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.
from the News and Courier.


some further account Of the currency
of the country, as shown by the recent
official reports of the treasurer and
comptroller of the currency, amt the
lesson to be deduced therefrom. 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, gave the out
standing currency ofthe country-Sold,
silver and notes-for June 80, 1889, at
81, 666, ,095, 400, whereas, it should have
been for June 30, 1890, at 81 SOS, Gil, ,4O6
that is, an increase during the year Of
S32, ,51s, 1856. Counting our population
at g., 100000, according to the recent
census, this would give circulation OF
over S27 per capita, instead of less than
S., as some of our Alliance friends
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, ,543, 900 was so held, and
on June 80, 1890, $3.50, 100000. But
even deducting these amounts, it left
in actual circulation on the former date
81, ,397, ,55l ,S35, and on the latter 81, 49,
OS3,6lS, that is an increase in the ac-
tual circulation of the country of over
S55, ,5OO,0OO 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 i'll 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, ,26O, ,2l1, ,673; in 1887, s1,S25, l29,376;
in 1888, 1878, ,633, 1873; in 1889, $685., $751;
S35, and in 1890, sl,443, ,Oo3,61S. Of the
entire currency outstanding on June
80, 1890, $685., ,563, 600 was gold; S463, ,2l1,-
600 was silver and $3.50, ,S39, 10000 was
notes. 7 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 to 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 S7OO,OOO,O00; 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 "silverites,"
seem to imagine, but would drive gold
to 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 on
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 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 full
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 all
history, as we'll as of common sense
and common honesty, be worth any
thing as guide. That there has been
great stringency in the money market,
approaching very nearly, at one time,
to great financial crash, there can be
no denying. The causes for this were
doubtless various. But as We have
clearly shown by official figures the
contraction of the currency was not
one of these causes; for there has been
no contraction, just the contrary. Nor
do I believe in Mr.. Calhoun's idea that
the boarding Of money by our poor
Southern cotton planters has had any
material influence.
EFFECT OF THE ARGENTINE CRISIS.
Were the writer called upon to eX-
press his views as to the principal
causes of the trouble, he would in the
first place express the opinion that the
effect of wildcat fnanciering in South
America on our money market has not
been duly appreciated, and would ex-
plain as follows: The Barring Brothers,
of London, had taken large loan of
Argentine Republic-s20O, 100000, I be-
lieve. Then followed the reckless issue
by that Government Of the famous ced-
ulas, or land certificates, as paper cur
rency, to the extent of over $3.50, 100000
more. This reckless action, of course,
drove gold to a premium, at one time
of nearly 300 per cent, depreciating the
bonds taken by the Barings correspond
ingly.
The firm of Barring Brothers have
long been perhaps the largest holders
and dealers in the United States secI-
rites of various kinds Of any house in
Europe. Finding themselves so hard
pressed by the action of the Argentine
Government, they were forced to throw
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