Freeland Tribune

NATIONAL BANK NOTES
ARE REDEEMABLE IN NEITHER
Gold, Silver Nor Paper.
Why Cannot the Government Issue Notes on the Same Basis? -Answer: Because It Would Break the National Bankers' Trust.

Under the financial legislation enacted at the present session of congress, the bank-note currency will be expanded several hundred millions of dollars. This bank-note currency is redeemable. It is based upon United States bonds, but a holder of a bank note could not secure a bond by presenting the note at the treasury. The bond basis is to protect the government, which guarantees the notes of the bankers. In case a bank should fail, the secretary of the treasury is authorized to dispose of the bonds and to cover into the treasury a sufficient amount of the proceeds to redeem the bank's note circulation.

The bonds, it will be seen, are merely to insure the redemption of the notes in case of failure of the issuing banks.

These notes are not money; they are merely promises to pay money. What are they redeemable in? It would naturally appear that, having been authorized by a Republican congress and executive, they would be redeemable in "the best money in the world-gold."

But they are not. The banks are permitted to redeem these notes in greenbacks, silver or gold, at their own discretion.

It does not take any extensive knowledge of the financial question to see the absurdity of the claim that a bank-note currency is superior to the government's paper currency, for, as a matter of fact, the bank-note currency is redeemable in the paper and silver currency of the government. Why not, then, dispense with the intervention of the banks? There is but one reason and that is the function of issuing notes is a profitable one to the bankers; it's worth millions to them.

And it is also obvious that they are willing to pay for the privilege, just as the protected interests and the trusts are willing to pay for special legislation in contributions to the official fat-fryer. -Milwaukee News.