Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1888-05-16
THE NATIONAL Lookup.

Figures Given Showing the Cause of the
Scarcity of Money.
Harvey Fisk & Sons, bankers, of New
York, issue the following circular, which
will be read with interest:
New York, April 5, 1888.
1t is we'll to ask What is the trouble2" wher
all securities stocks and bonds, and even gov
ernment bonds. are steadily declining; when al
products; when the great staple-iron; wher
wages, as well, of the hard working man, are al
declining. [Capital cannot keep up its wage.
to the working man under these conditions, ane
in consequence strikes, strikes all over the land
and worse yet to come. if the treasury is to bt
allowed to keep on in the locking-up process.
We say it is we'll to ask in all seriousness
what is the trouble? With our population
increasing with unaxampled rapidity, with peace
in all our borders, why should this be?
II well, hearty and strong man should sud
denly lose quart of blood, and each month
blood shonld dribble. dribble from his veins
would anyone aware of this fact ask What is
the trouble?" No! Why should they2
The trouble is, the depletion of the life blood
of the nation in the loss of its currency.
If some combination should suddenly with
draw even ten millions Of currency from active
use, it would almost create panic.
What is the fact? There is now locked up in
the treasury of the United States nearly two
hundred millions of currency, once in active
use. Let this out and at once the trouble will
cease.
The president of the United States has seen
fo t.I>o L.,
use of the surplus in buying bonds, under which
law already nearly two hundred millions OF
bonds have been bought-1nuch to the saving OF
the people. He asks congress to re-enact the
same law-while waiting for this, the country
suffers. The house promptly re-enacted the
law; the senate will in time do the same.
During the terrible war of the rebellion, the
government was compelled to pay 8 per cent. on
its bonds. in gold, to obtain money Then the
national banks could afford to pay the ! per
cent: tax on their currency issued; now, when
per cent, the same tax 10 imposed, and, in con-
sequence, the currency issued by them has de-
creased over one hundred millions, and the
whole of this amount is locked up the treasury.
Congress should order the administration to
at once invest all the eurplus in government
bonds; should at once take the tax from
national bank circulation; should at-once order
q safe part of the hundred millions locked up
for retired national bank circulation to also be
invested in government bonds, and the trouble,
as far caused by the loss of life blood of the
nation, would cease at once.
Can the government purchase two hundred
and fifty millions of its own bonds? We say
yes without trocble., There are falling due in
1881 two II hundred and thirty millions of ~ per
cents. These could nearly oil be obtained to
save the government per cent. per annum for
the time they have to run. The ''Fours" could
be obtained in large quantities to save pa per
save 2ss to 2a per cent But. as the 4iks fall due
retire them 6rrt.
toners and correspondents, some startling fig
ures as to the extent of the withdrawal of the
currency from the business of the nation.
~ Ws fFs from the
treasurer, issued March 81, 1888:
Gross uInount of cash in his hands Us treas
urer, SS73 1873 go; against which has been is
sued in gold silver and legal tender certificates
$292, ,S95, ,S9l leaving net money in his hands rs
treasurer, 1880 90; out of which the treas
urer has 61 SIT SO lying in the national banks
secured by deposit with him of government
bonds. OF this vast sum 500 600, 100 is retained
as reserve against the legal tender notes; $37,-
08 is retained to cover various appropria-
tions $99, 1872 62 10 is the actual net amount re-
lained to cover redemptions of national bank
notes, leaving $3.50 s26 75s.5i as the actual sur
plus at that date. OF this amount So. .752 s2s 20
is fractional silver.
The spirit of all laws of congress is that only
S100, ,000.000 shall be kept idle, bnt from this
we see $780, 326 81 is kept idle and
with the nearly S1y 900 600 also idle awaiting the
slow procers OF redceining national bank notes.
we have grand total of idle money of upwards
of three hundred and thirty millions, or suffi-
cient TO redeem on per cent. basis all the out
standing ~ per cent. bonds due in 1891, and
with the additional accumulation of surplus up
TO the end OF the fiscal year June 80, 1eSS-say
$50 600 o00-would then leave the Si0Q 09G eco re-
000G00 besides.
If the remedy of the trouble depends on COZ
gress, it should awake at once.
Ii the administration refuses to act under laws
come then they bear the blame. Ii, under this
law, in good plain English on the statute books,
under o which , already BY previous admins
the present administration refuses to act in case
Of necd, while awaiting the slow action of con-
gTess, then let the blame rest where it belongs.
The law is as follows enacted:
SECTION 2. Tint the secretary Of the treasury
may at any time apply tho surplus money in the
thereof as he may consider proper, to the pur-
chase or redemption of United States bonds;
That the bonds SO purchased or redeemed shall
constitute no part of the sinking funk, but shall
be cancelled.
Approved March 8, 1881.
While tho government has SO large a debt,
congress should be very cautious in reducing
revenues. The people do not complain of, or
even feel. the collection of the present revenues
Of the government; but the people do complain
that the present revenues, paid In SO cheerfully,
should, If too much to run the government, be
locked up from use, when they could SO easily
be used in reducing the debt.
The people of the United States want the debt
retired and settled as soon as possible-an the
evils befalling the workingmen Of the old world
come from the enormous. .pualic debts.
q Let us, as soou as possible, be free from debt.
Capital and people from the whole world will
seek our borders, and We shall become the clear
ing house OF the world, Truly,