The midland journal. (Rising Sun, Md.) 1885-1947, 1893-06-30
Free Coinage or Bust"

Free Coinage or Bust"
The Financier, the leading bank periodical
of New York, publishes an editorial in the
issue of June 10Th under the caption of
"Clearing House Certificates" which shows
the publishers are thoroughly frightened.
When the publishers of that periodical,
which is DEVOTED to the subject of finance
principally, become alarmed for the imam
cial conditions there is danger ahead. The
labored attempt to smooth oyer the crisis
and try to believe and make their readers
believe the danger is past, or will pass away
if the public will only have confidence, is
too transparent. The public do not believe
the danger past. The people know that the
storm has not reached the height of Its fury.
Every single gold standard money nation is
in the throes of bankruptcy. The storm has
only fairly reached this country. The
effort to make believe that the silver pur-
chase law had anything 10 do with the
"panic," which is not panic but money
famine, is idle We do not think the pub
fishers of the Ftnancier believe any such
iallacy. Gold has gone out of the United
States because it was more needed IN other
part of the world than here. We did not
make present of it, but goods exchanged
for the gold shipped abroad we're cheapened
by the money famine in other countries till
they sold for song, hence our importers
and merchants bought them. Had it not
been for the supply of money issued OH the
deposit of silver bullion in the treasury the
contraction and money famine would have
been far worse than now. This talk OF
restoring confidence and credit by the bank
ing fraternity is idle. 1t is childish. The
very fact of the resort TO the issue OF Clear
ing House Certificates is an acknowledge
ment that it is the scarcity of money which
is the seat of the disease. The associated
banks pool their assets and issue shinplaster
money which they call Clearing House Ger
ti6cates because the banks in the country
are drawing on the city banks for the money
they have deposited with Them, which leaves
the large cities without sufficient amount
of money to keep business moving. In order
to exc out the supply of money the asso'
ciated banks issue these due-bills or shin
plasters to enable them to keep business
going among themselves, and use all the
legal money which they receive to loan to
their customers: 1t is mere splicing out
OF the scant supply of money, just as the
country merchants used TO splice out the
scant supply Of lmoney in the era of old
State banks when the panics came down
upon them, and money was not 10 be had.
In order to keep business moving the
country merchants pledged their goods and
issued shinplasters, redeemable in goods.
The associated banks are acting on the same
principle. They pool their assets and issue
certificates to settle balances. The prin-
ciple is exactly the same and a like cause
produces like effects. 1t was the want of
money which caused both issues. II is folly
for the bankers to try to deceive themselves
and the people that it is the want of icon
6dence." What is confidence worth or
credit when the public knows there is no
money behind III. 1t is the want of money
that is the trouble, and the repeal of the
fisherman law" would make matters worse,
per month would cease. There is no lack of
confidence" in those silver certificates. If
the New York banks had an extra hundred
millions of the Sherman law money they
would mol be in the hysterical condition
they are at present, when the country banks
have called them for Is or 20 millions.
More money made by the government of
the United States is the cure and the only
cure for the financial disorder. 1t matters
not whether the money is gold, silver or
paper SO that il is government money and a
legal tender, and receivable for all debts
public and private. The Fmancier knows
this and for good while urged the fact on
the banks, but that paper appears to have
become infected with the contagious fright
which has overtaken the Wall street "fnan-
ciers," who dream that confidence" is all
that is necessary. If these Confidence
financial doctors were to sit down TO a din
ner composed of empty dishes, and the cook
assured them that the table was loaded with
the best of viands, all that was necessary to
appease the calls Of hunger was to have con-
fdence, they would call the cook a fool.
When these bankers tell the people all that
is wanting is confidence on their part, that
the country is full OF money, they should
not feel surprised if the people regarded
them with the same contempt that they
would the cook.
More confidence or more credit or the
repeal OF the Sherman law will not cure the
evil. Neither confidence or credit can
be secured without more money behind
il. Clearing House shinplasters are no,
money. Neither would the repeal of the
Sherman law alone help matters, but aggra-
vste them by der letting the currency supply
still further. II is free coinage or bust,
and DON'T you forget it Fmdneier.