The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-04-27

Payment II to Be made. All hanks pay ont
tho different kinds Enthusiastically, On
checks, drafts or other demands, g the
Option q Tie holders. 70 the fullest extent
that they are supplied with the particular
kinds required No person would open or
continue 70 keep an account with abank
in which any other rule prevailed.
It's by no means uncommon Tor people,
especially travellers, 70 take gold 70 bank
and exchange it for paper money. or for
the employers Of large numbers Of men
who make weekly payments to make
heavy exchanges Of gold or paper for sill
ven. Thus gold, silver and paper are freely
circulating ct IN absolute parity the one
with the other, and are equal before the
Law. There ID no degradation Of gold BY
those who take It to bank and exchange it
for paper or silver. nor sics ssrsa- All are
equally respected and honored in business
and by law.
The exceptions in which the principal
and interest Of bonds to secure large loans,
either by the government or by corpora
tons, are made payable in gold coin, have
especial reference to the procurement Of
foreign capital At lower rates Of interest
than prevail In this country. And this
does not necessarily imply, nor Is it fact
that In al cases they have moro money
than We, but simply that they have fewer
profitable uses for it. We are developing
and improving on such an enormous scale
and to such good effect that We can realize
handsome profits by borrowing their
money at rates Of interest with which they
are perfectly satisfied, provided the secur-
ity Is unquestionable and payment be
made in gold, which they prefer, while
majority of our people prefer paper for cir
culating purposes.
1t is thus apparent that without discred-
iting or impairing the value Of any other
kind of money, this departure in the line
Of making gold contracts enables Us to use,
ct lower rates than our own people will
take and part with either gold. silver or
paper, the accumulated capital of other
countries in railroad building and other
wise developing and improving our coun-
try, and in reducing our burden of taxa
ton to pay principal and interest Of our
national, state, county and municipal
debts.
Quite likely the Minnesots statesmen
would reply that the government might
issue money in such quantity - to pre-
clude necessity for borrowing foreign CAPT
tai, even at the lowest rate Of interest.
The American people have had abundant
experience to prove the fallacy of the idea
upon which this notion is founded. In
California, in the "early days." there was
little else than money, gold money. Com
mon labor commanded $l6 per day, and
earnings of 500 or 81, 600 day by manual
labor were not extraordinary. And this
kind Of money, a. q medium of exchange,
was exceedingly cheap. It took great
deal Of 1t to obtain very little in the way
Of the necessaries of life. But In that
state, at that time, loans were frequently
made at 20 per cent. q month, interest COM
pounding monthly.
In Virginia City, Nevada, when the
Comstock lode was yielding $3.50 per
capita" day for the entire population,
and when the making Of fortune in
per cent . month was not considered
exorbitant interest. Men were eager to
pay these rates and take great risks, and
ofttimes the end justified them. But there
was no stability, no certainty, no security,
no absolute confidence. And right here is
the key to the situation which the Min
nesota statesman and men Of his ilk need
to study.
Every bank vault and the vaults Of the
federal and state treasures might be
checked with money, but if the transac-
ton Of business between man and man is
recklessly interfered with and the sense
of stability and security needlessly weak
ened those who have money will keep it
and those who need cannot obtain it at
any price. And in this line the less re-
straint placed or attempted upon the
freedom Of making contracts the better.