The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1891-02-05

cOnult OnS WIN frequently occur, Dul III
is not at all probable that they can be en-
cOuntered and their consequences
ayerted by like action of the Govern
ment; nor is it desirable that such pow
er should be lodged with the Secretary
of the Treasury.
am thoroughly convinced that bet
ter method can be devised which will, in
a large degree, place the power Of expan-
sion and contraction in the hands OF the
people themselves. The opportunity for
securing such currency may be found
in our bonded debt, which should, in my
Judgment, be in part exchanged for in
terconvertible bonds, bearing low rate
of interest, and always interchangeable
for money at the will of the holder. OF
course, | cannot now enter upon an ar
gument on this subject, but may be ex-
cuScd for briefly mentioning the only
objection haze ever heard to the plan,
which has any apparent weight, viz !:
/ That it wOu cause an outflow OF
/ money from the Treasury when specula-
| tions run high, and an inflow in times of
[ threatened panic, and would therefore
! tend to ''inilate initiation and contract
contraction" This objection was con
clusively answered and the policy tri-
umphantly vindicated in 1862 and 1868,
tunder the administration of Salmon p.
| Chase, who was one of the ablest Secre-
tartes of the Treasury we have ever had.
Mr.. Chase had urged and Congress had
authorized what he called the Savings
bank of the people," whereby they could
deposit in the Treasury up to the limit of
800, 200, 600, and receive an interconver-
tible bond, drawing not more than five
per cent. interest, which bond was again
convertible into cash at the will of the
holder on ten days notice. 1t is well
known that the year 1862, and the first
half of 1868 was a period of most active
speculation, and yet those deposits con-
tinually increased until on June 30, 1868,
they had overIun the limit and amounted
to SlO4, 1888, l02.
In August and September OF 1868 the
unusual activity of business had placed
the country in the same condition as it
was last autumn. 4 severe stringenCy
set in and panic was threatened, Did
this vast deposit uf over Sl00, ,000, 600 re-
main in safe hiding, and thereby inten-
sify stringCncy? Exactly tho reverse
occurred. At the time when it is ar
gued that everybody would avail himself
of this safe and convenient place for
boarding money, and draw four or five
IAl NNlls llNNlNNb bi ~ hlitli viz NApiHl
should pass, the money actually flowed
ont at the rate of millions n day, until on
December /, 1868, so, ,427, 900 had come
out to the relief of business, and n com
mercill crisis had thereby been ayerted.
commend this item of history as Of
more value than any theory.
The quality of cirCulatlOnis is oven more
important than tIiequlntity. Numerous
devices for enlarged credit may, and
often do, avert the evils of deficient
circulation, and Il redundancy may Sumu-
times modify It's own evils before their
results become universal, but for the
bancful effects Uf II debaSed and iluCtu-
ating currency there is no remedy, OK
CGpt 10y the costly and difficult return to
sound money. AS poison i'll the bl cd
permCatgS arteries, veins, nerves, brain
and heart and speedily brings paralysis
or death, So does n debaScd or iluctuat-
ing currency perncatC all the arteries of
trade, Daralyze all kinds of business and
bring disaster to all kinds Of people. 1t
is as impossible for commerce to flourish
with such an instrument as it is for the
human body to grow strong and vigor
Gus with Il deadly poison lul king in the
blood. Such u currency is bad enough
in domestic trade, but it is absolutely
fatal to the prosperity of foreign COM
merCe. The nation that attempts to
conduct its foreign trade with cur
reucy Of uncertain value or of inferior
quality is placed ut fearful disadvan-
tage 1t would seem supcrlluous to i'm
press this universal and wull-knOwn cX-
perienCe were it not too apparent that
this nation has been in danger of repeat
lug the costly experiment with just such
Il currency. The tendency of events have
recently been in that direction, and the
apprehension of danger created thereby
has caused the loss since December /, of
over S2l 600, 600 of gold from the Treas
ury and Of probably Il much larger
amUrnt from the circulation. | am hap
! py to say, however, that this peril seems
now to have passed, aud it is to DC hoped
its evil effects will soon disappear. The
sober second thought OF the people is
asserting itself us usual, and signal
lights of safety are here and there be-
coming visible.
Let me speak very plainly on this most
| important subject Believing that there
is not enough Ol either gold or silver III
| the world to meet the necessities OF bust
ness, am an earnest bi-mctallist and
ruuCCdC to no one stronger desire than
| / feel for the fico and unlimited coinage
! of silver as soon as conditions can be
reached through international agreement
or otherwise, by which such coinage
shall bc safe. But it is my firm cUnvic-
| ton that for this country to enter upon
that experiment now and under existing
conditions would be extremely disas-
| trous and that it would result, not in BIZ
metallism, but in silver mOn0-mctalism.
| - tNnttI1 n itIn-
ment, prove a greater disappointment to
its advocates than to anyone else.
They insist that it would expand the
circulation and permantly enhance the
value of silver. | believe would pro-
duce a swift and severe contraction and
eventually reduce the market value Of
silver. Let me briefly suggest some of
my reasons for this belief:
Free and unlimited coinage OF silver by
the United States, while the other great
nations pursue an opposite policy, would
invite all owners of that metal through
out the world to exchange 3Slt grains Of
pure silver worth about 50 cents, for
23.22 grains of pure gold, worth every
where 100 cents. Nearly all the nations
of Europe are anxious to exchange their
silver for gold, and they would at once
| hu pbiAb Aii NAANAs nv h'Ahe
statistics of the Treasury Department
show that the stock of full legal tender
silver amounts to 81, 10l 400, 900, and that
of this amount the banks of France, Ger
many, Austro-lIungary, tile Neither
lands and Belgium hold SI2S, 6.GG5. A
large part of these vast stocks of silver
would be ready for transfer to use at
once, and the swiftest steamers would be
employed to deliver it to the Treasury in
order that with the proceeds the owners
might buy gold exchange on Europe be-
fore our stock of gold should be eX-
haustcd.
Would our own people await the arri-
val of these silver argosies from Europe
before acting? Not unless the Yankee
has lost his quick scent of danger and
forgotten his cunning. Bank depOsitOrs,
tlust companies, the holders of United
States notes and gold certificates would
instantly lock up all the gold at com
mand, and then join the panic-inspired
procession to the Treasury, each and all
anxious to be in time TO grasp the golden
prize before it is too late. Probably be.
fore the swiftest ocean greyhound could
land its silver cargo at New York, the
last gold dollar within reach would be