St. Paul daily globe., 1893-04-21

The May number of the Literary
Northwest contains a paper from eX-
Gov WILLIAM Il. MERRIAM, entitled
"a Monetary Spasm,' which deals with
the present national situation i'll the
lucid and strong style so characteristic
of this most able financler. He asserts
that sentiment has much to 40 with
things financial" and that, while cap
italists are governed by facts" they are
neceS Sarily governed 'Dy sentiments as
we'll" There is q prevailing feeling
throughout the country, he says, that
we are soon to attain a condition when
silver is to be our only medium Of eX-
change, and as a result, gold, the COW
eted money of the world, is to disap-
pear" 1t will be quietly retired TO the
safety vaults, there to await the pre-
miam soon to accrue. Banks will
cling to it for fear that a crisis
may come which will force them
to meet Obligations due their depositors.
All our ills are not traceable to the un-
fortunate SHERMAN law; There are
other and deeper causes for the present
monetary spasm." One Of these ''is a
fiscal system based upon the theory that
the government should engage in the
business of banking and of emitting the
currency forth for the purpose of max
ing the exchanges of the country. So
long as the plan prevails, so long as the
great industries of the land are subject
to the caprice, the vagaTies and the
demagogy of politicians. shall we have
these frequent attacks of financial collie,
varying according to the condition of
the public treasury, or the fitful eeonO-
mist who formulateS his opinions In
way to secure the larger number of votes.
The finances Of the country should be
divorced from politics. If we keep pay
ing out gold for silver, there must be a
point reached when the gold can not be
had to redeem silver certificates. and
when that Is attained the gold is at
premium, and we shall find ourselves
upon a silver baSis--a commercial ma
tiOn of the second class. with Mexico,
China and India as our financial allies
and equals. A demOnetizatiOn of
S600,000, 600 of gold would result in
disarrangement OF credits. a lower
range of values, with consequent en-
barrassment and ruin to thousands of
men employed in the ordinary avoca-
tions Of trade and commerce. producing
widespread devastation in all branches
of business"
The writer thinks that if an inter-
national agreement cannot be made
fixing a uniform ratio of coinage be-
tween gold and silver. then we must
abandon the use of silver, save as a
subsidiary coin. or give up our position
as one of the leading commercial ma
tioDs, and depend upon silver as
our chief metallic currency. "The
cheaper money will drive the more
valuable out of sight"
1.-The time has passed." says the gov
ernOr, "when state bank issues will
answer as local circulating medium
for the exchanges between different
parts of the country. We need
a currency redeemable in coin at every
trade center, and good for its face at
every hamlet and city in the land; a
currency safe and elastic enough to ad-
just itself to the varying conditions of
trade; that will move to the West and
South to aid in the movement of cereals
and cotton crops, and return to the nerve
centers of trade. there to be retired
until some necessity calls it again into
service"
The article is we'll worth careful
reading.