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with the demand for money. If equilibrium were maintained it would make no difference what the legal dollar was, whether gold or paper, save only that it had the power to pay debt. Money may have qualities that make it valuable for other purposes. And if such qualities make certain moneys more valuable for such uses than its money value, it is evident that it would not be used for money. But no other quality on earth can equal in value that of money, when it is in the possession of financiers who understand the manipulation of values, provided they control money supply.
Financiers control money supply, dominating finance with absolute authority, authority, that can make money stringent by precipitating a panic, or restore confidence. immediately by skillful manipulation and. make money redundant. The money king can raise or lower the value of all wealth at will, and whether he desires to buy or sell, he can change the value of all things (at a given price), by changing the value of the money measure. This power of the money king can be understood more clearly by supposing that a law was passed giving persons concealed from the view of law or public, unlimited power to change the size of the bushel or pound at will. How could any one know how much he would receive, or deliver on the contracts he might make? A financier in control A financier in control of money supply can fluctuate the value of money as easily as an engineer can change the pressure of steam, and the secret of the money king is so closely guarded that it is an impossibility for the public to find out who is responsible. Any one of a thousand things would have caused it, for confidence makes money redundant, as substitutes for money supply every demand without question question when doubt is removed.
Stringency or redundancy in money supply changes all values, and every one. on the wrong side of exchange suffers loss by every fluctuation, and it is like taking candy from the baby for financiers to take the wealth from the people whenever they want it, by making money vanish from circulation, or make it so abundant that no one wants to take it, when they have more than they need.
The Citizens' Bank of the United States
proposes to take this power out of the hands of financiers as far as it is possible without the adoption of a normal measure of value and medium of exchange, which is the only way to destroy money power. A universal banking system based on citizenship, that would pool the wealth of all the citizens, would place a large portion of the money supply where it could not be manipulated by any one. All registered citizens would be qualified to open an account in the Citizens' Bank of the United States. Each bank would be a separate corporation owned and operated on a mutual basis by its depositors. Every depositor would be a stockholder entitled to one vote at stockholders' meetings. A central bank will have supervision over all branch banks under rules and regulations fixed by the representatives from all the branch banks.
The plan proposed contemplates the incorporation of "The Citizens' Bank of the United States, Central," for $50,000,000,000. The maximum stock subscription or deposit (whichever may be the designation of membership) will be $10,000,000, and the minimum $10,000. Stockholders in Central Bank will be restricted to members of Branch Banks and limited to one member from each branch bank. Central Bank will do business exclusively with Branch Banks. Stock in Central Bank must be fully paid up at its face value, stock will not be transferrable, and will be subject to cancellation, for any illegal acts of Branch Banks. A Branch Bank may open an account with Central Bank and draw on demand for 90 per cent of the face value of its stock in Central Bank.
Branch Banks may incorporate anywhere in the United States, after the constitution and by-laws have been submitted and approved by Central Bank. Citizens' Bank of the United States No. will be the uniform name of each Branch Bank, and the numbers will be given in consecutive order of incorporation. The constitution and by-laws will stipulate the amount of Central Bank stock subscribed, require a ledger and index card filled out and sent to Central Bank for each new account, a daily transcript to be made of all receipts and disbursements, by account numbers, which will be posted by Central
Bank to reproduce all the accounts of the Branch Banks. Experts from Central Bank will examine Branch Banks, and will have authority to take possession of the assets of any Branch Bank in default of its obligations, preliminary to its rejuvenation or liquidation.
The Central Bank will guarantee deposits in Branch Banks. It will keep the exact condition of every Branch Bank under constant scrutiny to preclude any possibility of default. The profit or loss of Central Bank will be shared by its stockholders (which are the Branch Banks), so that each depositor will be insured against loss by every other depositor, and will have an equal voice in the management. No one should have a vote but a citizen, and no citizen who was a depositor should be denied a vote. Equality of opportunity would subserve the best interests of all, and votes based on citizenship, rather than dollars, would be better calculated to promote the confidence and prosperity of all the people.
All banks are supported by the interest earned from loaning deposits, though it is inviting disaster to loan money due to depositors, and every bank is in peril in peril whenever money supply disappears. Banks use the same money over and over again for loans, withdrawals and deposits, until deposits grow out of all proportion to the supply of legal money. Bank liabilities to depositors in the United States, payable in gold coin on demand or within the limit of a few days, amount to tens upon tens of billion dollars, while the total supply of gold coin in circulation in the United States (which is the unit of value and only full legal tender for the payment of debt) is only about one and one-half billion dollars. The excess of liabilities is all fictitious money, and borrowers pay interest on it, notwithstanding that the money does not exist.
Fictitious money is called bank credit, and is generally believed to be created and sustained by their great wealth and that they justly collect the vast sum paid in interest for its use. The theory is fallacious, for the moment depositors lose confidence in the ability of any bank, or all the banks to pay, credit is destroyed immediately wherever the panic occurs,
and no bank can pay its liabilities. The people create credit. And interest charged on fictitious money is not only extortion, but the financial system based on loaning deposits, under a limited money supply, without any possible resource to liquidate bank liabilites to depositors in a panic, is a perpetual menace to all credit and prosperity.
No bank in the world can pay its liabilities in a panic without assistance. All banks lean on one another, and instinetively like herds of animals attacked by enemies, they join forces in a panic for protection. The money king has the power at any time to create demands for money deposited in the banks to exceed money supply, and his power is so subtle that it cannot be located or blamed. Yet he is invincible. All other powers combined are impotent, while gold is the measure of value. Governments are as helpless as the banks in a contest where gold alone is potent.
A panic compels all banks to hold the money they have and get all they can for self-preservation. No power on earth can stop a panic and restore confidence until the money-king utters his edict, "draw on me for any amount of coin." That decree is the only infallible panacea that will restore confidence immediately and make money redundant. All financial institutions will then be compelled to use every effort to get rid of their superfluous hoards of money as quickly as possible in exchange for interest bearing securities, which would make money cheap and prices high, precipitating the travail which always precedes birth of prosperity.
Citizens' Banks would serve the people's interests by supplying the best banking facilities under any money system, superior to any system of private banking, for there would be less danger of the recurrence of panics, the profits from loaning deposits would be returned to the depositors in dividends on their bank deposits, and all the risks of reckless banking would be eliminated. There would be no legislation required for the organization of such a banking system, and it would only be necessary to guard against unfriendly legislation that would be inspired by the money power.
HE RECENT proposal to erect a colossal national monument to the Indian overlooking the Hudson, has been received with much acclaim by those of imagination and sentiment, who hold that the ruthless march of civilization is dispossessing the noble Red Man of his birthright, and that civilization can do no less than erect a monument to him before he has disappeared entirely and is lost to sculptural record. Whether or not this ambitious project is ever realized, there need be no fear that the records, physical and historical, of the Indian, will be lost to future generations, for the Red Man has been done into plaster and bronze with a frequency and zeal that has been granted to no other American type. As an ideal sculptural type, the native American has been an inspiring theme for a number of our sculptors of national repute, any one of whom has given to the subject sufficient. study to adequately render him into a great national monument. Whatever may be the difference of opinion on the nobility of the Indian, which led to the frontier aphorism that the only good Indian is the dead Indian, there can be no doubt that the very best one is the sculptured Indian, for the sculptors have long delighted to render him in plastic form. He has been an artistic necessity to American ideal sculpture, in the artist's effort to get closer to nature and romance than the modern costume will allow. Our statesmen, stiffly tailored into bronze, are the despair of the
sculptors from an artistic point of view, and our equestrian soldiers have also much of a sameness about them. So the modern American sculptor has turned with relief to the natural, primitive emotions, picturesque habits and superb physique of the Indian, as admirably adapted to sculptural representation. Indeed, much our sentimental attitude concerning the Red Man is born of the idealization of him as an artistic type. His crude religious rites, his fantastic trappings of war, his backwardness in civilization, his hunting and his savagery, have all been wrought into art to make the ideal, the martyred Indian. martyred Indian. In these vivid sculptured stories may be read the history of the disappearing race.
So if it is to be glorified into a national. monument, there will be no lack of sculptors to do the work in a great national way. First among our sculptors of Indians is Mr. Cyrus E. Dallin, of Boston, who has created four Indian groups that are among the most picturesque and virile conceptions in American art. Mr. Dallin's Indians are not of the academic kind, studied from books, nor yet of the tamed variety of the Wild West show, for he was reared in Utah, in the days when a too close acquaintance with the Indian was avoided by a high adobe wall around the frontier home. His "Signal of Peace," in Lincoln Park, Chicago, and "The Medicine Man," in Fairmount Park, Philadelphia, are the most striking and picturesque racial portraits of the Indian we