People's Pilot, Volume 6, Number 8, Rensselaer, Jasper County, 13 August 1896 — REDEMPTION MONEY. [ARTICLE]

REDEMPTION MONEY.

AND BUSINESS MONEY APPEAR TO BE DIFFERENT THINGS. “Redemption money,” or “standard itjoney,” as it is sometimes designated, must be made of gold or silver. Just at present tne great financiers of the “leading 'commeicial nations of the earth” (see republican platform) are cf tbenypinion that the beneficent functions of redemption money can only be properly performed by money made of gold. It may develop later on why this is so, but for the purpose of this article .the idea which has ruled the world for centuries, that gold and silver, or either of them, may be redemption money, is adopted.

Redemption money necessarily implies tne existence of a money somewhere that needs to be redeemed, and it logically foiiaws' that redemption money is better money than that which it redeems, otherwise it could not perform the functions of a redeemer. Ii ;edemption money does not hold the same relation to all other money which stands in need of redemption that the Savior or Redeemer of man does toward all mankind, that is, if it was not created by God, it was created by man. The question then follows, if man created money, why did he create two kinds, one as a redeemer, the other to be redeemed? And if a man cancel a debt with money which must be redeemed, is it not plain that he still owes the debt? And' that he wifi continue to owe If until the identical money in which he debt is redeemed? Certainly this is all plain enough, if the redemption theory of money is correct, for it follows as a matter of course that a promise to pay cannot be cancelled by giving other promises to pay. This absurdity though ridiculous in the extreme is a necessary sequence of “redemption money,” and -'3 no move absurd and «illy than the theory which gives It life. As a matter of fact, “redemption money” is a fiction, a myth, which never has existed and never will. There is a theory that the one hundred million dollar gold reserve fund held In much the same degree of esteem by our national officials as the white elephant of India is by the bare-legged barbarians of that country, is for the purpose of redeeming the three huudred and forty-six millions greenbacks still <n circulation and doin? allthat money of any kind can do in the way of furthering exchange. This theory is, or rather was, before the sacred gold fund had become seriously encroached upon ’hat at one time less than half of it ■ emained on hand without in the least affecting the purchasing power of the greenbacks; that the greenbacks would not be good money but for this gold fund held sacred to its redemption Now, indulgent reader, if you will try to figure out how to redeem three silver dollars and forty-six cents with one dollar you will, perhaps, realize what a humbug that gold redemption fund is.

But it must be remembered that the gold reserve fund is a humbug only in the same way and for the same reason that redemption money is. In the old wild-cat days of bank paper money thr folly of the redemption theory of money was brought so close to the people that Its stupidity became plainly apparent. The banker with, say, twenty thousand dollars in specie, gold and silver, for ‘redemption money,” would issue his notes or promises to pay to the extent of fifty thousand dollars and loan it to his neighbors to do business upon. Things would go along swimmingly so long as nobody doubted his ability to pay specie on demand, but as oertain as doubt was inspired that certain it was that his banking business came to a close and thirty thousand dollars of bis promises to pay were never fulfilled. But for all this experience with redemption money acquired at a fearful cost in many Instances the people never have for a moment completely lost faith in its soundness.

When the war of the rebellion came on and gold and silver money slunk out of sight the people, through their representatives, very tenderly and carefully boxed up their redemption theory and stowed it away in a safe place until better and gentler times again made their appearance. If the policy of the first $60,000,000 of treasury notes issued by the government at the breaking out of the rebellion had been persisted in the redemption theory would have been put to sleep forever alopg with that oth°" preposterous travesty upon humanity—the right of property in man. But, as has been suggested, the people's representatives carefully put it away, at the request of certain patriptie (?) bankers, and enacted that all money thenceforth issued should be as good as gold and silver money, except for he purpose of paying tariff, taxes and interest on the public debt. This, of course, saved the life of the redemption theory. But the people had dallied so long and so delightfully with the sinful kind

1 money which had to have a redeemer that, after the war closed, they would no longer tolerate the presence of the redemption theory in their midst, and o sa»e it at all it had to be removed to Washington city. The government vould find the feat of redeeming three dollars and forty-six cents of Its prom ises to pay with one dollar redemption money fully as hard of accomplishment as the wild-cat hanker did to redeem two dollars with one were it ever called upon to perform It. But the fact that it Is so far away from the people and that the people have far more "confidence” in their government than they ever had in the wild-cat banker goes a long way toward making its promises to pay a far more effective money than the wild-cat notes ever were, though the latter might have had, dollar for dollar, twice as much redemption money back of them as the former.

The greenback, however, is not our 1 only national currency dependent upon redemption money for its value. The currency issued by national banks reads: “The Blank National Bank of Blankville will pay the bearer on demand five dollars,” or, as the case may be. These due bills circulate as money because they are backed by government bonds payable in redemption money, and the, aggregate of these due bills and greenbacks In circulation is close to $600,000,000, or. fully as much as the highest estimate of the total gold In the country. Since all this paper currency is redeemable on demand in gold under the present treasury ruling, and since the government is pushed the tightest to keep $100,000,000 on hand, is it not plain that the only reason why the government Is not bankrupt consists in the fact that its promises to pay are not all presented at once, nor even in very large quantities? But why all this folly about "redemption money?” The government by its emission of hundreds of millions of dollars In paper money through national banks and by its own treasury acknowledges the necessity for that much more money than it can possibly create out of gold and silver at the nresen' rate at which those metals can be coined, even if free coinage of silver be restored at 16 to 1. The only object of money is to provide the people with a medium of exchange, and the government exercises the right to say howmuch golu or silver shall constitute a given amoui of money. Since it exercised this right to entirely deprive silver of the power it once had to act as “redemption money” it can certainly finish t'ne folly that plainly inheres in the redemption theory by declining to use gold, or rather by declining longer to hypocritically pretend to a readiness to use it for redemption money. It is worse than folly, it is criminal for the government to pretend that the value of its paper money running into the hundreds of millions, iepends entirely upon its ability to maintain intact a certain other small fund pi money created of gold when it itself issues, or causes to be issued, the paper. mo"«v and fixes the degree of fineness and the amount of gold in a dollar. It seems plain that all this juggling with money is inspired by the fact that it is a legal tender for the products of labor, and the more exalted and Bacred it rpay be made to appear the greater will be its power over labor. The redemption theory is a fraudulent one and common honesty demands that It be discarded.

Council Hroeeedinu*. The council [met in regular session Monday niglit, Mayor McCoy presiding and a quorum being present. After the meeting was opened the following busi ness was disposed of: A petition from W. B. Nowels, et al, for alley through block 7, from Angeiia to Susan streets, was read and referred to the proper committee. A petition to reduce the width of Vine street between block 28 and 29, signed by J. C. Carmichael, David Nowels and other property owners, was read and re fejred. B. Forsythe asked for street crossing and permit to lay cement walk on west side of his new building, on motion the rules are suspended and the committee allowed to contract with Wm. Rinehart to do the work at once. A complaint from Messrs. Coover, Nowels and other citizens was entered against the condition of make-em-self ditch, claiming that it£was a menace to pnblic health, etc. Tne subject of rein edy was cnscusseil at some lengtn and action was suspened until interested bit izons presented petition. Complaint was made against the con dition of the street east of the court house square, and Marshal McGowan stated Jthat the county commissioners had promised immediate remedy. Report of sewerage committee in regard to cutting out river channel was called for and the engineer's report was submitted. He recommended the drilling a row of holes from Weßt street to the creamery for blasting out the rock .the work to cost from $350 to 8400. No, action was taken. Committee on dumping ground reported that thoy were still looking for a place and they,were instructed to keep looking. Report on walk from Makeever house to depot was made. Property owners prefer that the work be postponed. Com - mittee recommended that some portions of the walk receive immediate attention. On motion report received and resolu tion passed that when work is done it be of cement live feet wide, also cement crossings on north side of street. Report that Mr. Grow has layed new cement walk in front of his house and wants plank walk extended across the street. Report was adopted. mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm * Vi

Report on Washington street bridge reeommended|that_the southwest corner of bridge should be provided with stone wall. The committee was empowered to have the work done. The petition from C. W. Coen for sewer was reported favorable, only abutting property to be assessed for cost. An ordinance ordering sewers establishedfcwasj,passed%and'lthe Republican was chosen as the paper to advertise bills for letting work. CD Legal notice not having been given property owners that a sidewalk to the cemetery was petitioned, it was ordered that due notice be given and that the grade be refered to street committee for report at next meeting. Application of Mr. Watson, for sidewalk grade refered to street committee. City attorneys report that the council had confirmed the plat embracing Kennel uvenue was rejected, but that street being properly dedicated to public use was subject to the action of the city council. The attorney's report was placed on file. Report on river street grade that property owners are circulating a petition to reduce the width of the street to conform as ndar as possible to present conditions. Finance committee report several approved bills and a blank form embracing reports of all departments of public service. An ordinance prohibiting the moving of traction engines, threshers, etc.,on certain streets was introduced and passed. City Attorney reported collection of money, and whb requested to proceed to collect all such due, without interest.