The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-07-03

wAsHrssroS CIrr, July a-Ex-senator
]. B. Henderson, of Missouri. who de-
voted long and cayetul study to matters OF
finance. has addressed to Secretary Carlisle
the following communication:
I promised to give you in writing the sub-
stance Of my statements made to you Ia CONVEX
essiou touching tae mone4aSy condition OF the
country. I then expressed . belief that the
present strineeucy wa0 produced, not by any
lack OF insudSc.cncy Of our currency, but by the
loss Of confidence produced amone business
men because OF the bad quality OF interior
character OF . large part OF that currency.
There 10 no error Of more common prevalence
than that m abundance OF money issued neces-
saEiiy adds 20 the commercial or business energy
OF people. OF course. . ccrtain amount Of
money tokens are absolutely essential
with which Ito effect smaller exchanges
in commodities. These mouey tokens do not
create exchanges, but exchanges create . neces.
stfy for tokens. Among people entirely civil.
lied. over 81 per cent. OF the exchanges neces-
sary in these operations are cocsummated
through the medium Of bank cheeks ExpeY,-
ence demonst:ates that these bank facilities
have become enlarged or contracted - money
TOKENS become scarce or abundant Hence
there 10 less danger in limiting the hulk of cir
euiattng money than people generally imagine.
bank check 10 better for aaosher reason.
Having performed it onice. Il ceases 70 circu.
late II the exigencies Of business demand
another check, it 10 issued anew aud In like
manner destroyed whom its object 10 accom-
plished. We shaii never have perfect currency
until every note used for circulation shah b
Destroyed on return TO the authority issuing il,
and no new note iasued except fox value, ana
only - the call OF business demanda
Commenting upon the amount Of money
in circulation per capita among the peo-
pie Of the United States from 1873 to lsa3.
Henderson says that neither individual
prosperity nor commercial activity are alb
soiutely controlled by the amount OF the
circulating medium Continuing he
states:
think Am safe In asserting that from July
]. 1873. 70 July !, lSS3, We enjoyed very great
prosperity individually and nationally. There
Was no lack Of money. II sufAce1 not only to
nil the treasury. but abundantly answered the
demands OF commsfco and Extraordinary busi-
ness activity followed By very high prices Tho
average per capita circulation during that pe.
riod was &ei.6l. From July, 1880. to the present
period OF great monetary stringeucy. we nnd
an average circulation per capita Of y2a62 II
IL therefore apparent that. In common parlance,
shines may be hard and money scarce with
the most abundant circulation per capita The
circulation In Great Britian nov 10 $685.
SiAto In gold. In silver o2fA, snd In paper @ n
The pr cAptta circulated In Germany il or. So
asd yet In these countries. with vast commerce
aud manufactures. here 10 no deaEth Of money
ana inteTsst rules at scarcely moro than half the
rate prevailing in this country. ENGLAND
adopted single gold standard in 1916 and has
adhered to Il ever since. and by 20 doing became
the money center OF tho world The panic Of
1878, without doubt, was the direct result OF
speculation and over trading induced by the
greenback era Between 1863 and 1873, both In.
elusive, the balance Of foreign trade against Us
was 81. .Os6. .%4o,5s7. This long and steady drain.
age brought about the loss of large part of the
nations wealth and with IL the country's entire
stock of gold. Takeshe period Of tho unbr died
state bank issue OF paper money between 1873
and 1857. and We find = similar result.
The commercial conditions now existing arc
altogether different from the two pcrioda
named. IL seems to me dem etrable so far
as financial proposition can 10 logically dem.
onstrated. that the present situation II not the
result OF speculation, or oveftfadinR. or bad
business methods. but largely il not wholly
produced by the silver legislation of congress-
Tho Increasing production Of silver - compared
with gold has induced Germany to follow
England and discard II - a twin standard OF
value. The American congress of ls7a sctuated
20 doubt BY these views, adopted without dis.
sent the single gold standard. Two years after
q measure was iEaugurated and passed for the
resumption OF specie payments, to become on
sfative on January I, 1879
II these two measures had remained on the
statute hooks fnviolsts and unamended there 10
no economical reason Why the United s,ates
and its people should not today enjoy mo,t un.
bounded prosperity We should have had tho
beet and most abundant currency, q cold cur.
rsncy Of universal valus and such volume "A To
force its circulation IS in England, France ana
Germany, into the hands OF the peop.e To h
assured Of this fact Il IL only uecessary Ia
again examine the conditions OF commercs for
tho last seventeen years Although the excess
OF our export products OF lso, amounted tn
nesry Sos COS. 80 yet the most startling fact an
resss that during that year We exported over
$ls,eo.ooo OF gold, AID now the balance OF trade
10 naturally turned against us. the country be-
leg drained OF its remaining gold with alarming
rapidity.
IL only remains now briefly 20 state the ebsr
actef of the silver acts OF ISIS and ism and
iarnisa you reasons Tor believing that the over
throw OF public confidence and the prescn. de-
preston in business are the legitimate conse-
auenees OF these acia The natural OF normal
results Of this ieSislsfisn would prohsblr have
followed much sooner but for the MANY sbuna-
Al, crops of this country and the uumerous
failures in that respect abroad Under ,hs ar,
o. ISIS the government purchased %. q, Bt D
ounces of fine silver. at a cost Of &sts. lss ass
and coined IL into siIver doliara 10 the amount
OF &S-s, ID. 79a Ap.oft OF nearly s.n. 90 GO wa
made by stamping falsehood on the coins. ana
converted into the treasury a. 60 mush pro.,
Under the act OF lsao the roverau,<nt mn "a
June l. 1885, purchased 3lsS. 3si.ss7 OF silver and
under Injunction continued the coinage for a
year. Under the act OF ls,o there were coined
additional dollars to the amoun; of asg os7- -e,a
Aiding TO ihese amounts the recasnago O. trsds
doilars into standard do, iays We had nm Iuua
/. iss,, coined silver doiiars amounting TO Saa.
81. soA
II We take the market price Of silver on Juns
/, @ cents per ounce, the Ices on this e,aI,ion Al
purchased by tie government on tha, day was
a2,5is,e-. On Jane -. 1886. bsf silver Wa
wosfa oaly 3 cents per ounce, ensal.iag upou
tbs govern meat an additions. loss of Sal ,sg az.
IA less tbs q noath- IL II oovious 70 the leas,
eiscsrning aaaac.ess OF ihe country that the act
OF ISIS would eventually bring about without
doubt staaa2rd Of aisefsisted silver
Hence, IRON The beginning. these dollars
sers received vita sfcaE dlssrus;. Bat
eong:eas having entered upon this .,rsage
scheme Of sxpa2ssoa. determined TO use the
yowe. OF the government 10 force circulation
upon an unwilling public Ii vas decided that
10 national bank should belong To q clearing
house thai refused silver certificate in payment
o. balances Mhea nAax csa-sers had to lie Re-
ne wed conditioned ea ths receipt aad esyeu.a-
sloE Of currency a,seasy bad snd getting worse
Gag hy dsy. she government entered tie Ge.d
as commoa carrier aud Transported
without charge nnacesrssb,e currency to
any part of tie country :aas voald dsposit gold
!ar IL in The sae-freAsuriea Teas sks govern
meat sosed tie Wind sEi Eov. By TIE last lsw
.s rSew- xh fgtr