The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-05-13
PAPER MONEY.
BY OLD FOGY.

Legal-tenders, greenbacks, national
bank notes-these terms and the
word convertibility have in the last
few years become synonymous. In
truth and fact they are not and can
not be.
Can a currency based on gold and
silver, that is, redeemable in gold and
silver, be so in fact when there is not
enough gold and silver to redeem it :?
Let me quote from the report of the
Director of the Mint, 1889, page SO:
Total gold bullion, silver bullion,
gold coin, silver coin, $6l8, ,l96,4O3.
Total legal tenders, old demand notes,
certificates Of deposit, gold certificates,
silver certificates, national bank
notes, $99l, 989,7l9.
le sve it with you to say if it IS
possible to redeem the paper, amount
ing to almost one thousand millions,
with little over six hundred millions
Of coin and bullion 2
The needs of the country are in ex-
cess of all the silver and gold that the
government has or can have.
lst. The reports of the Treasury
and of the banks show that the per
cent. of gold, silver and paper used as
medium of exchange amounts to
only u per cent. 984 per cent. is done
with bills of exchange, drafts, checks,
etc.
I'd. The annual amount of our
manufacturing, which is sold at
wholesale, is six billions of dollars
and retailed at eight billions yearly.
Sd. Rent and taxes three and a
half billion of dollars yearly.
4th. Imported goods with tariff
added 878 millions.
9TH. Railroad and telegraph receipts
one and quarter billions,
9th. Value of minerals not manu-
factured, as coal, ETC., two hundred
millions.
7th. Agricultural products, twenty
three hundred and seventy-fve mil
lions yearly.
9Th. Wages paid for labor, seven
thousand two hundred and sixty mil
lions.
9th. Banking and insurance, two
hundred millions.
There are thousands of items that
would swell the list, but this is sufi.
cient for our grand total amounts to
twenty three thousand six hundred
and sixty. three millions Of dollars
1923, 1858, ,OOO,OOO) and all this bust
ness to be done with l,4OO millions
of money and only 500 of that amount
in active circulation. That is to say
every dollar in active circulation does
the work of so dollars.
The proportion in other countries
is very similar.
Now if, as I think I have shown, it
is impossible for our country to have
currency that is sufficient for the
needs of business based on coin,
what can the currency be conditioned
on to make it safe and redeemable ? It
can be based on the land values of the
country.
Would not one billion of dollars be
a very safe mortgage on the lands of
this country Yet at per cent.
that would ling to the government
twenty millions Of revenue yearly.
The fact that loan companies place
mortgages on real property a. SO per
cent. of their value is too Wei known
to need proof.
Again, the currency can be based
on the products of the country. Sup.
pose we issue one billion of dollars
on products of the soil, the total
amount of which is about three bill
lions, would not this be good Sc
curity?
When the war closed if the bills is
sued by the Confederate government
had been issued and secured by cotton
in warehouses, would not the Confed-
crate bills have been gladly received
dollar for dollar?
The issuing of money by govern
ment without anything pledged for
redemption is good only so long as
the credit of the government issuing
is good and depreciates when the
credit of the government is impaired.
This continental currency-Confed-
crate currency-and our greenbacks
were ali once at par The first two
went out Of use because they were
based on nothipg-the greenback
was at all rates Of discount.
In June and July of 1864, when
Lee was in Pennsylvania, gold was
up to 285, and in September after
confidence was in some degree re-
stored it fell to 191.
But with money conditioned on
real values, it would be on par with
gold or silver.
The great point of difference as
against the present system lies in the
power OF money to oppress.
In 1888 the capital Of the banks In
the United States was $685., ,53l, l45,