Mississippi leader. (Jackson, Miss.) 1892-1895, 1893-07-18
THE CURRENCY QUESTION
An Important Document on the
Monetary Situation.
Ex-senator John B. Henderson's Letter
to Secretary Carlisle Written at the
Latter's Request-Cause of
Existing Conditions.

Abt"k
Ex-senator John b. Henderson, OF
Missouri, has addressed to Secretary
Carlisle the following communication:
"To Hon. John G. Carlisle, Secretary Of
the Treasury: 1 promised to give you in
writing the substance Of my statements made
to you In conversation touching the monetary
condition OF the country. then expressed the
belief that the present stringcncy Is produced,
not by any lack or insuficiency OF our currency,
but by the loss Of confidence produced among
business men because OF the bad quality or in
ferior character OF a large part Of that cur
rency.
81. There is no error of more common preva-
lencc than that the abundance Of money issues
necessarily adds TO the commercial or business
energy Of people OF course, o 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 neces-
sity 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 o5 per cent OF the cx-
changes necessary in these operations arc con-
summated through the medium OF bank checks.
Experience demons trateS that this mode OF cx-
change.is more convenient, safer and less cx-
these bank facilities become enlarged or con-
tracted as the money tokens become scarce or
abundant. This Is q 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- wit:
That, having performed its once, 1t ceases to
circulate; it Is removed from the volume OF
circulating money and Is forever Cancelled II
the exigencieS OF business demand another
check II 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 1t, and no new note issued except for
value dnd only at the call Of business demands
England has como TO this, and America, with
England's experience, will do likewise.
Prosperity and Volume of Circulation.
"2. The amount Of money in circulation per
capita among the people Of the United States
on the 1st day OF July OF the years named below
Is shown in the following list: In 1873, Sle.09
1874 &1a19 1873 s171e; 1876, s1812; 1877, SIS. 5S
1873 SIS. 50; 1872 sIe.7b; $780, sls,4l 1885, s2171
1882 s22 81; 1888 s22 Oh 1884, 500 S. 1885 ga or
1885, SCI So; 1887 So 45; 1885, co. ss 1885, s22 52
$780, e22 81; 1891, s23 Al; 1892, s24 At; June l.,
1s93 e2s.ss. These figures demonstrate to the
business man Of a few years experience that
neither individual prosperity nor commercial
ACTIVITY Is aDSOlutely cOnlrOlleu Dy tU6 amount
Of the circulating medium. The passage IN 1870
Of the act for the resumption of specie pay
ments on January !, 1879, 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 1878 we were IN fact as in theory,
on gold basis having but single standard Of
exchange; and the benencent 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 an
amount which, In the constantly declining value
Of silver, threatened permanently to unsettlc
the currency.
~ think am safe In asserting that from July
I. 1879, to July !. 1888, We enjoyed very great
prosperity, individually and nationally. There
was no lack Of money. 1t suficed not only to
flll the treasury, but 1t abundantly answered
the demands OF commerce, and an extraor-
dinary business activity followed by very high
prices. 1t will be seen that the average per
capita circulation during that period was go 81.
II we now take the period from July, 1890, to
the present, period of great monetary strin-
gency, We fnd an average circulation per cap
its OF SEA 50. 1t is therefore apparent that, in
the common parlance, times may be hard
and money scarce with the most abundant cir
culation. IT, on given day, the active bust
ness men Of q community, for reasons good or
bad but satisfactory TO themselves, resolve to
make no further contracts, to quit all business
transactions, a seeming scarcity Of money Is
the result Whatever the volume of the circu-
lating medium, 1t does not impose itself on
anybody. He who gets ii must give an equiva-
lent for It, II nobody wants his labor or his
property he can get no money. II he who has
Il refuses to loan 1t, in fear that the currency
to be paid back at maturity Of the loan will be
less valuable, the condition is one Of stagna ton
and scarcity Of money is the consequence.
The per capita circulation in the United King
dom OF Great Britain is now s1a34 OF this
"a 40 is gold circulating freely among the peo-
e.. e. OF silver there Is only '''' an" OF paper
The Example of Europe.
"The per capita circulation in Germany is
still less to wit, Sl756. And yet In these coun-
tries, with their vast commerce and manu-
features, there is no dearth Of money, and In
terest rules at scarcely more than half the
rates prevailing in this country. England
ado pied the single gold standard in 1915 and
has adhered to it ever since. and by so doing
has become tho money center OF the world
Germany adopted the single standard in 1879,
and since that time she has been rapidly advanc
ing in all the elements OF national greatness.
It Is true that France has seemingly large per
capita circulation (S .07), but Of this SIT 95
sists Of silver which was coined prior to 1873,
while silver maintained its relative intrinsic
value to gold. The finances of France, for
tunately are steadied and made secure by the
happy possession Of at least $500 600 900 In gold
coin alone. More than half OF its deprecated
silyer IA total of s7oO 900 oOO) lies idiy in the
nank OF France where IL is likely to remain
unused "a the 1851 e7e s1f of coined dollars that
An June 4 1893. Law boarded in the treasury of
the United states The per cspita actual cir.
culstion in France scarcely exceeds that In the
United States, and, consisting as II does al
most vholiv ~ oold the currency 4. reasonahlv
nermanent and reliable: and as France has
now caased 10 coir silver. the financial sitpa.