Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1893-07-15


Missouri, has addressed to Secretary
Carlisle the following communication:
"To Hon. John c. Carlisle, Secretary of
the Trcasuryi promised to give you in
writing the substance OF my statements made
TO you in conversation touching the monetary
condition OF the country. then expressed the
belief that the present stringency Is produced,
not by any lack or insuflccncy Of our currency,
but by the loss OF confidence produced among
business men because OF the bad quality or in
ferior character of n large part OF that cur.
rcncy.
"I. There Is no error OF more common provn-
lencc than that the abundance OF money issues
necessarily adds to the commercial or business
energy of people or course, certain amount
OF money tokens are absolutely essential with
which to effect the smaller exchanges OF com
moditics These money tokens do not create
exchanges but the exchanges create n meces-
sity for the tokens, Money tokens do not
grow wheat and corn, nor manufacture cloth,
nor operate railroads, nor sail ships. Labor
and skill do these things and among people
entirely civilized over % per cent OF the OK
changes necessary in these operations are con-
summutcd through the medium Of bank checks
Experience demons trates that this mode OF cx.
change is more convenient, safer and less ex
pcnsivc, and experience also demonstrates that
these bank facilities become enlarged or con-
tracted as the money tokens become scarce or
abundant. This is business law as incXora-
danger in limiting the bulk OF circulating
money than people generally imagine The
bank check is better for another reason to-wit:
That, having performed its office. 1t ceases to
circulate: II is removed from the volume OF
circulating money and is forever Cancelled II
the exigencics OF business demand another
check IL is issued anew, and more in like man.
ner, and is destroyed when its object has been
accomplished. We shall never have n perfect
currency until every note used for circulation
shall be destroyed on its return to tho author
ity issuing IL, and no new note issued except for
value and only at the call OF business demands.
England has come 10 this, ana America, with
Engands experience, will do likewise.
Prosperity and Volume of Circulation.
"2 The amount OF money in circulation per
capita among the people OF the United States
on the lst day of July of the years named below
Is shown in the following list: In 1879, Sls03
1874, Sls13; 1875, slTl6; 1870, s6l2; 1877, 1885,
1873 SIS 81 1879, si615; 1880, st9,4l; 1881, s.lT
1882 sa2 ST. 1882 goo 0i: 1854, s22 65: 1885, s23 02
1885, SCI ST. 1857 so2 IS; 1885, se2 SO; 1889, So
1890, So 81; 1891, 500. Al: 1892, la: June |,
1898, s23SS These figures demonstrate to the
business man Of n few years experience that
neither individual prosperity nor commercial
activity is absolutely controlled by the amount
OF the circulating medium. The passage in 1875
of the act for the resumption OF specie pay
ments on January !, 1879, put an end, for the
time being, to our deprecated paper currency
ana lDul litllt llll IuSSuEc Vi Nlic
Allison act of 1873 we were, in fact US in theory,
on q gold basis, having but single standard OF
exchange; and the beneiicent effects OF this
single standard, giving assured condolences
which can be based only on uniformity and per-
manency OF value, lasted until increasing silver
coinage, under the act Of 1873 reached an
amount which, in the constantly declining value
of silver, threatened permanently to unsettle
the currency
"lthinlk am safe in asserting that from July
4. 1879, to July L. 1893, we enjoyed very great
prosperity individually and nationally. There
was no lack of money. 1t sufliced not only TO
ill the treasury, but it abundantly answered
the demands of commerce, and an extraor-
dinary business activity followed by very high
prices. 1t will be seen that the average per
capita circulation during that period was s2O.6l
II we now take tie period from July, lsoJ, to
i,the present, period of great monetary strin-
fgency we find an average circulation per cap
.3ta of 800 g. 1t is therefore apparent that in
rsbe common parlance, times may be 'sard'
and money scarce with tho most abundant cir
culation. II, on given day, the active bust
ness men of IL community, for reasons good or
bad but satisfactory TO themselves, resolve 10
make no further contracts, to quit all business
transactions n seeming scarcity OF money Is
the result Whatever the volume of the circu-
lating medium II does not impose itself on
ANYBODY. lie who gets 1t must give an equiva'
lent for it. If nobody wants his labor or his
property he can get no money. If ne who has
II refuses to loan it, in fear that the currency
10 be paid back at maturity of the loan will be
less valuable, the condition is one of stagnation
and scarcity OF money is the consequence.
The per capita circulation in the United King
dom of Great Britain is now sl94. or this
si4 40 is gold. circulating freely among the peo-
ple OF silver there is only s26J, and of paper
SEA
The Example of Europe.
"The FER capitu circulation in Germany is
Still less, TO wit, slz56. And yet in these coun-
tries with their vast commerce and manu-
factures there is no dearth OF money, and in
eerest rules at scarcely more than halt the
rates prevailing in this country. England
adopted the single gold standard in 1915 and
has adhered 10 il ever since, and by so doing
has become the money center OF the world
Germany adopted the single standard in 1872
ard since that time she has been rapidly advanc-
ing in all the clements OF national greatness
Its true that France has . seemingly large per
capita circulation (s4 90, but OF this sl795 con-
sists OF silver which was coined prior to 1873,
while silver maintained its relative intrinsic
value to gold. The finances of France, for
tunately are steadicd and made secure by the
happy possession OF Mt least se0o 900 coo in gold
coin alone. More than half OF lis deprecated
silver "a total of 300 00o,Oo0) lies idly In the
Bank OF France, where IL is likely to remain
unused as the 1851, ,27S si6 of coined dollars that
on June J. 1893 lay boarded IN the treasury OF
culation in France scarcely exceeds that in the
United States, and, consisting as it does al
most wholly of gold, the currency is reasonably
permanent and reliable; and as France has
now ceased to coin silver, the financial situa-
tion there is not threatened as here by a
change OF standard
''3. The panic OF 1879 was, without doubt, the
direct result Of speculation and overtrading
induced by the greenback era, beginning in
lS62-G3 Between 1893 and 1873 both inclusive,
the balance OF foreign trade against us was
al, ,oS6, ,440 01S-thGt is, we imported into this
country during these eleven years, over and
above our exports OF merchandise, this enor
nous sum OF over one thousand million dollars.
This long and steady drainage, lasting withou,
single intermission for eleven years brought
its legitimate fruit-a loss OF u large part OF
the nations wealth. and with II the country's
entire stock OF gold. The only currency left
us was the greenbacli and the national banl
note. which latter, being redcemable in law
ful money OF the United States, could MOI
acquire any higher valuo than the greenbacl
Itself.