The Maryville times. (Maryville, Tenn.) 1884-1944, 1893-07-26
THE CURRENCY QUESTION
An Important Document on the
Monetary Situation.
Ex-senator John b. Hendarson,s Lette,
to Secretary, Carlisle Written at the
Lstter's Request Cause of
Existing Conditions.

Ex-senator John B. Henderson, of
Missouri, has addressed to Secretary
Carlisle the following communication:
ITO Hon. John G Carlisle, Secretary OF
the Treasury: l promised 10 give you in
writing the substance OF my statements made
70 you In conversation touching the monetary
condition Of the country then expressed the
belief that the present stringency is produced
not by any lack or insufflciency OF our currency,
but BY the loss OF confidence produced among
business men because Of the bad quality or in
1crior character of a large part Of that cur
yency
81 There is no error OF more common preva-
1once than that the abundance Of money issues
uecessarily adds TO the commercial or business
energy OF q people OF course, certain amount
Of money tokens are absolutely essential with
which to effect the smaller exchanges OF com
modities. These money tokens do not create
exchanges but the exchanges create ueces-
Gity for the tokens Money tokens do not
grow wheat and corn. nor manufacture cloth,
nor operate railroads, nor sail ships. Labor
and skill do these things. and among people
entirely civilized over % per cent OF the ex-
changes necessary in these operations are con-
summated through the medium of bank checks.
Experience demonstrates that this mode OF cx.
change is more convenien !, safer and less ex-
pensive, and experience also demonstrates that
these bank facilities become enlarged or con-
tracted as the money tokens become scarce or
abundant This Is business law as inexora-
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-wlt:
That, having performed its Office, it ceases to
eirculate; 1t is removed from the volume Of
circulating money and is forever Cancelled II
the exigencies Of business demand another
check 1t is issued anew, and more in like man
ner, and 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 author
ity issuing it. and no new note issued except for
value and only at the call Of business demands.
England has come to this, ana America with
England's experience, will do likewise.
Prosperity and Volume Of Circulation.
- The amount Of money in circulation per
capita among the people Of the United States
on the list day Of July Of the years named below
Is shown in the following list; In 1873, slS03;
1874 S18 10; 1875, Si7lG: 1876 SlGl2; 1877, Sl55S
1878 SIS 81; 1870, $685. 1882 tl0.4l; 1881, ssl7l;
1851 S22 81. 1887, a9; 1884, Sa26 5; 1885. s23 o.:
1884, s2162; 1887 500 As; 1883 se8; 1889, a.. 81
1890 SD 81. 1891, s2S.4 1892, S2447 June l,
1888, s23e So These figures demonstrate to the
business man of q few years experience that
neither individual prosperity nor commercial
activity Is absolutely controlled by the amount
OF the circulating medium. The passage in 1873
of the act for '';e resumption OF specie pay
ncnts on January I, 1877, put an end, for the
time being, to our deprecated paper currency,
and from that time till the passage of the Bland
Allison act of 1873 we were in fact as in theory
on q gold basis, having but single standard OF
exchange; and the benehcent effects OF this
single standard, giving assured condolences
which can be based only on uniformity and per
manency OF value, lasted until increasing silver
coinage, under the act Of 1873, reached on
amount which, in the constantly declining value
OF SILVER, threatened permanently to unsettle
the currency
IL think am safe in asserting that from July
a. iS79 TO July |, 1898, we enjoyed very grea'
prosperity, individually and nationally. There
was no lack of money 1t suiiced not only to
M the treasury but it abundantly answered
the demands Of commerce, and an extraor
binary business activity followed by very high
pri.cs 1t will be seen that the average pei
CAPITA circulation during that period was Sa06l
IL we now take the period from July, 1897 tC
tne present, period OF great monetary strin
gen Y, We lind an average circulation per cap
i,a OF 3:::a e3 1t is therefore apparent that IL
the common plr!ance, times may be ohard
and money scarce WITH the most abundant cir
culation. II, on Il given day. the active bust
Gtss men Of u community, for reasons good OF
t:d hut satisfactory 20 themselves, resolve t
make no further contracts, to quit all business
transactions, a seeming scarcity OF money Il
III r. srlt Whatever the volume of the circu
1l,irs medium, Ii docs not impose itself OIL
,rl,,, sriNy ~ n u
lent for it, II nobody wants his labor or hi
property be can get no money II he who ha'
ii refuses TO loan IL, in fear that the currency
10 I've rr.ii hack NJ maturity OF the loan will bt
less valuable, the condition is one OF stagnatioi
and starcttv Of money is the consequence
TIE yer capita circulation IN the United King
6uin nj Great Britain is now slo,34 or thi:
Sli 10 is gold. circulating freely among the PEG
ple OF silver there is only s265 and Of papo
3a.l
The Example of Europe.
"Ji. ,cr capita circulation in Germany il
still less 10 VII. SlIjt Aad yet in these corn
tries. with heir vast commerce and manu-
Tsc;urcs there Is no Ierrth Ct money, and in
ws~s, rules a, scarcely more than half III,
ral,s Prevailing In this country England
adopted tnc single gold standard in 1915 anI
has adhered TO it ever since and by SO do!ni
has hecume the money center OF the world
GERMANY adopted the single standard in 1872
and since that tim" she has been rapidly advanc
aug IN all the elements of national greatness
II is rue that France has y seemingly large pc
caNta circulation tfil Oh, but OF this I'll 95 con
ssts Il silver which was coined prior 10 1919
Will" silver maintained its relative intrinsic
value TO gold, The finances Of France, for
tuna'riv. arc s.eadiea and made secure by tn,
happy POSSESSION Ct at least $500 900 600 in golf
Coin alone. More than half OF its depreciate,
silver "a total Of 200, 0GoOO0) lies idly in III
BANK OF France where II is likely 10 remain
unused, AS the 1851 e1S SIC Of coined dollars tina
.on juno l, 1909, lay boarded IN the treasury o
the United States The per capita actual cir
cuia,ion in France scarcely exceeds that in tn,
United States. and. consisting AZ IL does al
most wholly Of gold, the currency is reasonably
permanent and reliable; and as Franco ha
now ceased to coin silver, the financial situa
tion there is not threatened as here by
change Of STANDARD
3 The pantSD 1873 was, without doubt. tn
direct result =! speculation and overtradint
induced by tie grrenback era beginning /,
Iss-ci Between 1879 and 1873 ho,'i inclusive
ghe l'olaace Of foreign trade aVairst US wa
~, 81 400 SHAT is, we imported into thi
country during these eleven years, over an,
atpve our exports OF merchandise, this enor
rnouS SUN Of over one thousand million dollars
This lanS and steady drainage. lasting withou
a single intermission for eleven years. brough
It's legitimate fruit-a loss Of large part o
shr,nation's wealth and with 1t the country
entire stock OF gold The only currency lef
us was the grcenbac,' and the national ban
note, which latter, heing redeemable in law
rui money Of the u=i,ed States, could no
acquire any higher value than the greenbacl
itS-f
Take the period OF unbridled state bank Is
sues u paper money, between 1888 and iS5;
both i..''insivr, and we ind similar result /
a total i,,-irn commerce in these ten years q
rcnlr 'S3Ss NM, eon, the excess Of onr imports Q
sEncr~h sai:sr over exports was almost S.l1 900