The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1893-07-03
ARGUMENTS FOR GOLD
Ex-senator Henderson Summaries The
Sentiments OF Wall Street.
WANTS A SINGLE STANDARD
Distorted Facts and Partial Statis-
ties Form the Basis OF the
Reasoning-A Lettor to
Carlisle.

B. Henderson Of Missouri, who has dc.
voted long and careful study to matters
OF finance, has addressed to Secretary
Carlisle tho following communication:
II promised to give you IN writing the
substance Of my statements made to you
In conversation touching the monetary
condition OF tho country. I then ex-
pressed tho belief that the present s.rin-
gency was produced, not by any lack or
insuffcicncy of our currency. but by the
loss OF confidence produced among busi-
ness men because of the bad quality or
inferior character Of large part OF that
currency. There Is no error of more
common prevalence than that an abund-
nnce of money issues necessarily adds TO
the commercial or business energy of q
people. or course, a certain amount of
money tokens is absolutely essential, with
which TO effect smaller exchanges OF
commodities. These money tokens do not
create exchanges but exchanges create
the necessity for tho tokens. Among peo-
pie entirely civilized, over IS per cent. of
the exchanges necessary in these opera
tions are contaminated through the
medium of bank checks. Experience
demonstrates that these hank facilities
become enlarged or contracted as money
tokens become scarce or abundant.
Hence. there 10 less danger in limiting the
bulk OF the circulating money than people
generally imagine. A bank check 10 bet
ter for another reason. Having performed
it's office, II ceases to circulate. II the ex-
iRencies OF business demand another
check, II 10 issued anew, and In like
manner destroyed when it's object Is ac-
complished. We shall not have a perfect
currency until every note used for circula-
tion shall be destroyed on its return to the
authority issuing II and when no new
note Is issued except for value received.
and only at the call OF business de-
mands."
Commenting upon the amount Of money
in circulation per capita among the peo-
pie of the United States from 1879 to 1873,
Henderson said that neither individual
prosperity nor commercial prosperity nor
commercial activity is absolutely con-
irolled by the amount of the circulating
medium. Continuing, he said:
II think l am safe in asserting that
from July 1, 1879, TO July I, 1893, we en-
joyed very great prosperity, individually
and nationally. There was no lack of
money. 1t sufflced not only to all the
treasury, but abundantly answered the de-
mands OF commerce and tho extraordi-
nary business activity was followed by
very high prices. TIE average per capita
circulation during this period was soO.6l.
From July. 1890 to the present period of
great monetary stringency We find an
average circulation per capita of S23.65.
II 10 therefore apparent that, I'm
common parlance, Times may
be hard, and money scarce
with q most abundant circulation per
capita. The circulation In Great Britain
Is now Sls.A: Sl&.i9 in gold; In silver,
SECS. and in paper. $e.A per capita. Tho
circulation In Germany 10 S11.56 and yet
In these countries, with their vast com.
mcrce and manufactures, there is no
dearth OF money and interest rules at
scarcely more than half the rates prevail
ing In this country.
England adopted single gold stan
ndard In 1916 and has adhered
to Il ever since. and by SO doing
has become the money center of
the world. The panic Of 1873 was, with.
out doubt, the direct result of speculation
and oycrtratlinc induced by the Rreenback
era. between 1853 and 1873, botl, inclu.
sivc. the balance Of foreign trade against
us was s.. .0s6, ,i40.5sT This long and steady
drainage bro,,ph, q loss of n large part of
the nations wealth and, with it. the coun-
try's entire stock Of gold. Take the period
of unbridled state bank issues Of paper
money between 1898 and 1857. We find a
similar result.
"Thc commercial condition. nox cxis,.
istinr are altoaetber different from ,n.
two pcrioJs named. II seems TO me dem.
opstrabic. SO far as a financial s,tua,io,,
can no looicnily demonstrated. that Ills
present situation in not the resu,t Of soec.
uiation or oyer tradiu. or had business
| metbods. but Ia largely. IL not wholly nro.
Juced by the silver legislation of congress,
Tbc increasing production of silver as
compared with gold induced GERMANY IA
follow England and discard Il ms q twin
| standard value. The American congress
! Of 1873, actuatcd no doubt by these views
| adopted without dissent a single gold
standard. Two years after, q measure
was inaugurated and passed for tho re-
| suuption of specto paymonts. IN becoms