The Washington times., 1894-12-31
THE SPRINGER AND coxEY CONTEST.


Congress will referee great financial con-
froyersy within the next few weeks. and as
the questions involved represent the light and
heavy weights of finance, the controversy
will be full of interest. Representative
Springer the top-dressing of all that is worth
knowing on monetary questions, viii cham
pion the Carlisle bill, and Green Grass Coxey,
who digs deep and long into financial prob
lens, viii present a non-interest bearing
bond scheme to the Committee on Banking
and Currency that belongs to the heavy
weight class.
1t is useless to go into ecstacies over the
champions OF these measures. Both are
sanguine, enthusiastic specialists and both
are great in their particular way. 1t is to the
bills that we must direct our attention. The
Carlisle bill has been cut down from the
heavyweight class since it first made its ap-
pearance, but it still retains the peculiar fea-
lures that were the cause OF its coming to
light. One of its notifications permits ma
tional banks 10 exist under he present law or
be born again after the Carlisle pattern just
as they see fit; another does away with the
guaranty clause. But the principle Of de-
posting only 80 per cent. of the value of cir
culating notes Issued is still retained and that
feature alone condemns the bill.
Newfoundland had currency system similar
10 the one presented in the Carlisle bill, ex-
cept that only 20 per cent of the value of the
circulating notes was deposited as reserve
fund. To-day the little province is in the
throes Of financial death. Flour is selling at
S21 a barrel, and the prices of other COM
modities have advanced proportionately.
Another objection to the Carlisle dill is the
currency for the purpose of regulating interest
rates. The pending threat OF banks TO send gold
to premium because of this financial agita-
ton ought to serve as an argument against
giving banks arbitrary power.
The Coxey bill is a measure to supply
money without limit, without adequate Sc
curity and without the necessity of passing it
through banks. La short, he proposes to issue
to any municipal. county or State organiza-
ton, currency to the amount Of one-half its
legal limit of bonded Indebtedness. provided
bonds to that amount are deposited with the
United States Treasury. OF this currency 10
per cent. is deducted for the expense of issu-
ing. As an illustration: If the legal limit OF
a city's bonded Indebtedness were $500, 600,
one-half that amount less 10 per cent, or
S9O.OOO could be issued in currency. Mr..
Coxey claims that this $50, 900 would be ex-
pended in public works, and the security
would be increased TO s29O, ,OOO, besides Civ
ing employment TO labor to the amount OF
the improvements.
Compare the two bills. Mr.. Springer's
furnishes TO banks a currency on deposit Of
so per cent. to loan at from TO per cent.
interest, payable in advance. Mr.. Coxey's
plan requires the deposit of double the
amount of currency issued in negotiable
bonds and distributes the money without
making il a medium to extort interest But
both are wild vagaries that must inevitably
bring financial ruin.
Find way to take up the faith-cure cur
rency we now have in circulation, divorce
banking from affairs of government, and
1nanciers Of the Springer-Coxey type will
not trouble Congress with visionary schemes
for creating money panics.