The herald., 1894-01-28

will be better secured. Put special
tax on all the banks to cover the loss
which the government might sustain in
the failure of any of the banks.
By this law every bank would become q
self-constituted inspector OF all other
banks, thereby making it to every
banks interest to maintain the credit of
each other, if conducted on safe princi-
pies, or to promptly close up any bank
that departs from those principles. Place
every bank under the same examination
every 80 days that is now in practice
every three months. 1t is hardly pos
sible, and nowise probable, that any
bank would degenerate from gilt-edged
solvency to insolvency within the period
of 80 days, without having indicated
premonitions of this condition previous
to this period, and which alone should
justify prompt action in closing it up.
The war between the so-called precious
metals should have no more influence
on the stability of our currency than a
like discrepancy between any other COM
modities, and the idea of trying to es-
tablish by legislation a parity between
gold and silver ia no less absurd than
the assumption of trying to establish by
law permanent ratio Of value between
pumpkins and potatoes. This year po-
tatoes may be worth 81 per bushel and
pumpkins 81 per ton; potatoes may be
scarce and pumpkins plentiful. Next
year potatoes may be worth rs cents per
bushel and pumpkins 81 per ton. Pota-
toes would be plentiful and pumpkins
scarce. This is all the logic there is in
considering the ratio between gold and
silver. No human legislation can con-
trsvene natural laws. Every COM
modify under the sun establishes its
value according to the ratio of its pro-
duction to the demand for it.
Gold was produced in abnormally
large quantities in the days
of '49 and 80. Gold went down in COM
mercial value. and it was the talk OF
nations to demonetize it. The United
States has produced half billion of sill
yer since 1878, az against only eight
millions prior to that time. Silver has
gone down in commercial value until it
has not only been the talk but the prao-
tice of nearly the civilized world to de-
monetize it. The stable and economic
plan would be demonetize both of them,
or any other so-called precious metal or
material. Melt all the valuable coin
into its original condition, and if any
individual holding bank notes is desir-
GUS OF having them redeemed in gold or
silver let our government redeem them
in bullion and give him the amount
they call for at the market value of the
bullion, the same as he would get were
they redeemed in wheat. That is
the only honest plan of redemption.
Give no more nor less than 1t is worth.
Legislation cannot make silver worth
today what it was worth in 1873, and
legislation cannot reduce gold to its
value in 1850. A 20-year bond dated
today payable in gold coin, must neces-
sarily either rob the holder or the payer.
Gold coin will be worth the same in
20 years that it Is worth now. The real
amount of gold that ia in $1,000 of our
coin may be worth rs per cent more in
20 years or % per cent less: but if that
bond was payable in gold bullion at it's
market value, it would be safe and
honest transaction to both parties, and
rest on the merits of the bond. Neither
party would fear being robbed, nor ex-
pect to rob the other. If the so-called
single standard is absurd, double stand
ard is doubly 30. Why the necessity
OF either? Is it necessary to have one
or two commodities in use merely as
measuring stick for all other commodi-
ties and, if it is even necessary, why is
it necessary to attempt to exempt them
from the same fluctuations that govern
other commoditiesP 1t is very evident
that we do not succeed. Human legis-
lation cannot contravene omnipotent
natural law. SIR ORACLE.