honorable impulse would be that of every citizen from the highest to

No one not entitled

the lowest the honor and greatness of Chicago! to the money of the bank could get a dollar of it. No one who could not offer an equivalent therefor could get a dollar of it. For a bank not to demand an equivalent when a loan is made is, ordinarily, to make a loss equal to the amount an offence against society, as its welfare is in ratio to the amount of capital usefully employed. As the demand for its money, and consequently the returns upon it, would be in ratio as the people were industrious, intelligent, wellto-do, and free, the bank would have every motive to promote their industry, intelligence, welfare, and freedom. It would be a moral institution of high value in the example set by it for all others, as well as an indispensable one in affairs.

As the act for the creation of the bank would provide for numerous branches, the same contest would arise for their possession as for that of the parent bank. If ten branches were assigned to Illinois, fifty places would be earnest competitors for one of them, well understanding the benefits that would arise therefrom in the increased provision for symbolizing their products as well as from the prestige and preeminence it would secure. In the struggle to secure a branch, political distinctions, so pronounced in other matters, would be wholly forgotten.

As on a great, so on a small scale. From the sense of the advantages derived from them our present National Banks are eagerly welcomed by every community throughout the land. In welcoming these all political distinctions are also forgotten. All make contributions for their establishment according to their means. They immediately become the custodians of the surplus cash of the people, their issues serving as instruments for turning into potential money all products prepared for market. Their management is intrusted to boards of directors, to "committees of safety," composed of discreet and prosperous citizens familiar with the character and means of every person likely to apply for loans. The "committees of safety" are usually large owners in the share capital of the banks whose operations they conduct, a guarantee for their proper management. Any loss that may be made comes largely out of their own pockets. With such a committee always on the alert, loans would seldom be made for the payment of which adequate provision in merchandise was not previously provided. Such institutions are so

essential to the general welfare that the appointments of no considerable community are complete without them. Their success is a matter of satisfaction and pride to all, whether or not they have any interest in them.

With a proper system, that is, with a National Bank, free issue to be allowed to all others, State and National, it is not probable that one-twentieth part of the currency would be supplied by the National one, each section of the country creating its own. monopoly, consequently, of issue could exist.

No

And how about manufacturing establishments in which capital must be massed on a vast scale, and remain massed in corporations having a perpetual existence, being dedicated to purposes as enduring as society itself? There is not a community in the United States in which such works are not warmly welcomed by gifts in the form of sites, material, money, or the remission of taxes for a series of years, the degree of welcome being in ratio to the amount of capital to be employed. They at once, wherever they go, set everything in motion, add largely to the value of real property, give new opportunities for the employment of labor at rates far above those which had previously prevailed, and create, at largely increased prices, a domestic market for products which previously had none. They must be large purchasers of labor and material from those under no obligation to make any return in kind. There is hardly a municipality in the Northern States that is not authorized by law to offer inducements of the kind described from a sense of the advantages to be secured. In welcoming them all party distinctions are forgotten. The people of Kansas, were they able, could well afford to contribute $100,000,000 for the purpose of attracting manufacturing establishments which would supply their wants by direct exchange for the products of their soil. A sense of their value is rapidly travelling southward, the State of Alabama having recently authorized her municipalities to offer substantial aid to secure them. While the necessary effect of every establishment of the kind is to advance the price of labor and of the products of the community in which they are domiciled, its tendency, from an increased supply and from the improved methods brought into use, is always to reduce the price of its peculiar product. Take the case of steel. There is no branch of industry which requires a greater massing of capital; there is none in which greater skill and training are required. Its

manufacture in this country since 1862 has been protected by prohibitory duties. If monopoly or oppression were possible anywhere it would be here. Yet with the most persistent efforts of manufacturers to maintain them, prices have fallen from $140 the ton in gold, in 1867, to $20 in 1897. The increase of product in the same period has been from 17,000 to 6,114,834 tons. In the same period the wages of labor employed in its manufacture have been doubled from the enormously increased demand therefor. From their fall in price steel have taken the place of iron rails on our railroads, the gain to the public being many hundred millions annually. The example, a striking one, is true of every other department of production. Every one seeks to get, as he should, the most out of his business. If he begins with, or realizes, large profits, competition is certain speedily to reduce them to the common level, as capital, the supply being unlimited, eagerly seeks investments that will yield five per cent. One cannot enter upon any branch of production on a large scale and make a success in it without reducing the price of the product, being thereby a public benefactor. He is subject to a law higher than his own. The more intent upon gain, the more effectually does he serve others rather than himself. In the nature of things it is impossible that, in a country like the United States, where the field is open to all, corporations should oppress, though they may not reduce prices fast enough to suit the popular idea.

As with manufacturing establishments, so with railroads entered upon as an investment of capital. The advantage to those who have no pecuniary interest in them is fifty-fold greater than to their promoters. They create values on an enormous scale by opening markets for products otherwise without them. In some systems hundred of millions of dollars are massed the greater the amount, the better the service and the less the charge. Were monopolies possible it would be in such lines as the New York Central and Pennsylvania, but there is hardly a pound of freight moved by either that is not fiercely competed for by numerous other lines. So great have been the improvements in the methods used, and so fierce the competition, that there is not a railroad in the United States that has not, within a comparatively short period, with an enormous increase of traffic, in some cases five or ten fold, been compelled to reduce rates on merchandise to one-quarter those charged twenty-five years ago; and to such an

extent that the return on the investments in these works is far below the average of those in other departments of industry or enterprise. The most promising field of all at the outset is that in which capital has suffered the most. The only function in a government like that of the United States, where the supply of capital and raw material is unlimited, is to see to it that opportunity is alike open to all. With such provision society may rest assured that capital will be always working for its welfare, and never for its harm; that it is amply protected by a law far higher and more exacting than any of human contrivance.

It may be urged that corporations will combine to put up prices. They cannot by combination put up prices so that, where the conditions, as in the United States, are perfectly free, profits in any line will exceed the average of other departments of enterprise and industry, as capital, the supply of which is unlimited, always flows in the direction which promises the best return. It is for the interest of the public that corporations, by restricting production, for example, should combine so that profits in any one line may not fall below the average. If from want of adequate returns any go out of operation, the survivors, the field remaining to them, will naturally put up prices. But the moment that their profits exceed the general average, competition comes in as the natural and inevitable corrective. It is better for society that the number in operation be maintained than that any should be compelled to go out of business, their places in time to be supplied by new ones, involving new outlays of capital to meet the increase of consumption by a steadily increasing population. Society need not be under the slightest concern that all service, so far as it is rendered by capital, whatever the form, will not be at the lowest cost. That side of life, without any interposition of Government, is wholly secure.

There is undoubtedly a great deal of ill-gotten capital that most offensively flaunts itself. But for such the laws enacted by the people are chiefly responsible. Capital honestly acquired and honestly employed is an essential condition of human progress. Vast fortunes have been made by those who control improved processes in production and distribution. The law here stands for twenty years their friend. But where one is the measure of their gain, a thousand is that of the public, of which the case of steel may again be cited. Vast fortunes are made by combination by which

capital, in ratio to the result secured, is discharged from use, the benefit inuring far more to the public than to those who exploit the new methods. The laying by of a dollar a day is equivalent to a fortune at the end of a long life. The beneficence of capital is shown by the struggle for its possession by all engaged in production and distribution, more being made by its use than the charge for its use. When massed in corporations pursuing legitimate industries, it is always beneficent, as in ratio as it is massed is cost of production reduced, the demand for labor, the only factor short in supply, and with it the compensation, being greatly increased. Much discontent still prevails by those whose hours of labor have been shortened, their compensation being largely increased, the price of all articles essential to their comfort and welfare being greatly reduced. Contrasts

in society still exist and will exist so long as difference in faculty or desert exists. But there must be incentives to an industrious and honorable life in its rewards. the level from which it rose. have excelled in the race is fortunate than themselves. entered upon.

To conclude:

Without them society would sink to The lesson to be learned by those who to extend a helping hand to those less But this opens a chapter not here to be

In discussing the currency we must start from the premise that paper money, in some form, is always to be that of our people, as it must be that of every great commercial community. No other kind can be afforded. No matter how unsound it may be there will be no thought of returning to metallic money, the use of which would reduce transactions to one-fifth or one-tenth their present volume. When paper money is most depreciated a better kind will always be sought, but never a return to one of capital. The second proposition is that the money of the people must be that of the Government. There may be a good currency without the interposition of law. Every person possessed of merchandise is competent to issue instruments for its distribution, and would issue them but for the reason that a better way is provided by means of corporations dedicated to a particular purpose and not subject to the risks of production and trade, their issues to be measured by the nominal value of the merchant's bills held by them. Good local currencies may be provided, but with all the safeguards which State legislation and careful supervision would