Telegram-herald., 1891-01-08
THE PEOPLES FOLLY
Why Do They Withdraw Thsir
Money From Circulation.
THEY CLOG TIE WHEELS OF BUSINESS
TIE EaliAey Of she asezaisg syssss
Ptainly PersrayeA-Ths DiasrsAs
Glasses OF noardsrs -Saysngs
Banks Partly As EasiI

rfctt31 70 INC thA11 "a = s&Ahts
New YoRK, Jan. 2---Witn the rapid
increase of population IN this country
there are unmlstskable signs also that
large number of this great mass OF
people are idiots. An evidence OF this
is the boarding of money during the
last few months. No sane man or
woman certainly can take . retrospect
i've view Of this country and 10 guilty
Of the nsrrow-mlndedness and mean
ness which boarding implies.
At the close OF the war the United
States governments Obligations in
bonds alone amounted to about 81 ,S0o.- :
0oo, 900, since which time unprecedented
liquidation has gone on at the rate Of
500, ZOO. 900 annually, until now that
immense debt has been cut down to
$700, coo. 900. This change has mean
ing, and more than anything else it
represents the high credit Of the gov
ernment together with the vast re-
sources of the nation out of which
America has grown to be infinitely the
most wealthy of nations. The United
States government has found it to be
an easy task to pay off at least 81 ,O0o,-
000, 900 of its obligations in SO compara-
lively short time and still have lett
stored up in this country more gold
than all of Europe puttogether. These
United States bonds have been freely
bought, not only by our own people but
by foreigners, and even at as high q
premium as SO per cent. at one time.
These bonds represent government
credit only, whereas the same
government now, under law
recently passed, has undertaken
to buy 4,500,000 ounces of silver per
month and issue legal tender money
against the same, which obligation is
fully backed by silver. which has an
intrinsic recognized value in all the
markets of the world, and because it
brings 100000 annually of good
silver money into circulation, to supply
legitimate demand, the weak minded
creatures above referred to have be-
come scared, and have put their hands
npOn what gold they could get and
locked it up, whereas they didn't
hesitate to put their means into gov
ernment bonds at thirty per cent
premium that had no silver backing.
nor gold either, but simply signed
paper promise of the government to
gay at specified time both principal
and interest. The boarding of gold has
largely come from the holders of the
four and one-half per cent bonds which
mature next September. Under the
Secretary's liberal offer to redeem the
same, both principal and interest, they
obtained payment therefor and locked
it up simply because the government
has issued money backed by CORES
pOnding amount Of silver, and they
profess to be scared about the govern
ment credit in connection Herewith,
and make that as a pretext for hoard
ing.
Another class of hoarders comes
from the army Of pensioners. The ag-
gregate of money paid out for that
purpose is Sl20, 900, 900 per annnm. AS
this money is received, there are un-
mistakable signs to my mind that 1t is
hidden away under the roofs of the re-
cipients until required for actual use.
Savings banks do not offer any induce
ment Tor those receiving money IN this
way, as they pay interest only on funds
remaining OIL deposit for specified
period running from six to twelve
months. They would be more elikely to
reach this fund if they would allow a
moderate rate of interest on scale,
one rate for thirty days, still larger
one for three months, and so on for SIX
and twelve months. A widow, for ill.,
stance, draws pension, and sne con.
slders 1t Just as secure to keep that
money in her costody as to put 1t into a
savings bank, but, as she expects to re-
qulre the money in few months, she
does not want to tic { up on account
of her necessities for six months, but to
do so is the only way she can get any
interest; consequently she virtually
boards lt-not willingly, perhaps. but
from necessity. Tho only reason for
placing the money IN q savings bank
would be to obtain the interest, and
then it would be locked UP for Elk
months.
In the aggregate, ] nave no doubt,
a very large amount of money in this
way is kept out of circulation. As an
example of how large sum of money
can be kept out of circulation, assume
that this country has population of
$4,000, 900 of people. SnpposIng each
one should hoard 81. that alone would
amount to $l30,000,0 900.
HENRY CLEws.