St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-03
ON A SOUND BASIS.
Ex-senator John B. Hender-
son Writes a Powerful
Letter on Finance.
He Would Undo the Ruinous
Legislation Of 1878
and 1890.
Ten Suggestions as to a REM
= edy for Our Sick Money
System.
It Is Not Poverty, but Dis
trust That AfflietS the
) Country.

WASHINGTON, July O. Ex-senator
John B. Henderson, of Missouri who
has devoted long and careful study to
matters of finance. has addressed to
Secretary Carlisle a communication, in
which he says:
Il promised to give you in writing the
substance of my statements made to
you IN conversation touching the mon
etary condition of the country. l then
expressed the belief that the present
stringency of our currency is produced,
not by any lack or insufficiency of our
currency. but by the loss of confidence
produced among business men because
of the bad quality or inferior character
of large part of that currency"
Mr.. Henderson gives history of our
financial legislation, from which he
argues that neither Individual prosper
ity nor commercial activity is controlled
by the amount of the circulating me-
dium, but that the present financial dis
tress Is due entirely to the silver legis-
lation of 1878 and 1890. In conclusion.
he says:
''Of the five or SIX hundred millions
of gold with which we began i'll 1878
none can now be found in circulation.
What has not gone to foreign countries,
enjoying the blessing of single stand
ard, has been boarded, not to reappear
until its holders have some guarantee,
if loaned. it will be returned in money
equally good. The gold certificates not
already forced upon the government for
redemption are no longer SEEM
The United States notes. for the
redemption of which the $780,
100000 gold reserve is supposed
to be held by the government. cnstitute
the best security OF the national banks,
and hence the greenback is rapidly dis
appearing. The national bank notes
are necessarily held, if possible, by the
banks Issuing them, in fear that in the
extremity of distress their redemption
may soon be asked in gold. Nothing is
left but silver certificates and treasury
notes. The banks are unable TO main
tain their lawful reserves. Hence they
can give no relief to the suffering COM
munity. The government treasury is
depleted of its surplus. Government
expenditures exceed government re-
ceipts. EXtravagant government ap-
proprietiOns made upon silver basis
must now be paid in medium of value.
The needless promise to pay has now
run its brief course, and its perform
ance comes with suffering and tears.
t,NNhnt now ic a rompdVo
"First-The customs duties should
hereafter be paid i'll gold alone.
"Secondly-The silver bullion in the
government vaults should at once be
old for cash in gold and the proceeds
covered into the treasury.
"Third-Three per cent gold bonds to
the amount of 00,000,000 should be
promptly sold. and the proceeds trans
ferred to the treasury.
'Fourth-A day should be fixed, not
latel than Jan. l, 1898. TOR the redemp-
ton and payment in gold coin of
ali circulating notes of every description
heretofore issued by the government.
"Fifth-At least half of the silver dol
lars issued under the acts of 1878 and
1890 should be sold as bullion or made
into subsidiary silver coins, and legal
tender only for the payment of $40 or
less.
"Sixth-Use should be made of the
$500. 900. 600 gold bonds as a basis of
banking, making the provisions as lib
eral as possible consistent with safety.
but unGer government supervision.
seventh - The basis of national
banking should be enlarged so as to per-
nit the issue Of circulating notes on the
deposit of other than United States
bonds, the solvency of such bonds to be
passed OH by responsible government
officials.
''Eighth-AH bank issues to be re-
deemed in gold coin on demand.
"Ninth-All foreign gold coins should
be made legal tender for debt and re-
ceivable for government dues at their
value as fixed by law.
"Tentl-PTeYiouS to the 1St of Janu-
AIRY. 1898, surplus funds the treasury,
either from loans or collections, TO be
placed with the banks in such sections
of the country and III such amounts as
may be determined by the secretary.
1T is not poverty, but distrust, that
affiictS the country. Our fabric of
finance must be torn down and built
anew. 1t was conceived in error, and
every step increased the departure
from truth. The act of 1878 was dis
honorable to the government and ruin
Gus to the people. The act of 1890 was
q mere QeYlce 10 SUBSTITUTE silver
for gold as a standard of value. Iron or
copper is either more stable in value to-
day than silver. We accepted the bad
advice of the silver inflationists once
yea, twice. The cup is too bitter 10 con-
tinue the draught. They said, that. it
America coined silver, England, France
and Germany would be constrained to
use it, and that silver would soon take
the place of gold. On the contrary. its
fall has been rapid and without inter
mission. These foreign governments
now have our gold. and we are left with
Il currency discarded by the whole
world. and scarcely more valuable than
copper.
I'VE shall again be told that there is
not gold enough to furnish the worlds
exchanges. If every mans experience
did hot detect thissfallacy, the sophistry
might be accepted AS argument. Ii is
universally admitted. as already stated,
that less than per cent OF human
transactions require the use of circalat-
ing money. If more than this be
needed, it can be supplied by parer
currency rcdeemahle i'll gold.
at Will be charged that 3 single
standard IS sought by Capital as means
Of eXlOrtj3g higher rates of interest. 1t
is enough to say that in every country
having single standard, interest rates
are scarcely haif the rates prevailing
here.
"Give rs gold standard Of value.
Nov l9 the most acceptable time. We