Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-18
SENATOR COKE.
No Remedy for the Disordered Financial
Condition Except Through the Tn
limited Coinage of Silver.

OF recent GATE, ana Will cneerlulIy give Tor
what they may be worth, my views on the
financial situation, combining myself in do
ing so to such matters as will be strictly re-
sponsive to the question you PROFOUND, and
obeying your injunction as far as possible
as to brevity in the statement shall make.
There is u general consensus of opinion in
the South and West. in which l fully con-
cur that the countr. needs larger volume
OF money in circulation.
The last census gives US in round num-
bers $4,000. 900 of people. but no man col
versant with the methods pursued in taking
1t doubts that, properly taken, it would have
I given US ut least $500, 600 The estimate
of the secretary of the treasury recently
made, placing the money, exclusive of re-
serves in the national treasury, in active
circulation in round numbers at 81. 500, 00O-
600, when discounted by, the loss by casualty
on the S346. 600 of greenbacks after
| active circulation of twenty years, the per
cent of which it is known is very considerd
Bile, and by what high authorities claim, IS
an overeStimate to the extent of 500, 600
900 of the amount of gold in private hands
! and private banks not reporting to the
government, besides the withdrawal of
| national bank notes constantly going OIL.
and by the reserves held by requirement
of law. locked up in the national banks. will
be so reduced as 10 bring the per capita of
I circulation down to less than $50. The en-
! act amount of course cannot be given. We
do not need to be told that this is INSULT
I cient circulation, and that in the exchange,
! the trade, commerce and production of the
! country the measurement Of all property
! and labor values, must be dwarfed and con
| tracted to meet the requirements of this
! stinted volume of money.
! You ask me for remedy for this coudi-
/ ton of things. In my Judgment, there is no
| possible remedy for it, except through the
! free and unlimited coinage of silver. That
! l believe to be an absolutely necessary con-
! dition precedent to any Improvement in oar
| financial condition. With free coinage OF
| silver, as we now have of gold, the national
I banking laws amended to take away from
! them the right to issue notes, leaving them
| simply as banks OF discount and deposit,
I repeating that clause of the banking law
| which prohibits loans on real estate, leav-
| ing the banks to their own discretion as To
! the securities on which they will make
| loans, and a resumption and exercise by the
| government of the sovereign power of fur
nishing paper currency for the country,
| believe our monetary condition would not
only be grea. ly improved, but would soon
become all we could desire. These sug-
geSted amendments to the national banking
law are embraced in a bill introduced by
myself in the senate Just before the All
journment of the first session of the last
congress, my intention being to press ii at
the succeeding or last session OF congress,
which was not done because of the con-
sumption of nearly all the time of the seS-
sion in consideration of the force bill. |
propose to introduce and press the same or
similar bill at the next session.
The power to contract or expand the vol
ume of circulation resulting from the power
to issue and withdraw circulating notes at
pleasure residing IN the national banks,
have always believed too dangerous power
to be placed in any class or private hands,
and have uniformly opposed these banks as
now organized. Their notes derive their
excellence as a circulating medium from the
fact that redemption in coin is guaranteed
by the government. The government, in
my Judgment, should never have delegated
the power to issue them, but itself should
have performed this function, as it did Ill
putting the legal tender greenbacks, OF
which the S346, 900, 600 we now have are a
part-fn circulation, as the supreme court of
the Emitted States mas repeatedly decided it
has the power to do.
For one | prefer the regulation of the
volume of our paper currency by the gov
eminent rather than by the banks. The time
has passed when the business OF this coun-
try can be transacted with coin, and nobody
desires to see the old state bank system
with its wildcat currency renewed. The
country must be supplied with paper money
convertible at the pleasure of the holder
into coin from some source. The small
amount now supplied by the national banks,
being about Sl3S, 000, 900 in actual circula-
ton, is a mere drop in the bucket and that
is dwindliug and growing less every day BY
the maturity and payment of the United
States bonds on which it is predicated
Indeed the idea that the country could be
supplied with currency by the national
banks has been practically disposed of by
the payment of the bonds.
The gold and silver certificate bullion
notes and national bank notes, which to-
gether with the 1916, 600, 900 legal tender,
constitute our present paper circulation,
ought to be called in, and their places sup
piled with legal tender notes redeemable IN
coin at the will of the holder, thus giving
us a uniform paper circulation, which could
be increased by congress in the exercise OF
its discretion as to the amount OF money
needed 10 carry ON the business of the
country, the whole mass of circulation 10
have behind it stored in the vaults OF the
treasury gold and silver enough to intrench
it in the confidence of the people
This gold and silver is in easy reach Of the
government, and its accumulation would
aid to some extent in solving the problem
which seems to greatly perplex some, but
which has never given me mo
ment's trouble, which is as to the
mode of getting into circulation
paper money which the government
might issue j know Of no legitimate means,
no way consistent with established eco
nomic principles, and that would be Just TO
the great business interests of the country,
North, South, East and West, of dumping
at once among the people a vast issue OF
paper money. In the history OF the world
no single instance can be found where
widespread ruin and disaster did not fol-
low such policy. l have never known or.
heard of a country having too much money
redeemable at the will of the holder IL
gold and silver coin. These precious
metals are the products Of labor, and have
a recognized vahle the world over. Theil
accumulation, like other accumulations o.
labor is gradual and the result Of saving
economy and thrift. The competition o.
the whole world has to be met in acquiring
them and the business and commerce which
carries them is in touch with the bushes,
and commerce of the entire world to which
we look for market for our great agri-
cultural and other products. The hmita-
ton upon human power to acquire these
metals is an irrepealable limitation upon
the safe issue of paper based on and re-
deemable in them. A healthful absorption
of money issues of this character in the
veins and arteries of business and COM
merce without revolution, shock or undue
friction, requires that they be made grad
uaily and steadily until the full volume OF q
sufficient circulation has been reached.
This requirement is in full accord with the
interests of the government, which would
be charged with the task OF accommodating
and maintaining redemption fund pari
passu with its issue OF circulating notes,
giving time and avoiding sacrifice in doing
it. The redemption fund in the treasury