UNCLE SAM: Well, well, now that is mighty strange, but my greatest Chief Justice, John Marshall, pointed out the necessity of having a currency directly related to the business of the country, when upholding the constitutionality of the Act incorporating the second United States Bank. He said: "The currency which it circulates by means of its trade with individuals is believed to make it a more fit instrument of government than it could otherwise be." One of my presidents, James A. Garfield, used this language: "_No currency can meet the wants of this country that is not founded on business._" Boys, both of these great men must have referred to credit currency, and declared that it was essential to our business.
MR. BANKER: Furthermore, Uncle Sam, these bond-secured Bank Notes are indirectly just that much more of a burden resting upon the United States Treasury, upon you, if you want to know the truth, as I explained to you last Wednesday night.
The fact is, these bond-secured Bank Notes are only another form of Government credit put into circulation through the disguise of Government bonds.
Every single criticism and objection that I have made tonight to the United States Notes are applicable equally to these bond-secured Bank Notes.
_First_: For all banking purposes, economically speaking, they are practically rigid and inflexible, at least so far as current needs go.
_Second_: These bond-secured notes do not spring into existence, or into being, as checks and drafts do in connection with some business transaction, but are tied up with a bond speculation.
_Third_: They cost those who use them as currency from five to six times as much as the right kind of currency would.
_Fourth_: If we adopt the right kind of a currency system, it will set free $750,000,000 of capital which is now tied up in these Government bonds, and this vast sum which would be realized from the sale of the bonds will assist to an amazing degree in supplying much needed capital to the commerce of the country.
MR. BANKER: The banks could then sell all the bonds now deposited to secure these bond-secured Bank Notes. They amount to $750,000,000.
That these bond-secured Bank Notes are a monument of our stupendous folly, and have been a curse to the business interests of the country, I am sure no one here will attempt to deny.