St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-12-09

where can it best be RENTED and what arti-
Giles can best be released from duty in the in
terest Of our citizens. think the reduction
should be made in the revenue derived from
a tax upon the imported necessaries of life.
We thus directly lessen the cost of living in
every family of the land, and release to the
people in every humble home larger meas
ure of the rewards of frugal industry.
National Banks.
During the year ended Nov. /, 1885, las
national banks were organized with an aggre-
gate capital of $16,93S, 00G, and circulating
notes have been issued to them amounting to
S4,274, go. The whole number Of these banks
in existence on the day above mentioned was
2.727. The very limited amount of circula-
pared with the amount the law permits them
to issue upon deposit of bonds for
their redemption indicates that the volume
of our circulation medium may
be largely increased through his
fundamentally. Nothing more important
than the present condition of our currency
and coinage can claim your attention. Since
February, 1878, the government has, under
the compulsory provisions Of law, purchased
silver bullion and coined the same at the rate
of more than 1000, 900 of dollars every month.
By this process up to the present date 3D.
759,431 silver dollars have been coined. A
reasonable appreciation of a delegation of
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 by 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 presentstme only about 10000. 900 of
silver so coined have actually found their way
into circulation, leaving more than S165, 600, 00O
in possession of the government, the
custody of which has entailed a
considerable expense for construction OF
vaults for its deposit. Against this latter
amount there are outstanding silver certih-
Gates amounting to about S93, 100000. Every
month 81, OO0. 600 of gold in the public treas
ury are paid out for S.. 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 will
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 SIS 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 will probably in
crease as time goes on, for the reason that
the nearer the period approaches when it will
IA OhlCad offer silver in paVmapt Of IFS
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 be
apparent that there is a 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 a 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 will sell their boarded gold
to their neighbors who need it to lquidate
their foreign debts, at ruinous premiums over
silver, and the laboring men and women OF
the land, most defenseless of all, will find that
has sadly shrunk in it's purchasing power.
1t may be said that the latter result will 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 can
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 fluctuating and I'M
certain in its value, but this uncertainty in
the value of the purchasing medium will be
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 who
has the deepest interest in a sound currency
and who suffers most ny mischievous legisla-
ton in money matters is the man who earns
his daily bread by his daily TOLL The most
distinguished advocate of bi-metalism, dis
cusslng our silver coinage 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 necessaries 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 result, will be public benefit are
reminded that history demonstrates that the
point is easily reached in the attempt to 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 in
such cases. So if 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 a severe contraction OF our
circulating medium instead of adding to 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 dollars 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 has
soon returned to the public treasury in pay
ment of duties, leads to the belief that the
people do not now desire to keep it in hand,
and this with the evident disposition to hoard
gold, gives rise to the suspicion that there
alread, exits a lack of confidence among the
people touching GU financial practices.
There is certainly not enough silver now in
circulation to cause uneasiness, and the whole
amount coined and now on hand might after
a time be absorbed by the people without ap-
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 to considerations Of a home ma
ture unconnected with the bearing which the
policies Of other nations have upon the Ques-