UC-NRLF A Solution of Interests Dependent upon Fbr Every Nation LIBRARY OF THE UNIVERSITY OF CALIFORNIA. Class A Solution of Inter- ests Dependent Upon Money, Subsidiary Money, Currency, Emergency Currency, and Banking For Every Nation. BY CHAS. ALBERT LONG ABERDEEN P U B L NEW YORK I N G CO SECOND EDITION COPYRIGHT, 1910, BY CHAS. ALBERT LONG. Entered at Stationers' Hall, London, England. OF THE UNIVERSITY OF INTRODUCTION. Though the Bill included in this treatise would unquestionably provide for each and all of the twenty claims enumerated, the writer wishes that every reader would give especial attention to the principles of its five funda- mental conditions. FIRST: Money. The only necessity for a Money is to establish a definite measure for all other valuables. SECOND: Subsidiary Money. All that is necessary for any Nation to provide for the unlimited credit of silver, subject to the gold standard of Money, is simply to receive it at its value, estimated in gold, and then give its coins and currency a proportion of business which will always demand their use. Is it pos- sible that this question, which has bafHed the world's business intelligence for hundreds of years, can be solved in so simple a manner ? THIRD. Currency. All that is necessary to enable any responsible Nation to keep its Money entirely to its own credit, protect it from waste and loss, and provide for the liqui- dation of its bonds, is simply to make its cur- rency and subsidiary coins the only convenient medium of exchange. 3 302044 INTRODUCTION. FOURTH : Emergency C urr en c y. An emergency currency is the only means by which any Nation can protect itself in war, or promote public welfare in times of business cessation, or properly care for its citizens in localities of great disaster, without borrowing, or else taxing the people in advance of need. BANKING: An absolutely safe banking system is the only means by which any Nation can either protect itself from financial panics, or its banks from depositors' panics. Fear is the only cause of panic of any kind, consequently the only condition in which a financial panic or a depositors' panic could oc- cur, is a fear of loss. To provide a safe banking system is also the only means by which any Nation can protect responsible bankers from competition with irre- sponsible ones, or guarantee them perpetual and unmolested use of all of the Nation's cur- rency. These five fundamental conditions, properly complied with, solve the problem of financial well-being for the whole world, and for all time to come, and though the Bill would in- crease the world's comforts of living billions of dollars worth annually, every Nation may adopt it, and enjoy its advantages without cost or inconvenience to any one. THE AUTHOR. MONEY Subsidiary Money, Currency Emergency Currency and Banking for Every Nation Not only the world's financiers and legisla- tors, but its monetary commissioners have all failed to solve national interests in either Money, Subsidiary Money or Currency, be- cause of being the victims of two fundamental mistakes. First, believing that money (at least in part) meant currency or a medium of exchange; and many, like the Hon. William Jennings Bryan, that money was nothing but a medium of exchange: Every nation has coined its money in small denominations, purposely for currency use : while even to permit money used for a currency is no more intelligent than it would be for a lady to permit her gold watch chain used for scouring her kitchen utensils, when one link of its hundreds would buy a A SOLUTION OF MONEY dozen steel chains, any one of which would scour the kettles better, and last a thousand times longer. Money means the valuable, chosen to be the one thing by whose value every other thing shall be estimated. If, then, we declare that Gold shall be that thing, and that coins of just so much of it shall be the standard legal meas- ure for a certain value, let me ask: i st. Must not each coin be protected abso- lutely from waste to always be a correct meas- ure? 2nd. Can money be used at all as a cur- rency without waste, and besides at times lost ? 3rd. Has not the world's mistake of using Gold as a currency permitted useless waste and loss of billions of dollars? The world has coined twelve billion dollars of Gold since the discovery of America, not to mention the billions which had been in use before, and now has less than eight billion dol- lars left out of all of it. 4th. Even if money could be used as a cur- rency without waste nor ever lost, can it be of any more value to any one as a currency than a currency of the same value? 5th. Can not a currency be printed for One CURRENCY AND BANKING Dollar to represent a Thousand Dollars of Gold? 6th. Will simply limiting the coinage of Gold to not less than $100.00 bring it all to the Nation's credit, and, if so, will it not be a cheap way for the Government to get it? 7th. If a nation has all of its Gold to the credit of its redemption fund, and protected from all uses except the arts and the balances of foreign exchange, could it not issue and maintain the gold value of its currency to many times its volume of Gold? And if so, is it then wise to use money as a currency? If money is worth a thousand times more to the Government than it will cost to issue a currency to take its place among the people, would it not be intelligent for the Congress to take advantage of it? What should we think of a farmer who would hitch his race horses to the plow, or to a heavy load for market and then saddle his draught horses for the chase? Yet would it not be more intelligent than for a nation to permit its money used for a currency, when a currency can be printed for $1.00 to represent $1,000 of money? Can not currency be just as valuable to in- A SOLUTION OF MONEY dividuals as money? While nothing but money, primary or subsidiary, can be of credit to a nation. The reader of this bill will note that Section ist would not only make Gold coins money the standard measure of all values, but to keep them in the nation's reserve and from the waste and loss incident to a currency serv- ice it limits their coinage to not less than One Hundred Dollars; and besides to protect them from waste, even while handled by the Gov- ernment, or being transmitted to a foreign na- tion, or to an artist, it provides that they be encased and sealed in foil. The mistake of using money as a currency has not only caused useless waste and loss of millions of our gold upon one hand, but, upon the other, scattered it among the people and compelled the Government to borrow it until we have been taxed more than three billion dollars for interest on public debt, and are still paying about twenty-five million dollars a year, while if the founders of the Government had only protected its money from currency use, would the nation ever have had to borrow a dollar or pay a cent of interest? and of far greater importance, would not the nation al- CURRENCY AND BANKING ways have been able to maintain the gold value of its currency? The world's mistake of using money as a currency has cost it hundreds of billions for interest on public debt alone, and last year compelled its 55 nations to pay $1,555,000,000, of which France and its dependencies paid 327 million ; England and her colonies, 173 million ; Russia, 172 million; Japan, 72 million; Italy, 130 million; Spain, 60 million, Germany and her States, 150 million; Austria, 42 million; Hungary, 44 million, and even little Belgium 25 million. Is it any wonder that every nation is distressed with public expense? The world's second fallacy and mistake has been in believing that to make money and es- pecially subsidiary money a legal tender was of value to them; and that consequently in order to allow them unlimited credit, they must be allowed unlimited coinage, and their coins made an unlimited legal tender; while the only reason for making anything a legal tender to any amount under any condition, should be because of both its value and its con- venience; and then only for the sole purpose of protecting every one from having to take A SOLUTION OF MONEY anything of less value or of greater incon- venience. The only necessity for coining money, either primary or subsidiary, is for the sake of con- venience. It is not necessary at all to coin them in order to allow them unlimited credit and in contradiction of the fallacy of a legal tender authority being of any value to anything, even gold itself, coined or uncoined. The reader of this Bill is asked to note the following facts : First : That, although the Bill would make our gold coins money the standard measure of all values they are not made a legal tender at all for either public or private, and, that to do so would be wrong, because currency of their denominations is more convenient. Second: That, while Platinum is granted unlimited credit, it is not made a legal tender nor even permitted coinage, because neither is necessary. It is not needed either for a stand- ard measure of values, or for subsidiary coins, yet the miners can place it to the credit of the Government and obtain its gold value in coin or currency, just to suit their convenience: while in behalf of national interests, it will 10 CURRENCY AND BANKING increase both their credit and their currency to the amount of its gold value as long as the nation keeps it. Third: That while silver is granted, not only free and unlimited credit, but also coinage (so that every one may always get all they need, because its coins are the most convenient small change of their value possible to pro- vide) ; yet its coins and currency are only made a very limited legal tender, and that not be- cause it is of any value to them, but solely to protect every one from having to take more of any denomination than is reasonably conven- ient; and the writer wishes that every reader would note the vast difference between pro- tecting a creditor from having to take more than five coins of each denomination, (all told, $4.55 in any one payment,) and that of mak- ing silver coins an unlimited legal tender. The value of silver does not depend upon its coins and currency being made an unlimited legal tender (so that they may be imposed where gold or anything else would be more convenient), but upon being allowed just all it can do with satisfaction to business intelli- gence ; and if the Congress will now only grant that silver shall be responsible for all our na- ii A SOLUTION OF MONEY tion's permanent issues in less denominations than $100.00, the silver miners can then get busy, for they can never get enough, because, possibly 9/10 of our transactions are in de- nominations of less than $100.00, and conse- quently the producers of gold will have to buy millions upon millions of dollars' worth of sil- ver coins and currency every year. This should be plain to every one. There are but two conditions of the Bill which the writer believes could possibly seem fallacious. One is that, if the Government should re- ceive great quantities of silver, say at $1.00 an ounce, and then if ever its value should de- cline to 50 cents an ounce, or to any other amount, would not the Government lose the decline? It certainly seems so, but I answer "No," because First: The Government does not buy the silver; and I submit that no one can ever lose a dollar in anything in which he has neither invested nor guaranteed a dollar. In this case, the miner takes the entire cost of producing and delivering the silver to the Government, while the only expense the nation assumes is to issue a currency for it, and take 12 CURRENCY AND BANKING care of it; a cost less than I per cent of its gold value. Secondly, making the nation's currency and subsidiary coins the only medium of exchange, provides a condition in which the nation will never have to redeem its currency. Consequently, before the Government could lose, the price must decline more than 99 per cent. ; a condition utterly impossible. It may take a moments study to see this, but it is so plain a fact that the wonder is why the first person to ever think of money did not see it. For example: If the miners should deliver, say 50,000,000 ozs. of silver annually, and its value should average per oz., say .60 cts. the transaction to the Gov- ernment would stand as follows $30,000,000.00 Cost First : Issuing what- ever subsidiary coins may be asked for by the depos- itors Second: Printing the cur- A SOLUTION OF MONEY rency for the balance of its value Third : Expense of refining and taking- care of the bal- ance, say, all told $1,000,000.00 Net profit to the Government $29,000,000.00 Example in Gold on, say . . $50,000,000.00 Cost First : Issuing what- ever subsidiary coins may be asked for by its deposi- tors ..; Second: Printing the cur- rency for the balance of it. Third: Expense of refining, coining, and taking care of the balance, all told, say. . . $1,000,000.00 Net profit to the Government. $49,000,000.00 Besides placing the Nation in a position to liquidate its bonds and save an annual interest on public debt of. . $25,000,000.00 Total annual savings and profits $104,000,000.00 Please compare present prac- tice; Silver not admitted at CURRENCY AND BANKING all Profit to the Govern- ment Nothing And as to Gold, say on $50,- 000,000.00 : Cost First: Coining what- ever subsidiary coins the depositors may ask for. Second: Expense of coining the balance of it Total expense, say $1,250,000.00 Credit to the Government . . Nothing. Is it any wonder that after 125 years under such practice, the nation must run out and borrow of Tom, Dick and Harry at every emergency? Or if we want to build a canal? Or make any other improvement ? The writer hopes that the vast difference to the Treasury of any nation between keeping its money to its own credit, and that of coining it at public expense, and turning it out to do currency service, a service which the nation's currency can do as well and only cost $1.00 of a $1,000.00, may be plain to all, once that attention is called to it. It will place every re- sponsible nation above having to borrow or ask accommodation of any one, corporation, syndicate or association. A SOLUTION OF MONEY If a Nation protects its Money from cur- rency service, could not the Nation maintain the gold value of its currency to at least ten times its volume of gold, and can not intelli- gence accomplish $10.00 worth of business an- nually with each dollar of its currency, and if so, should not every Nation place itself in a condition to take advantage of the privilege, if necessity should demand it? It will only be a few hundred years until our mines will be exhausted, while population and the need of currency will be increased many fold. Then, should we not for this rea- son save and hoard our precious metals to strengthen our nation's reserves in every pos- sible way for a day of need? If such a Bill had been made the law, to be- gin with, would we not now have about Three Billion Dollars in Gold, and about One Billion Gold Dollars' worth of silver to the credit of our redemption fund, instead of only a measly Hundred and Fifty Million, and that borrowed at an annual interest of $3,000,000.00? The second condition of the Bill, which may seem fallacious, is : Will not the silver interests of this and other nations deposit their silver for a currency, 16 CURRENCY AND BANKING and then ask gold for their currency, and so take our gold in lieu of their silver? I an- swer "No," because First: The importation of silver for such purpose is prohibited, by making it the duty of the Secretary of the Treasury in such cases to sell instead of receiving the import. Second : That the only way for the people of this country to keep a medium of exchange with which to do business at all is to let the Gold stay to the credit of the nation, and, as has been said, instead of the producers of sil- ver wanting to deposit it for Gold, the pro- ducers of Gold must deposit millions upon mil- lions of dollars annually for silver coin and currency. Under the provisions of this Bill, probably 9/10 or more of all gold produced or acquired, will be deposited to the credit of the Nation for silver coins and currency. Besides, if any one takes gold coin from the Government, he must not only give up his cur- rency and all business possibility to get it (un- less he needs it for the arts or to send abroad) but he must take care of it at useless expense and risk, because gold coins, in denominations of $100.00 or multiples would be of no use to A SOLUTION OF MONEY a bank as a currency, and consequently no bank would want to be responsible for their care, or even be bothered with them without being paid? While, if one has the nation's currency, will the banks not be glad to have it on deposit and even pay interest for its use ? The writer would ask the world if the bill does not illustrate every principle involved in the four fundamental conditions necessary in money : ist. A definite standard. 2nd. The greatest possible volume of it, both primary and subsidiary. 3rd. For their most efficient public use. 4th. For their most economic use. And does it, or does it not, illustrate every principle involved in an absolutely safe bank- ing system, adequate to every locality's need for both savings and for every business inter- est, and better than is possible to postal sav- ings banks? Cannot a local bank pay more interest than the Government? And if, then, the bank is made as safe as the Government, will it not be better for both the locality and the depositor? Does it, or does it not, indicate every condi- tion necessary to provide an elastic currency 18 CURRENCY AND BANKING equal to both the emergency of harvest, and also for every possible need of the Govern- ment? And if so, is it, or is it not, a solution of the question for every nation and for all time to come? If it had been made the law at the beginning of the Government, would the nation First : Ever have had to borrow a dollar or tax the people for a single cent of the billions they have been assessed for interest on pub- lic debt? Second : Would it not have saved to the na- tion's credit the millions of gold which have been wasted or buried and forever lost by its being used as a medium of exchange? Third: Would not the nation always have been able to maintain the Gold value of its cur- rency ? Fourth: Would not the miners have pro- duced and placed to the nation's credit hun- dreds of millions of dollars' worth of silver that now lies in the ground dormant and un- used, and have increased the nation's business possibilities with its currency and our re- demption fund (above what we now possess) to the amount of its gold value ? A SOLUTION OF MONEY Fifth : Would any bank have failed because of a depositors' panic, or any depositor ever have lost because of a bank's failure? Sixth: Would the farmers ever have had to sacrifice their crops because of the lack of an emergency currency for the expense of harvest ? Seventh: Would not the billions we have paid for interest upon the national debt have conserved the waters of our great mountain ranges for both power and irrigation, and opened many of our great rivers for naviga- tion in low water, and dyked them for the pro- tection of property in their locality in times of flood? Eighth : Could not many of the public high- ways, over which we must yet tread through mud in winter and disagreeable dust in sum- mer, have long since been permanently im- proved by the laborers who have at different times suffered because of the lack of employ- ment? If it is now made the law, will it not bring to the nation's credit what gold coin we have left, amounting to about $1,500,000,000, and also our silver dollars, worth about $250,- 000,000, together with all of both gold and 20 CURRENCY AND BANKING silver we may ever hereafter acquire? And, if so, cannot the Government liquidate its bonds in Gold coin at any time ? Will it not permit silver to be of its greatest possible value to mankind ; and will not, to do so, soon induce the miners to produce and place to the nation's credit millions of dollars' worth annually that we are now depriving our- selves of? Will it not permit the banks to get from the Government what currency they must borrow for the emergency of harvest, instead of hav- ing to borrow of, and pay other nations for, its use? Will giving the banks, in addition to all they now possess, the perpetual use of the Govern- ment's current funds and all of the people's currency now kept secreted, together with in- suring them against depositors' panics, be com- pensation enough to satisfy them for comply- ing with rules of safety? Will its adoption involve any investment or any possibility of loss to the Government, or any change of present business methods? Will not the only expense be the return and re-issue of the present coin and currency, and will it not save more of waste and loss of gold alone 21 A SOLUTION OF MONEY every year for all time to come, as compared with present practice than it will cost to adopt it (not to mention the millions annually of its advantages) ? Is it against any one of any class? Is it not in favor of every one in every nation and every locality? And, if so May we have it now, or must we be com- pelled to do longer without it? The writer offered to show the administra- tion, twelve years ago, what the principles involved in a solution of this question were, if the Secretary of the Treasury would only agree to recommend that Congress vote a com- pensation for the information. The Secretary replied that it was not prac- tical, and made his own recommendations. The Congress accepted them and passed the Act of March i/j-th, 1900, which does not pro- vide for even one of the twenty conditions pro- vided for in this bill, 'and was so inadequate as to permit a panic that cost the nation hundreds, if not thousands, of millions, besides refunding our public debt at an expense of about $300,- 000,000, including premiums and interest on bonds since refunded. If this bill had been made the law instead of 22 CURRENCY AND BANKING that act, would the nation have needed to re- fund at all, or could we have been the victim of any such panic? If either the $300,000,000.00 of interest and expense on refunding our public debt or the panic could have been avoided, would the in- formation have been worth or worthy of a recommendation for compensation? If the Government had then made its cur- rency the only medium of exchange and called in its Gold, could the nation not have paid off its bonds in Gold coin instead of refunding? If the entire banking interests of the nation were induced to become national banks, and to do a safe business, shall we ever again have to suffer a financial panic? Will compelling all banks to render a monthly statement of their daily transactions enable the Comptroller of the Currency to guard against any extravagance or reckless- ness which may result in loss to the degree of panic ? Will compelling bank stockholders to qualify to the Government for a sum of five times the amount of their stock protect responsible bankers from competition with any not respon- sible? A SOLUTION OF MONEY Will authorizing the President to carry on public improvements in the event of any cessa- tion of private and corporate enterprise be in the interests of both the nation and its labor- ers? Or, is it better, more intelligent, and more dignified to compel the unemployed, in every business cessation, to depend upon char- ity for maintenance, (at boweries and free soup kitchens,) while public interests worth hun- dreds of millions await the hand of labor. Could not the idle laborers of this country, during either of our great panics, have com- pleted works that would be worth billions of dollars to this nation ? And, further, would it not have been clear gain to the nation to have it done? Were not the years of idleness an absolute loss to the whole Nation? Can any Nation prosper while its laborers are idle? Cannot every business prosper, if labor is well employed ? Does not prosperity depend absolutely upon the profitable employment of labor? Should we authorize the administration to take control of, and care for, the sufferers of any great disaster of fire, flood, cyclone, or earthquake, rendering citizens homeless and 24 CURRENCY AND BANKING destitute of food, shelter and clothing? Or, shall we continue in compelling such victims to depend upon charity? Should the nation make its forest reserves, game and fish preserves, then fence and patrol them sufficiently to protect the timber abso- lutely from forest fires? Or, shall we drone along, permitting fires to result in the destruc- tion of millions of dollars' worth of our best timber every year. If the forest reserves were fenced so as to protect deer and elk from carnivorous animals, and all such destroyed within the reserves, and the streams and lakes stocked with fish and properly fed, should we not within a few years dispose of game enough to pay well for pro- tecting the forests, and, besides of great im- portance, add their wholesome variety to our food? Shall we continue to let the floods from our great mountain ranges rush do\vn the valleys, destroying millions' worth of property an- nually and carrying millions of dollars' worth of our best soil into the ocean? Or, had we better conserve the water for both power and irrigation and the soil for valuable uses? Does not waste upon one hand and loss of A SOLUTION OF MONEY profit on the other amount to more every year, than it would cost to save the waste and then forever enjoy the advantages? The Legislators of every Nation and every student of National interest in either Money, subsidiary Money, Currency, emergency Cur- rency, or Banking, is most respectfully re- quested to excuse any fault of specific expres- sion or condition of this Bill. It is intended only and solely as an example to illustrate the principles of each provision involved. First. That the only necessity for a money is for the sake of establishing a measure of values : I mean choosing a thing to be the one by whose value all other things are to be esti- mated. And the only necessity for coining it, is for the sake of providing correct measures of different denominations or different values. Second : That it is impossible to use a gold coin as a currency and keep it a correct meas- ure. Third: All that is necessary to protect the gold coins from currency use, place the Nation in a position to liquidate its bonds and above ever having to borrow, is simply to limit the coinage of gold to a denomination which will render them impractical as a currency. 26 CURRENCY AND BANKING Fourth : That to protect gold coins from waste (even when handled by the Govern- ment), they must be encased in some manner. Fifth : That to provide unlimited credit for silver, or any other subsidiary, the Nation must make its currency and subsidiary coins the only medium of exchange. Sixth : That to protect the Subsidiaries in their rights, they must be given a proportion of business that will constantly employ their coins and currency. If silver coins and cur- rency are made the only permanent issues of less denominations than $100.00, will there ever be a lack of demand ? Seventh : To provide for the liquidation of our interest-bearing bonds, we must place our money to our public credit. Eighth: To retire, and reissue all present currency, is the only way of knowing how much we have in circulation. Ninth: The standard silver dollar is a farce and will never circulate (at its own ex- pense), as a subsidiary; consequently, it should be retired. Tenth: To compel depositors of National credits to take their currency at the Treasury, and their coins at some mint, will relieve the 27 A SOLUTION OF MONEY Treasury of all expense of circulation, and all unnecessary coinage, amounting now to about one third of a million dollars annually. Eleventh: That to retire currency when redeemed, will relieve the Treasury from re- peated redemption. Twelfth : That to issue permanent currency for gold only, or the gold value of a subsi- diary metal, will protect the miners in the value of their product. Thirteenth: To receive the money metals at all National Banks, will protect the miners from brokerage. Fourteenth : That to protect the Banks from depositor's panics, the Nation must guarantee their deposits. Fifteenth: That in order for the Govern- ment to safely guarantee the deposits, the Banks must subscribe to, and comply with, the rules of safety. Sixteenth : That in order to know whether the Banks comply with the rules of safety, the administration must know of their daily trans- actions. Seventeenth: That to protect responsible Bankers from competition with anyone not re- sponsible, they must first be compelled to qual- 28 CURRENCY AND BANKING ify for an amount which will render all re- sponsible, and, secondly, all must comply with rules of safety. Eighteenth: To deposit the Government's funds with the Banks, subject to check, will add millions of dollars to our circulation. Nineteenth: That to permit all National Banks to adopt a savings loan and trust de- partment, and to loan upon all negotiable se- curity, will provide a Banking system adequate for the best use of the currency and credits in every locality. Twentieth : An emergency currency for the expense of harvest, will be worth millions an- nually to the Treasury, and of incalculable importance to business interests. Twenty-first: An emergency currency is the only means by which any Nation can avoid unnecessary expense, or avoid interfering with the use of permanent currency. It is the only means by which any nation can do business in a business way. The Bill shows how to provide for the greatest possible volume of money its most efficient use and its most economic use, and is applicable to the whole world. Under its provisions, no Nation would ever 29 A SOLUTION OF MONEY have a financial panic, or any Bank a de- positor's panic, or any depositor suffer loss or even delay, because of a Bank's failure. NOTE. Platinum is included in the bill solely to illustrate the principles involved, which will permit of the unlimited use of anything entitled to currency credit, whether it be more valuable or less valuable than gold; and whether or not it should be coined, or made a legal tender to any amount. CURRENCY AND BANKING A BILL. AN ACT ENTITLED AN ACT TO REVISE ALL PRES- ENT MONETARY MEASURES, OUR CUR- RENCY SYSTEM AND BANKING LAWS. By providing I. For an absolute Gold standard of both money, subsidiary money, and cur- rency. 2. To protect Gold from a currency service. 3. To place all money metals to the Nation's credit. 4. To protect the Gold coins from waste while being handled by the Govern- ment, or being transmitted to a for- eign nation, or to an artist. 5. For the free and unlimited credit of Gold, Platinum, and Silver. 6. To assign to each its respective rights. 7. For the liquidation of all interest-bearing bonds. 8. For the reissue of all present currency. A SOLUTION OF MONEY 9. To retire the farce of a standard silver dollar. 10. For relief from all expense of circula- tion. 11. For relief from repeated redemption of currency. 12. For relief from all unnecessary coinage. 13. To protect the miner of money metals, in both the value of his product and from brokerage. 14. To protect the Nation from financial panics, the National Banks from depos- itor's panics, and their depositors from loss in any event. 15. To protect responsible bankers from competition with any one not respon- sible. 1 6. To deposit the Government's current funds in National Banks. 17. For a National Bank emergency cur- rency. 1 8. To permit National Banks to adopt a sav- ings loan and trust department. 19. For an emergency currency for the Gov- ernment. 20. For a separate coloring for each kind of currency, a separate design for each CURRENCY AND BANKING denomination of every kind, and for other purposes, and especially to in- vite the world to unite in the adoption of the Gold standard of money with the unlimited use of Silver; and the provision of a coin and currency of identical parity. Be it and it is hereby enacted by the Senate and House of Representatives of the United States of America, in Congress assembled: Section i. That the legal unit and stand- ard measure of all values within the United States of America, its territories and all of its dependencies, shall be the Gold Dollar, con- sisting of 23.22 grains, Troy weight, which shall be coined pure (in forms to be the least susceptible of abrasion), and in denominations only of $100, $200, $500, $1,000, $5,000 and $10,000; and each, when coined, shall be en- cased and sealed in lead or other foil, sufficient to protect it from waste. Section 2. That if any person or persons, corporation, syndicate or association shall de- liver and deposit to the credit of the United States of America, at its treasury, any sub- treasury, mint or National Bank, pure Gold of 33 A SOLUTION OF MONEY 2.322 grains, Troy weight, or any multiple thereof, or Gold coin of present issue and legal weight, in amounts of $100.00, or any mul- tiple thereof, or other coin containing 2.322 grains, Troy weight, or any multiple thereof of pure Gold, such depositors may receive Gold coin therefor at our nearest mint; or in lieu thereof, they may receive at the Treasury Gold certificates in denominations of Gold coin; a legal tender for all dues, public and private and redeemable upon demand at the treasury, any subtreasury or mint, in Gold coin of the United States of America. Section 3. That if such depositors shall so deliver pure Gold, or Gold coin of legal weight in any amount, or pure Platinum or pure Sil- ver of the approximate value of one Gold Dol- lar, or any multiple or factor thereof, or in- terest-bearing bonds of the United States of America at their market value (together with the National Bank currency issued upon them), or any kind of National currency or standard Silver dollars of legal weight, they may receive therefor, at our nearest mint, Sil- ver or minor coins of the United States of America, in denominations of half-dollars, quarter-dollars, dimes, nickels or pennies of 34 CURRENCY AND BANKING present weight and fineness each a legal tender for all dues, public and private, to any amount not exceeding five times its denomina- tion; or, in lieu thereof, they may receive, at the Treasury, Silver certificates in denomina- tions of $1.00, $2.00, $5.00, $10.00, $20.00, or $50.00; each a legal tender for all dues, public and private, to any amount not exceeding ten times its denomination, and redeemable upon demand in amounts of $100.00 or multiples at the Treasury, any subtreasury, or mint, in Gold coin of the United States of America, or in pure Platinum or pure Silver of the ap- proximate value of Gold coin, at the option of the Secretary of the Treasury. RECEPTION AND DISBURSEMENTS. Section 4. That all money metals here- after received at any bank shall always be sub- ject to the actual expense of transmission (in- cluding insurance of delivery) to our nearest mint. Section 5. That the value of all subsid- iaries received or disbursed shall always be reckoned at the highest price quoted in open market, unless they be imported, or, if more 35 A SOLUTION OF MONEY than $100,000 worth be offered at a time, then they shall always be reckoned at the highest price bid in Gold coin of the United States of America for the amount offered at the near- est exchange to the place of offering. Section 6. That it shall always be the duty of the Secretary of the Treasury to either ac- cept or reject, in the interest of the Govern- ment, any bid for money metals offered, whether on deposit or on disbursement. DESIGN OF CURRENCY. Section 7. That each kind of currency and each denomination of every kind hereafter is- sued shall be of a distinctly separate design and color, and the Secretary of the Treasury shall appoint a committee of three to deter- mine, if possible, the most practical size, de- sign, and coloring for each kind and denomina- tion, and also the specific form and dimensions of the several Gold coins. RETIREMENT OF PRESENT ISSUES. Section 8. That (on and after the first day of January, A. D. 1912) it shall be unlawful to offer in payment any other coin or currency than that herein provided for (except National CURRENCY AND BANKING Bank currency) ; and every one having any other coins or currency shall present the same before said date, at some Government deposi- tory, for exchange in coin or currency of the kind hereinbefore provided for; and any fail- ure to do so shall be a misdemeanor and sub- ject any amount offered thereafter to a fine of ten per cent. Section 9. That the Treasury Department shall assume all expense of returning the is- sues to be retired, and shall provide each National Bank (express paid) with whatever denominations of currency (hereinbefore pro- vided for) the public may demand in exchange for their present issues. Section 10. That all Gold coin and all sil- ver dollars of present issue shall be reduced to bullion and accredited with all Gold, Silver, and Platinum on hand and all hereafter re- ceived, to a department of issue and redemp- tion; and to which department all money metals and all coin and currency hereafter issued from any cause shall be debited. 37 A SOLUTION OF MONEY TO PROTECT NATIONAL BANKS FROM DEPOSITORS' PANICS. Section n. That in the event of any Na- tional Bank's suspension, or application for suspension without liquidation, the Secretary of the Treasury shall take immediate posses- sion according to law, and as soon as pos- sible ascertain its depositors' dues, and shall issue to each a certificate of United States deposit, payable to order upon endorsement, and if necessary shall issue an emergency cur- rency for their payment Such claims against any bank shall be a first lien upon all of its as- sets and upon its stockholders to the extent of their lawful obligations; and in the event of any such bank's credits and stockholders' ob- ligations failing to reimburse the Government (within two years) for every expense incurred then every National Bank shall be subject to demand assessment for their proportion of the deficiency reckoned upon the daily average of their respective loans and discounts for the year preceding. Section 12. That all banks may become National Banks, and all may adopt a savings, loan and trust department, and continue with- CURRENCY AND BANKING out a deposit of Government bonds or holding a Gold reserve, by complying with all other lawful requirements, together with the follow- ing terms and conditions: 1. That every stockholder in any National Bank shall annually qualify to the Govern- ment, either by a surety bond or by a deed in trust, of property of five times the value of his stock. 2. That no National Bank shall ever place more than three-fourths of its capital to the credit of its savings, loan and trust depart- ment. 3. That the savings, loan and trust depart- ment shall never accept deposits subject to check, nor issue certificates of deposit payable upon demand, nor for a less time than ninety days. 4. That the savings department may nego- tiate loans upon first mortgage of improved real estate, chattels, goods, stocks or bonds, by and with the approval of the Comptroller of the Currency, to whom they shall make monthly reports of their daily transactions in- cluding their loans and discounts, with the class and value of securities taken for each, to 39 A SOLUTION OF MONEY whom made, and for what time ; together with their daily balances of cash on hand. 5. That the credits and reserves of the sav- ings, loan and trust department of every Na- tional Bank shall be kept absolutely separate from the credits and reserves of its commercial department, and shall never make a loan with- out having in its own safe enough legal tender above the loan to meet its demands at least five days in advance of their becoming due. 6. That no National Bank shall ever loan more than 75 per cent, of the market value of securities taken, and shall reserve (in all their mortgages, deeds of trust, and assignments or contracts taken for security of every kind) the right to sell any or any part of securities held at any time, to avoid loss by its decline below a price necessary to reimburse the bank for the loan with interest and all costs in- curred, including all expense of court in case of foreclosure. 7. That the commercial department of a National Bank shall never loan upon securities whose title cannot be instantly hypothecated by assignment of the bank at any time. But no National Bank shall ever loan its securities, or permit any securities held in trust by either 40 A Solution of Interests Dependent upon MONEY Subsidiary Money, Currency Emergency Currency and Banking for Every Nation By C. A. LONG MR. CHAS. ALBERT LONG is a native of Oregon. His knowledge of the wonderful possibilities in western farming is exceptional. He has visited and studied almost every locality in the great Northwest, and is an expert in dry land cultivation. His writing is the first to define either money or its principles as the reader will readily see. PRICE ONE DOLLAR ABERDEEN PUBLISHING COMPANY MASONIC HALL 46 WEST 24th STREET NEW YORK A Solution of Interests Dependent upon MONEY Subsidiary Money Currency Emergency Currency and Banking for Every Nation By C. A. LONG A TREATISE, partaking of the form -"~^- of a bill for enactment and providing for the conditions enumerated on the following pages ; prefaced with an explanation of why the world has failed to solve the question, together with claims for the importance of proper adjustment and followed by a definition of the principles involved. It treats of the problem in all of its phases in an entirely new and original manner. The Bill, enacted for the Nation, will be worth to the Treasury (above present practice) about $100,000,000 annually. It shows how any nation may provide for the unlimited use of silver, subject to the gold standard of both money, subsidiary money and currency, and solves a problem (worth millions annually) which has baffled the world's legislators and its monetary commissioners for ages. It shows how any responsible nation may liquidate its interest bearing bonds and place itself above ever again having to borrow. This would save the 55 Nations of the world about one billion five hundred million dollars annual interest on public debt. It shows how to protect responsible bankers from competition with the irresponsible. It provides for an absolutely safe National banking system adapted to and adequate for the most efficient use of the currency in every locality so that every Bank and Trust Company may become a National Bank. It also provides for an emergency currency for every locality upon banking principles and shows how any responsible Nation may protect itself abso- lutely from financial panics and the Banks from depositors panics. A BILL. AN ACT ENTITLED AN ACT TO REVISE ALL PRESENT MONETARY MEASURES, OUR CURRENCY SYSTEM AND BANK- ING LAWS. By providing 1. For an absolute Gold standard of both money subsidiary money and currency. 2. To protect Gold from a currency service. 3. To place all money metals to the Na- tion's credit. 4. To protect the Gold coins from waste while being handled. 5. For the free and unlimited credit of Gold, Platinum, and Silver. 6. To assign to each its respective rights. 7. For the liquidation of all interest- bearing bonds. 8. For the reissue of all present cur- rency. 9. To retire the farce of a standard sil- ver dollar. 10. For relief from all expense of circu- lation. n. For relief from repeated redemption of currency. 12. For relief from all unnecessary coin- age. 13. To protect the miner of money metals, in both the value of his product and from brokerage. 14. To protect the nation from financial panics, the National Banks from depositors' panics, and their de- .positors from delay or loss in the event of suspension. 15. To protect responsible bankers from competition with the irrespon- sible. 16. To deposit the Government's current funds in National Banks. 17. For a National Bank emergency cur- rency. 18. To permit all National Banks to adopt a Savings, Loan and Trust Department. 19. For an emergency currency for the Government. 20. For a separate coloring for each kind of currency, a separate design for each denomination of every kind, and for other purposes, and espe- cially to invite the world to unite in the adoption of the Gold stand- ard of money with the unlimited use of Silver; and the provision of a coin and currency of identical parity. This is a book for everyone interested in bet- tering the World's conditions. The Bill would en- able every responsible nation to liquidate its pub- lic debt, protect itself absolutely from financial panics, the banks from depositors' panics, and their depositors from loss in any event. It provides unlimited credit for Silver, and an emergency currency for both every local and na- tional need. It solves the problem for the whole world, and will immediately be translated for every nation. Its simplicity and conciseness are marvels. Twenty distinct provisions are couched in fewer words than an act of the six- tieth Congress for simply an emergency currency. It must be read to be appreciated Just issued. Second edition now in press. Aberdeen Publishing Go. MASONIC HALL 46 WEST 24th SI REET NEW YORK Please send me copies of "MONEY" By CHARLES ALBERT LONG for which find enclosed $ Name Address Dated CURRENCY AND BANKING its commercial or trust department, to be loaned for any purpose whatever (without the written consent of the owner), and to do so shall be a felony, punishable with not less than one nor more than five years' imprisonment at hard labor. 8. That the commercial department of every National Bank, situated without a clear- ing-house, shall set aside, and keep in its own safe as a reserve 10 per cent, of its deposits, which shall never be used without the written consent of the Comptroller of the Currency ; and every such bank situated in a city having a clearing-house shall set aside 15 per cent, of its deposits, which shall never be used without the written consent of the Comptroller of the Currency and the approval of its clearing- house association. 9. That the rate of interest which either the savings and trust or the commercial de- partment of every National Bank may offer to depositors shall not exceed any uniform rate which may be agreed upon with all other Na- tional Banks throughout the city or town of their location, without notice to and approval by the Comptroller of the Currency. 10. That no officer, employee, or stock- A SOLUTION OF MONEY holder of any National Bank shall ever bor- row, take, use, or employ, for any personal interest in any way or manner, any of his bank's funds without first assigning to his bank collateral (besides the bank's stock he may hold), approved by the Comptroller of the Currency to be security equal to what should be required of one not associated with the bank; and for any officer or employee of a National Bank to overdraw his account, sub- ject to check or to loan, to himself either di- rectly or indirectly, through any person or per- sons, corporation, syndicate or association in any way or manner, without first assigning or taking ample security above his stock in the bank, shall render such act a felony, punish- able by imprisonment at hard labor for not less than one nor more than five years. II. That all National Banks shall act as agents for the Government in receiving and delivering its money metals to an express com- pany free of charge, to either the depositor or to the Government, except the actual expense of transmission. Section 13. That all of the Government's current funds shall hereafter be deposited and kept in National Banks subject to check, and 42 CURRENCY AND BANKING shall be distributed among the National Banks of the city of their collection or city nearest their collection, in proportion to their paid up capital. And hereafter, the failure of any National Bank to pay any note or certificate due, or any check on demand (issued by any one having its amount on deposit subject to check) shall render the bank subject to im- mediate foreclosure, with all damages and costs of court, including reasonable attorney's fees (at the option of the holder of such note, certificate, or check and at the complaint of such holder), the Comptroller of the Currency shall immediately order such bank closed and appoint its receiver. NATIONAL BANK EMERGENCY CUR- RENCY. Section 14. That any National Bank may, upon recommendation by the Comptroller of the Currency, be permitted an issue of not longer than six months' circulation for the ex- pense of harvest in its locality, upon the fol- lowing terms and conditions: i st. That it shall give its note, signed by all of its acting officials, for each issue and 43 A SOLUTION OF MONEY agreeing to pay to the Treasury of the United States one-half of the bank's rate of interest to its customers for the entire time of its issue. 2nd. That the bank issues shall be made only for the specific purpose of harvesting and delivering to public warehouse, crops of grain, hay, wool, hops, fruit, cotton, tobacco or vege- tables, and which purpose shall always be specified with application. 3rd. That all of the acting officers of every bank, applicant for an issue of currency, shall sign (under oath) an agreement to only loan bank emergency currency on produce actually stored in a public warehouse, and not to loan more than 75 per cent, of its market value; to insure and keep insured against damage by the elements and earthquake, all of such securi- ties to one and one-quarter the amount loaned upon them; also to hold all notes and securi- ties taken for such loans, together with their insurance until bank currency or coin or cur- rency of the United States is deposited with the Secretary of the Treasury to redeem the bank's notes, with all interest contracted and cost incurred. 4th. That any embezzlejpent of a National Bank's funds, or a violation of any obligation 44 CURRENCY AND BANKING to the Government required of National Bank- ers (by any officer or employee), shall render each and all of such offenders guilty of felony and punishable by imprisonment for a term of not less than ten nor more than twenty-five years at hard labor, and confiscation of all of such offender's property towards or to the amount of their defalcation. 5th. THE NATIONAL BANK CURRENCY SHALL READ: UNITED STATES OF AMERICA NATIONAL BANK EMERGENCY CURRENCY A legal tender for all dues and demands, to any amount not exceeding ten times the denomination, and exchangeable at the Treasury for coin or currency of the United States of America at the option of the holder. 6th. National Bank currency shall be is- sued by the Secretary of the Treasury in amounts of $25,000.00 or multiples at the ex- pense of and in denominations to suit the ap- plicant, but shall be of a distinctly separate de- sign and coloring from the United States is- sues. * Section 15. GOVERNMENT EMERGENCY 45 A SOLUTION OF MONEY CURRENCY may be issued upon the following conditions : ist. That whenever, in the absence of Con- gress, the exigencies have convinced the Presi- dent, the Comptroller of Currency, and a ma- jority of the Cabinet that an issue is necessary to save borrowing in providing for the public defence or in promotion of the public welfare pending an Act of the Congress collecting per- manent currency for the emergency, the Presi- dent may order an issue for any necessity of the nation such as defence in war, the pur- chase of right of way and construction of the national permanent highways, or of the Isthmian Canal, improving rivers or harbors of importance to interstate commerce, or car- ing for sufferers of any great disaster of fire, flood, cyclone, earthquake, or other contingen- cies affecting the general welfare. 2nd. That, in the event of any great na- tional business depression depriving labor of the possibility of employment by private or corporate enterprise, the President shall ask for bids for the completion of any public works or improvements which the Congress may have authorized (subject to the condition that the contractors shall pay the employees 46 CURRENCY AND BANKING not less than $2.00 a day for ten hours of good labor), and shall, if necessary, order an issue of emergency currency for the purpose; and in the event of any great disaster in any city or locality, rendering the citizens home- less and destitute to a degree demanding food, shelter, or clothing from other localities, the President shall, if necessary, order an issue of emergency currency at once for at least thirty days* care for such sufferers and order imme- diate control taken for their relief. 3rd. That National emergency currency shall be retired whenever and as fast as cur- rent receipts or a special revenue, or both, have collected the permanent currency to any amount in excess of the Government's current requirements. And whenever enough perma- nent currency has been collected (in excess of the Government's current requirements) to meet the demands of the emergency and retire all of the emergency issues, the Secretary of the Treasury shall suspend the further collec- tion of the special revenues and shall call in and destroy the emergency issues. 4th. National Emergency Currency shall read: 47 A SOLUTION OF MONEY UNITED STATES OF AMERICA EMERGENCY CURRENCY. A legal tender for all dues and demands, to any amount not exceeding ten times the denomination, receivable for all dues of the Government, and exchangeable at the Treas- ury for regular coin or currency at the option of the holder. 5th. The National Emergency Currency shall be of a specific design and coloring of its own, but may be in any denomination to suit the needs of the Government. 6th. In the event of an emergency issue, the President may have regular silver or minor coins issued to any amount necessary to ac- commodate the Government, and all such coins shall be a legal tender as hereinbefore pro- vided, and may remain in permanent circula- tion. RESOLUTION. Resolved, that the President be and hereby is requested to appoint the following commis- sions, each with full authority to employ every assistance necessary to (if possible) inform the Congress at its next session of the Na- tion's interests in each particular : CURRENCY AND BANKING First : FOR A UNIVERSAL COIN AND CUR- RENCY. A commission of one to negotiate with every nation of the world for the adop- tion of the Gold standard of money with the unlimited use of Silver, and the provision of a coin and currency of identical parity. Second: FOR A SHIP CANAL BETWEEN THE GREAT LAKES AND THE GULF OF MEX- ICO. A commission of one to determine, if possible, the most practical route for a canal capable of carrying- the largest vessels probable of construction between the Great Lakes and the Gulf of Mexico, and to report at the next session of the Congress, as nearly as possible, the route of its location and the cost of its con- struction. Third: FOR A NATIONAL GOOD-ROAD SYS- TEM. A commission of one to negotiate with the officials of every State and Territory with the view of ascertaining, if possible, the best method of uniting with the Government in the adoption of a national permanent good-road system, in which and whereby each State and Territory may properly share in any fund the Congress may provide for the encouragement of concerted action throughout the Nation for the construction of permanent good highways. 49 A SOLUTION OF MONEY Fourth: CONSERVATION OF WATER. A commission of one to ascertain as nearly as possible the cost of damming the waters of all great rivers near their sources with a view of regulating their flow and providing both for power and for irrigation. Fifth: FENCING FOREST RESERVES. A commission of one to ascertain the probable cost of woven barbed wire fencing necessary to protect each of our forest reserves from either encroachment or escape of any animal. And the sum of $250,000 is hereby appropri- ated to defray the expense of these several commissions, and the Secretary of the Treas- ury is authorized to pay the same out of any credit of the Government not otherwise appro- priated, and to charge the same to the account of internal improvements and universal cur- rency. Section 16. This bill shall take effect and be in force from and after its passage, and all acts and parts of acts, existing contrary to or conflicting, are hereby annulled and repealed. EXPLANATION In explanation of the principles involved in both money, subsidiary money and currency, CURRENCY AND BANKING and in compliance with which the foregoing bill is written, I submit: i st That their fundamental principles are value and convenience. (If two kinds of money or two kinds of currency are of iden- tical value and of equal convenience is there any choice?) 2nd. That the most valuable thing will provide for the greatest possible convenience in money, because the greater the value the greater the convenienc in any great quantity. If we had a money sixteen times more valu- able than gold, one could then take $16,000 in the pocket with the same weight and conven- ience of $1,000 of gold. 3rd. That the most valuable standard is also indispensable in properly providing for the greatest possible volume of money, because all inferiors are, and of right ought to be t sub- feet to their superiors, and consequently may forever properly act, subject to their superiors ; while no superior can ever properly act sub- ject to an inferior; so if any nation would properly employ everything entitled to cur- rency credit, they must honor the most valu- able one with being money ; then, the less valu- A SOLUTION OF MONEY able ones with being assistants each in pro- portion to its value. So, then (if this be true) instead of the Gold standard of money being a cross of con- traction upon which to crucify the people and a crown of thorns with which to distress the brow of the poor, it will, if it be the most valu- able thing entitled to the credit of money, per- mit of its greatest possible volume. The bill also recognizes the following prin- ciples involved in the most efficient and eco- nomic use of one or more subsidiaries : ist. That everything having an existence above condition, and valuable enough to rec- ommend its convenience, should be employed as a credit for currency, because the possibili- ties of business intelligence is limited to its vol- ume of currency ; so, consequently, in order to enjoy what the Author of Being has provided for us, we must have the greatest possible as- sistance of each and everything entitled to cur- rency credit. 2nd. That, to provide a subsidiary coin and currency of the identical and inseparable repre- sentative value of their primary, they must be made redeemable in their primary. 3rd. That in order for any Government to CURRENCY AND BANKING always be most able to redeem its currency in primary money or even in its value of any sub- sidiary, the Government must first take abso- lute control of all of them. Then, secondly, the nation must make its currency the only medium of exchange, so as to always protect the Government against having to unneces- sarily redeem it neither of which conditions, it seems, the world has ever understood. 4th. That, to permit anything to be de- prived of any part of what it can do for us, would not only be to deny ourselves of what we should enjoy from its service, but also to defraud it of its value. 5th. That, to enjoy the greatest possible service from a number of monetary credits, the least valuable one must first be protected in all it can possibly do with satisfaction to its em- ployers ; then, the next more valuable one must have all it can do with satisfaction to its em- ployers ; and so on up to the most valuable, be- cause the principles involved are like those of mechanics in which, if a master spends any of his time at what the apprentice has learned to do and can do as well as he, the master is not only neglecting his duty to his employer, 53 A SOLUTION OF MONEY but is also depriving the apprentice of what he should be allowed to do. 6th. That money ought not to be made a legal tender at all, because of its denomina- tions currency is more convenient, and no sub- sidiary coin should be made a legal tender above an amount in which it would not be the most convenient thing possible to provide within the value of its denominations. But, in addition to the fundamental prin- ciples of both money and subsidiary money, the following conditions are involved in their reception, disbursement, economic and efficient use. ist. That the relative value of all of them may fluctuate, because of a fluctuation in their relative supply. 2nd. Because we may learn to produce one much more cheaply in proportion to the cost of the others than we now do. 3rd. Because of a fluctuation in their rela- tive demand. 4th. Upon where they are, because it might cost more to get one delivered to where it was needed than it would for the other. 5th. The amount offered may also affect their relative value, because no one will give as 54 CURRENCY AND BANKING much relatively for more than they need of anything as they will for just what they need, and the writer wishes that every reader would note the vast difference between the sugges- tion of permitting silver unlimited credit and coinage in compliance with all of these five conditions, and that of Mr. Bryan's 16 to I, which not only ignored, but violated every one of them by attempting to make Silver of 1/16 the value of Gold to everybody, everywhere, for an indefinite time and in unlimited quanti- ties, when and whereas it was not worth one- half of it anywhere to any one; and no person, corporation, syndicate, or association ever, at any time or place, wanted to buy more than a very limited amount of it, either coined or un- coined. 6th. A currency may be just as valuable to individuals as money, while nothing but money, primary or subsidiary, can be of credit to a nation's redemption fund. 7th. That, if a nation protects its money from domestic circulation, it will constantly and perpetually have it all to its own credit. 8th. If we now place all of our money to the nation's credit, the Government can an- nounce that it has Gold on hand to liquidate 55 A SOLUTION OF MONEY its interest-bearing bonds at any time (and have hundreds of millions of dollars left), and so provision is made for their liquidation. Would it not be a pleasure to every patriot to see his country free from debt and with bil- lions of dollars piled up against a day of need? 9th. That to make the Government's cur- rency the only medium of exchange not only provides a condition in which the nation will never have to redeem its currency, but it will also induce the holder of Government bonds to take currency for his bonds instead of Gold, though his bond calls for Gold. loth. The Government can well afford to assume the responsibility of caring for its money, because to do so would forever place it above having to borrow. nth. To protect money from currency use would save, to the perpetual credit of the world, the millions that are now wasted by abrasion from such use, besides all that is mis- placed and lost. 1 2th. That we are entitled to an absolutely safe place of deposit, and the Government should provide it, because it is beyond the pos- sibility of private enterprise. 1 3th. That the Government should protect CURRENCY AND BANKING the National Banks from depositors' panics, because no one else can. 1 4th. To make National Banks an abso- lutely safe place of deposit will not only insure to them the perpetual use of their present de- posits, and bring to them millions which are now kept secreted, but it will justify the Gov- ernment in permitting them the use of its cur- rent funds. 1 5th. That, to insure the bankers against depositors' panics and their depositors against loss, will provide for the greatest possible sta- bility to business and absolute protection from financial panics. i6th. The Nation should protect itself from any other nation depositing any subsid- iary in lieu of Gold, and so the importation of subsidiary metals for such purpose is prohib- ited by the sentences, viz., "If subsidiary metals be imported, they shall always be reckoned at the highest price bid in Gold coin of the United States of America;" and, then, making it the duty of the Secretary of the Treasury to ac- cept the bid and sell instead of receiving the import. 1 7th. To compel the depositors of national credits to take their coin at the nearest mint 57 A SOLUTION OF MONEY and their currency at the Treasury will save about one-third of a million dollars a year from present practice, and also result in the most economic use of coins, because currency can be transmitted at so much less expense. 1 8th. The most efficient use of anything would be to so employ it as to enjoy the great- est possible benefit from its being. In the case of money as has been said "If the founders of our Government had understood and kept our money to the nation's credit, it would not only have saved the millions which have been lost and wasted in performing a currency service on one hand, but, upon the other, would have saved to the credit of our redemption fund about three billion dollars in Gold which we have had to pay for interest on the public debt and besides of far greater importance no one would have been compelled to take the nation's currency for more than it was worth. 1 9th. But this is not all : for after we have provided for the best and the greatest possible volume of money ; its most economic and most efficient use; a safe place of deposit; insured the banker against the possibility of a deposi- tors' panic ; and with it provide for the greatest CURRENCY AND BANKING possible stability to business we are still enti- tled to two Emergency Currency acts. The first we need in the interest of harvest, which every year demands hundreds of mil- lions for only a few months ; and which, if pro- vided by the Government, would not only in- sure the farmers from ever again having to sacrifice their crops because of the lack of an emergency currency for the expense of har- vest, but it would permit the more constant use of our permanent currency in permanent busi- ness. The second we need in the interests of the Government itself, with which to meet an emergency of war or any other demand in ex- cess of current receipts. Would not such an act as the foregoing have enabled the Government to meet the expense of the Spanish- American war, and to build the Isthmian Canal, without borrowing and inter- fering with business interests at home (depen- dent upon the constant employment of the per- manent currency) as the Government did, and always must by asking for a loan? Can the consequences of taking $500,000,000 from private enterprise at any time be esti- mated ? 59 A SOLUTION OF MONEY If each dollar would permit private intelli- gence to accomplish $10.00 worth of business every year, would it not mean $5,000,000,000 worth of employment annually? If one looks for the cause of our late panic, would it be proper to consider this item? Would not this bill have spared the people from being taxed for the millions of interests we must now pay on what we have borrowed ? If the administration had been authorized to advertise for the fencing of our forest re- serves and completion of every practical irriga- tion plant within our domain when the panic of 1893, which resulted in two million idle laborers, or the panic of 1907, which threw five hundred thousand laborers out of employ- ment, could the nation not have issued and in- vested $500,000,000.00 of emergency cur- rency, employed the idle laborers, and sold the lands irrigated for enough to have retired every dollar of the emergency issues within ten years ? Would to do so have been in the interest of the whole nation, or was it better to let panics run riot, let the financiers borrow hundreds of millions from other nations ; tax all, to pay in- terest for its use, let business interests lag, let 60 CURRENCY AND BANKING tens of thousands lose a lifetime savings, let fire destroy millions upon millions of dollars' worth of timber; let waters run to waste; let the arid lands idly parch for need of water, and let millions of our best citizens suffer for the want of wholesome food and decent cloth- ing dependent upon employment? THE END. 61 THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL PINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN HIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. YB 18326 )2044 /fO. -53Q