St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-10-06
THE MONETARY QUESTION.


While the country is centerlng its at
tention on dilatory and impotent SEN
ate, the committees of the house, having
matters OF larger interest in charge. are
proceeding with their work, Investigate
Ing, receiving suggestions, discussing
plans aud methods. But little attention
is given to the work of one of the COM
mittees now, that on banking. but none,
not even the ways and means, has
more momentous question to consider
ami present to congress than has this
one. We see occasional references of
line or two in tie Washington specials
relating to it. and we gather from them
that it is studying the problem which
cOnfrOntS it.
The first and most vital point which
it will have to decide and which, when
decided. will determine its subsequent
line of work, Is whether the federal
government shall assume the duty OF
supplying the paper currency of the
country, barring out all others, or
whether the supplying will be RENTED
to citizens who wish to engage i'll IL,
subject to such regulations by and UNI
der the supervision of the general gov
eminent as will insure absolute safety
to the bill holders. 1t goes without say
ing that this country will never again
return to the DAYS when men scanned
bank note to see where it was issued,
and consulted their reporter to see if
the bank issuing 1t was solvent or how
much discount there was on it.
We are decidedly of the opinion that
the latter course should be adopted. 1t
is not the function of the government
to make money. Ali that it assumes to
do when it coins gold Or silver is to
certify by its stamp that the disc of
metal contains a quantity of either
metal whose bullion value in the com
mercial world is the sum expressed on
the coin. ltdOes not produce the metals;
it leaves that to the citizen as legiti-
mate field of individual industry. 1t
does not require him to have his metal
coined; it leaves him free to dispose of
it as he will, but it says that il he wishes
to use it as money then he must submit
TO have the government make it into
coins for the safety and convenience of
the people. Just so as to the represent
atives of money; its power equals its
duty, and is limited to providing such
regulations as to security as will insure
the absolute solvency of the represent.
alive at ali times. This right follows
as a necessary sequence Of the right to
regulate coinage.
There are two vital objections to the
greenback idea, even if the element OF
fiat is eliminated and the notes of the
government are sustained by a metallic
reserve; objections which remain after
the fundamental one is removed, that it
is not the province CT government to
provide money for its people. 1t is a
comparatively easy matter to ascertain
how much is the consumption by the
nation of staple articles. The amount
of wheat needed for food, the number
of pairs of boots and shoes required
| annually might be ascertained with
comparative accuracy, but there exists
nowhere the wisdom to ascertain and
| fix the amount of money needed by a
| people to effect their exchanges. There
| is no such similarity now among the
commercial nations of the earth as
would justify the adoption of any rue
of supply for us.
| Bitter experience teaches men that
disaster follows the possession of too
much money by a people, just as misery
| follows the possession Of too little. In
| this money differs in nothing from the
other things which civilized commune
ties need. Too much wheat, as we'll as
too little, for the needs of consumption,
bring evils in their train. Prosperity
| lies with the mean: distress with either
extreme. But with money, who shall
! determine the proportion of supply to
demand? Where is lodged the wisdom
that can fix definitely the limits? In
congress? Can this be claimed when
we now see one congress commissioned
by majority of the people to undo acts
that embodied the wisdom of another
congress? The Creator provided the
answer when He implanted in men the
impulse TO provide by their labor for
their own gain what other men wanted.
The desire to make profit, the repug-
nance to loss, are the great controlling
forces which work to keep an equilibri'
UNI between supply and demand to-
wards the preservation of the true mean
Is too much produced? Men curtail
production. Is there too little? Men
increase production.
There is nothing sacred or holy OF
venerable in money, though men are
trying to persuade themselves that sill
yer money is all Of these. 1t is only g
thiIo rrOdnond hGaol,c1
men want it. Its function is to move
other commodities, and its supply
should be proportional to the work tC
be done. Ii left to men TO provide, as
other commodities are left, enough vii
always be produced to do the work
profitably; if it cannot be prCfitably
used it will be retired. If there is toe
little and its value rises, the supply
will speedily increase. With the sup
ply left to the people to provide there
could be no cornering of money; NJ
great combination could be formed tt
lock it up. Increase of supply woulC
break the combination, just as cor
ners in wheat and pork and IarC
and copper have always been brok
en-, only more easily and quick
ly. Given a fixed quantity of mon
ey incapable OF quick expansion, a.
would be the case of governmental
notes, and cornering becomes feasible
For these and other reasons we trus
that the banking committee will recon
mend the regulation 10y congress of the
money issued by those who wish to en-
gage in 1t.