITY WE HAVE TO (1FFER — PLENTY OF MONEY ANYBODY CAN BORROW ON GOOD SE- CURITY NO PARTIALITY SHOWN BECAUSE THE INDIVID- UAL IS RICH OR A CUSTOMER OF THE BANK — NO MONEY TAKEN FROM BANKS BUSINESS DONE WITH CHECKS — IHE BENEFITS ARISING FROM THIS SYSTEM. "That seems all right. Tell us in detail how an individual would borrow money if he went to a Gov- ernment bank" "We will suppose John Doe wishes to borrow $i,- ooo. He applies to the cashier of the nearest Gov- ernment bank, stating the amount he wishes to borrow. Doe will be immediately impressed with the difference in manner between this gentleman and the cashier of the old bank. The latter was cold and taciturn, his reply almost invariably being that money was "very tight," were only loaning to their "own customers," etc., etc., as much as to say. "Be a customer of ours if you want or expect to borrow money." If a loan was made the customer was made distinctly to understand that a great favor had been bestowed. Under the new conditions the cashier simply asks Doe where his security is. Upon being informed, an appraiser is at once dispatched to make e.xamination. 37 38 ALL MONEY KEPT IN BANKS This security may be real estate or personal property. In either case it must be free from incumbrance, in- sured against fire and all accident, and in such condi- tion that it will sell, at forced sale, for ^2,000, or twice the amount which Doe wishes to borrow. The security being found all right the appraiser re- turns and informs the cashier that he can safely loan Doe $1,000 on the proposed security. The necessary papers are quickly made out, the Government having all abstracts of title brought down to date, and Doe gets the money — a straight $1,000 without having to pay a commission of $30 to a broker for finding the money and from $50 to $300 to an abstract maker." "What does Doe do with this money?" "He turns around before leaving the bank and de- posits this thousand dollars and takes a check-book to draw checks against it, as he may require. He ex- pects no interest on his deposit as he is going to soon draw his money out on checks, but he pays 4 per cent per annum." "What next becomes of that money which Doe de- posits?" "It is in the bank ready to be loaned again, as it is in any bank to-day when people deposit money. In the course of an hour Roe comes in, wants $1,000, gives security, gets the money and deposits the same before leaving. Having an absolutely safe bank in which to deposit there is no object in carrying money in the pocket when checks will pay all debts and make purchases just as well as money. During the day ten persons borrow that $1,000, and nobody takes the money out of the bank. The same amount of money that was there in the bank in the morning is BENEFITS OF GOVERNMENT OV/NERSHIP 39 there at night. Twenty thousand dollars' worth of value has been turned over to the bank as securitj', the bank has gotten 40 per cent, or $400 for the use of that $1,000 per j'ear, in the process of loaning it over and over, and the circulating medium, through these check-books, that has gone out, has been increased $10,000. This increase in amount of currency, which so niatiy people clamor for, comes in these checks which may be made a legal tender for all debts. " "This seems possible. What would 3'ou claim are the principal benefits of the system?" "We cannot enumerate in an hour all the benefits, but you will recognize the following: " I. Absolute safety of the bank as a place for de- positing money. II. Relief from anxiety to all persons who de- posit money in the banks. "III. The inducement for the common people to acquire and save money that they may place it in the bank and get 3 per cent interest on their deposits. "IV. The constant abundance of money in the bank by which any person can always borrow who has secur- ity. V. The absolute impartiality b}^ which the poor can borrow as cheaply as the rich, the man in Idaho borrow as cheaply as the man in New York. "VI. Freedom from broken banks, which precipitate the financial panic, which shut dov/n business, which starves out the laboring man, which compels the poor to sell for what they can get in order to have some- thing to eat. "VII. Freedom from tlie hard times, resulting from bank failures, in which period the rich take advantage 40 AN END TO EXTORTIONS of the poor, who are out of work, to buy that which they are compelled to sell at a quarter of the value. "VIIL Freedom from the distressed conditions from time to time in which the millionaire so rapidly doubles and trebles his fortune. "IX. The abolition of the chattel mortgage shark that gets his 5 per cent a month when banks are fail- ing and money is hidden. "X. The abolition of the money broker who gets his living through the simple finding of places where money can be borrowed during the continual period of hard times. "XI. The settled financial conditions by which people can know what to depend upon when they en- gage in business. "XII. The immense revenue to the Government of ^390,000,000 per year— a clear profit over and above all present means of revenue. "XIII. Freedom from the expense borne by people who pay annually hundreds of thousands of dollars to safe manufacturers and the proprietors of safety de- positories for the custody of money in these hiding places. "XIV. The convenience and safety from robbery of doing business with checks instead of being com- pelled to carry and use money in all business transac- tions. "XV. The low rate of interest to borrowers by which the money expended in interest can be saved and put into general circulation instead of going into rich money loaner's hands at the great financial centers." CHAPTER IX. HOW GOVERNMENT OWNERSHIP OF BANKS WOULD BENEFIT THE POOR MAN — LOWERING THE RATES OF INTEREST — MONEY SAVED IN INTEREST EXPENDED FOR IMPROVE- MENTS UNIVERSAL REVIVAL OF ALL INDUSTRIES — CAUS- ES FOR HIGH INTEREST TO-DAY — SCARCITY OF MONEY — BANKING INFLUENCE IN OUR STATE LEGISLATURES. 'Please explain how the poor man is benefited by , Government ownership of banks." "That is easily done. The great majorit}' of borrow- ers who pay an enormous interest are poor men. The low rate and saving of interest to them, is so much money gained. "The poor man, who has three hundred dollars' worth of furniture, if he borrows upon the same one hundred dollars, will pay an interest of four per cent per month on the average. That is $48 for the use of that $100 per year. If the Government appraiser finds that that furniture will actually sell for $200 the borrower can get the $100 and pay therefor, as interest, ^4 per year instead of ^48. "The average farmer in the West will find his in- terest lowered one half by this system. Supposing his interest is ^400 per year. He saves by the new system $200 per annimi. In ten years that is $2,000. With that he builds a new house. That means men, now standing in idleness, to fell the trees in the for- 41 42 BUSINESS IMMEDIA'lELY REVIVES est, more workmen required in the sash, door and blind factories, in the brick-yards, in the stone-quar- ries, men engaged in the manufacture of hardware, paints, oils, glass, furniture, mechanics in carpentry, masonry, painting, plumbing and glazing." "See how business begins to revive and the idle get employment, through the farmer saving $200 a year by having to pa}^ only 4 per cent interest. " "The immense impetus given to enterprises of every kind, through a lowering of interest, it is impossible to estimate. One of the first questions asked by the experienced business man is whether the profits of the enterprise, about to be entered upon, will pay the interest. If in doubt the work is not commenced and the workman does not get employment." "How is interest continually kept so high at the present time?" "There are two reasons for it. One is that the con- tinual hiding of money by people, who have no con- fidence in banks, causes money always to be scarce. This is the more plainly seen during the time of a financial panic, when banks are failing. At that time money is almost universally hidden, and so scarce in circulation that any one having it to lend be- comes an object of veneration ; while the money he has to loan commands a very high price. Another reason for high interest, besides bank failures, lies in the polit- ical influence of bankers in our State legislatures." "What can the banker do there?" "You introduce a bill into the legislature, for the purpose of lowering the rate of interest, and see what he can and will do. Immediately a lobby in the banking interest, composed of lawyers, ex-members of EFFECT OF LOWERING INTEREST 43 the legislature and others, supposed to have influence with the legislature, appears at the Capitol for the pur- pose of convincing the members of the legislature that the proposed reduction in the rates will drive all the money out of the stats. This argument generally prevails and the legislature adjourns, to the relief of the bankers, without disturbing the existing rates. "People who have never studied finance have little idea of the effect on the profits of banking by the low- ering of interest even one per cent. Suppose there are ten large banks in a metropolitan city. On the pro- cess of loaning over and over, their loans during the year, will amount to a hundred millions. B}' taking off one per cent their profits are reduced one million. That is one hundred thousand dollars for each bank; a very nice plum and they never want to lose it. It is thus easily seen why they have their agents in the body of the legislature and in the lobby when there is any probability of a lowering of the rates of inter- est. "Of course we cannot blame bankers for their course of action with the legislature. The people are never wise enough to think of the benefit arising to the community by a saving of one per cent interest, whereas to the banker it is a matter of vital account. It is their duty to look after their own interests. The farmer does that when he resorts to law to protect himself against oleomargarine or disease in cattle, and the banker should be expected to do the same thing." "But may not high interest be beneficial? Is it not a fact that times are better when money is greatly in demand and commands a good rate of interest?" "There are times when there is such probability of 44 CROAKING ABOUT THE TIMES land, in certain localities, or of certain commodities becoming very scarce, that the circumstances might warrant the payment of a greater interest in order to secure the same; but with the intense competition continually going forward and prices tending down- ward, the profits are not sufficient to warrant the pay- ment of large interest of late years in an}' line of in- dustry. Many men having learned that fact, have sold out their business and gone into the sole business of lending mono}-. All the smaller villages and cities of the country have their quiet sitters around who are doing nothing but warming dry goods boxes and hold- ing down chairs in some neighboring store while they watch their interest money. In order to get large in- terest and justify themselves in takmg it they get in the habit of croaking about the times. "To these individuals a bank failure and a financial panic are a God send. It enables them to get big inter- est and say "I told you so. " Were interest rates low- ered to a reasonable figure, and to a point where there would be less profit in lending money, these individ- uals would bestir themselves into some productive employment where they would be of service to the world, while using their capital in some enterprise that would give work to others." CHAPTER X. WHAT SHOULD BE THE RATES OF INTEREST — HOW LOW WE CAN PLACE INTEREST — EFFECT ON GREAT CORPORA- TIONS OF LOW INTEREST CAN THE TAKING OF INTEREST BE JUSTIFIED? HAVING SOLD A PROPERTV, CAN WE RIGHTLY LOAN THE MONEY FOR AS MUCH INTEREST AS WAS OBTAINED IN RENT FOR THE PROPERTY? — EFFECT ON A POLITICAL PARTY OF ADVOCATING VERY LOW INTEREST. "If it is well to lower interest why not stop inter- est entirely and do business for cost?" "Because to place the rates of interest any lower than we have here proposed — that is 3 per cent on time deposits and 4 per cent on loans — to set the figure any lower would destroy values and create too great a change in business. To illustrate: "Tens of thousands of aged and infirm people, minor children and widows are living off the proceeds of in- terest money loaned at 5, 6 and 7 per cent. To bring the rate down to even 3 per cent, which would become the rate on long time deposits, is an enormous reduc- tion which is liable to bring inconvenience to many people who have made their arrangements and settle- ments on the basis of a higher interest than that. All the insurance companies are making rates on the basis of loaning their money at 5 per cent and upward. Were the rates to come down to 3 per cent and they be able to get no more than that on the mone}^ they 45 46 WHO WILL OPPOSE US? loan, the reduction will be all they can endure. To place the rate below 3 per cent would be simply to send them into bankruptcy." "Any discussion of a system of finance which would immediately put the rates of interest down to two or one per cent will meet with so much opposition, from the hundreds of thousands of persons who are inter- ested in getting a larger interest, as to cause any such system to fail of adoption." "Why can you expect to establish a rate oil 3 per cent on deposits and 4 per cent on loans? How can you expect to have friends enough to carry such a measure through?" "Because those rates are high enough to immediately fit into present methods of doing business without creating any great shock in the financial world. Bank- ers, stockholders in successful banks and all money loaners will, of course, oppose it; but we shall have on our side, at once, all money borrowers, as these in- dividuals will favor any system by which they ican always find money at the bank, and be able to borrow it at a rate as low as 4 per cent. "We shall at once have the great masses of the common people on our side, all those who wish to and expect to deposit money in the banks and want to get as high as 3 per cent interest on their deposits. "Whatever may be the abstract right of a principle it is folly for a political party, any organization or person, to take up and advocate an idea which, while possess- ing some of the elements of right, they cannot carry to a successful issue. "in the days when letter postage was 25 cents, it was clearly right that the postage should be only 2 IS IT RIGHT TO TAKE INTEREST? 47 cents, but it would have been folly to have forced the issue at that time, of an immediate reduction to 2 cents. It is better to start in the direction of right and get there as rapidly as possible. "The enormous profit of loaning money by the Gov- ernment at 4 per cent per annum, and the large sur- plus coming into the treasury through this source, our managers of finance may think after a while should be given back to the people in the shape of lower and lower interest. The inference is that the time may come when the banking of the country will be con- ducted for cost. But ample opportunity should be given before that for the business relations of the country to adjust themselves to this condition." "While we are discussrng the subject of interest let us have your opinion on the question of moral right to take interest. We have a large number of people who consider the taking of interest an extortion. What is your opinion upon that subject?" "We may have abstract ideas of right which it is impossible to enforce. It would seem to be the privi- lege of any people living anywhere upon earth to go to any other part of the earth. But the law of self protection, living as we do in this competitive age, may require that we den}' certain people the right to come among us. It would seem just that goods man- ufactured in any part of the world should be shipped into another country free of duty. And yet for the protection of home industry the managers of the Na- tion's affairs may deem it best to impose a tax on all such goods coming from abroad. "We must take conditions as we find them and gov- ern ourselves accordingly. To say that there shall be 48 INTEREST COMPARED 10 RENT no interest is to say that no rent should be paid and no compensation shall be allowed for anything that we use. To illustrate: "Jones owns a farm, under a high state of cultiva- tion, supplied with buildings and conveniences which he has made by labor. Failing health or other rea- son may cause him to withdraw from the farm. Know- ing the place to be vacant an individual comes forward who is very willing and anxious to rent the same and pay therefor $300 per year. The tenant can pay that and have left a handsome profit besides. "The rent thus received supports Jones and his fam- ily in his declining years when he is no longer able to work. In due time the tenant proposes to purchase this farm with its improvements and does so, paying therefor, $10,000. This money which comes into the possession of Jones, through the sale of his farm, he loans at 3 per cent per annum, the total yield in in- terest being $300 per year. "Surely if it was right for Jones to rent his farm and receive as compensation $300, it is equally right for him to rent the proceeds of the farm for ^300. "It is simply for Jones to determine which way is the most convenient for him to get $300 per annum as his means of support. "Any political party having a financial plank in its platform, which places the rate of interest very low or abolishes it altogether, may advocate a right in the abstract, but in this hard, undeveloped world, where labor, land and money require compensation, for use, it is difficult for this party to convince a great num- ber of people that business should or could be done any other way. Such a party may do great work WHAT CAN BE ADOPTED 49 through agitation, in educating the people to a com- prehension of better and more exalted ideas. But as conditions are not yet ripe for the adoption of their views, they must be content to advocate what they deem best and leave other parties to assume the man- agement and make the laws for the people. "We say this in justification of the position we have assumed in Government ownership of banks, that the rate of interest should be as high as 3 per cent on long time deposits in order to do justice and satisfy the masses of the people, and the Government banks should not be expected to loan at less than 4 per cent in the beginning." CHAPTER XL i STEALING ABOLISHED — WITH ALL MONEY IN THE BANK, BUSINESS DONE ONLY BY CHECKS — THERE IS NO MONEY IN people's POCKETS OR THEIR HOMES TO STEAL — CHECKS RECEIVED IlT THE SALE OF STOLEN PROPERTY WHEN OFFERED AT THE BANK WILL EXPOSE THE THIEF AND CAPTURE HIM — POLICE FORCE REDUCED — CRIMINAL COURT ROOMS, JAILS AND PENITENTIARIES UNOCCUPIED — NO FURTHER DANGER FROM THIEVES, BURGLARS OR HIGHWAYMEN. "Does the Government ownership of banks offer other advantages than what you have here mentioned?" "Yes, it can easily be the means of putting a stop to all petty thefts, all danger of being slugged by the highwa}^ robbers after dark, will stop all house-break- ing, all burglary, all murder for money, all hold-ing- up of stages and railroad trains. It will dispense with the necesssity of two-thirds of the present police force in all cities, it will empty the police courts and the jails and will turn over the penitentiaries to other uses. "In fact it will make the facilities for detecting and capturing a thief so absolutely certain that the thief is compelled to quit the business." "These are very broad assertions and .very important if you can prove it. What are your grounds for such a belief?" 50 HOW DO BUSINESS WITHOUT MONEY 5 1 "These may seem like very strong statements but you will very soon agree that this may all be true. "The passage of all banks into Government owner- ship makes the bank an absolutely safe place for money so long as the Government shall endure. It is the safest place in the countrj^ in which to place money. It is so safe that all persons will use the bank, and all money may be and probably all money in the countr}' will be kept there. "If all money is in the bank it cannot be lost, burned or stolen." "But how are we to do business without any money on the person or about the house?" "That is what we were about to tell you. Your money is in the bank. Your bank-book shows how much 3^ou have there, how fast and wlien you deposit. "You want to use money. You may do as the average business man does to-day, receive from the bank a book of blank checks and when any bill is to be paid, pay the same by a check drawn upon the bank." "Yes; very true. But I want to buy and pay for a newspaper, want to pay car-fare, want to bu}^ a rail- road ticket, want to pay my hotel bill, one thousand miles from this point two days from this time, and while in that city I wish to travel by street railway, by ferry, and by private conveyance, want to visit places of amusement, and patronize, every daj-, a doz- en enterprises and institutions that will require money in amounts all the way up from one penny to five or ten dollars. How am I to do that without money?" "You will do that very easily when we teii you. Did 5'ou ever see the specimens of postal currency in denominations of 5, 10, 25 and 50 cents, which the ^2 DIRTY, UNHEALTHY PAPER MONEY United States government issued at the time of the late war?" "Yes." "Those slips of paper served their purpose admira- bly. It was very much more convenient to carry ten dollars in that kind of change than to carry silver. It was considered a great improvement over silver and the people went back to metal with regret and have often requested the Government to issue some kind of frac- tional currency since then that would be as conven- ient to use as that was. "The only objection to it was that which applies to the old bank bill to-day. It became dirt}^ smutty, foul, and filled with the scent and disease of the vile and filthy person that carried it. That is the objection at the present time to a paper money, that is carried in all sorts of pockets, by all sorts of persons, ab- sorbing often a contagious disease from being held close to all sorts of bodies. "We are now going to tell you of something better — vastly better even than that postal currency. "You are about to go upon a journey. You want to pay all debts, make all purchases, and yet carry no money. To do this you apply at your nearest bank — the bank where you do business — or the bank where you are known — for a coupon check-book, for illustration, worth $500. You pay something extra to have this book prepared, especially for your convenience. In the meantime you give the bank officials your photo- graph, your method of signing your name, and they take an accurate measurement of all parts of your body together with a full personal description of your- self. OUR NEW CHECK-BOOKS 53 "In a few days you receive your check-book with a private stamp to be used in stamping all your checks before you pass them. The book is a small oblong that goes easily into the side pocket and is bound in such a cover — either leather or other material, as you have ordered. "You open this book. On the first page is your pho- tograph, a memorandum of the measurements of your body, a copy of your signature, an impression of your stamp, together with the seal and certificate of the justice, that you, the bearer of this book, are John Doe, of the town of , County of , State of , engaged in the business of , are years of age and these are your measurements, photo- graph, signature and descriptions of your personal appearance, the original duplicate of which is in the bank for future reference when required. "All this is upon the first page and is not to be torn off or used, but is specially to be kept, like a passport of a traveler in a foreign country, for the purpose of identification. "You open further into the book and find checks of all denominations from one cent to ten dollars. On each check is your portrait, finely engraved, your sig- nature, the measurements of your body, the impress of your stamp, and the denomination of your check. Each check is easily detached, by means of perfo- rations, from a stub having a corresponding denomi- nation upon the same, so that you may know, if you knew in the morning, by your stubs, how much you have expended during the day, if you examine your stubs at night. "There are one dollar's worth of one cent checks in 54 TRAVELING WITH NO MONEY your book, two dollars of five-cent checks, five dollars of ten-cent checks, ten dollars of twenty- five-cent checks, twenty dollars of fifty-cent checks and so on ; a quantity of one-dollar, two-dollar, five and ten-dollar checks, in amount up to five hun- dred dollars. "This check-book is good for five hundred dollars when the checks are stamped by the owner upon the back. Until they are so stamped they are only worth so much paper. " "How will we use those checks?" "We* will suppose you start this afternoon on a long journey, but before going you have considerable bus- iness to transact. You will buy a newspaper, will purchase a guide, will buy a trunk and a new hat, be- sides getting a railroad ticket. In anticipation of what you are to use, you stamp a number of 5^our checks and tear them out of your book as you have occasion to use them." "Will everybody take these checks readily?" "Certainly. Why not? As soon as people get used to the system they will take them as readily as they used to take postal currency. Will take them as will- ingly as we now take bank bills, never looking or car- ing about the bank they are on. "What, buy newspapers with checks?" "Certainly; as soon as the newsboy discovers that he can handle these one-cent, two-cent, five and ten- cent checks as easily, the checks being of different colors according to diffeient denominations, the boys will handle these checks as readily as they do pennies. " "Yes, but what will the boy do with these checks? He cannot pass them to any one else for money, can he?" NEWSBOYS WITH CHECKS 55 "No, he will not need to pass them for money. Should he take in two dollars and a half to-day, or a quarter of that amount, or less, he will pass them into the bank in exchange for his own check-book which may be filled entirely with one-cent, two-cent and five-cent checks, and while these may not have his portrait upon them, they will serve the purpose, with his stamp upon them, he being able to make his pur- chases with these and make change with them." "Too complicated. Too much fuss for a little business. Don't think the people would take to this system. Would prefer pennies, nickels and silver." "Yes, that may be, and there will be nothing to pre- vent small transactions being carried on with silver and small metallic change. It will be possible, how- ever, to put all the money in the bank and do busi- ness entirely with checks, good only when they are stamped if people so desire." "Do you say that you could buy your trunk and your railroad ticket with these checks?" "Yes, certainly. After merchants and ticket agents become accustomed to this method of doing business, it would be very easy." "Would these checks pass in distant cities?" "There is no reason why they should not. The traveler, one thousand miles from home, in settling his bill of seven dollars and fifty cents at the hotel, would tear off a five-dollar check, a two-dollar check, and a fifty-cent check, would turn them over, and after stamping upon the back, if not already stamped before, would pass them to the hotel clerk. Jf any doubt should arise as to identity, he has but to step into the office and have his measurements taken. If 56 CHFX'KS BECOME MONEY they correspcnd with the measurements indicated up- on his check, no doubt can exist as to his identity." "What does the landlord of the hotel do with the checks that come in from all the patrons of the hotel to-da}'?" "He endorses each one with his own stamp and the entire amount, received to-day, being a hundred, five hundred, or a thousand dollars, he deposits in the bank to his credit. Each check is returned to the place where they were originally issued. "The landlord does not pass these checks out again as money. He simply deposits them to his credit. Thus, for the thousand dollars received from travelers, tha bank will give the landlord a thousand dollars, either as money or checks with which he pays all his obligations. "As is the case to-day among business men, checks received would not be passed toothers, but they would be endorsed and deposited in the bank to the credit of the depositor, everybody in the purchase of articles or the payment of obligations using their own checks. " "Then you would use no money at all according to this system?" "No, checks take the place of and represent money which is in the bank. You would use a check-book and either write in the amount you want to pay, as busi- ness people do nowadays, or use a check-book filled with checks of all denominations, your only trouble being to stamp the back of the checks. If you did not want to stamp the checks at the time you passed them you could stamp them all at your convenience and thus they would be always in readiness for use." "It seems to me that you have a cumbersome sys- tem that the people will not accept." CANNOT LOSE MONEY 57 "It may seem so at first. But this is all there is to it. In a neat little book you have fine slips of paper of all denominations. When you want to purchase anything you tear out one of these slips of the denom- ination you require. In another small book you will keep all the checks you receive. Those you receive you will deposit any day in the bank, just as you now deposit checks, postal money orders, or money. The only difference between the checks you thus receive and money, being that when you deposit your checks 5'ou will stamp each one. Of course before going to the bank you could stamp all your checks in a minute just as you now endorse postal money orders and checks before you pass them into the bank, or you can stamp them at the bank. It would not take over two minutes to stamp hundreds of dollars' worth of such checks as you would be likely to receive." "But suppose I lose my check-book?" "Well, now, you see the advantage of this system. If you lose your pocketbook with your money, you are liable to never receive it back, but in the loss of the check-book you would notify the bank of your loss, giving a description of the amount of unused checks, you would get another book and pay for it. Watch would then be kept of the checks that came from your other check-book. If you had not stamped your checks nobody would attempt to pass them. But whoever may pass them will be compelled to endorse them, and that endorsement will capture the person who stole your check-book or found it and attempts to use it without the right to do so. "Of check-book No. 21, dated July i, for $100, which you lost, only ten dollars' worth of checks came into the 58 REFUSE TO USE CHECKS bank. The bank will therefore return you ^go. Thus you see you never can lose one dollar by fire, theft or any other way, when the Government bank is estab- lished in all parts of the country, and everybody's money is in the bank." "You say that the person to whom money is paid will be compelled to stamp the check before it is de- posited in the bank, and suppose the person who paj's out money does not wish his banker to know where his money goes, what will you do with the person who will not do business thus with checks?" "Please understand that this check system is optional and not imperative. The individual may demand from the bank gold, silver or paper nione}', such as we have now and pay the same as we do now. Or he may do his business mostly with checks and carry a little sil- ver with which to make small purchases and make change. The system, however, permits of doing bus- iness wholly with checks in a manner such that money cannot be lost by thievery. "When the system comes into general use and no- body carries money, then the pickpocket quits busi- ness, the burglar leaves his profession, and the high- wayman bids farewell to the road. For the first time in the history of this world, civilization has devised a plan that outwits the thief, and he is compelled to quit the business of stealing money because there is none in the people's pockets, none in the people's homes, and none being transported from one portion of the country to another by express companies or any other way." "How would the banks escape the necessity for transporting their money from one portion of the coun- try to another as they do now?" NO MORE MONEY TRANSPORTED 59 "The bank in any portion of the United States would receive the money on deposit from all the peo- ple living in that vicinity. That would be a sufficient capital with .which to do business, especially as no one would ever take money from the bank, but, as a rule, would do business with checks which serve the pur- pose of money. " "How would I send ten thousand dollars to Hiram Wilder, Palace Hotel, San Francisco, California, by this new system? "You would simply deposit that amount in your bank and give the name and address of the person to whom you wished that amount paid. The officials of the bank would then send word to their bank nearest to the Palace Hotel to give Hiram Wilder ten thou- sand dollars when he proves his identity. You would write or telegraph him to call for his money. Under this system of Government banks, established in all parts of the country, there would be no more of this crude method of doing business, in carrying money from one part "of the country to another, mak- ing a temptation to train wreckers and highway rob- bers. " "You said in the beginning of this talk about checks that you could prevent stealing." "Yes, we can stop stealing absolutely as a profes- sion. To stop it as a profession will pretty nearly abolish it completely." "A thief could steal my watch, or my horse, could he not?" "Yes, but he would not unless he intended to sell the watch or the horse. " "Wliy could he not sell them?" 6o CAN STOP STEALING "He could, but when he sold them he would take checks in payment. In order to pass the check he must be identified." "Suppose he is identified, how will that capture him? Suppose William Wiggins steals my watch and the next day sells the same to Abraham Solomon. He offers Solomon's check at the bank, is identified as William Wiggins and gets the money. How can we fasten the stealing of the watch on Wiggins?" "Very easily. Solomon is a pawnbroker. The law compels each pawnbroker to send in the number of each watch purchased by him to the headquarters of the police station. You leave a description of your watch at police headquarters and your watch is traced to Solomon's. At this place you learn that he gave a fifteen- dollar check for the watch. An order is served on Solomon compelling him to turn over the check when it is returned to him through the bank. In due time the check comes in endorsed by William V/ig- gins. It now takes but a brief time to capture Wiggins. "Under the present system we have no means of knowing who stole the watch and never will know. With the aid of the new system, through the means of checks, which the law might make compulsory with pawnbrokers, we capture the thief in a brief time. In fact, detection is so absolutely sure, if the thief sells what he has stolen, as to make his arrest and punish- ment a certainty. This makes stealing so dangerous as to oblige the thief to quit the business. Occasion- ally, only occasionally, a thief will steal an article for his own use, but that is very seldom. He almost in- variably steals money or something that can be readily sold for money." WHY NOT STOP STEALING NOW? 6l "Why not introduce the check S3'stem at the present time if by this means we can stop all stealing?" "Because the people will not generally put their money into the banks sufficiently to carry the plan in- to effect. To day people suspect the banks. They lack confidence in them. They will not trust them. Consequently they carry their money upon their per- sons, or have it hidden somewhere about their homes. This makes the continual temptation to assault, rob, and if necessary, kill. ^"Everybody's life is in danger because of the pres- ent system of banking. Change the banking system from the present insecure, uncertain, unreliable meth- od of banking for private profit, to Government owner- ship of banks, and everybody's money would go into the bank, where it would be safe from bank failure, and the depredations of pickpockets, burglars and high- waymen. Continue the present S3'stem of allowing private individuals and private corporations, under the guise of "National" banks, to swindle and rob the people for their own individual profit, and the people will so distrust all banks that they will keep their money out of these institutions and in places where thieves can get access to it. Under these circum- stances, the pickpocket will ply his trade, the desper- ado will make every journey after dark and in lonely places an uncertainty, the burglar will fill every home with anxiety, and the traveler may expect atanymin. ute that his train will be thrown from the rails or held up by highwaymen for the purpose of robbery. "Continue the present system of banking, allow ir- responsible men without bond or restrictions of any kind to continue the custodians of the people's mon- 62 SAVED FROM ROBBERY AND MURDER ey, compel people, through lack of confidence in these men and these banks, to hide their money in all sorts of places, and you not only make it forever scarce but you create such inducement to thievery, you scatter temptation so broadly, and you manufacture thieves so fast as to necessitate a constantly heavier tax upon the people in the support of a large police force, the man- agement of criminal courts, the maintenance oi crim- inals in the county jails, and the constantly growing, greatly increased number of Jong term criminals in the State prisons of the country. "Change the system of banking — bring it all under the control and ownership of the Government, inspire confidence so that people will put all their money into the banks — and you not only make money per- manently abundant thereby, but in making it impos- sible to steal without detection you at once suppress all that species of crime, save life and property from devastation, exempt the people from taxation for crim- inal proceedings, empty the jails and penitentiaries of their inmates, and prevent all that species of crime which is the terror of society in all parts of the world." "Can it be possible that all this reform could be effected by simply changing the banking conditions?" "Certainly. Carefully examine the subject for 3'our- self. Make banks safe. Put all money into them. Do business only by checks or some small change in silver if you prefer, and we have made the greatest advance in civilization ever accomplished in any epoch of the world's history." CHAPTER XII. SECURITY THAT SHALL BE GIVEN WHEN WE BORROW AT GOVERNMENT BANKS — AMOUNT THAT CAN BE BORROWED ON REAL ESTATE OR PERSONAL PROPERTY — ■$500 PER CAPITA IN CIRCULATION — IS THIS A SYSTEM OF WILD INFLATION OR IS IT NOT? "You speak of making money permanently abund- ant by this system. It is generally understood to be necessary that we shall keep miners constantly at work, getting out the gold and silver bullion, the mint steadily at work in converting this into coin, while the Government printing presses are at work turning out greenbacks. How do you propose to avoid this?" "As explained before, by establishing 3,000 banks, giving a population of 22,000 to each bank, we shall bring into each bank about $800,000 of the money already known to be in existence. As shown also be- fore when money is borrowed it will not be taken from the bank as it is now. The bank being the safest place in which to keep money all that is borrowed is immediately deposited and a check-book representing the amount of money which is deposited takes the place of the mone}- in circulation." 'Instead of gold, silver and greenbacks, 3'ou have checks wholly for circulation?" "Yes. Business is largely done that wa}' now. That idea is nothing new. With the Government ownership 63 64 EXTENT OF CIRCULATION of banks business will be almost wholl}^ done that way. When the people become accustomed to the ease and simplicit}' of doing business by simply tearing off a little slip of paper, the system will become as univer- sal as the use of postage stamps, in fact will be much more common, as all moneyed transactions will be done that way." "How great an amoimt of checks can come into cir- culation that way?" "That will depend upon how much money people borrow. If checks are used to represent the money in the banks there will be about two billion dollars worth of checks, making about $32 per capita in circulation. But that can be greatly expanded. Thus a conserva- tive and safe rule, in lending money, is to loan one dollar on two dollars' worth of actual wealth that will sell at that rate at forced sale. "The individual having twenty thousand dollars' worth of property, that will sell under the hammer for that amount, should be entitled to borrow $10,000 on that amount. Having borrowed and deposited that amount he would have the privilege of putting ten thousand dollars' worth of checks into circulation which would be the same as so much money in the transaction of business. "Thus the amount of money which any person can put into circulation will depend upon his amount of wealth, he being able to borrow an amount of money equal to one half its worth. This rule would apply to the people in any community. If the actual and bona fide wealth of any town is one million dollars, accord- ing to the most careful and conservative assessment, then that town would be entitled to borrow five hundred $500 PER CAPITA 65 thousand dollars on the entire property of that town as security. This is an entirely safe and conservative view to be taken of financial matters. If for any rea- son the outlook for the town should be uncertain, so that property values would be uncertain, and the total propert}' would not sell for over one hundred thousand dollars, then the highest amount that could be bor- rowed would be fifty thousand dollars. The time of loan on all property, both personal and real estate, should be on sufficiently short time, also, as to permit of no depreciation in value. Frequent appraisement of property would be safest for the Government." "On this system of circulation, based upon actual wealth in the countr)', how much money could there be per person in the United States?" "By the census of 1890 the total wealth of the country was shown to be $62,000,000,000 or $1,000 per person. At that rate we could borrow $31, 000, 000,- 000, which divided among our population of 62,000,000 of people, would give us $500 per capita of actual cir- culation that we would be entitled to and could have." "Five hundred dollars per capita! Why that would be inflation of the wildest kind, would it not?" "Not at all. To illustrate: Suppose Jones wants to borrow $1,000. He offers real estate or property of any kind that will sell, in tlie dullest of times, at forced sale for $2,000. He should and will be able to obtain $1,000 on that security. There would be no inflation in that. The loan is borrowed on actual value, so insured against loss by fire, wind, flood, death or any other cause, that there could be no pos- sibility of loss as business is done to-day. "This circulation would be based on actual value. 66 SOUNDEST SYSTEM IN THE WORLD Such a circulation, when it is assessed by very con- servative and cautious men, could not be considered as inflated. On the contrary it would be the soundest money system in the world, as every dollar in circula- tion by individuals would be based on actual value passed over to the Government when money is bor- rowed; which securities could be sold at any time when the borrower did not promptly pay his debts. Think of it, with all the struggle of certain parties to make the quantity of money in the country to be $50 per capita in circulation, and here it is shown that by Government ownership of banks and all circu- lation based on actual value in the possession* of the people, the circulation may be rightfully $500 per capita. " CHAPTER XIII. UNDER GOVERNMENT OWNERSHIP OF BANKS WHAT USE WOULD THERE BE FOR GOLD? WHAT SHALL BE DONE WITH SILVER? — SILVER AS A MONEY — WHAT IS THE FU- TURE OF SILVER? "What do you propose to do with gold in this sys- tem of banking which you offer?" "It is seen, that doing business with bank checks very largely, a metallic currency, especially gold, would not be indispensable in the transaction of bus- iness, except that gold would be in demand in for- eign exchange. The bank being opened by the Gov- ernment and all deposits guaranteed, it is probable that tens of millions of dollars in gold, now hidden, would come into the banks for the purpose of getting the three per cent interest on long time deposits. Gold would therefore be much more abundantly in sight than it is now. If any change were to take place in gold it would be lower in value than it is at present "Required in foreign exchange and more and more in the arts, mining for gold will, of course, go forward as vigorously as now." "Would not the free and abundant coinage of silver prevent financial stringency at all times?" "No money can be devised that will perm.it a ready circulation, at all times, with the present system of 67 68 GREAT VOLUME NOT NECESSARY banking. With confidence destroyed in the bank, mon- ey will be hoarded and, though the volume of silver dollars should be increased a hundred fold, it would be easy to hide all this increased amount of silver. "A great increase in volume of money is not so nec- essary, it is seen, as that we have the means of ready circulation of that which wc have. "As a large share of the population will not submit to doing business with checks, silver must be coined to supply their demand. With the increase of popula- tion the use of silver coin will continue actively in use as a money, in what proportion of volume it is im- possible to say, as no means exist of telling now how much silver might be used by the people, in propor- tion to checks, if they could get it freely. "It should be understood that whatever the volume of silver which may be coined and issued, it cannot do great and good service if silver, or silver certifi- cates, are hidden, through people having no confidence in the banks." CHAPTER XVI. PROFIT TO THE GOVERNMENT, $390,000,000 PER YEAR FROM DOING ITS OWN BANKING — HOW THIS MONEY SHALL BE EXPENDED FLOODS AND DROUTHS POSITIVELY ABOLISHED AND PROBABLY CYCLONES — $100,000,000 AN- NUALLY SET APART FOR THIS PURPOSE — AN ARMY OF MEN EMPLOYED— THE COUNTRY IMMENSELY ENRICHED PRODUCTIVE POWER OF THE SOIL GREATLY INCREASED. "You claim that under Government ownership of banks there will be a profit of three hundred and ninety millions of dollars each year. Would it not be well to give that to the people in the shape of lowered in- terest, as we have benefited the people by lowering the rates of postage from twenty-five to two cents?" "We have before stated that the very rapid lower- ing of interest would work great injury to people and corporations who have made investments, made con- tracts and adjusted their affairs for some years to come on the present rates of interest. It would be ruinous to a large class of people to lower rates too rapidly. We doubt if it would be wisdom for the Government to reduce rates below four per cent for some years." "What then will you do with this large surplus of money?" "Evidently it would be wisdom to expend it in the giving of employment as widely as possible, on public improvements, which will carry the greatest amount G9 70 SUPPRESSION OF FLOODS of blessing to the people. Three hundred and ninety millions a year! We will use one hundred millions of that amount annually during the next ten years for the purpose of abolishing floods, drouth, cyclones and wind storms in this country. Whether we can cer- tainly stamp out cyclones or not, you will agree with (IS that we can suppress floods, with all their accom- p mying loss of life and millions of dollars' worth of damage, and we can prevent drouth. "To accomplish this, of the 2,400 counties in the United States, we will select 2,000 that need our assist- ance. One hundred million dollars appropriated to them will give $50,000 to each. "We first begin with a study of the cause of floods. We find by examination, that tens of thousands of miles of tile drainage have been scattered over this country, from two to three feet beneath the surface of the soil, which drains have been run through thou- sands of the sloughs and lowlands of the country that formerly held water in storage for several months. Not only do these drains afford opportunity for the water in the lowlands to depart quickly, but the great amount of tiling on the uplands permits the outflow of water, from all parts of the country to the streams and to the larger rivers, with great rapidity. "Thus the heavy rains falling in the up-country carries with it, through the tile drain, the mud of the newly ploughed ground, the dirt and the debris of the fields, in hasty flood, to the great rivers like the Ohio and the Mississippi. There, in their slower movement, the mud, held in solution, gradually settles to the bottom, raising the bed of these rivers, so that an equal amount of water will overflow the banks next year more ABOLITION OF DROUTH 71 easily than they do this. Along with the steady ele- vating of the beds of these rivers, other hundreds of miles of tile drains, all pointing outward towards the streams, are being laid each year, so that the outflow of water will be more and more rapid each succeeding season. Thus it is easil}'' seen wh}' the flood becomes greater and more devastating each year. "With this understanding of the cause of floods we begin the work of their extinction. We place at each county-seat a Government commissioner who, with fifty thousand dollars in hand, offers, $500 to any person who will construct a lake, covering an area of one acre or more, three feet in depth, and turn the tile drain- age so that the water, of that vicinity, at the time of rainfall, shall all run into this lake. "This proposition whan carried out, will give to each county one hundred lakes during each year, and one thousand lakes to each count}- during the next ten years. "It is easily seen in this that small lakes, thus con- structed, while ornamental and serving the purpose for boating, raising of fish, and production of ice, can be made in sufTicient number, in conjunction with dams in the streams, to hold all the rainfall, and thus effec- tually prevent the flood. "The water, thus held during the hot days of sum- mer, will evaporate, and the moisture, thus passing into the air, will so come back in dews and rains as to pre- vent the drouth. Think! throughout the arid plains of the great west, where, for long periods of the year there is no certainty of rainfall or any living vegetation, all will beclianged by the construction of reservoirs of water by which there 72 tttE LAST OF CYCLONES will be a certainty of moisture and good crops. Think how immensely this will add to the prosperity and the wealth of the people, while giving employment to the great army of men engaged in the construction of this important internal improvement." "Yes; that is true and that is right. But about the cyclone. How are you going to prevent that?" "The suppression of the cyclone will come along with the abolition of drouth. The denuding of the land of water by the tile drain, and the cutting off the forest have made such large areas of dr}^ hot air, as to generate great quantities of electricity in the at- mosphere. It only requires the coming together of two currents of air, of different temperature, to start the super-heated air into a whirling motion, when, elec- tricity being generated, rapid rotary movement gath- ers in fury, and devastates everything that comes in its path. The moist coolness of the atmosphere, the re- sult of wide-spread evaporation, from the tens of thou- sands of lakes, regularly scattered over the country, will so change the condition of the air as to prevent the cyclone and probably the frequent lightning." "That rather seems probable and may be true. What about the suppression of winds that often occur in the midst of rains?" "The hurricane is the result of another cause, but comes also largely from drouth. Over a large extent of country, where there is but little water, the sun shines warm for days and possibly for weeks. Over all that expanse, of possibly hundreds of square miles, the air is heated and expanded. Then comes a rain that quickly cools and so contracts the air where it falls as to leave what may be termed a hole in the No MORE Hurricanes 73 atmosphere. The vacuum thus made in the hot air, by the sudden cooling, has to be filled, and the air rapidly rushes toward this place from all directions." "Possibly the rain has extended over a large area of a hundred or two hundred miles square. The con- traction of air leaves an enormous space, requiring air to fill the same from far distant regions outside this area where it is raining, and the rush of air is for the purpose of filling the space made vacant by the cold rain. " "The universal distribution of lakes as reservoirs of water, over the entire country, will cause such general evaporation of moisture as will cool the air and pre- vent this sudden contraction of atmosphere, which re- sults from the heated, expanded condition of the air, over a large area of dry ground. " "A severe wind may sweep with resistless fury for scores of miles across a sheet of water and we wonder why it blows so. The cause, is in the passage of air, possibly at a great distance from the storm, across wa- ter and land, for hundreds of miles it may be, to fill the vacuum made by heavy rain over a large area of hot and dry country." "This severe wind will be removed by the wide distribution and evaporation of water over the entire country. " "It is even possible, that we may escape the severely cold north winds of the winter and the extra heavy tax for fuel by preventing the sudden atmospheric changes in the Southern states, in the winter time, which occur over large areas of dry country. Thus a cold rain at a period of warm weather, in the South, will so condense the hot air as to make a great vacuum; 74 STOP THE NORTH AVIND POSSIBLY to fill which tlie air from the North will be called up- on to move in that direction ; and hence the cold north wind steadily bearing down upon us to fill the space made vacant by the condensation of atmosphere in the South. A steady even evaporation of moisture over all the otherwise arid regions might prevent this." "Very well. There may be something in that. We will not take up time now to dispute it. We want further light. Would not the waters in the numerous lakes which you propose become stagnant and un- healthy?" "No. The author of this work, in 1886, made just such a small lake, as here described, near his residence, at Glen Ellyn, 111. Where rests this sheet of water, over an area of about two acres, was a swamp which was only a disfigurement to the farm. Out of the ex- cavation, for this lake, came the fertilizing material that so enriched the surrounding ground, as to give three crops of hay each year. The water, agitated by every passing breeze, is more pure than that which lies dormant in any well or cistern. This body of water is stocked with fish, including carp and gold fish, and, aside from being an ornament and a pleas- ure, is a source of profit in its supply of fresh water in summer and clear ice for the entire year." "What will you do with the remainder of your profits in banking? You have left yet two hundred and ninety millions of dollars for annual expenditure." CHAPTER XV. OF THE $390,000,000 IN ANNUAL PROFIT FROM GOVERNMENT BANKING, $100,000,000 TO BE EXPENDED EACH YEAR IN THE MAKING OF GOOD ROADS 80 MILES OF SHADE TREES SET AND 40 MILES OF SUPERIOR ROADWAYS CON- STRUCTED IN EACH COUNTY PER YEAR — THE BOY OF TO- DAY, WHILE YET A YOUNG MAN, MAY SEE EVERY ROAD A SUPERIOR DRIVEWAY AND EVERY COUNTY IN THE POSSES- SION OF 1,500 MILES OF DELIGHTFUL SHADE-TREE FOR- EST. "We will take another hundred millions and give an- nually fifty thousand dollars to each of the two thou- sand counties in the United States that ought to have better roads. "We will appropriate one thousand dollars to the mile to be expended upon those roads first that have the most travel. Of this we will use two hundred dollars in the setting of elm trees upon each side of the road- way, six hundred we will use for grading and tiling, where the water might otherwise stand, and two hun- dred dollars, besides some local taxation, possibly, we will use for continual scraping and smoothing of the surface, thus keeping the road in permanently good order. Each year we will add to the county about forty miles of good roadway. In ten years we shall have four hundred miles, and in twenty years eight hundred miles of superb roads, delightfully shaded 75 76 MAIL REACHES EVERY FARM HOUSE in summer and breaking the force of severe winds in winter. Estimating that we have 1,500 miles of drive- way on the average, in each county, it will not be many years before we have the entire number of roadways improved by this source of revenue, and easy, communication effected, whereby the letter carrier can reach every farmhouse. "With the bicycle abroad the demand has become im- perative for better roads. With the necessity existing for more frequent intercourse among people in the rural districts good roads must come, How will they come? "At present the only means by which they will come will be by a burdensome tax imposed upon the peo- ple. Through Government ownership of banks the profits of banking may be such as to give us superior driveways, delightfully shaded all over this country, furnishing employment to an army of workmen and no tax therefore imposed upon the people. Trees set and roads made under scientific supervision, would be as different from the hodge-podge mud roads now under the control of ignorant local roadmasters as light is superior to darkness." "Yes, very true; this is good. You have employed great numbers of heretofore idle men and you have certainly made a wise expenditure of one hundred mil- lion dollars a year in making superb roads and string- ing over each county 1,500 miles of forest, conferring the great benefit which attends the setting of trees. What will you do with the one hundred and ninety millions yet left in your possession?" We make no further suggestions as to expenditures. Time will reveal how this income can best be used. CHAPTER XVI, CORRUPTION IN POLITICS ABOLISHED — GAMBLING AND THE SOCIAL EVIL SUPPRESSED — BANKING AND THE CIRCULA- TION OF MONEY INDEPENDENT OF PARTY CONTROL — THE FUTURE AND THE PRESENT BANKER. "How will Government ownership of banks affect the corruption existing in politics, the continual ten- dency toward gambling and the social evil?" "We have shown before how the great and continual abundance of money in the banks and the ability to obtain it at a low rate of interest, will start enterprise of every description into being. The saving in inter- est will permit hundreds of thousands of farmers to improve their conditions by the erection of better buildings. This alone will revive nearly all the in- dustries. This will be followed by demands for labor in every employment. This abundance of money, readily obtained on good security at a low interest, together with the annual ex- penditure of three hundred millions of dollars, in car- rying forward public improvements, will give such full and free opportunity for everybody to get employment as to enable the seeker, now after office, to get a liv- ing without holding office; it will enable the gambler to get a certainty of support instead of risking his all in games of chance; it will enable the criminal to find employment so readily, when he leaves his prison, that n yS ABOLITION OF THE SOCIAL EVIL he will not be forced to commit crime again in order to maintain existence; and it will provide work in such continual abundance for young men that they can see a steady support for themselves and family in the fut- ure. In that event they will marry. "It is not necessary to go into a very lengthy argu- ment to prove that prosperous financial conditions, whereby all can have continuous employment and all participate in the Nation's prosperity, will dispose of political corruption, the thirst for gambling and the social evil. Give us Government ownership of banks, restored confidence in finance, and even circulation of money, and we have so thoroughly abolished the con- ditions which produce crime as to allo^y the clergyman to picture for his congregation a brighter outlook and shorten his sermon one-half." "Will not the moneyed affairs of the country come thus under the control of one party that will become all powerful? How can you prevent that?" "In each Congressional district we will elect five bank commissioners at a separate election, this election being entirely non-political. These commissioners will have control of the employment of bank officials. Each commissioner will hold office for two years^ may be eligible to re-election, and may be continued in office so long as financial affairs are in healthy condi- tion in that district. Should money be improperly loaned and the banks suffer losses by reason of incom- petent officials, the bank commissioners would be held responsible, and by the people directly, and not by the appointing or removing power of any party. Thus these commissioners could be removed and others se- lected to take their places by direct vote of the people. WHAT BECOMES OF BANKERS? 79 The office should of course, be entirely non-partisan." "What will you do with the present bankers?" "Remember, when perfect confidence exists in the bank and everybody can get some interest if they allow their money to remain in the bank a certain length of time; when everybody is saving money and even chil- dren are depositing in the banks; when all business is being done with silver money or new, bright checks, which like the railroad ticket is used but once or twice; when nearly the entire adult population, and a large proportion of the youth, are using the banks, there will be a great demand for bankers. The ser- vice of every banker of to day and five times as many more will be in immediate demand. All will have employment. " "Yes, but you cannot get the best business talent at such a salary as you would be willing to pa}'. How can you secure the best banking skill for the Govern- ment service?" "We do not require, under the new system, as much skill as is now necessary. To-day the lending of money, on the security which is given, is so much a matter of chance as to require a great deal of judg- ment on the part of the banker. Under Government ownership of banks, however, the rule will be to loan money only on actual property, which must be worth, at forced sale, twice the amount which is borrowed. It thus becomes simply a matter of appraisement, requir- ing the judgment of a good assessor. "The skillful banker of to-day, should he not wish to engage in Government employ as a banker, will find plenty of opportunity, in the universal flow of money, for acquiring v/ealth in other enterprises. He 8o BORROWING WITHOUT SECURITY and his leading stockholders are money makers. Given the free opportunity to acquire and they will accumu- late as rapidly, in other enterprises, as in banking." "There are many honest men doing a good business in various kinds of vocations who now get accommoda- tions at the banks without any security other than their reputation. What shall be done for these?" "Under Government ownership of banks, all loans requiring absolute security to be given, there would doubtless spring up numerous guarantee companies, which, for a small consideration would guarantee a borrower at the bank. Or these borrowers could secure the endorsement of some friend, who has continual se- curity at the bank, which is perpetually held to enable the individual to get money whenever he wants it, up to a certain amount. "Thus no reason exists why money cannot be ob- tained by any one as easily as now and, unlike condi- tions existing at present, any person, whether rich or poor, a member of any organization or not, a patron of the bank or not, a friend of the cashier or not — any person having absolute security, real or personal, can borrow at a uniform rate of four per cent interest, whether the security is upon the widow's furniture or the millionaire's real estate, whether the borrower lives in the wilds of Idaho or on Fifth Avenue in New York." CHAPTER XVIL GOVERNMENT OWNERSHIP OF BANKS, RAILROADS, ETC. CIVILIZATION TRENDS TOWARDS CO-OPERATION LOYALTY TO A GOVERNMENT SECURED BY MAKING A PEOPLE PART -OWNERS OF THE BANKS — THE OLD UNITED STATES BANK. "What do you think about the Government taking so much upon its hands, as the ownership of tele- graphs, railroads and banks. Is there not too much paternalism in all this?" "The difference between individualism and paternal- ism is the difference between bearing the burden alone, and bearing it together. It is true that it takes a higher civilization to co-operate in harmony, than to transact the business alone. The most savage wild beasts, like the tiger, hunt alone. The less savage, like the bison, giraffe and elephant go in companies. Man, in the savage state, is alone. As he becomes more highly civilized he gathers into the tribe, be- comes a part of the town, the county, the state and the Nation. It has taken a century to change the John Smith store into the John Smith Company store. So it will be in the ownership of public properties. It costs a great deal of money to buy the telegraph and the railroads, but as other nations have purchased from private companies their railway properties to the advantage of the people, so it is probable our country 81 82 GOVERNMENT RAILROADS will some day absorb these public conveniences. But, unlike those expensive properties that require an im- mense tax to be levied in order to buy them, the es- tablishment of the Government bank requires practi- cally no expenditure whatever. It is only necessary to open a room and the people will do the rest. The money comes in immediately and the bank, like the banker of to-day, proceeds to do business and make money on other people's money." "Althougli Government ownership of telegraphs and railroads is important, the ownership of banks is in- finitely more important to the people, as upon the regular and uniform flow of money hangs the com- mercial life of the Nation. The employes may quarrel and dicker with the managers of railroad corporations and the people will switch round by another route and go on with their business, but when banks beccme unreliable people lose confidence and business comes to a standstill." "But suppose the Government had absolute control of all the money in the country, gold and all being in the banks and suppose a war comes on?" "In that case woe to the party that makes war upon this Nation. Where the treasure is the heart is. If you want a loyal people you want their money to be at stake. " "Had the people of the Nation had all their money in the Government banks at the opening of the late war there would have been no war. As it was, a large share of the people had no interest in the financial success of the Union, hence the disloyalty. Make the people part owners in the financial system of the country and you make them truly loyal and invincible THINKING DONE BY OTHERS 83 against the foreign foe. In reality, though all money would be in the Government banks, every depositor would be as free as he is to-day to draw out his mon- ey, convert it to other uses or with his money go to any other country. Should the Government require money to carry forward a war or any enterprise strictly governmental in character it would borrow money as it does now. It would not confiscate deposit- ors' mone}' in the banks." "It seems as if you had a pretty strong case. It cer- tainly is right in theory and it would seem that we ought to carry it out in practice. Why is it that this has never been thought of before?" "From the fact that the thinking upon this subject, and the legislation upon this subject, has been left to those who were interested in the perpetuity of private banking for private profit. "From the fact that it always has been so the com- mon people have supposed that it must be so. "The great bulk of the common people are averse to thinking. They prefer to follow in the old rut. Ask a Chinaman why he shaves his head — His forefathers did it. Ask the spruce coachman in top-boots and cockade, why the bridles on the horses' heads carry great blinders that almost obscure the animals' eye- sight — He will look at you in amazement. H^ never thought of it. Ask the people why they are willing the profits, arising from banking with the people's money, should go into the hands of millionaire bankers in Europe and America — and they too will look at you in amazement. They suppose it must be so. They never thought upon this subject. " "Has there never been any attempt at Government ownership of banks?" 84 POSTAL SAVINGS BANKS "Yes; and always with benefit to the people, 'ifhe postal savings banks of England and the money order system of this country are steps along that direction. Though a private institution and conducted for ])ri- vate gain, the appointing of Government directors to assist the other directors in the management of the Bank of England has been a large source of strength to that bank. The manufacture of the greenbacks and the guaranteeing of the bills by the United State:; Government has given us the best money we have ever had." "What about the Old United States Bank? Vl/as that a government institution, and if so why did it fail?" "The first bank of note in this country was the Bank of North America, established in 1775, duiing the war of the Revolution, for the purpose of raising money to carr}' on the war. This bank proposed to raise two millions of dollars, but went forward in 7he issuing of paper promises to pay imtil it had distributed three hundred million dollars in continental currer;cy, which having no value behind it, became valueless. "The next bank was the First Bank of the United States which was established in 1791, the capital to be ten million dollars, divided into 25,000 shares of $400 each. Corporations and individuals might be subscribers to the stock and the Government mi^ght subscribe to the extent of $2,000,000. The renewal of the charter of this bank was defeated by the casting vote of Vice-President DeWitt Clinton and the institu- tion wound up its affaiis and went out of existence in 181 1. This was evidentlj' a private institution run for private profit, the Government being a part owner. OLD UNITED STATES BANK 85 It proved to have been successfully managed and yielded a profit to the stockholders. "The second United States bank was organized in 1816, Capital $35,000,000, of which ^7,000,000 was to be subscribed by the government and $28,000,000, in shares of $100 each, by the people. 'It was prohibited from lending more than $500,000 to the United States, more than $50,000 to any state, and to any foreign prince or power whatever, without the sanction of law obtained therefor. The bank com- menced business in 1817, its charter extending to 1836. At the time its charter was obtained specie payment had been suspended throughout the country. When thi:; bank was opened confidence was so restored that specie payments were resumed in all the banks and the country had a prosperous financial era extending for several years. The bank was essentially a private insi:itution, however, being conducted for private profit under the wing of the United States Government. The barik grew to be a strong political power, through the pri'/ate interests that governed it, and it finally began to be feared. A desperate effort was made to obtain a recharter of the institution but owing to a veto of a bill for recharter, on alleged constitutional grounds, by iVndrew Jackson, the bank went out of existence as a United States Bank in 1836. CHAPTER XVIII. WHY MONEY DEPRECIATES IN VALU." — WHAT IS INFLATION? EXAMPLES IN CONTINENTAL MONEY, GREENBACKS AT TIME OF THE WAR AND ARGENTINE REPUBLIC MONEY DIFFERENCE BETWEEN GOLDBUGS AND GREENBACKERS. "How Avould this new proposed Government owner- ship of banks dilifer from the old Bank of North Amer- ica, the Old United States Bank, the Argentine Re- public monetary system and other financial schemes that we have heard of? "It is unlike those systems of finance in that all money "loaned must be upon values, worth, at forced sale, twice the amount of that which is borrowed. "A system of money is said to be inflated where there is not a sufficient value to redeem it. An in- dividual having property worth, under the hammer, ^200 could safely give his note for $100 because he can pay the note and it is not probable that the prop- erty, worth $200, will so depreciate in value that it will not be worth $100." "Should the individual give his note for $200 it would be liable to discount as there might be some risk that he could not sell his property for $200 and redeem the note. Should he give his note for $400 with only $100 worth of security, it would be imme- diately subject to a discount of 50 per cent unless he was known to be honest and was doing a prosperous 8G WHAT MAKES INFLATION 87 business. Even that would not prevent depreciation. "As with a person so with a township or a Nation. A town containing assessable, taxable property worth ^1,000,000 could safely give its note for $500,000 if the appraisement was based on very careful, conserv- ative judgment as to the future prospects of the town. To bond the town for $1,000,000 or more when prop- erty, for various reasons, is liable to depreciate would be hazardous and the notes (or bonds as we call them) would be liable to sell in the market at a reduction from their face value. "At the time of the Revolution, the entire popula- tio)i excluding Indians and slaves, v/as only about 3,000,000, and these people were all greatly impover- ished by the war. The continental money was issued in amount up to $300,000,000. As it was impossible for the property of the people to pay that sum, the onl;,'' alternative of the people was to repudiate the debt." "What was the difficulty with the Argentine Re- public?" "It was this: With an estimated population of onl}' 3,900,000, three fourths of whom are Italians, one- tenth Spaniards, one twelfth French, and the remainder othe: nationalities, with an annual revenue of $73,- 000,000 and a yearly expenditure of $92,000,000, in 1890, with a National debt of $475,000,000 — with this small population and large debt, the government au- thorities issued, in 1891, and converted the same into paper money, the large sum of $300,000,000. With the evident inability to pay these notes their paper money so depreciated in value that it was only worth 271^ cents on the dollar. OO ARGENTINE REPUBLIC INFLATION "Prominent bankers in London, having great faith in the Argentine Republic, had taken these bonds at a much higher valuation than they were actually worth, and when they so went down in value, it caused great losses to financiers in London and resulted in the financial panic that soon spread over England and Australia and reached the United States in 1893. "The issuing of so much money on the small pop- ulation and uncertain securities of the country was rank inflation. The individual having $100 oi property would be equally justified in giving his notes for $400, getting the money and expecting this money to pass current for the full value of $400. This might go for a time, but as the individual's resources became known, there would be depreciation in value of that money, it becoming worth no more than 25 cents on the dol- lar." "What is meant by inflation, and inflated prices?" "When the individual can pay his note in anything that has actual value, his note is not inflated. When he has obtained four times as much money by his notes as he can redeem, his money is inflated. The Argentine Republic had issued three times more money than they could redeem in actual value. Money was plenty, goods became scarce, prices rose to correspond with the abundance of paper money. Thus an article the year before worth 30 cents became, with the abundance of money, worth 90 cents in paper money. We thus see inflated money and inflated prices. The Old Continental money was inflated and as long as it circulated there were inflated prices. When it disap- peared goods declined in price to a gold standard." "Did we not have inflation during our late war?" INFLATING DURING THE WAR 89 "There was reall}' no inflation as the countr}' alwaj's had sufficient property to pay debts in gold, but the great amount of greenback dollars in excess of gold dollars at one time made it seem as if there was infla- tion. Hundreds of thousands of men went from the pro- ductive industries into the ranks of consumers. Goods became scarce. Everybody had confidence in banks. All money came from its hiding-places, went activel}^ into circulation, and being more abundant than goods, goods rose in value, and prices seemed to be inflated. When the war was over, however, the soldiers returned to t;he work of producing, and having made a great abundance of goods, even more than sufficient to sup- ply the demand, prices went down." "What is the difference between the goldbugs and the greenbackers?" "The first has always contended that no more paper money should be issued in this country than could be redeemed in gold. When confidence exists in the banks and all the money is in active circulation, both paper and metallic currency, money is abundant and times are said to be good. When the people lose con- fidence in the banks money becomes scarce, through the hiding of money. "During the panic of ile,ul>cr 1, 1893. Se/>t. 1, 1892. Gok\ Coin S 469,466.368 $411,154,411 Standard Silver Dollars 61.6ii4,6.S0 57,622,886 Subsidiary Silver 64,335,238 63,897,139 Gold Certificates 80,414,049 128,387,379 Silver Certificates 326,206,336 328,289,145 Treasury Notes, Act of July 14, 1890 145,420,209 104.114,086 Unite 8 Forfeiture of excess above 6 per ct. Ontario, Canada tj. .. .Any rate. Oregon 8 . . 10 Forfeiture of principal and inttrest. Pennsylvania t) 6 Forfeiture of excess of interest, Quebec, Can 6. .. .Any rate. Rhode Island 6 Any rate. South Carolina 7 8 Forfeiture of entire interest. Tennessee 6 6 Forfeitureof ex. of int. and $10( fine. Texas 6 10 F"orfeiture of all interest. Utah 8 Any rate. Vermont 6 6 Forfeiture of excess of interest. Virginia ti 8*. . .Forfeiture of excess of 6 per ceot. Washington 10 Any rate. West Virginia 6 6*. . .Forfeiture of excess of interest. Wisconsin 7 10. . . .Forfeiture of entire interest. Wyoming 12 Any rate. *Except in cases defined by Statutes of the State. Latin Union. In financial affairs this relates to the international monetary conference, held in Paris, France, in which an agreement was signed, Nov. 8, 1885, that for a certain number of years, France, Italy, Belgium and Switzerland should maintain the same system of coinage. The unrestricted coinage of silver was suspended in the countries of the Latin Union in 1873. Legal Tender. That which the law authorizes to be tendered in payment of debts. Legal Tender Notes. A paper currency authorized by the gov- ernment, which is lawful money and can be tendered in payment for any debts, public and private, except when otherwise expressly stipu- lated in the contract. Is issued in denominations of i, 2, 5, 10, 20, 50, 100, 500j and 1,000 dollars. Number of Lawyers in Congress. Ill Lawyers in Financial Legislation. During the last twenty years, up to iSgi, the majority of the members, during various sessions of congress, have been lawyers, as seen in the following: Congress. During what years. No. of Senators. No. of Law- yers 171 Senate, No.oj Represen- tatives. No. of Lawyers in House of Re /'resent at ities. ..42nd.... ..43rd.... ..1871-1873... . 1873-1875 ...75. 79 33 30 35 ....263.... ....312... 316 115 149 ..44th.... .1875-1877 82 152 ..45th.... .1877-1879.... .1879-1881.... .1881-1883... .1883-1885.... .1885-1887... .1887-1889... ..1889-1891... ...80. ...7(5. ...78. ..78. . .76, ...76.. ...88. . 35 308 169 . ..46th ... ..47th.... ..48th.... ..4'.*th ... ..50th.... 46 39 41 42 43 ....302.... ....310.... ....346.... ....333.... ....333.... 161 151 178 187 173.. ..51st 49 ....362.... 205 Letter of Credit. A document, carried by most tourists in foreign countries, which authorizes certain bankers, or other persons, to pay the bearer such sums of money, as required, up to the amount depos- ited by the tourist before starting. Mint. The place where gold and silver bullion is melted into bars from which are stamped coins. There are four coinage mints in the United States, located one each at Philadelphia, San Francisco, Car- son City and New Orleans. Money for Each Person. The amount of money in circulation for each person in different countries, is given in the following table which was prepared recently by the United States Director of the mint. Countries. Tke Metal wiizeii is Standard. Gold. Silver. Paper. Money per each person. Anstria .Gold .Gold .SI. 00. .25.00. ..)>2.25. ...1.75. $6.50... S9.75 26 75 Belgium British India .Gold and silver. . . .Gold .Gold .10.66.. 3 56 ...9.02.. ...3.53.. 1 11 ..8.85... ....11... ..8.89... ....67... 28.53 3.64 13 56 .Silver 17.. 84 Cuba .Gold and silver Gold .Gold and silver. . . .Gold Gold Gold and silver . . . . Goid and silver . 10.00. ..14.29. ..23.53. ..10.42. ..14.41. 91. ...4.51. ...1.00.. ...2.14.. ..18.30.. ...4.48.. ...2.62.. ...1.82.. ...1.94.. . .1.25 .20.00... .'.'2.72.'.'.' ..3.12... ..1.57... ..6.36... 31.00 .16.43 France Germany Great Britain 44.55 18 02 18 60 909 Italy Japan ..6.81... ..1.40... ...17 13.26 4.90 .Silver .Gold and silver.. . . .Gold .Gold Silver Gold and silver .Silver .Gold and silver . .. Gold ....43. ..5.55. ..3.72. ..8.00.. ..1 68.. ..5 56.. ..1.29.. 5.00.. .1 52 ...4.31.. ..1444.. ...1.16.. ...2.00.. 53.. ...6.91.. 71.. ...5.00.. 1 36 4.91 Netherlands .8 89... 28.88 Norway and Sweden Portufiial Russia Spain South America ..3.14... ..1.20... .4 42... ..5 22... .8.57... ..4.67... 8.02 11.20 6.63 17,69 10.56 Switzerland 14.67 2.88 United States Gold and silver .11.06.. ...7.33.. .6.78... 25.17 112 Important Events in the History of Money. Money. Any article which may be selected by general consent, and by law, as a representative of value in exchanging one property for another. At the present time, in the United States, money con- sists of paper; and coins, made of gold, silver, nickel, and copper. It is first mentioned as a medium of commerce in the 23rd chapter of Genesis, when Abraham purchased a field as a sepulcher for Sarah, 1239, B. C. First made at Arzos, 894, B. C. First coined in the United States 1652. First paper money in the United States in i6go. Money Chronology. The following are some of the leading histor- ical facts relating to money: 1600, B. C. The Lydians, about this pe- riod, were the first to coin inoney. 573, B. C. Brass money coined in Rome by Servius Tullius. 928, A. D. The English mint estab- lished. Thirty-eight mints were in operation in England in the tenth century. 1460. Voyagers from Europe returned with first gold from West Africa. 1493. Columbus found considerable gold among the natives of the islands he visited. 1522. The first silver from Mexico was sent to Europe by the Spaniards from mines that had long been pre- viously worked by the .'\ztecs. 1609. Holland maintained a silver mon- etary standard, giving gold a nomi- nal valuation at a ratio of 14.7 to 1, from 1609 to 1816. 1652. First Colonial coinage minted in Massachusetts. 1702. A school of Mines was established at Freiberg, Saxony. 1792. The legal ratio between gold and silver, in the United States, was made 15 to I by the Act of Congress, creating a mint. 1803. France adopted the double mone- tary standard, at a ratio of 15!^ to 1. Previous to the Revolution the ratio had been 15 to 1. 1816. England adopted the gold stand- ard, by Act of Parliament. 1829. Discovery of gold mines in Geor- gia and first mining excitement in the United States. 1848. January 9, Marshal discovered gold at Coloma, California. 1850. Belgium adopted the single mon- etary standard. 1850. Quartz mining was begun in Cali- fornia. 1851. Discovery of gold in New South Wales, by llargraves. 1852. Discovery of gold, in South .4.us- tralia and Tasmania. 18.57. Discovery of gold, in New Zea- land. 1857. The German States, including Austria, adopted a single silver standard. 1859. The Comstock lode, Nevada, dis- covered. 1859. Discovery of gold, in Frazer F.iver region, British Columbia. 1859. Pike's Peak excitement. 1861. Belgium returned to a double monetary standard. 1861. Gold discovered in Nova Scotia. 1862. First important discoveries of gold in Montana. 1865. Establishment of the Latin Uriion, consisting of France, Italy, Swiizer- land and Belgium, providing for a double inonetary standard, at a latio of 15;-2 to 1, the agreement to hold good until 1880. 1867. First international inonetary con- ference, convened in Paris, by the French government, at which twenty nations, comprising all the import- ant countries of Europe and Ameri- ca, were represented, was held. 1869. The Sutro tunnel, to open the Comstock lode, was commenced. 1871. The German Empire adopted the gold standard, and discontinued the mintage of silver. 1876. First shipment of silver-lead ore, from Leadville, Colorado. 1877. A silver commission created by the United States Congress, which reported in March. 1882. Hydraulic mining in California prohibited. Monetary Stringency. Scarcity of money, the result of people biding and withdrawing it from circulation, comes from fear, at a tim^ How National Banks are Organized. 113 when banks fail, that their money will be lost if they allow it to remain in banks. May be partially overcome in a locality where business men and manufacturers will agree to pay out and use each others checks until such time as confidence is generally restored, and the money of the country comes again into general circulation. Money in Various Countries. The following are the estimated amounts of gold, silver and paper money, possessed by the different leading countries, the paper money here mentioned being not re- quired to be redeemed in coin. The Latin Union includes several countries. (See Latin Union.) Country. Gold. S/hii'i Paper. Great Britain Latin Union Spain Netherlands German Empire Austria Hungary.. . . . Scandinavian Union. Portugal . Russia .8!i50,000,000 $100,000.000* $.50,000,000 . .975,0(X),000 727,000,OIX) 2.50,000,000 . . . .40,(K)0,000 1.58,000,000 . . 100,(X10.0(X) . . .25,000,000 65,000,000 40,0(MJ,0a7il; of Englatid note is five inches by eight in dimensions and is printed in black ink on Irish linen, water-lined paper, plaid white, with ragged edges. Tlif notes of the Bangiie i/e France are made of white, water-lined paper, printed in blue and black with numer- ous mythological and allegorical pict- ures, and running in denominations from the 20-franc note to the 1,000-franc. South Ainericaii currency, in most countries, is about the size and general appearance of ."Vmerican bills, except that cinnamon brown and slate blue are the prevailing colors and that Spanish and Portugese are the languages en- graved on the face. The Geriitan currency is printed in green and black, in denominations from 5,000 to 1,000 marks. Their later bills are printed on silk fiber paper. ii6 Paper Money in Different Countries. The Chinese paper currency is in red, white and yellow paper, with gilt letter- ing and gorgeous little hand-drawn de- vices. Italian notes are of all sizes, shapes and colors. The smaller bills — .5 and 10 lire notes — are printed on white paper in pink, blue and carmine inks. The XOQ-ruble note of Russia is barred from top to bottom witli all the colors of the rainbow, blended as when shown through a prism. In the center, in bold relief, stands a large, finely executed vignette of the Empress Catherine I. This is in black. The other engraving is not at all intricate or elaborate but is well done in dark and light brown and black inks. The Australian hill is printed on light- colored, thick paper, which shows none of the silk fiber marks or the geometric lines nsed in American currency as a protection against counterfeiting. Paper Money of the United States, con- sists of five kinds, namely; "Legal ten- der," or United States notes, "Treasury Notes," "National Bank Notes," "Gold Certificates," and "Silver Certificates " These are each described elsewhere. They are all printed on specially pre- pareil jiaper by the authorities at Wash- ington from finely engraved plates, usu- ally in green and black, except gold certificates which are printed in orange. Passbook. This is a memorandum book, kept by a customer of a b.ink, and used by the receiving teller for the purpose of recording the amount of deposits which may be made by the customer in the bank. Penny. The ancient silver penny was the first coin struck in Eng- land. In the beginning it was a cross, so deeply indented that it could be easly broken in two for half-pence and into four, for farth- ings; hence, these names. Copper penny and two-penny pieces were coined in 1797. Pound. From the Latin Pondus, known in early Roman times as the I-voman Pondo, a coin supposed to be worth about three times as much as the present British pound. Public Debt. For the purpose of carrying forward the government in the payment of pensions, salaries of congressmen, judges and var- ious United States officers, it is necessary to raise a revenue, in the United States, of over $400,000,000 per year. This revenue is obtained from duties on goods brought into the country from abroad, and from a tax on t<3bacco, spirits, oleomargerine, etc., and generally exceeds the expenditures; thus reducing the public debt. During J tckson's administration, in 1S35, the jiublic debt was but $33' 733- The war with Mexico compelled the borrowing of money and carried the debt up to over $68,000,000, in 1851, from which amount it declined to $28,600,000, in 1857. The war of the rebellion compelled more borrouing and carried the debt.on Aug. 31, 1865, up to $2,844,649,926. It is now down to about $1,500,000,000 and, with cash in the treasury, it is less than $1,000,000,000. Public Debt of the United States. This financial statement rep- resents the gross total public expenditure and total yearly public debt, gathered from the U. S. Treasurer's report, made July i, of each year. United States Expenditures and Public Debt. 117 Vcuf Public Expenditures. Public Debt. Year. Public Expenditures. Public Debt. 1789. 1790. 1791, 1792. 1793. 1794. 1795. 1796. 1797. 1798. ir9:). asoo. 1801. I8OJ. 1803. 1804. 1805. 180fi. 1807. 1808. 1809. 1810, 1811. 1812 1813. 18U. 1815. 1816. 1817. 1818. 1819. 1820. 1821. 1822. 1823. 1824. 1825. 1826. 1827. 1828. 1829. 1830. 1831. 1832. 1833. 1834. 1835. 1836. 1837. 1838. 1839. 1840. 1841. 1842. 1843. 1844. p* ¥.'.'.'.'.'..'.'.'.'.'.'. F. 9 3, 797, 436 78 F.. 8,962,920 00 F.. 6,479,977 97 F.. 9.041.593 17 F.. 10,151,240 15 F.. 8,367,776 84 F.. 8,625,877 37 F.. 8,583,618 41 F.. II, 002,396 97 F..1I.9.52,.534 12 R.. 12,273.376 94 R.. 13,270,487 31 R.. 11,2.58,983 67 R.. 12,615,113 72 R..13,.5i)8.309 47 R.. 15,02 1, 196 26 R.. 11,292, 292 99 R.. 16,762,702 04 R.. 13, 867,226 30 R.. 13.309,994 49 R.. 13, 592. 604 86 R..22,279,122 15 R..39,190,.520.36 R.. 38,028,230 32 R..39,.582.493 35 R.. 48,244 495 51 R.. 40,877.646 04 R..35, 104,875 40 R..24,0(J4,199 73 R..21, 763.024 85 R.. 19, 090,. 572 69 R..17,676..592 63 R.. 15,314,171 00 R..31, 808,-538 47 R..23,. 585,804 72 R..24, 103,398 46 R.. 22,6.56,764 04 R.. 25,4.59, 479 .52 D.. 25,044.358 40 D..24,58.5.l;81 55 D. .30,033, 146 1- D. .34,3.50,698 0») D.. 24, 257,298 49 D.. 24, 60 1,982 44 D..17.573.141 .5fi D. .30,868 164 04 D. .37,265,037 15 D.. 39.4.55,438 35 D.. 37,614,936 15 D..28,226,,533 81 W. 3 1.797.. 530 03 W. 32,936,876 .53 \V 12,118,105 15 W. 33,642,010 85 875,463,476.52 ..77,227,924 66 ..80,.352,634 04 . 78,427,404 77 . 80,747,587 39 ..83,762,172 07 .82,064,479 33 ■.79.228,.529,12 '.78,408,669 77 ;.82,976,294 35 !.83,038,0.50 80 ..80,712.632 25 ..77,0.54,686 40 ».86,427,120 88 ..82,312,1.50 50 ..7.5,723.270 66 ..69,218,398 64 ..65,196,317 97 ..57,023,192 09 ..53,173,217.52 ..48,005,.5,87 76 ..45,209,737 90 ...55.962.827 .57 ..81,487,846 24 ..99,833,6ti0 15 127,334,933 74 123,491,965 16 10.3,466.633 83 ..95,.529,648 28 ..91,015,566 15 ..89,987,427 66 .93,546,676 98 ".90,875,877 28 ;.90,269,777 77 .".83,788,432 71 ..81,0.54.0.59 99 ..73,987,357 20 ..67.475,043 87 ...58,421,413 67 ..48..565,406..50 ..39,123,191 68 ..24,332,235 18 ...7,001,698 83 ...4,760,082 08 33,7.33 05 37,513 05 ...336,957 83 ...3,308,124 07 ..10,434,221 14 ...3,573,343 82 ...5,250,875,54 ..13,.594,4W)73 ...32.742,922 00 .. 23,461, a52 50 he political complexion of tlie ditferent Presidential terms is letter opposite each year, defined as follows: F. Federalist; .1845.. .1846.. .1847.. .1848.. 1849.. .1850.. .1851.. .1852.. .1853.. .1854 . .18.55.. .1856.. .1857.. . 1858... . 18.59... . 1860... .1861.. .1862.. .1863.. .1864.. .1865.. .1866.. .1867.. .1868.. .1869.. .1870.. .1871.. .1872.. .1873.. .1874.. .1875.. .1876.. .1877.. .1878.. .1879.. .1880.. .1881.. .1882.. .1883... .1884.. .1885... .1886.. .1887.. .1888... .1889... .1890... .1891.. .1892.. .1893.. .1894.. .1895.. .1896. .1897.. .1898.. .1899... .1900... D.S 30,490,408 71 D... 27,632,282 90 D... 60,-520,851 74 D... 60,655, 143 19 W.. 56,386,422 74 W.. 44,604, 718 26 W.. 48,476,104 31 W.. 46,712,608 83 D... 54,577,061 74 D... 7.5,473, 170 75 D... 66, 164,775 96 D... 72,726,341 57 D... 71 ,274,587 37 D... 82,062, 186 74 D... 83,678.642 92 D... 77,055, 125 65 R... 85,387,31 3 08 R. .565,667,563 74 R. 899,81-5,911 25 R., 295,541, 114 86 Rl,906, 433,331 37 Rl, 139,344,081 95 Rl, 093,079,655 27 R 1,069, 889, 970 74 R.. 584,777,996 II R.. 702,907,842 88 R. .691,680,858 90 R. .682,525,270 21 R,. 524. 044,597 91 R.. 724.698,933 99 R .682,000,885 32 R. .714,446.357 39 R.. 477, 320.01 7 86 R. .473,928,653 59 R.. 533,895, 767 06 R.. 535,285,915 56 R.. 312, 114, 688 64 R. .2-57,981,439 57 R. .265,408,137 .54 R.. 245, 498,578 00 D. .260,226,935 11 D.. 242,483, 138 50 D.. 31.5.835,428 12 D..323,i>67,488 34 R.. 282.864, 310 95 R.. 297. 436, 136 00 R.. 317,82.5,549 37 R.. 321,64-5,214 35 D-. 341,573,424 68 . $1-5,925,303 01 ...15.550,202 97 ...38, 826,. 534 77 ...47,044,862 23 ...63.061,8-58 69 ...63,452,773 55 ...68,304,796 02 ...66,199,341 71 ...59,803,117 70 ...42,242,222,42 . . .35,586,956 56 ...31,972,.537 90 ....28,699,831 85 ....44,911,881 03 ....58.496,837 88 ....64,842,287 88 ....90,580,873 72 ..524,176,412 13 1.119.772.138 63 1,815,784,370 57 2,680,647,869 74 2,773.236,173 69 2,678,126,103 87 2,611,687,851 19 2..5,S8,4.52,2I3 94 2,480,672,427 81 2,353,211,332 32 2,253,251,328 78 2,2.34,482.993 20 2,251,690,468 43 2,232,284,-531 95 2,I80,39.5.0*J7 15 2,205,301,392 10 2.2.56,205,892.53 2,245,495071 00 2,120,415,370 63 2.069,013,.569 .58 1,918,312,994 03 1,884.171,728 60 I,830,.528,923,57 1,876,424,275 14 1,775,063,013 78 1,6.57,602,-592 ti3 1.692,858,984-58 1,619,0-52,922 23 l,.552,M0.2fM 73 1,-545, 99(5,-59 1 61 1,. 588. 464, 144 63 1.526.575.139 63 * 1 singK D, Dsniocrat; //', Whig indicated by a R. Republican; ii8 Seig-niorage, Silver, Silver Certificates. Quantity of Metal. The quantity of metal operated upon, in the several mints, during the fiscal year, ending June 30, 1892, exceeded 313 tons of gold, and 2,257 tons of silver. Refunding Certificates. Consist of issue of 1879 — notes of de- nomination not less than $10, which bear interest at four per cent per annum, and are convertible, at any time, with accrued interest, into the four per cent bonds described in the refunding act. Safety Depositories. These are strong, fire-proof vaults, con- structed in connection with a business edifice, for the purpose of afford- ing people the opportunity of depositing their money and other valu- ables therein. Have been and are all the time the repositories of millions of dollars in gold, silver and other money which are thus withdrawn from circulation. Savings Banks. First established at Berne, in Switzerland, in 1787. Seigniorage, A certain amount of toll levied by the government upon bullion, ostensibly for the purpose of covering the expense of coinage. Thus the difference in price between the cost of bullion and what it will sell for, when converted into coin, is seigniorage. Nickel, as a commodity, may be worth 70 cents a pound. When converted into nickel coins this pound is worth $5. The difference of $4.30, between the bullion and coin value, is seigniorage. The profits to the United States, during 1892, from silver seigniorage, were $930,630.90. Sight Draft. This is used when the person upon whom it is drawn is expected to pay the debt immediately. In the time draft the same is made payable in a certain number of days. .^^ Silver. Exists in most parts of the world, and through the intro- duction of improved machinery for crushmg ore, in which it is found, and separating it from the same, has been produced in great abund- ance of late years. For 200 years it cost about as much to produce fifteen pounds of silver as to produce one of gold. More recently it is claimed that twenty-five pounds of silver can be obtained as easily as one pound of gold. Others deny that there would be an e.xcess of silver were free coinage to prevail. See Free Coinage. Silver Certificates. Consist of paper money in denominations of I, 2, 5, 10, 20, 50, 100, 500 and 1,000 dollars and are given out at the United States treasury upon deposits of silver. These certificates are receivable for customs, taxes and all public dues. Silver in Canada. Silver dollars in Canada are worth what can be obt, lined for them in the United States. Whatever passes at par in the United States should be nearly at par in Canada. Fall in Price of Silver During 20 Years. 119 Silver in Great Britain. Table showing the average price of sil- ver in London since 1873, the year when the mint bureau was created, and the equivalent in United States gold coin of an ounce fine at average price, gain or loss per cent, bullion values of a United States silver dollar, gain or loss per cent of the silver in a United States sil- ver dollar, and the ratio of gold to silver: Calendar year. Value of fine ounce at average quotatton. 1 Cain or 1 loss 1 per cent. BuUioji valtie of a U. S. silver dollar. Gold ratio. ....1873 $1.30 ...45 ...gain. . .. 81 .004 ... 15 9 ....1874 1.28 ...1875 1.25 ....1876 1.16 ....1877 1.20 ....1878 1.15 ....1879 1.12 ....1880 1.14 ....1881.. 1.14 ...1882 1.13 ....1883 1.11 ....1884 1.11 ....1885 1.06 ....1886 99 ....1887 98 ....1888 94 ....1889 93 ...1890 1.05 ...1891 99 1 loss ...3 loss 989 96 ....16.2 16 6 ...10. ...loss 89 17.9 . . .7 loss ...10 .loss .... ..13. ...loss 92 89 869 17.2 17.9 18.4 ...II....I0SS ..12. ...loss 886 88 ....18.. 18.1 ..12 loss 878 18 2 ..14. ...loss. ... ..14. ...loss ..18. ...loss ..23.... loss 868 86 ....18.6 1S.6 82 769 .....19 4 20 8 ..24 loss 757.... ... 21 1 ..27. ...loss ..28. ...loss ..19. ...loss ..23. ...loss ..33. ...loss ..37. ...loss 7^27 72 809 76 ....22.. 22.. ....19.7 20.9 ....1892 ....1893....8r 87 [los 81 67 625 . . . .23.7 25-5 Silver Question, of 1893, Explained. There are 12 ounces or 5,630 grains in a pound of silver, troy weight. There are 37 iX grains of pure silver in a dollar, and about 15 pure silver dollars are con- tained in a pound. The government, in 1893, bought silver bullion at 74 cents per ounce, which makes the ccst of pure siher, contained in a pound, to be #8.88. One tenth of a dollar is an alloy of copper, which, at 10 cents a pound, makes the cost of copper in a dollar less than one cent. The expense of coining a dollar will not e.\ceed one cent. Thus the cost to the government of purchasing the metal and making a pound of dollars is not over $8.90. When coined the pound of silver becomes worth $15. The profit to the government, which is termed seigniorage, on each pound of dollars, is $6,10. Differences of opinion exist as to whether sih-er should be remonetized, with free coinage at the ratio of 16 to i. The silver advocates claim that with bimetallism and free coinage the financial conditions of the country were highly prosperous up to 1873. That since that time, when silver was demonetized, prices and values have steadily declined. To satisfy the claimants for silver the Bland Act was passed in 1878, which authorized the coinage of not less than two nor more than four millions of dollars per month. This Act was repealed in 1890 and the Sherman law enacted, which provided for the purchase of 4,500,000 ounces of silver monthly. With silver worth 74 cents per ounce, that made an expenditure, by the government, of $3, 330,000 per month. 120 The Silver Question Explained. Although this amount of silver was paid for in silver certificates, the understanding prevailed that these certificates could be and were ex- changed for gold; and in the early part of 1893, with the rapid outflow of gold to Europe, the impression prevailed that the country was losing all of its gold because of this continually large amount of silver being purchased. A financial panic followed which the advocates of a gold standard claimed could only be oxercome by repealing the Sherman Act and stopping the further purchase of silver. The advo- cates of gold further claim that not more than about two dollars of silver coin per person can be circulated, in the United States, and that the piling up of 300 or 400 millions of dollars, in silver bullion, in the treasury vaults, for the sake of accommodating the silver mining interest is apiece of folly. The advocates of silver reply that this attempt to suppress the mining and purchase of silver is wholly in the interest of the banks and others who are large owners of gold. The gold advocates retort by saymg, that with the great supplies of silver ore in sight and the improved facilities for mining silver it is liable to become as cheap as copper; and that we might just as well impose a law that the government should buy a certain amount of copper per month, and give out copper certificates, as to continue that arbitrary law in relation to silver. To this the silverite replies by asking why free coinage of gold? And wh}'^ not free coinage of silver? To this the gold advocate replies by saying that gold, be- cause of continued scarcity and general value, is the recognized stand- ard throughout the civilized world. The friend of silver rejoins by saying that several of the most prosperous countries on the earth use only silver as a metal standard, while others use gold and silver; and further that no evidence exists that the common people, in any country, having an exclusive gold standard, are more prosperous than those elsewhere. Sherman law repealed Nov. i, 1803. Sinking Fund. A fund created for sinking, or paying a public debt. Specie Payments. Were suspended in the United States from 1861 to 1879. Gold went up to $2.85 in 1864. Specie payments were resumed January i, 1S79. Sterling. Relating to coinage in the British Empire. The word is supposed to have been derived from Esterling, the name of a fam- ily of early money dealers in England. Stocks. Property invested in shares of such character as can be bought and sold. Railroad shares, bank shares, shares in numerous corporations, and many public properties, when placed in the market, are known as stocks, which fluctuate in price, according to the divi- dends they pay. Bonds differ from stocks, in that they pay a regular interest until such time as the bond matures, when the principal sum, named in the bond, is supposed to be paid. The stockholder has a vote in the control of his stock. The bondholder has no vote on the Treasury Notes and United States Notes. 121 stock but he draws interest regularly, his bond being in the nature of a mortgage. Subsidiary Silver Coins. Are the small coins made of silver in denominations less than one dollar. Such coins have been issued, in the United States, to the amount of $78,000,000 and constitute about 5 per cent of the total money of the country. Subsidiary silver com- prises about 14 per cent of the total money of Great Britain, 5 per cent of Italy, and 11 per cent of Germany. Supposing it to average 10 per cent of the world's money there would be about $1,000,000,000 of subsidiary silver coin on earth, being one-quarter of the total silver coinage on the globe. Trade Dollar. Silver dollars coined of such weight as will be ac- ceptable and will readily pass in trade in foreign countries. Such dol- lars usually contained more silver than the United States standard silver dollar; but instead of passing current in this country, were worth only their bullion value, which was less than the value of the standard dollar. Treasury Notes. Paper money authorized to be paid by the trear.urer of the United States in the purchase of silver bullion, such notes to be redeemed by the treasurer on demand in gold or silver at his discretion. They resemble the national bank note in general ap- pearance and are in denominations of i, 2, 5, 10, 20, 50, 100, 500 and 1,000 dollars. Troy Weight. The present ounce was brought from Grand Cairo into Europe, in 1095, and was adopted at Troyes, a city of France, whence the name. Is used to weigh only gold, silver and precious stones. The following is the table: 'ii grains 1 carat, diamond weight. 24 grains 1 pennyweight. 20 pennyweiglits 1 ounce. 12 ounces 1 pound. United States Notes. Paper money notes which are made re- ceivable in payment of all taxes, internal duties, excises, debts, and demands of any kind, due to the United States, and of all claims and demands against the United States, of any kind whatsoever. They are also known as legal tender notes, being in denominations i. 2. 5, ID, 20, 50, 100. 500, and I, coo dollars. Warehouse Receipts. These are certificates of deposit indicat- ing that certain grains or commodities like pig iron, tin, zinc, stoves or of.her goods, having marketable value, are stored in the warehouse. On such receipts the banks will lend money to the extent of thirty, forty or fifty per cent of their value, more or less. REFORMERS, ATTENTION! REFORM LECTURERS interested in the live issue of Government ownership of banks, who endorse the plan proposed in this volume, are earnestly invited to call upon or correspond with the publishers of this book. ALL REFORMERS, heads of labor organizations and others, who believe in Government ownership of banks, who wish to organize clubs, and would like to arrange for visits from organizers and lecturers, will please address the publishers. All persons who are in sympathy with the purpose of this book and wish to sell or distribute copies, are invited to write for terms by the dozen, hundred or thousand. If you cannot do this work 3'ourself, can you not help some one else by bring- ing it to his attention? SALESMEN AND SALESWOMEN wanted in every neighborhood to take orders for this book. The education of the people and the adoption of the sugges- tions here made will bring settled monetary conditions and prosperit}^ for all. The people are ready and wait- ing for these ideas. The book will sell itself. Address for terms, CHARLES H. KERR & COMPANY, Publishers, 175 Monroe Street, CHICAGO. Profit Sharing Realized. An investment of Si.oo a month, for lo months, will purchase a business opportunity that will give good direct returns and remunerative employ- ment for spare moments. The Book Publishing Business of Charles H. Kerr & Company was established in 1886, and has gradually been built up until it carries on its list of publications nearly a hundred different books, with an annual out- put of from fifteen to twenty new books each year. The list covers a wide variety of subjects, including science, poetry, fiction, philosophy, religion, essays, etc., but the main endeavor of the house is increasingly in the direction of books that help the struggle of the oppressed for fairer social conditions. "The Coming Climax," by Lester C. Hubbard, sounded a note of alarm and appealed to the prosperous middle classes to join the workers against the monopolists who are the enemies of both. "An Ounce of Prevention," by Au- gustus Jacobson, points out the expediency of a suc- cession tax to do away with the great fortunes tliat are an ever-increasing menace to society. Mr. Van Ornum's books show clearly how' the individualistic remedy for corrupt legislation may be applied when once the people are aroused. Helen Gardener's "Facts and Fictions of Life" exposes the inhumanity of the law as it affects the unfortunate and points out what woman can do to help the life of the future. Mr. Hill's "Money Found" shows how the nationalization of the banks would remove one of the worst causes of poverty and immensely increase the well being of the people. "Washington Brown, Farmer," by LeRoy Armstrong, gives a great lesson in co-operation to tiie farmers in the course of a story of thrilling interest. Two new novels are now ready: "A Modern Love 2 Profit Sharing Realized. Story," which leaves its theme long enough to strike some sturdy blows at capitalistic oppression, and "From Earth's Center," which describes a Utopia where the single tax has worked out its healthful re- sults, the destruction of monopoly, the preservation of individual liberty. But we must refer readers to our catalogue, or better, to the books themselves, for a full idea of the scope of our publications. Printing Plant. In 1893 a favorable opportunity was offered for adding a plant of typesetting machines, and this is now a valuable portion of the assets of the business. The plant has the capacity lor turning out each week over 500 plates for the printing of book pages, has already nearly paid for itself out of the profits of composition, and promises to be a steady source of revenue in addition to the profits on sales of books Capitalization. In 1893, for the sake of introducing the profit sharing principle, the business was incorpo- rated with 1,000 shares of $10 each, nearly 900 of which are still controlled by the original owner. The property represented by these shares includes the copyrights, plates and editions of the books in the catalogue, besides the printing plant already described. Privileges of Stockholders. All who are familiar with the process of making books will understand that apart from the royalty paid to the author, there are two important elements in the cost of each book. Taking for example a book of 300 pages which retails for one dollar, the cost of typesetting and electrotjp- ing, which must be paid before the first book is ready, would be about $300, while the cost of making each copy after the first might not exceed 22 cents. Thus if the sales can be largely increased, there is a fair profit at much less than tlie regular prices. We have therefore decided to offer to our stockholders and those subscribing for stock, any cloth books published by us, prepaid, at three-fiftlis the advertised prices, and any paper books published by us, prepaid, at one half the advertised prices. Class of Stockholders Desired. Only 400 shares of stock are in the market. We desire to place these with persons who are directly interested in the circu- Profit Sharing Realized. 3 lation of books of social reform. Such persons will find the shares trebly profitable, first, in reducing ihe cost of the social reform and miscellaneous books re- quired for their own reading ; second, in the large margin of profit on such books as the}' may have lei- sure to sell, at the same time promoting the cause the}' have at heart; third, in the regular dividends on stock, which we confidently predict will not be less than 8 per cent after this year. Terms of Purchase. The price of shares is $10 00 each. To bring them within the reach of all, we offer them for $1.00 cash and $1.00 payable on or before the loth day of each month until the whole is paid. Each remittance will be acknowledged, and a paid up certi- ficate of stock will be furnished when the whole amount has been paid. To those who prefer to save clerical work by paying the $10,00 cash in advance, we will give as a premium a year's subscription to New Occa- sions or a dollar's worth of books at catalogue prices. No Liability. Our company is organized under the Illinois law, so that when a share of stock is paid for, the stockholder can never be held liable in any way on account of the corporation. Responsibility. We invite the fullest investigation into our responsibilit}', and refer inquirers to any houses with whom we do business. Our electrotypers are Blomgren Bros. & Co., 175 Monroe Street, our binders the Thomas Knapp Printing and Binding Co., 347 Dearborn Street, our paper is bought mostly from George H. Taylor & Co. and the Chicago Paper Com- pany, and our banking is done with the Merchant's Loan and Trust Company, F. N. Wilder, ass't cashier. We also take pleasure in referring to Hon. Thos. E. Hill, Glen Ellyn, 111., the author of Hill's Manual, whose recent book "Money Found," published by us, is meeting with rapid sale wherever it is introduced. Remittances should be made by express money or- ders where possible, otherwise by postal order or ban*k draft. Postal notes are at senders' risk. Address Charles H. Kerr & Co., Publishers, 175 Monroe Street, Chicago. BLANK APPLICATION FOR STOCK. Charles H. Kerr &• Coin'ipany, ij^ Monroe Street, Chicago, Gentlemen: I hereby subscribe for one share of stock in your company at $10.00, which find en= closed. I wish as a premium for advance pay= ment [Cross out the preceding paragraph or the following, according to to amount of money enclosed.] / hereby subscribe for one share of stock in your com^pany at ^10.00. I enclose $1.00 hereivith, and agree to pay one dollar on or before the tenth day of each calendar month after this date until the whole is paid. It is understood that in consideration of the amount paid I am to have the option of piirchas= ing all books piiblished by you at the rate of one half retail prices for pCuper books and three fifths retail prices for cloth books, including prepay= ment of charges by you. Address 1804. SLEEP AND Awake, A Realistic Story of Chicago. Raj^mond Russell is the name on the title page. Ray- mond Russell is the hero of the story, or rather the lover cf the heroine. The real author is a Chicago writer who has published other well known books, but whose iden- tity the publishers are not yet at liberty to disclose. Leonore, tlie heroine, is a girl living in a country town, whose intellectual nature is awakened by a chance meet- ing with Raymond Russell. She comes to Chicago without his knowledge, and having a remarkable voice, aims at a musical career. But she finds every door closed to her. Her money is gone, and after a vain wandering in search of work, she faints on the crowded street. The one person who takes pity on her is Adel, a "fallen" woman of Custom House Place. Here the scene of the remainder of the book is laid, and the read- er follows tlie story with breathless interest up to the tragic climax. The author comments unsparingly on the double standard of morals applied to the male and the female frequenters of the scenes described, yet refutes the indis- criminate charges of Count Tolstoi against men. Every one who read the Kreutzer Sonata should read "Asleep and Awake," where after the worst has been said, -new ground is given for faith in a pure love, not in woman alone but in man. I2ntfl, /landsotne clotli binding, one dollar postpaid. CHARLES H. KERR & COMPANY, Publishers, 175 Monroe Street, Chicago, Commendations of "Money Found." The following are gathered at random from a great mass of commen- datory mention of the first edition of this book. This second edition, containing the glossary of financial terms, it is seen, is a great improve- ment over the first issue. Will appeal to those who have large faith in "government." — Hamlin Gar- land in The Arena. I think "Money Found" is the best reform book published. — J. X. Duval, 103 Second street, Manchester, N. H. Ought to be read by every person who would understand the question of fi- nance. — Alma News, Alma, Kan. Let every speaker, every instructor on financial reform procure a copy of this book. — E.XPRESS, Chicago. We wish every voter in the country would read this book. It will give you new ideas. -Renville Co. Union, Minn. The propositions in this book are bound to set the reader to thinking. It has pretty nearly converted us to the idea that government banks are feasible and practicable. — The \Vorkman, Grand Rapids, Mich. The book is thoughtful and well writ- ten by a man of large information. Will open the eyes of people to the evil of the present banking system and will prepare the way for something better. It should have a sale of a million copies in the next three months. — People's Voice, Imperial, Neb. If our Congress would drop that old granny whim of "intrinsic value" and institute a new system of banking, pro- posed by Thos. E. Hill, the country would rise out of this panic and leap to the front in less time than it takes con- gress to argue this silver question. — Leader, Groton, S, Dak. An exposition of the principles of government finance I have believed in for years. How much for 100 copies can you furnish the book should I take it in my head to do some missionary work in that line? I think it more im- portant than our religious work, eh? — Rev. H. Lewellen, West Union. Iowa, A masterly treatise on the financial question. — Herald, Good Thunder, Minn. This plan for banking is sensible and plainly stated. — A, W. Landon. in Chi- cago Humane Journal. Though simple it is elaborate and leaves no point unexplained. — Jewell Co. News, Jewell, Kan. Does not attempt a revolution in exist- ing conditions, but adapts itself to the limitations of the present day. — Even- ing Lamp, Chicago. Especially does the work commend itself to those of the prudent middle and laboring classes, whose savings are at present jeopardized by the uncertain- ty of our banking laws. — Christian Cynosure, Chicago. The cleverest and most forcible pre- sentation of the money question we have seen. It is an overwhelming and unanswerable argument in favor of gov- ernment ownership of the banking sys- tem and ought to be read by every citi- zen. — The Leader, Wichita, Kan. The entire work is replete with new and sensible ideas. May we live to see its principles in active operation in the near future. We advise every voter to procure a copy, to thoroughly peruse its pages and then vote for the princi- ples it advocates, — American Enter- prise, East Hartford, Conn. It settles the question of gold and sil- ver parity, as well as other issues. which have recently vexed the brains of hon- est industry; this plan not being to tink- er up our banking system, already too complex and carrying too much dead weight, but to substitute in its place a currency that no one can object to, ex- cept the few who are reaping a harvest, as speculative custodians of the peo- ple's money. — Rufus Blanchard, Chi- cago. All letters from persons who approve the plan proposed in this book, for government ownership of banks, will be welcomed at the office of publication. If desirous of entering actively upon the work of reforming our monetary system, please see the request, made on page 122, headed "Reformers Attention!" UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE UNIVERSITY LIBRARY This book is DUE on the last date stamped below NOV 8 1^79 Form L-9 20m-l.'42(S;i9) SITY OV CALIFORNIA AT UBRARY i H(5 1 1798 U5H5 Hill - DEMCO 2J4N EG 1798 U5H5 ■^ 3 1158 00518 5144 iX/ UC SOUTHERN REGIONAL LIBRARY FACILITY AA 001029 147 **^\^ '-v\- V v' >r "^