Los Angeles herald., 1891-04-07
SUGGESTIONS WORTHY OF CAREFUL
CONSIDERATION.

Our townsman, Judge r. M. Widney,
has issued brochure on financial ques-
tions that is worthy of very serious at
tention. This gentleman is character
lied by special sagacity and, we may
add, wisdom, in his discussion of current
fiscal questions. His work is devoted to
the currency question, and we venture
to give syllabus of his leading ideas.
1t is devoted to an accurate and ex-
haustive collection of facts and statistics
relating to the demand and supply OF
money, not only in the United States
but also in the leading nations OF the
world, showing, both from national
and from an international standpoint,
that there is not enough circulating
medium to do the business of the
world. Briefly, it is shown that
the volume of business in the
United States last year was some
$3.50 O,OOO, 100000; that our volume
OF money represented only about p cent
on the dollar for business; confined to
gold and silver about "a cent, or OF gold
alone only 1s cent OF the dollar.
This forced over SIP, 100000 1000 OF
the business to be done by checks, drafts.
credits, etc., and in this department of
credit the people lost confidence, and
not in the currencv OF the nation. From
healthy, active business condition,
the country was suddenly prostrated in
every department of business for lack of
sufficient money to conduct business.
Statistics show that the banks of the
United States average only 10 cents on
the dollar in cash for depositors' money.
Loans by the banks of nearly four bill
lions to the people, and only about 10
cents on the dollar in the hands of the
people to pay with. From various
similar points, the painful insuficiency
of the money supply is demonstrated,
until it is shown that either the money
supply must be increased to take care
OF the business, or the business must be
killed off until it is within the volume
of money to conduct it.
1t is shown from statistics that the
total output of silver and gold in the
United States, if coined, could not keep
the present volume up even with our
increase of population, and that the
only remedy possible is to supplement
our gold and silver product by safely
guarded volume of currency, issued by
the whole people through the govern
ment, with the whole wealth and faith
of the nation back of it, making gold,
silver and currency exchangeable at par
at any time any one wants to exchange.
This leaves all values on the abstract
gold standard, using silver and currency
of equal par value with gold. To guard
the volume and integrity of this money
system, carefully prepared constitu-
tional amendment is suggested, which
forever prevents imitation, contraction,
reputation or change OF the measure
or standard of values. This is to be
followed up with an act of congress to
put the system in operation, as is
usual. A bill carefully prepared for this
purpose adopts the present government
machinery without change for prepar-
ing and issuing the money. To put the
money in circulation among the people
the bill provides for taking up all out
standing government paper money,
with the new issue, next allow
ing states, cities and counties
to issue and sell to the United
States per cent. bonds, not to exceed
5 per cent of the assessed value of the
property, to be used exclusively for i'm
provements or for refunding outstanding
bonds.
This would reduce interest at least
per cent. and reduce taxes correspond
ingly.
Next, let banks buy these bonds of
the United States, and by depositing
them or any United States bonds with
the treasury at Washington allow the
banks to draw money up to their par
value, paying 2 per cent. interest, to be
used by the banks when required.
The bill also provides that land own
the title to real estate with the United
States and draw money up to the aver
age assessed value of the property for
the preceding five years. In all of the
above cases the banks, when not using
the money, can return it to the United
States treasury and stop interest, and
when again needed draw any part of it
again. All of the points are carefully
guarded against any conceivable abuse
or fraud. AS the money returns to the
United States treasury by taxes and rev.
enues, it is returned to circulation among
the people, by the government buying
suitable land and erecting its own build
ings for postofices, ETC., in every locality
in the United States, as nearly as may
be in proportion to the census popula-
tion of each state or locality. The pro-
posed volume of increase would be from
$40 to $25 per capita, making our total