264 HISTORICAL AND POLITICAL. 



mand. The making and issuing of money is the exercise of a sovereign 

 power, in the common interest of the people. All money so made and 

 issued is intended for the use of the people of the particular country, 

 and not for the use of the people of other countries. The first money- 

 changers supplied coins of different tribes or nations to persons who 

 needed them, charging for the service, and from that came banks, used 

 as channels through which money was sent to the people, retaining part 

 of it as compensation. The proper function of money is to serve a public 

 use. The principle involved in its issuance operates in the opening and 

 maintaining of common highways, the erecting of public buildings, estab- 

 lishing water-works, ferries, mills, and schools. All these things are for 

 the use of the people in common, and on equal terms. A postage stamp 

 or a money order is issued through government agents to the people at 

 cost, and without discrimination. People use the highway freely, but 

 may not obstruct it or monopolize its use. And its use is given to them 

 at cost. So it is in every matter which the government manages for the 

 people, except only in the matter of money. It appropriates land of 

 citizens for public use, and permits corporations to build and operate 

 railroads on it for the public convenience, permitting them to charge a 

 reasonable compensation, serving all alike and charging all alike. The 

 object of the Interstate Commerce Law is to prevent discriminations, 

 and give service to the people as nearly as practicable at cost. 



Money is in no proper sense a commodity. It is a device which the 

 people have made for their own convenience in trade. A merchant 

 doing a cash business uses money just as he uses the street or the rail- 

 road, and he ought to be subjected to no more anxiety about a panic in 

 the money market than he is about the closing of the highway. But it 

 is claimed that banks are necessary for this very purpose of getting 

 money to the people. Then the present banking system is a stupendous 

 failure ; for, while the number of banks is increasing yearly, which 

 shows that more money is needed, the circulation of bank notes is con- 

 stantly and steadily diminishing. The average annual increase in the 

 number of banks during eleven years ending with 1890, is 159, and the 

 bank circulation was decreased $225,000,000 between 1882 and 1890. 

 The number of national banks in existence October 31, 1889, was 

 3319, the greatest number since the inauguration of the system, the 

 Secretary of the Treasury said. The amount of national bank notes 

 out on the 3Oth day of June, 1882, was $358,742,034, and the amount 

 in circulation September 30, 1889, Was $131,383,334. This was the 

 amount secured by bonds. There were $72,279,398 in process of retire- 

 ment, "represented by deposit of lawful money in the treasury," so that 



