Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-07-03
SENATOR HENDERSON,,
Of Missouri, Discourses on the None
tary Situation.
NOT AN INSUFFIGIRNGY OF MONEY
But the Inferior Character OF a
Large Portion of it Has-Caused
the Present Financial Stringen-
cy-The Views Of a Student OF
the Situation Presented to Sec
retary Carlisle.

WAsH1SGroN, d. G., July 2.-Ex-
Senator John B. Henderson, OF Missouri,
who has devoted long and careful study
to matters OF finance, has addressed to
Secretary Carlisle the following commu-
nication;
TO Hon. John G. Carlisle, Secretary Of the
Treasury;
promised to give you in writing the
substance of my statements made toyon
in conversation touching the monetary
condition Of the country. then e4-
dressed the belief that the present strin-
gency is produced, not by any lack OF
insufficiency Of our currency, but by the
loss OF confidence produced among ousi-
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 the aoun-
dance of money issned is necessary to
the commercial or business energy OF
people. OF course, certain amount OF
money tokens are absolutely essential
with which to effect the smaller eX-
changes Of commodities.
These money tokens do not create ex-
changes, but the exchanges create
necessity for the tokens. Money tokens
do not grow wheat and corn, nor manu-
facture cloth, nor operate railroads, nor
sail shiUs. Labor aud skill do these
things; and among a people entirely
civilized, over ninety-tive per cent. OF
The exchanges necessary in these opera
tions are consummated through the
medium of bank checks. Experience
demonstrates that this mode OF ex-
change is more convenient, safer, and
less expensive, and experience also
demonstrates that these bank facilities
become enlarged or constructed as
money tokens become scarce or aound-
ant. This is business law as ine1ora-
BILE as the laws OF nature.
Hence there is less danger in limiting
the bulk of circulating money than
people generally imagine. The bank
check is better for another reason, to-
wit: that having performed It's Office IL
ceases to circulate; it is removed from
the volume of circulating money and Is
forever cancelled. II the exlgencies OF
business demand another check 1t
fs issued anew, and that In
Ike manner is destroyed when its
object has been accomplished. We
shall never have perfect currency
until every note used for circulation
shall be destroyed on its return TO the
authority issuing it and no new note
issued except for value and only at the
call OF business demands. England has
come to this and America with Eng
lands experience will dolikewise.
The amovnt OF money in circulation
per capita among the people Of the
United States on the first day OF July
from 1873 to 1898 inclusive, is then
given. Continuing Mr.. Henderson says:
l think am safe in asserting that
FROM july 1, 1873, TO JULY 1, 1888,
we enjoyed very great prosperity, indi-
viduaI and nationally. There was no
lack of money. The average per capita
circulation during ,thet period was
500. 81. From July, 1890, to the pres
ent, period of great monetary strin-
gency, we find an average circulation
per ccpita OF S2365. II is therefore
apparent that in the common parlance,
'.times" may be "hGrd" and money
scarce with the most abundant circula-
tion. II, on q given day, the active
business men Of community for rea'
sons good or bad, but satisfactory TO
themselves, resolve TO make no further
contracts, to quit all business transac-
tions, 3 seeming. scarcity Of money Is
the result. Whatever the volume OF
the circulating medium, Ii does not i'm
pose itself on anybody. He who gets II
must give an equivalent for 1t. II no.
body wants his labor or his property he
can get no money. II he who has 1t re-
fuses to loan It, in fear that the cur
reney TO be paid back at maturity Of
loan will be less valuable, the condition
is one Of stagnation and scarcity OF
money" is the consequences, The
panic OF 1873 was with
out doubt the direct result Of
speculation and oVer-trsdiDg induced by
the greenback era beginning In 1s62-63.
Between 1863 and 1873, both inclusive,
the balance of foreign trade against as
was 81, ,Os6, 40, 5s7-that is we imported
into this country during these eleven
years oyer aud above our exports or
merchandise this enormoussEm Of over
one thousand million dollars. Two
years after adopting the single standard,
to-wit: in 1878, a measure was ihauga-
rated and passed for the resump-
tlon of specie payments TO become
operative on January l, 1879. X those
two measures had remained on the stat
-, fnTo 4 q
there IS no reason why the United
States and its people should not to-day
enjoy the most unbounded prosperity.
We should have had the bast and most
abundant currency. y gold currency Of
universal value ami Of such volume as
to force its circulation, as in England.
France and Germany, into the Hands.0f
the people. To be assured Of the fact
il is only necessary 70 examine TIE con-
ditions Of commerce for the last seven
teen, years.
,.Of the Eve or six hundred millions
Of gold with which we began In 1878,
more can now be found Ia circulation
What has not gone TO foreign countries,
en5oYing the blessing Of . single stss-
! dard hhs been boarded. not to feappear
natil its holders have some guarantees
Ifhat Il wln be returned IN lnone7
| e6 ii IS good. The gold cert licAtes mol
airea6f forced upon the goFPrnnent
for REDEEM ptlon. OF which 81 ( oEia nun
/ Idrad million gold reserve IS supposed 70
/ be hold bI the government. constttuts
Itho best see1s,ty OF the national 1ss7ks,
Z