The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-03-12
SILVER To THE RESCUE.

Inc DElll6ll CLdllCCllol VI I'm Va
chequer, in a recent speech, which has
attracted widespread attention, frankly
admits the uneasy tone OF the London
money market. His official position and
the opportunities of accurate knowledge
that it confers, it will readily be ad-
mitted, ought to lend great weight to
his opinion. That the present strln-
gency in monetary affairs is simply an
episode in the history of commercial
panics, his study of the subject and the
possible remedies for it compels him to
disbelieve. When the house of Barring
Brothers assigned, and the fear OF gigan-
tic disaster was relieved by the prompt
action of the Bank of England in effect.
ing loans from the banks of Russia and
France, there was a general belief that
the worst had been tlded over and that
a feeling of restored confidence would
| O prevail. And, if the stringency of
the money market had been merely
temporary, the subsequent course OF
events would have justified the eXpecta-
tions that we're widely entertained.
But the failure of a prominent South
American house has again brought Lon
don to the verge of a panic, and in the
worlds greatest financial center the
possibility of such a disaster is mex
plicable on grounds OF merely temper
airy money tightness, and the failure of
any single business concern, no matter
how extensive it's operations may have
been. At the root Of ali this panicky
feeling, what the chancellor finds himself
forced to believe, is the fact that the
visible and available supply of money is
altogether inadequate for the volume o1
business that is being transacted. i
proof is needed, he has it at hand. The
banks of the United Kingdom W. tt
their depositors i'll round figures the
sum Of three Thousand millions of dol
lars. All this money is payable on de
mand in gold. To meet this enormous
liability in the legal tender, the bank:
, possess about three per cent. of the en-
tire mount. II the panic feeling wer'
to become general, and a run were mad
on these institutions, we should I'm
doubtedly see the greatest t~inanoia
= crash of the century.
Several methods of meeting the diff
3 Guilty might possibly be suggested
f There is, for instance, the plan whic
has Just found favor with the authorize
of the Argentine republic. In face of
), run that threatened the banks of tn
country. the government stepped int
a the breach, created two e%xtraordinar
4 legal holidays, and checked the possibi
ia ity of disaster for that length of tim
n Such ~financiering as that, however,
beneath the dignity Of John Bull.
he could increase to any great exteI
II his supply of gold, all might be wei
: But there 5 conclusive proof that I'll
gold does not exist to supply his need
IS A panic may come any day, and when
e does come it will not give formal motto
l. of it's approach. There is need of
n greater supply Of metallic money, an
since gold cannot be had, silver ought
D. fill the place. Great Brltain's remedy
o the reconciliation OF silver. Put silly,
is on a legal tender basis, and there will
such an increase in the supply of none
as to put a panic beyond the reach
30 possibilities and enable the banks to r,
q snond in full to tho demands of the
~ creditors.