St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-09-20

laration that he is il favor OF paper
money, coupled with his argu-
ments. makes it apparent that he
has made a great study of finances.
He criticised the money and
financial policy of the United
States as we'll as the utterances of prom
inent men and papers in this country
on money matters. lie seemed TO favor
the Window monetary policy in many
things, and complimented the course of
Secretary Carlisle On money matters.
lie began by saying that within the
whole domain of political science the
currency question is the most impor-
tant. 1t has been found, he said, that
the channels Of commerce are drying
up, some or the interests of trade are
being stifled. and tho army of the EN-
plOyed IS decreasing because of the
financial conditions in America. The
duty OF the people is to inquire as to the
cause. and. II possible. apply the rem
edy for the depression.
The American phrase bit off more
than he can chew is applicable to the
people Of the United States at present
on the money question. America has
borrowed Oh her potential factors. Her
mortgage indebtness has Increased 240
per cent in q short time. Private debts
have increased more than billion dol
lars per annum in late years. Add 10
private debts tile public obligation
aud the United States owes 81
per capita. Any individual whose
income will not meet his outlay
must either continue to borrow or make
an assignment. Australia has largely
increased her debt, but America is not
in as bad condition because she will
recuperats faster iiIam Australia, be-
cause closer 10 market and having bet
ter facilities for producing. The bal
ance Of trade is against the United
States, but her exports are greater than
her imports. The reason is America Is
A LARGE BORROWER.
When the balance of trade is adverse,
trade becomes siaCnant ana bank
circles become nervous. The people
here live too high. A man who was
borrowing money few years ago and
WHO was not rich, found upon coming
back to this country was still borrow
er. but was living as if worth millions.
Your Western towns have tendency
to add acres to the corporation. The
vacant land is unproductlye and eXpen-
siye TO the city, The United States, in
their financial policy lave gone directly
in the face Of established theories and
of sound financial experience"
Mr. McCulloch said he was surprised
that the people here are not SO modest
as TO refrain from charging Legislative
bodies with bribery. lie denied the
statement that English banks had
bribed congress 10 demonetize silver.
He declared that in his country gold
has always been legal tender for any
amount, but that silver is only a legal
tender for small amounts, and paper
money has been legal tender for some
debts. Bank notes have not beeu a
legal tender.
Continuing, Mr.. McCulloch made
points as follows: Double the cur
rency and you double the purchasing
power, but do not increase values. ThC
British wealth is equal TO that of Dotll
France and Germany, but England does
her financial transactions with but 215
per cent of their value in currency and
coin. Money should not be Included
in the wealth of country. II
will have to be demonetiZed and
reduced 10 commodity before il
can he taken as part of the wealth
Prices may be raised or lowered by i'll
creaSing or diminishing the volume OF
currency, but that does not affect values
| Currency Is not synonymous with mon
ey. The Scotch bank notes, the Bland
and Allison certificates OF your country,
| may not be taken for ali debts. That
which Is taken FOR taxes and for all
debts is money. Paper currency is not
| only the cheapest but is the most eff
| cient and convenient. Gold coin costs toe
much in LABOR and value to be used foI
currency Most money has but ii small
value as commodity. When its com.
mercia value is equal to its face value
| it is a legal tender. The Austrian
] ritl1In hqG a fusa NufIn lAt- ,,f he
| power of the government. and ii is al
ways AT par there, but III England ii is
| at premium. GOur bank issue oil
notes Is expensive. The banks draw
| interest on the bonds issued and then
! draw interest on The 30 per cent of bank
notes issued. II is wrong TO think Oi
! allowing the banks to issue bank notes
10 the amount of its bonds secured from
! the government.
NO RATIO POSSIBLE.
No ratio can be preserved between
gold aud silver. 1t is an absurdity
You may as well expect a ratio between
tea and sugar. You cannot preserve q
| double standard. 1t will osciilate.
| have no more love for gold than | have
| for silver. If bimetallism is good then
| trimetallism Is good. and you may as
well have copper money also. / favor
! paper money-haVe it all paper. Money
has not been properly controlled. Put
| it into the bands of commissioner
who shall provide for increas-
ing or decreasing the volume
according to the increase OF
decrease of wealth or the rapdity OF
trade. Provide for supplementary
currency to be issued in such times OF
financial depression as you have al
present. Don't let the banks issue it,
but let the government issue it to the
banks. TO relieve such such stringencies
as you have now. and when the times
get better withdraw itfrom circulation.
This was the plan OF Secretary Win
dom, and he deserves credit for sug-
costing it. Money is the creature of
law, and It's amount and character
ShOuld he rnyulatad Inv Low