The Southern Mercury. (Dallas, Tex.), Vol. 13, No. 22, Ed. 1 Thursday, May 31, 1894 Page: 1 of 16
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"Organiue, Máncate, Go-Operate."
Official Journal of the Farmers State Alliance of Texae.
"Liberty, Jut tie*,
Vol. XIII, No 13.
DALLAS, TEXAS, MAY 31, 1894.
At the recent county convention of
Dallas populists, Col. J. W. Payne ad-
dressed the convention substantially
"To my mind the question 'why are
we all here' is 'the finance question.'
I assert that the financial panics of
1873 and 1894 are the basis of thisgath
ering and the general unrest now vis-
ible everywhere. . Tiie paramount ques
tion is: 'What brought these calami
ties on this country?' Is there a rem
edy? These are questions of the
gravest consequences. To investigate
these question and try to evolve cor
rectanswers is why you are here.
Let us examine the paladium of our
system, the constitution of the Untied
States. That instrument places the
whole power to make or isaie mon y,
of any material whatever, in Congress.
So jealous were the founders of
our government of our liberties,
they provided that the lower house
must originate all financial manures,
because that house is composed of the
direct representatives of the people,
being elected every two years.
No one can read the preamble to the
constitution, or that instrument itself,
without being convinced that it was
the intention of the framers of that sa-
cred instrument that Cjngress should
not only provide the people with a vol-
ume of money sufficient to enable them
to transact their business on a cash
basis, but that congress should also
provide wayp and means of putting
that money into the channels of trade,
and keep it there, in such a manner
as to prevent favoritism or monopoly.
I am driven to this cor elusion from
the fact that it is utterly impossible
to secure to the people the blessings
set forth in the preamble without Con-
gress faithfully doing these things
There can be no doubt but the that fath-
ers who framed the constitution believed
tbere was sufficient gold and silver bul-
. i in existence to supply this demand,
yet they were unwilling to limit the
material out of which Congress should
coin this money to any one, two or
even three materials; hence they left
that matter entirely in the hands of
of Congress. Our courts also took
this view of the case.
By the year 1781, however, they be-
came convinced that there was an in-
sufficiency of these metals, and all
agreed that paper money was indis-
pensable in some form. Out of the dis-
cussion of this question rose two par-
ties; one under the leaderehip of Alex-
ander Hamilton, which argued that
Oongress should charter a bank and
give it power to issue paper money*
and In this way furnish the people a
This party was oalled "Federalists;"
the other party under the leadership
of Thomas Jefferson insisted that the
national government should issue all
the money, paper or specie, and that it
was ilnconstitu ional for the govern-
ment to charter any kind of a bank.
Jefferson was then secretary of state un
der Washington, and at the president'
request, furnished Washington a very
learned and exhaustive opinion sup-
porting that idea.
You will find this opinion in Vol. 7.
pages 555 to 559, Jefferson's works. The
Federalists, however, were in the ma-
jor ty in that Congress and then char
tered the 1st United States bank, plac-
ing its ca i tal at $10,000,000, the gov-
ernment of the United States taking
one fifth, or $2,000,000 of the stock,
and the president appointing one
fifth of i is directors. It was chartered
to run twenty years.
They issued its bills without limit,and
of course pi oduced good and prosper-
ous times as long as this bank con-
tinued. Thomas Jefferson's party wad
called "democratic-republican," but
he always prefere<i the name "republi-
can." The charter of this bank ex-
pired in 1811. James Madison, a re-
publican of the Jeffersonian school,
bucceeded to the presidency, with a
majority of his party in both houses
of congress. They refused to re-charter
the United States Bank. The stock-
holders began pressing the people for
what they owed the bank, hoping the
people would prevail on congress to
recede from its position, and grant the
bank a new charter. Madison remain-
ed inexorable and congress likewise.
A panic was the consequence. While
this panic was raging, Mr. Jefferson
wrote his son-in-law, John Epps, then
in congress, using this significant
language: (See vol, 6, pages 199, 200
and 201, Jefferson's works.) "The
question will be asked, and ought to be
looked at, what is to be the recourse
if loans cannot be obtained? There is
but one. Bank paper must be sup-
pressed, the circulating medium must
be restored to the nation, to whom it
belongs. It is the only fund on which
they can rely for loans. It is the only
reooure that can never fail them. It is
• n abundant one for every necessary
No one can doubt that Jefferson re«
ferred "to the people" when he used
the words "they'' and "them" in this
letter. If he had been referring to the
government he would have used the
wird "it" every time. Neither can
any one doubt that he was recommend-
ing that "the government loan money
direct to the people," for no grammar-
ian can make anything else out of the
letter just quoted.
Jefferson again, in another letter to
Mr. Epps, in speaking of the same
question said: "Let the government
issue its bills as far as its wants require
and the limits of its circulation will ad-
mit; those limits are supposed to
extend with us at present to $200,000,-
000." It is a matter of history that the
United States treasury did issue itt-
bills in 1812, 1813, 1814, 1815 and 1816,
tnd the result was tbe panic was
abate**. From this we learn that the
contracting of the volume of money is
what brings on panios, and nothing
That President Madison advocated
the government issuing its own treas-
ury notes is fully set forth in his mes
sage to congress in which he said: "It
may be necessary to ascertain the terms
upon which the notes of the govern-
ment, no longer required as instru-
ments of credit, shall be issued upon
motives of general policy as a common
medium of exchange." Gen. Jackson
said in 1829: "I submit to the wisdom
of the legislature, whether a national
one (currency) founded upon the credit
of the government and its resources
might be devised, which would obviate
all constitutional difficulties, and at the
same time secure all advantages to the
government and the country that was
expected of the bank.
John C. Calhoun, the nestor of states
rights democracy, said in his great
speech in the United States Senate in
1837: "Believing that there might be
a sound and safe paper currency found-
ed on the credit of the government ex-
clusively, [mark you, not a specie basis
money,] I was ever desirous that those
who are responsible and have the pow-
er should have availed themselves of
the opportunity " I repeat that tbe
democratic party availed itself four-
teen times from the date it came into
power till 1861 to issue treasury bills.
In the year 1816 the Federalists had
regained such a power in congress that
they induced the president to sign a
bill granting a charter for the second
United States bank which precipitated
the panic of 1816 to 1823. This panic
was intensified by Englands trying to
get on a gold basis, which caused so
many Americans who had gold, to ship
it to England. The charter of the sec-
ond United States bank expired in
1836. General Jackson was then presi-
dent, and, like Madison, refused to re-
charter it. This precipitated the great
panic of 1836, which spread destruction
in its wake far and wide.
This panic, like its predecessors,
was caused, not by too much money in
circulation, but by a rapid contraction.
The notes of the bank ceased to be
ourrent money; the treasury of the
United States refused to receive them
for dues! This precipitated a general
suspension of the state banks whioh
professed to pay coin. Any one with a
thimble full of common 'sense knew it
could not be done, because these banks
had $212,000,000 of their money loaned
to the people on collateral which could
not be converted into specie, simply
because there was not one dollar in
specie in the country to ten dollars of
these state bank bills.
To relieve the country of this panic,
oongress, in 1836 and 1837, issued treas-
ury notes as they did in 1812 to 1815,
and it acted like magio in restoring
business and general prosperity. Thus
again we see state banks, owing to the
expiring of the charter of a United
States bank and its money no longer a
legal tender, plunging the country into
a panic, by refusing to redeem their
notes as promised on their face. All
of which teaches us that if the govern-
ment had issued suffioient treasury
notes to enable the people to do their
business on a cash basis, this country
never would have been cursed with a
The history of the last panic, the ef-
fects of which has blighted millions of
homes, and is yet keeping every in-
dustry, paralyzed, was deliberately pre-
cipitated on the country, and should
teach us that there can be no relief till
the democratic and republican party
is dethroned and the people put men
in office who owe allegiance to them,
and not to the bankers and usuers.
The money power has been enabled to
put whom it pleases in power, because
those whom it robbed have remained
]f the bankers and bondholders of
Europe and America can combine to
rob the American producers, why can
not the producers combine to stop it?
This is all there is involved in this
great battle now opening. If the plain
people have sense enough to see their
own interest, and have the manhood to
stand up and vote or .fight for their
God-given rights, every enemy of the
people will be overthrown in six
It has long been the rule among the
enslavers of the race, to first divide and
then enslave. Their instructions to
their heelers have been, "Divide the
people; hunt around till you spring a
question that divides them, then keep
them divided by playing upon their
prejudices. Do this till they are ar-
rayed in hostile camps, then their
slavery is secure."
If the American people are capable
of self government they must-demon-
strate it and must do it within the next
decade or all is lost.
Some wear spectacles because they are
almost blind; others, to prevent them-
selves from beooming blind, and oth-
ers, just for a blind.—Texas Sittings.
' * - ' ' ..
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Park, Milton. The Southern Mercury. (Dallas, Tex.), Vol. 13, No. 22, Ed. 1 Thursday, May 31, 1894, newspaper, May 31, 1894; Dallas, Texas. (https://texashistory.unt.edu/ark:/67531/metapth185563/m1/1/: accessed May 19, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .