tee and the gold reserve. The banks and the monetary commission concede this. But the banks are afraid that if the Government controls the issuance and volume of money the people sometime may induce it to issue so much that the people will do more business on a cash basis and less with credit bought from banks. And Wall Street and its foreign clients are afraid that increase of Government currency will tend to decrease the demand for gold and the value of bonds payable in gold, or in other words, increase the prices of securities (except gold bonds), property and labor as measured in gold. So Wall Street, the Rothschilds and the banks are unwilling to trust the people and Government of the United States to run their own affairs in a sane and rational manner and propose by the Aldrich plan that the Government abdicate and turn the whole thing over to the banks to be run for the benefit and profit of the banks, Wall street and the Rothschilds instead of the people of the United States. They want their private corporation appointed receiver or guardian of the republic. But the people know that there is far greater danger from excessive contraction of the currency if the banks control than there is from excessive expansion if the Government of the republic continues to exercise its constitutional functions in the matter. So THE PEOPLE MUST "STAY IN THE SADDLE" AND KEEP CONTROL THROUGH THEIR GOVERNMENT OF THE POWER TO REGULATE THE VOLUME OF THE PUBLIC CURRENCY, THEIR MONEY SUPPLY. IT WOULD BE SUICIDE TO DO OTHERWISE. We should remember that inflation of bank credit has the same effect as inflation of the currency, only it is a tenfold greater danger. It would be more sensible for the Government to grant to a private corporation for its profit a monopoly of issuing and fixing the price and quantity of all postage stamps than to grant private control of the public

currency.

Wall Street and the banks carefully laid a trap for the people and now have walked into it themselves. To obtain a corporation currency under private control they have openly committed themselves so that they cannot oppose a Government currency of the kind herein proposed without making themselves ridiculous. This is what we have long waited for, and the people should not delay in pressing their advantage and opportunity to get an adequate and sound public currency under Government control.

It is only necessary to pass a simple act making all gold

certificates a full legal-tender to make them as valuable to the people for paying debts as they were, by special act of 1907 made to the banks for legal reserve purposes. And as gold certificates come back to the Government in payment of duties and taxes they can be cancelled and new national currency issued in their place on a 50 per cent gold reserve basis. As this currency gradually expands at the 2 for 1 ratio bank-note currency can be gradually called in and cancelled and the Government bonds be paid off out of any available surplus. The transition will be easy and natural and do no harm or injury to the legitimate interests of the banks or anyone else.

The law can fix the gold reserve basis as 50 per cent, with an emergency provision by which the volume of currency can be suddenly expanded to a 333 per cent gold reserve basis, this emergency issue to be loaned to the banks only at such rates as will insure its prompt return to the Government when the emergency is past. This would keep an extra emergency currency always available and ready amounting to more than a billion dollars. The first $200,000,000, enough to move the annual crop, could be furnished during crop marketing at moderate rates, the balance at emergency rates. This plan would guard against the danger of panics far better than the Aldrich plan; it would not be giving private interests power by excessive contraction to cause panics, and it would do much to prevent panics altogether by helping to remove the causes of panics.

Providence truly has shaped events to make it possible for the people to now free themselves from the present expensive and dangerous bank and Wall Street domination of their money supply. Every condition is right and the time is ripe. A definite plan is suggested in the next chapter. The change can be made by one simple act of Congress and with practically no expense to the Government. This is because the Government right now has ample gold to make the change. It will make it possible for the Government ultimately to save nearly $10,000,000 now going as profits to the banks and about $20,000,000 interest on the public debt every year. And it will obtain from the banks a handsome annual revenue by charging the banks a fair and reasonable price for the use of Government currency for their cash reserves and to put into circulation among the people.

There can be no opposition to this alternative plan by

any man who has faith in the soberness and soundness of the government of the republic unless that man is a banker or financier seeking unjustly and improperly to use the powers and laws of government for his private profit and special advantage. On the other hand, if the Aldrich bill becomes law, the Government will be firmly obligated to pay out $1,485,024,050 just for interest on the $963,349,390 of 2 per cent Government bonds which the measure refunds for fifty years at 3 per cent.

CHAPTER XXI.

UNITED STATES MONETARY COUNCIL.

A New Currency and Banking Plan.

Instead of the Aldrich plan for a private central bank named "National Reserve Association," it is suggested that Congress create a responsible public institution to be called "United States Monetary Council," with original, exclusive and supreme authority for the Government over all monetary and banking matters. It shall not be a mere commission or board, but a new, distinct and separate coördinate or subsidiary branch of the Government with the same control over its delegated functions that the legislative, executive and judicial departments possess over their respective functions.

To that end, subject to such modification of details as may appear wise, it is proposed:

I. The "United States Monetary Council" shall be created by Act of Congress, and afterwards made permanent by amendment to the Constitution. It shall be a new, distinct, coördinate or subsidiary branch of the Government with original, exclusive and supreme authority over all matters within the functions expressly delegated by the creating legislative act. Congress shall have the same control over such council as it has over the Executive and Judicial departments, and no more. The council shall have original, exclusive and supreme control for the Government of all monetary and banking matters, and such other things as at any time may be expressly delegated to it by Act of Congress.

2. The council shall consist of seventy-five members called "governors," a majority being a quorum. The Chief Justice of the Supreme Court, Vice-President, Speaker of the House, Secretary of the Treasury and Secretary of Commerce and Labor shall be ex-officio members (each having power to appoint an alternate to act in his stead at any meeting), the other seventy to be appointed by the

A DELIBERATIVE PUBLIC INSTITUTION, INSTEAD OF A PRIVATE CORPORATION. 75 members, one representing each of the 48 states and 27 the Federal Government.

It shall regulate the banking system, fix the general discount rate and issue and determine the volume of the public currency, under strict regulations and legal safeguards. It shall establish and maintain the square deal'' between the banks and the public.