The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-07-05

WASHINGTON. d. c., July Eek
Senator John b. Henderson Of Missouri,
who has devoted long and careful study
TO matters of finance, has addressed TO
Secretary Carlisle the following COM
munication:
''To the Hon. John G.. Carlisle. Secre-
tary of the Treasury:
Il promised 10 give you in writing the
substance Of my statements made to you
In conversation touching the monetary
condition OF the country.
'I then expressed the belief that the
present stringency is produced not by
any lack or sufficiency of our currency,
but by the loss of confidence produced
among business men because of the bad
quality or inferior character Of large
part of that currency
I. There is no error Of more common
prevalence than that the abundance Of
money issues necessarily adds TO the
commercial or business energy Of a peo-
pie. OF course a certain amount of
money tokens are absolutely essential
with which to effect the smaller ex-
changes of commodities.
These money tokens do not create
exchanges, but the exchanges create a
necessity for the tokens. Money tokens
co not grow wheat and corn, nor manu-
facture cloth, nor operate railways, nor
sail ships. Labor and skill do these
things. and among a people entirely
civilized over 95 per cent Of the ex-
changes necessary in these operations
are consummated through the medium
of bank checks. Experience demon
strates that this mode Of exchange is
more convenient, safer and less expen-
-.-c. nd experience also demonstrates
that these bank facilities become en-
larged or contracted as money tokens
become scarce or abundant This is a
business law as inexorable as the laws
OF nature. Hence, there is less 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 II ceases 10 circulate. II Is re-
moved from the volume of circulating
money and is forever Cancelled. If the
exigencies of business demand another
check II is issued anew and that, in
like manner, is destroyed when its OBJ
ject has been accomplished. We shall
never have a perfect currency until
every note used for circulation shall be
issuing II, and no new note issued except
for value and only at the call of business
demands England has come to this
and America, with England's experience,
will do likewise"
The Circulating Medium.
The amount Of money in circulation
per capita among the people Of the
United States on the 1st of July from
1873 TO 1893 inclusive. is then given. Con-
tinuing, Mr.. Henderson says: These
figures demonstrate TO the business man
OF a 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 re-
sumption OF specie payments on Jan. l,
1879, put an end, for the time being, TO
our deprecated paper currency and
from that time till the passage Of the
Bland-Allison act of 1873 we were, in
fact as in theory, on a gold basis-hav-
Ing but a single standard of exchange
and the benehcent effects OF this single
standard. giving assured confidence,
which can be based on uniformity and
permanency Of value, lasted until the
increasing silver coinage, under the act
Of 1878 reached an amount which, in the
constantly declining value of silver,
currency.
1T think I am safe in asserting that
from July ]. 1879, to July 1, 1898, we en-
Joyed very great prosperity. individually
and nationally. There was no lack of
money. 1t sufficed not only TO I'LL the
treasury, but 1t abundantly answered
the demands of commerce and an extra
ordinary business activity followed by
very high prices. The average per
capita circulation during that period
was $2O-6l. From July. 1890. to the
present-a period Of great monetary
stringency-we find an average circula-
tion per capita OF S23.65 II is there
fore, apparent that. in the common
parlance, times" may be hard" and
money scarce with the most abundant
active business men OF a community
for reasons good or bad but satisfactory
to themselves, resolve to make no
further contracts. to quit all business
transactions, seeming scarcity Of
money is the result Whatever the
volume Of the circulating medium. II
Goes not impose itself on anybody He
who gets IL must give an equivalent for
IT. II nobody wants his labor or his
property he can get no money If he
who has II refuses TO loan IL, in fear
that the currency 10 be paid back AT
maturity OF the loan will be less valu-
able, the condition is one of stagnatfon
and scarcity Of money is the conse-
Quence. Inc per capita circulation in
the United Kingdom Of Great Britain is
now S19.34. OF this $1449 is gold. cir
culating freely among the people OF
silver there Is only s2.63. and Of paper
1924. The per capita circulation N Ger
many is still less. tO-wit: S17.56. And
yet in these countries. with their vast
commerce and manufactures. there is
no dearth OF money and interest rules at
scarcely more than half the rates pre-
vailing in this country England
adopted the single gold standard in
1916 and has adhered 70 It ever since.
ard by so doing has become the money
center Of the world. Germany adopted
the single standard in 1872 and since
that time she has been rapidly advanc-
ing in all elements Of national greatness.
The per capita actual circula tion in
France scarcely exceeds that In the
UriteS StstaS. and consisting is -