The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1891-01-15
srANFoRDs FINANCIAL SCHEME.

Imperfect examination Of the subject. It
is based on the simple, fact, with which
al financial authorities are familiar, that
the supply Of the raw material Of which
the currency Of the world consists, is now
barely adequate 10 the worlds demands
for coinage, and. in . few 'yearS, win b
quite inadequate, and that Il d absolutely
necessary for the conduct Of trade that
some new currency should be devised.
The mines Of the world now yield about
t2SO,OOO, 900 . year In gold and silver.
The mints Of the world consume about
t2l6OOOy0O0 . year for coinage. How
much gold and silver Il consumed in the
arts and Manufactures Throughout the
world il not accurately known. But that
consumption amounts to about tl6,000,-
900 In this country alone. So that but
Tor the recoinage Of old coins atthe mints,
the supply Of the precious metals for uss
- money and for use In the arts would
now be short Of the demand. The def
cheney viii naturally increase a. COM
meFcs, wealth, and population swell in
volume. Some substitute for metallic
money must be devised, or the pending
crisis in the east viii be thing Of annual
occurrence.
A substitute was discovered by Mr..
Chase when he invented the national
bank currency. Under his plan, this
country was supplied with money which
was secured BY federal bonds. The bonds
were, In fact, mobilised, and made 10
serve - . circulating medium - well eel
IN evidence Of debt. But 1t the time the
national bank system was put in full
operation, the amount Of bonds which
could b. % Esprssented by currency was
over =, 20, 900. 600; now Il b leB than
q 900 900 900, and Il ID Eliminating every
year. In . very short while, national
bank-notes will BE- 90 scarce a. 10 cease
10 Be available - Q substitute for metal
lie money. II d evident that some other
substitute must be discovered.
Now comes Senator Stanford, who says
that Il there ID not enough gold and silver
produced every year to supply the mints
with material for coinage, and u the sup
ply Of federal bonds ID being % reduced
that Il can no longer al the public need
d . money material, Il might Be worth
while trying to Zee how . currency based
On land might answer. Land IL the most
solid Of an forms Of property. Where
land has no value, nothing has . value.
Land neither collapses nor fliss away.
It 4 always there, and when Il u cult
vated, Or used - home for mankind, Il
always has an increment. Would not
land b - safe Q representative Of value
- metals which huctuate In worth, or
national credit which in times Of disaster
may b shaken and In times Of prosperity
may b represented BY % small . volume
Of securities that little would begAined by
their increased
Il must always Be remembered that the
prsssuk monstaTv 0ystem n a thing which
has erowu IN by common usage among
the nations, and was not devised bv
hnaneieFu In accordance with The laws Of
uolisical economy. Bv commoU consent.
the mercantile world driItsd jnto tha vay
Of meauurine yalues nv theiF eouivalent
Ia Rold and silver, In orier q ouard
anainst Temporary fucsuationa. a fxed
yalue va Given 10 each pieoa a tbo.a
metsls by he government StamD which
Il bore. But there never was anything
IN either metal which naturally clothed
L with the quality Of money. Il was %
clothed because Il was the most conven-
lent representation Of value which could
BE- found when the world abandoned the
syStsm Of barter; and 90 long % its bro.
ducts su6ieed 10 furnish the mInGs with
al the bullion they needed, Il answered
the purpose. Now, adherence to the tn
ditionAl custom d found 10 involve two
dificultisS: first, the supply Of the urec-
iOus metals, % called, Il running short;
and, second, an increased production Of
silver, coupled with a reduced production
Of gold, has upset the old parity betwesu
the two, and plunged finance into con.
fusion. Il Il evident that the end will be
the creation Of a new form Of monev.
which win be papsr; and N thla WIIl
have 10 ma on come ascuyitv. tbe Dr...D,
question l., Whist better security can n
-. -, 49, i.,,A n -.,--.1