Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-07-03
THE COUNTRY STILL RICH.
Ex-senator Henderson Says Distrust IN
Not-Poverty Causes Trouble.

Ex-senssop Hendsrsaa Says Distrust and
Not<Poverty Causes Trouble.
A letter received bySecretary Carlisle from
ex-senator JOHN B. Henderson OF Missouri
has been given out for publication. He argues
forcibly for . return to . single standard. Sem
ator Henderson reitsrstes Q former statement
Of his belief that the present stringency Is pro-
duced, not by sny lack or insufRciency Of our
currency, but by the loss Of confdsnee pro-
duced among business men because of the bad
quality or inferior character Of large part Of
that currency.
He argues that experience shows that the
amount Of circulasing medium Is not q meas
ure OF national prosperity. II think" he
says, II am safe In asserting that from July I,
1873. TO July /, 1883, We enjoyed very great
prosperity, Individually and nationally. There
was no lack of money. 1t suficed not only to
MI the treasury, but it abundantiy answered
the demands Of commerce and an extra
ordinary business activity followed by very
high prices. II will be seen that the average
per capita circulation during that period was
1880, TO the present, period Of great monetary
stringency, We ind an average circulation per
capita Of esS.66. 1t Is therefore apparent that,
In the common psriance. times may be hard
and money scarce with the most abundant
After reviewing the causes Of the panic Of 1878
and the money troubles between 1913 and
1851 he says: The commercial conditions now
existing are altogether different from the two
periods named. 1t seems TO me demonstrsble.
30 far q financial proposition can be log
ically demonstrated, that the present situation
IL not the result Of speculation, Of overtrading
or bad business methods. but that 1t 10 largely,
IL not wholly, produced by the silver legislation
Of Congress-"
Speaking Of the resumption Of specie pay
M nj IA h. az tor
Two years after adopting the single stand
ard. to WIT, In 1875, q measure was inaugurated
and passed for the resumption Of specie pay
ments. 10 become operative on January /, 1879.
II these two measures had remained on the
statute books, inviolate and unamended, there
10 no economical reason Why the United States
and its people should not today enjoy the most
unbounded prosperity. We should have had
the best and most abundant currency gold
currency Of universal value and OF such volume
a. to force its circulation, as in England,
France and Germany, into the hands Of the
people"
THE RENEDIEs SUGGESTED.
He then reviews the subsequent silver iegis-
lation and its consequences and says:
Once more the bubble Of a deprecated cur
rency has burst aud the splendid lie again
stands in its miserable deformity. Another
debit charge is to be made to the account Of
experience, on whose credit side so few entries
What nov Is the remedy?
I. The customs duties should hereafter be
paid in gold alone.
q The silver bullion in the government
vaults should at once be sold for cash in gold
and the proceeds covered into the treasury.
8. Three per cent gold bonds to the amount
Of $500 900 600 should be promptly sold aud
the proceeds transferred to the treasurer.
l. day should be fixed, not later than JAN
nary l. 1888, for the redemption and payment
l. III - II.
description heretofore issued by the govern
ment
s. At least half Of the silver dollars issued un-
der the acts Of 1878 and 1880 should be sold as
bullion aud the remainder minted into subsidi-
sry silver coins and made legal tender only in
payment Of 90 or less.
6. Provision should be made for the use of
the $500, 600, 900 Of gold bonds . basis for
banking, making the provisions liberal Is
possible consistent with safety. but under gov
eminent supervision. -
T. The basis OF national banking shouA be 90
enlarged % to permit the issue OF circulating
notes ON the deposit Of other than United States
bonds, the solveucy Of such bonds to DO passed
on by responsible government officials.
8. All bank issues to be redeemed in gold coin
on demand
9. All foreign gold coins should be made q
legal tender for debt and receivable for gov
srnment dues at their value, as fixed by law.
10. Previous to the LIST Of January, 1898, the
yurptua kunus OF inc treasury, eltQer from loans
- collections, to be placed with the banks in
such sections of the country ard in such
amounts as may be determined by the Secre-
SAry.
He declares his belief that the country is
stil rich.
1T is not poverty" he says, "but distrust
that afitcts 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
.dhhonorable to the government and ruinous to
the people. The act of 1890 was o mere device
~ substitute silver for gold - . sta ndard of
value. Iron or copper is either more stable in
value today than silver"