The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1893-08-10
MONEY, AND HOW TO CIRCULATE Il

Yesterday one of our quite well in
formed business men, propounded q
question TO one of our local political
economists, something like this:
Nov, IL the government should
Issue more currency, or provide more
currency, how are you going to get 1t
into circulation ?"
Having propounded this question, the
bus ness man said TO the economist:
"Now will give you q day to answer
this question, and want you to think
ovei t. 1 will call for an answer to-
mUiiuw."
yh- economist was relating this
mhirt last evening, In the presence of
seN, | gentlemen, among whom was
ar, sentative Of the News. DEMO-
Graf.
n the question is thought to be
pei .nent, let us look at 1t, in business
way.
Suppose the government should
dec ue to relieve the present money
fam me, by al issue of 100000 900 full
legal tender paper money, or 800, 100000
treasury notes. Let US see how we
could get this money into active circu-
lation.
Every quarter the government pays
to old soldiers, (scattered all over this
broad land) about $45,000,0O0 In PEN
sion money. Suppose the government
should pay out S45, 100000 of the new
issue TO the pensioners, would not that
$45, 100000 get into immediate and
active circulation, where it would do
the most goodp Everybody knows
that the old pensioners are mostly poor,
and that the pension Just flies around,
discharging debts, just as soon as re-
ceived. No government money, that is
paid from the U. 5 treasury goes into
such immediate and active circulation
as the old soldiers pension money.
Hardly any of 1t is ever boarded. Then
we have $55 100000 left.
The government, pays out in
salaries to its 100000 officials,
every three months, about $50,000,0 900,
including the salaries Of our highly ex-
travagant diplomatic corps, and the
salaries to ,he army and navy. This
includes the $12, 800 paid the President
Of the United States every quarter, and
the stipend of $240 paid each of the
spittoon cleaners in the war, navy,
treasury, interior, post-office, adj. gem
erals and agricultural departments.
Now, we have only $5,000,000 left for
distribution, out of the Sl0OOOOOO0 is
sued. And yet we have the Iudian bu-
reau, the light house keepers, the vast
expenditure for public buildings, and
the river and harbor appropriations,
that will absorb the balance Of the So
00c,000 in less than 30 days. And the
bulk Of this money has gone into ac-
tive circulation.
Now let us propose another plan.
Suppose, instead of issuing treasury
notes or legal tender money, Congress
should pass law allowing the Ma
tional banks to issue currency up to
the face value of their bonds. This
would increase the volume Of money 10
per cent in every National bank in the
United States.
Do you ask how this increased
money would get into circulation? We
can answer, 80 plain that an idiotic
asylum can see 1t.
Take the hourishing city of Kalama-
90 for illustration, We will imagine
that there Is q great watch factory in
Kalamazoo, that is capable of employ
ing 1000 workmeD, but Is now idle be-
cause the banks of Kalamazoo, being
very conservative, are not enabled to
furnish the proprietor of the watch
factory with sufficient money to run
the establishment, although he Is
able to put up gilt edged security for
every dollar he desires to borrow.
But when the banks get the addition
al currency every banker wants to put
out his money where 1t will earn In
terest. And the proprietor Of the
watch factory goes to the banks, puts
up his security and starts his factory.
Immediately 1000 idle men and wo-
men 60 to work, earning money and
producing wealth; and this money goes
into circulation Immediately, to buy
flour, clothes, eggs, butter, shoes, meat,
rent and all the necessaries of life, and
the influence of this industrial move
ment is felt in every pulse beat of
city of 10000 people.
Need we enlarge on this. Those who
are out of work, and even little chill
dreD, out of bread, will all understand
it.