The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-02-19
HONESTY THE BEST POLICY.
Nations, No More than Men, Can Escape
Financial Law-The Question of the
Free Coinage of Silver Consid-
cred from the Stand
point of Monetary
Science.
TFrom the News and Courier.


some further account Of the currency
of the country, as sh, VI by the recent
official reports of the treasurer ana
of the currency, and the
lesson to be deduced therefron. Some
of these figures I did not have before
me in writing last week, consequently
I had to refer to those Of the year pre-
vious. For instance, I gave the out
standing currency ofthe country-Sold,
silver and notes-for June 80, 1889, at
81, ,666, ,O95, 400, whereas, it should have
been for June 80, 1890, at 81, SOS, Gil, Hug
that is, an increase during the year OF
So, SIS, ,9sG. Counting our population
at g., ,O0O,O 900, according to the recent
census, this would give circulation OF
over S27 per capita, instead OF less than
s.. as some of our Alliance 1rlends
would have US believe.
It is true a considerable amount OF
this currency is held in the treasury
for various purposes Of law. On June
80, 1889, SITS, S,543, 600 was so held, aid
on June 30, 1890, S255, $4,000. But
even deducting these amounts, it lett
in actual circulation on the former date
81 ,3S7, ,551 ,s35, and on the latter 81, ,H3,-
Os3. .6lS, that is an increase in the ac-
tual circulation of the country of over
S55, ,50O,O 900 during the year. And yet
we are assured by those who take their
figures from the National Economist
that the stringency in the money
market and the consequent low price
of cotton is on account Of the contrac-
ton of the currency.
AS showing that this increase in the
currency has been continuous, and
somewhat regular for a number OF
years, I give the amount in circulation
at the close of each fiscal year-June
80, for the last five years. In 1856,
81 ,260, ,211, ,673; in 1887, Sl,S25, 1886;
in 1888, 81 ,379, ,639, 1873; in 1889, $685., $751;
S35, and in 1890, Sl,443, ,OS3,61S. OF the
entire currency outstanding on June
80, 1890, $685., 1858, 900 was gold; S463,2ll
600 was silver and $3.50, ,S39, 100000 was
notes. I call special attention to this
for the purpose of showing how large
a proportion of our currency consists Of
gold, and consequently how danger
Gus would be any action Of Congress
that would tend 10 drive it to pre-
MUM, and consequently out of circu-
lation.
EFFECT OF FREE COINAGE.
Such action would at one fell blow
contract our currency to the extent OF
nearly S7O0,000,OO0; would disturb all
our intercourse with foreign nations,
and would change the standard of
value at home at least 20 to 25 per cent
the difference in value between gold
and silver. 1t would not raise silver to
the value Of gold, as our "silverltes, "
seem to imagine, but would drive gold
to a premium and out Of circulation.
Silver would become our standard Of
value instead of gold, and we would
sink financially to the level Of the
Spanish American States, China, Japan
and India instead Of remaining Oh a
plane with the leading commercial ma
tions of Europe. How any class of our
people-and least Of all our farming
and laboring classes-could profit by
such q condition of affairs, except the
few silver barons of the Rocky Noun
tains, it is impossible to conceive.
While we are able to bolster up silver
by artificial means, and thus maintain
the gold standard, that is the ful.
length yard-stick, we may avoid the
catastrophe. But with the free coin
age of silver it would seem inevitable
sooner or later, if the teachings of al
history, as we'll as Of common sense
and common honesty, be worth any
thing as a guide. That there has beer
great stringency in the money market
approaching very nearly, at one time
to a great financial crash, there car bt
no denying. The causes ior this were
doubtless various. But as we have
clearly shown by official figures tht
contraction of the currency was no
one of these causes; for there has beer
no contraction, just the contrary. MOI
do I believe in Mr.. Calhoun's idea tina
the boarding of money by our poor
Southern cotton planters has had all.
material influence.
Were the writer called upon to ex
press his views as to the priaags
causes of the trouble g1n fh
first place expne fSS.Gnion that tn
effect Of dsnnanciering in soutl
Amerle Sur money market has no
oeea 9fy appreciated, and would eS
plalY as follows: The Barring Brothers
ISf London, had taken large loan 0
Argentine Republic-s2oO, ,oOo,OOO' l be
lieve Then followed the reckless lssu
bv that Government ofthe famous ced
Mas or land certificates, as paper cur
rencv to the extent of over $3.50, ,oOo'oo
i more This reckless action, of course
drove gold to premium, at one TIM
| Of nearly 300 per cent, depreclatlng TN
bonds taken by the Barings correspond
ingly. how,
| The firm of Barring Brothers nav
long been perhaps the largest hoioe'
and dealers in the United States secu
rifles of various kinds of any house II
Europe. Finding themselves so hare
pressed by the action of the Argentina
Government, they were forced to throw