New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-03


SILVER BULLION AND THE IssUR
OF ssoo,ooooOO GOLD BONDS THE
ESSENTIAL FEATUREs-ALL OUT.
STANDING NOTES SHOULD BE
REDEEMED AND CANCELLED
HISTORY OF THE CoUN.
TRY's FINANCIAL
LEGISLATION.
Washington July 2--Ey-Scnator John B. Hen.
derson, of Missouri. who has devoted long and
careful study to matters of finance. has addressed
to Secretary Carlisle the following communication:
To Honorable John G.. Carlisle, secretary Of the
Treasury.
! promised to give you In writing the substance
OF my statements made to you in conversation touch.
! ing the monetary condition OF the country. then
expressed the belief that the present stringency u
produced. not by any lack Of or insufciency OF our
but by the loss OF confidence produced among
business because Of the bad quality or Inferior
character OF a large part Of that currency.
ABUNDANT MONEY DOESN'T CAUSE PROSPERITY.
I. There Is no error OF more common prevalence
than that the abundance Of money issues necessarily
adds to the commercial business energy OF p
| people OF a certain amount Of money tokens
| are absolutely essential with which to effect the
| smaller exchanges Of commodities. These money
tokens do not create exchanges, but the exchanges
create necessity for the tokens. Money tokens do
not grow wheat and corn, nor manufacture cloth,
nor operate railroads, sail ships Labor and skill
q, these things: and among people entirely civil
lied 90 per cent Of The exchanges necessary IN
these operations are consummar,d through the
medium OF bank checks Experience demonstrates
that this mode of exchange is more convenient, safer
and less expensive and experience alsn demonstrates
that these bank facilities become enlarged or con-
tracted money tokens become scarce or abundant
This Is a business law ineAorable as the laws OK
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, 10
wit: That having performed its Office 1t ceases 10
circulate It is removed from the volume OF circulating
money and IS forever cancelled. II the eMgncies OK
business demand another check. it is issued anew,
and that I'm like Is destroyed when It's object
has been accomplished. We shall never have per-
feet currency until every note used for circulation
shall be destroyed its return to the authority issu-
ing f. and no new issued except for value and
only at the cali OF business demands. England has
come to his and America with Englands experience
will do likewise.
=. The amount of money in circulation per capita
among the people Of the United states the first
DAY Of July Of the year named below IS given In the
following: In 1873. S1s 03: 1874. $1s l3; 1879,
sl7 Is: 1876, SlG L.; 1877. SIS 5s; 1873, ais -;
1s.o s16 75; 1850 $40 IL 1881. $21 II Ioso,
1886. s2r 81: 1857. s22 45; 1ses. s22 s.; 1850.
81 So; 1sao $22 So; 1891, $23 Al 1892. s24 Al;
June I, 1893, S23 ss.
These figures demonstrate 10 the business man OF
few years experience that neither individual pros
perity nor commercial activity Is absolutely controlled
by tho amount Of the circulating medium. The pass
age in 1875 Of the act for the resumption OF specie
payments on January /. 1870. put an end, for the
time being TO deprecated paper currency and
from that time till the passage of the Blaid- aisoh
act Of 1873 in fact a. In theory. on n gold
bass-having but a single standard OF exchange, ana
the benefcent effects Of this single standard giving
assured confidence which be based only on uni
formy and permanency Of value, lasted until increas
ing silver coinage under the Act OF 1875 reached an
amount which. In the constantly declining Value VI
silver threatened permanently 10 unset'le the cur
rency.
sTRINGENCY DUE TO DIsTRuSr.
7 think am safe in asserting that from July l,
1870 TO July l. 1883 we enjoyed very great pros y
porty individually and nationally. There was
no lack Of money 1t suftced not only TO I'LL the
Treasury but It abundantly answered the demands
o, commerce and extraordinary business actiV-
ity. followed by very high prices. II Will be seen
thlt the average per capita circulation during thas
pcriod was 800 81. II now take the period from
July 1890 TO the present period of great mono
tary ,,ringency, We ind average circulation per
capita Of $23 65. II Is therefore apparent tat, IN
the common parlance, ." times" may be- hari' ana
money scarce with the most abundant circulation.
r. on given day. the active business men of
community for good or bad. but satsiac-
tory to themselves. resolve to make no further
contracts to quit all business tran 'actons, SEEM
Ing scarcity OF money :, the result Whatever tho
yoljmc OF the circulating medium. 1t does not I'M
pose Itself anybody. L. who gets it must give
nm equivalent for II. II nobody wants his labor or
hi, property lie can c.t no money. II he WHO
has it refuses loan 1t. IN fear that the currency
70 be paid back at maturity OF the loan VIII be less
valuable. the condition * one of stagnation and
scarcity OF money /, the consequence
The Der capita circulation IN the United Kingdom
OF Great Britain is now Sl33i of this Sl4 40 Is
gold, circulating freely among the people VI
silver there ], only ~ G3, and OF paper ~ 2f
The per capita circulation in Germany Is still less,
To Wit RI, 81. And yet in these countries. win
their commerce and manufactures. there is no
dcarth of money, and interest rules at scarcely more
than half the rate, prevailing In this country. England
adopted the single gold standard In 1916 and has
adhered ii since. and by so doing has be-
{, mo the money centre OF the world Germany
adopted the single standard in le72 and since that
time she has been rapidly advancing In all the ele-
mcnts Of national greatness Ii Is true that France
has seemingly large per capita circulation (Sil 07),
but Of this SI7 % consists OF silver which coined
prior 1873, while silver maintained its relative
intrinsic value 10 gold The finances OF France for
tunatcy steaded and made secure by Ia. happy
possession OF least $500. 0.OOo0 900 in gold coin alons
We're tnan nan OF u.s. uppf'Tlitcu sllNcf IA ui1i
800 OO0 lies idly in the Bank OF France. where
il Is likely remain unused. like the 1851 .21s,5i8
Of coined dollars tha. on the first day OF june is03
ay boarded In the Treasury OF the United states.
rhe per capita actual circulation in France scarcely
,xceeds that In the United states and consisting,
/ does. almost wholly OF gold the currency Is
reasonably permanent and reliable: and France
las now ceased 10 coin silver. the financial situa-
ion there IS not threatened. as here, by "A change
# standard.
GOLD LOST DURING THE INITIATION PERIOD.
3. The panic OF 1873 was. without doubt. the
nct result OF speculation and OverraGing induced
" the greenback era, beginning in l56263 Between