The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1880-02-26


THE New York Bullion Club has
preeented to the Committee on Coins,
Weights and Measures plan by which
the general use of metallic money is
to be secured. 1t is insisted that under
the present monetary system coin can
not be placed IN general circulation, and
it is urged that to accomplish sIch end
there must be no paper money under the
denomination of $40. The committee
comedies tn It when the channels of cir
culation in any country are filed by
volume Of paper large enough to sus-
tain of itself prices a. the level of
prices in other countries, metallic
money will not go into circulation, but
will be drained to countries where it
Is demanded for circulation. Under
our banking system the use of paper
money of all denominations without
restrictions is permitted, and it is only
through prohibition of such use that
it can be made to undoubtedly flow
into channels now filed with the
small denominations of paper money.
1t is urged that the greater convenience
of paper money over coin is one of the
principal reasons for the use of paper
at all, and that there is often great con-
venience in having one and two dollar
notes, to say nothing Of tives and tens.
Even fractional paper currency in small
quantity has been found very conven-
lent. There are three ways by which
paper currency can be regulated so as
to maintain its equIvalency with metal
lie money and permit at the same time
the concurrent circulation of coin, and
onsequently its permanent retention
in the country: FIRST, by limiting the
issue of denominations of paper money,
as proposed in the petition of the club,
to $50 and over. In this case coin, if
unrestricted, will come in to take the
place of the smaller paper currency.
Second, by q due limitation of the
total volume of paper, leaving the
denominations to be determined
by the convenience of trade.
Third, by the establishment of pure
ly metallic currency with true paper
representatives, dollar for dollar,
which might then be of oil denomina-
tions which convenience required. To
effect this gold and silver coin and
god and silver bullion should be made
the foundation of as much paper as
might be demanded, which being the
actual representative of and title to the
metals, there could never be imitation,
nor could there be violent contraction,
if there were no restrictions, as there
should never be, placed upon the use
of the metals. The Congressional
committee thinks that the volume of
paper not representing the metals
should be restricted to some amount
as far within the limits of such volume
of metallic money as would probably
existif there were no paper, leaving adj
ditions to be made by gold and silver
coin or certificates representing the
metals to any extent that our trade and
commerce may call for. 1t is urged as
essential to this, es to any other auto
matte system, that the metals shall be
left absolutely to self-regulation, and
that the coinage and deposit of bullion
should be open and free to all. With
out due restriction and regulation of
the volume of paper, the committee re-
CARDS it idle to expect to secure a per-
msnent metallic currency or to see any
considerable part of our circulation be-
come even temporarily metallic. The
promise to pay on demand, however
secure the promise ultimately may be
made by the deposit of bonds, is
not such regulation of volume and
consequently of the value of curren-
cy as is necessary to maintain sure con-
vertibility, or even its permanent
equivalency with the metals.