River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1885-12-10


every family of the land, and release TO the
people in every humble home a larger meas
ure OF the rewards of frugal industry.
National Banks.
During the year ended Nov. /, 1885, 145
national banks were organized with an agpre-
| gate capital of Sl6,938, 900, and circulating
notes have been issued to them amounting TO
! $4,2749l0. The whole number of these banks
| in existence on the day alb re mentioned was
2727 The very limited amount of circula-
| ting notes issued by our national banks COM
pared with the amount the law permits them
TO issue upon IA deposit of bonds for
their redemption indicates that the volume
! of our circulation medium may
| be largely increased through his
| instrumcptaity. Nothing more important
| than the present condition Of our currency
| and coinage can claim your attention. Since
| February, 1873, the government has, under
| the compulsory provisions of law, purchase ed
! silver bullion and coined the same at the rate
| OF more than 1000, 00J OF dollars every month.
| BY tins process up TO the present date 2l5,-
| 1853, 43l silver dollars have been coined. A
| reasonable appreciation OF 4 delegation Of
power TO the general government would limit
| its exercise without express restrictive words
| to the peoples needs and the requirements of
/ the public welfare. Upon this theory the
| authority to "coin money!" as given to
| congress by the constitution, if it permits the
| purchase Dy the government of bullion for
| coinage In any event, does not Justify such
purchase and coinage to an extent beyond the
amount needed for a sufficient circulating
medium. The desire to utilize the silver pro
| duct of the country should not lead to mis-
use or the perversion of this power. The
| necessity for such an addition TO
| THE SILVER CURRENCY
! Of the nation as is compelled by the silver
| coinage act is negatived by the fact that up
| to the present time only about $40, 000,0 coo of
silver so coined have actually found their way
into circulation, leaving more than Sl65, 900, 009
| In possession of the government, the
custody of which has entailed
| considerable expense for construction of
| vaults for its deposit. Against this latter
amount there outstanding silver certih-
| Gates amounting to about S98, 0Qo, 600. Every
month s., 000, 900 of gold in the public treas
ury are paid out for $4,000, 600 or more of sill
| yer, to be added to the idle mass already
| accumulated. If continued long enough
| this operation will result in the substitution
| of silver for all the gold the government owns
| applicable to its general purposes. 1T VIII
not do to rely upon the customs receipts OF
| the government to make good this drain of
! gold, because the silver coined having been
| made legal tender for all debts and dues,
| public and private, at times during the last
| SIX months IS per cent. OF the re-
| Ceipts FOR duties have been in silver
| or silver certificates, while the aver
| age within that period has been 20 per cent.
! The portion of silver and its certificates re-
ceived by the government viii probably in
/ crease as time goes CD, for the reason that
! the nearer the period approaches when II will
| be obliged to otter silver in payment of its
! Obligations, the greater inducement there
! will be to hoard gold against depreciation On
the sum of silver, and for
THE PURPOSE OF sPECULATING.
This boarding OF gold has already begun.
When the time comes that gold has been
| withdrawn from circulation, then it will De
apparent that there is difference between
the real value OF the silver dollars and dol
| lar in gold and the two coins will part com
| pany. Gold is still the standard of value, and
| is necessary in our dealings with other
| countries. 1t will be at premium
over silver. The banks which have substi-
tuted gold for the deposits of their Gus
| toners may pay them with silver bought with
| such gold, thus netting handsome profit.
| Rich Spectators win sell their boarded gold
| to their neghbors who need it to liquidate
| their foreign debts, at ruinous premiums over
| silver, and the laboriug men and women or
the land, most defenselesS of all, will ind that
| the dollar received for the wages or their ton
| has sadly shrunk in its purchasing power.
| 1t may be SAID that the latter result viii be
| but temporary and that ultimately the price
of labor will be adjusted to the change, but
even if this takes place the wage worker cam
not possibly gain, but must inevitably lose,
since the price he is compelled to pay for his
living will not only be measured in coin
heavily deprecated and huctuAting and I'M
certain In its value, but this uncertainty in
made the pretext for an advance in prices be-
yond that justified by actual depreciation.
The words uttered in 1884 by
DANIEL WEBSTER
in the senate OF the United States are true
to-day. 1.-The very man OF all others VINO
has the deepest interest in sound currency
and who suffers most by mischievous legisla-
ton in money matters is the man who earns
his daily bread by his daily toll" The most
distinguished advocate of b-netalism, dis
aIsS ON silver CninaUa has lately written.
mo American citizen had as yet felt the
sensation of cheapness, either on receiving
or expanding the silver act dollars And
those who live by labor or legitimate trade
never will feel that sensation of cheap
ness. However plenty silver dollars may be-
come they will not be distributed as gifts
among the people, and if the laboring man
should receive four deprecated dollars where
he now receives but two he Will pay in the
deprecated coin more than double the price
he now pays for all the neceSshries and COM
forts of life Those who do not fear any dis
astrOus consequences arising from the con-
tinued compulsory coinage of silver as now
directed by law, and who suppose that the adj
dition to the currency of the country, in
tended as a result. will be "a public benefit are
reminded that history demonstrates that the
point is easily reached in the attempt 10 float
at the same time two sorts of money OF diff
ferent excellence when the better will cease
TO be in circulation.
THE BOARDING OF GOLD,
which has already taken place, indicates that
we shall not escape the usual experience ia
such cases. So ii this silver coinage be con-
tinued we may reasonably expect that gold
and its equivalent will abandon the field of
circulation to silver alone. This, of course,
must produce severe contraction OF our
circulating medium instead OF adding 10 IT.
1t will be disputed that any attempt on the
part of the government to cause the circula-
ton of silver dollars worth so cents side by
side with gold do4ars worth 100 cents, even
with the limit that legislation does not run
counter OF laws of trade, to be successful
must be seconded by the confidence of the
people that both coins may re-
tain their same purchasing power
and be interchangeable at will.
"A special effort has been made by the secre-
tary to increase the amount of our silver
coin in circulation, but the fact that large
share of the limited amount thus put out b as
soon returned to the public treasury in pay
ment OF duties leads to the belief that the
people do not now desire TO keep 1t in hand. |
and this with the evident disposition to hoard
gold, gives rise to the suspicion that there
already exits lack of confidence among the
people touching GU financial practices.
There is certainly not enough silver now 10
circulation to cause uneasiness, and the whole
amount coined and now on hand might atter
a time be absorbed by the people without APP
prehension, but it is the ceaseless stream that
threatens to overflow the land which causes
fear and uncertainty. What has been thus
far submitted upon this subject relates al
most entirely 10 considerations Of home ma
ture unconueeted with the bearing which the
policies of other nations have upon the ques-
ton, but it is perfectly apparent that time
of action
IN REGARD TO OUR CURRENCY
cannot wisely be settled upon. or persisted in,
without considering the attitude OF
the subject of other countries
with whom we maintain intercourse
through commercial trade and travel.
An Acknowledgement of this fact is found
in the act by virtue of which our silver is
compusorily coined. 1t provides that THE
president shall invite the governments OF the
countries comprising the Latin union so
called and such other emperor's nations as he
may deem advisable, to join the United States
in conference to adopt common ratio be-
tween gold and silver for the purpose of es-
tablishing internationally the use Of di-
metallic money and securing fxity of the
relative value between those metals.
This conference absolutely failed. and Il sim
liar fate has awaited all subsequent efforts in
the same direction, and still we continue