— 27 — 



spondingly diminished. As soon as the government made the 

 greenback receivable for all dues (including imports) its purchasing 

 power became equal to that of coin money. 



The greenback adopted as the only circulating medium as 

 advocated by large numbers of people in the United States, does not 

 fulfill the requirements of principle No. i, for government issues of 

 paper money — treasury certificates of service — at best could but 

 represent the wealth created in the service rendered government, but 

 could not represent wealth not so created. 



It does not fulfill the requirements of principle No. 2, as owners 

 of private wealth cannot obtain it to represent their wealth at cost. 



It does not fulfill the requirements of principle No. 3, because 

 holders of such paper "money" are not secured against loss, and the 

 arbitrary issue of such enormous quantities would cause its depreci- 

 ation. 



It is equally evident that the National Banking system does not 

 fulfill the requirements of either of our principles. 



A GOVERNMENT PAPER MONEY WHICH ACCORDS THE 



NEAREST TO THE PRINCIPLES OF MON- 



ETARY SCIENCE. 



A. First. A government may issue treasury certificates of service 



with which to pay its expenses, providing the volume issued does not 



exceed the total amount or its revenues in any one year. 



B. Second. A government may issue treasury certificates to the 

 extent of two-thirds of the value of the wealth it possesses. 



In each of these issues each bill or certificate should bear upon 

 its face a pledge that the government, in all its departments, will 

 receive it in payment of all dues at par. The facts in regard to the 

 volume issued, and to be issued, in accordance with what has been 

 stated in paragraphs A and B should also be impressed upon each 

 certificate. Torn and wornout certificates should be exchanged for 

 new ones without charge. Government has no need of promising to 

 exchange these certificates for coin, any more than it does its revenue 

 stamps. No need for provision for the cancellation of such issues, 

 except for the burning of certificates received for new ones, and also 



