The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1892-10-06

| city On m0Euay HlBn! EUdue luis LIS lcou-
| ing argument, but assumed unfairly, that
conditions would be exactly similar to
those existing before the war. People
are extremely apprehensive of any change
iE the currency which might affect It's
value, and for this reason refuse to per-
ceive the danger threatening the country
through the gradual cotraction OF It's cir
culating medium. To foresee danger and
| TO provide means for averting it is the
part of craftsmanship, and to act
| through polit teal organizations Is the
only means open to a solution of ques-
| tions affecting national prosperity. Ma
tional banks. as banks of issue, are going
| cally so. as the amount OF their notes In
| circulation Sept. !, was only S116,033, rs
| in total circulation of 81, 599, 236,5S4.
| OF this amount there is in gold coin
| s411, 154, All; in gold certificates, which
represent gold bullion, IN the national
treasury, l28,387, 1873; in standard silver
dollars So, So, 1856; in subsidiary silver
coin, s63,S97, 139; in silver certificates,
S32S, 2S9, AS; in United States notes.
SAB, So, 5O6; making tie amount IN cir
cuIation now 81 500 o6 5J4, or 324 80 per
| capita of the population. Only one-sixth
| of the standard silver dollars coined is in
circulation, the remainder being In the
| ~ tha JTn,tnl SfatnS fhnt
| the standard silver dollar may be regard
ed as serving the purpose OF subsidiary
+! coin. This is not true of the silver certlt-
icates which being capable of use in
! large transactions are almost wholly In
| circulation. Over one-fourth of the gold
coin in the United States remains in
the treasury; while only small fraction
OF notes or certificates is withheld from
circulation. This condition proves that
paper money is the favorite medium OF
exchange of it's issue have substantial
basis of redemption.
The amount OF national bank notes in
| circulation at one time was about $780,
100000. Less than one third OF these are
now IN circulation and they are being
rapidly withdrawn. 1t is only a ques-
tion OF brief time when all will be with
drawn. The contraction of the currency
from this cause has been a source OF
alarm for some time to fnanclers, and
has forced to a large extent, the accept
| ranr1a Cf tho
anomaly that national debt is nation
al blessing"
With the extinction of the national
debt the issue of United States notes
must cease, or we become converts to the
socialistic ideas we now condemn. What
are we to do under the circumstances?
The situation forces this question upon
our attention and the fact that the dem
ocratic party sees fit to present it for dis
cussion should not work to its disadyan-
tage with the people whose interests it is
the purpose to conserve.
Currency" as Senator Spooner happi-
ly stated, SIS the life blood of commerce.
To attribute any honest endeavor to pre-
sesye this life blood from vitiation, dilu-
ton or stoppage in its current, to section.
al favoritism is not the function of a
statesman having the good OF his country
at heart, and to charge any portion OF
his countrymen with the malign purpose
ofcalling into existence a currency OF
the wildcat variety with all the evils
| which it would entail is to charge them
with criminal intent. Such argument is
on parity with that so often lightly
made that the democratic policy of tariff
for revenue is designed to benefit Eng
land at the expense of our own country.
The tax of 10 per cent. on state bank
issue by the general government was not
to protect the people at large but
to force these bank to purchase govern
ment bonds and thus secure revenue fol-
the government commensurate with the
Financial straits in which 1T found itself
owing to the war. The government bonds
deposited as security for the redemption
of the circulation of the national banks
made these banks notes good, just as any
redemption fund in whose sufficiency the
these bank notes during the war and fol
a long time after the war, were far more
deprecated in value than were the issue
OF state banks at the time referred to by
Senator Spooner. Test the national bank
note circulation by the coin standard ul
to twelve years age, and it will be found
that the encomiums pronounced upon ii
are largely undeserved. But there is nc
denying that these bank notes, based
upon uniform system of redemption
have an equality of value which is desir.
able in a medium of exchange. But they
are going out of existence as banks of cir.
culation, Senator Sherman admits there
is demand for their retirement as soon
as payment of interest bearing bonds is
made. There is no need of a demand to
effect this, as when the issuance of bank
notes ceases to be profitable, the bust
ness will be discontinued.
The disparity between the amount OF
coin minted and the amount in circula.
ton is proof that coin, except what is
subsidiary, is not a popular medium OF
exchange. The amount of national bank
notes now in circulation is not much
more than one half the issue of the state
banks at the time they were supplanted
The demand for the free coinage of silver
issnot unreasonable in the sense that there
Is need OF more money. The stringency
must be relieved either by increasing the
volume of standard silver dollars, which
circulates only as subsidiary coin, or by
increasing the volume of bank notes
which The condition of the treasury
proves has greater mobility in the current