The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1893-08-17
SCIENTIFIC OPINIONS
BY COLLEGE PROFESSORS DIsTIE-
GUIsHEDLY LEARNED IN Pc.
LITICAL ECONOMY.
What They Think Congress Should do With
Silver at This Juncture and Their Views
on Bi. Metalism-Wholly Nou-Par-
titan vsrdicts by Authorities
on the Subject.

The Review of Reviews in July, as
soon as the extra session was called
wrote to distinguished professors Of
political economy and science in the
leading universities of the nation ask
ing their opinions upon what congress
should do about finances. The an
swers were received the latter part OF
July and published in The Review OF
Reviews the 1st of August. Follow
ing are some of those replies, all OF
which were of the same tenor:
ANSWERS.
Professor Taussig OF Harvard University:
The Sherman act should be repealed
so much seems to be agreed on.
That unlucky measure Is bad In prin-
ciple and dangerous in practice. 1t
makes the growth of the currency
depend not on any ascertaiped need,
but on the accident of the price of the
American product of silver. 1t pro-
vides for monthly issue which Is
probably excessive and has certainly
proved dangerous. The extent to
which 1t has caused the financial dis
turbance of the last few months has
been exaggerated; but 1t was beyond
question main cause of the feeling OF
helpless distrust, which is the first &C.
casion of all such panicky experiences.
What should be put in it's place?
For one thing, 1t will probably be
best for the moment to leave the pres
ent volume of treasury notes and ell
yer certificates unchanged. TO.reduce
their quantity or substitute for them
other sorts of currency would bring
political! and financial complications
which it is not necessary now to in
vite. AS they stand, with further in
crease stopped, they can be kept con-
vertible Into gold without serious
difficulty.
For the immediate future we ought,
80 to speak, to turn the corner; give
up the mechanical process of issuing
currency on fixed silver purchases
and adopt some method by which the
growth of the money supply is made
to correspond to the fiuctuating
needs of the community. 1t would
perhaps be possible for a sober and
conservative community to attain this
end by diiect government issues, but |
the dangers of such policy In the
United States have been wildly Illus
trated by the history of the last 20
years. The better plan is the old one
by experience, bank note
issue Congress should provide sys. |
tenn under which banks could freely |
issue notes convertible into legal
tender ultimately, therefore, into
gold) hey ond a shadow of question.
The best plan Is to enlarge the base
on which the national bank notes rest,
and 80 enable them ultimately to at
tain q dominant place in onr every.
day paper currency. The alternative
is to permit the issue of state bank
notes under conditions insuring mod
Grafton and convertibility. The form.
or plan entails political difficulties,
the latter constitutional diff ,ulties.
The brave policy is to meet the politi-
cal opposition and to codrageously
put before the people the question
whether they wish to have national
bank money which shall be sound and
unquestioned, shall present no temp
cation to currency tinkerlng, and
shall grow without trammels as the
needs of the community spontaneously
call for incl ease.
f. w. TAUssIG.