The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-11-29

treasury by national banks as q tax az on
circulation and more than S7OO,OOO,OO0 as
tax upon deposits. H..
OF all the time-worn tallacleS, theTe
is none more venerable or Vuilerapic
than the omnipresent attempt TO create
wealth or pay debts by legislation. Inc
alchemists of old who sought to turn
other metals into gold, never paused TO
reflect that success in their efforts would
make gold no more valuable imam
the baser metals thus subject to their
power. The sense of commercial h0nor
from citizen up to the goyernment,WmGh
forbids the reputation OF ones just Cd
lgations, is the distinguishing feature OF
our present civilization. The free coin
age of silver at the ratio OF sixteen Sill
yer dollars to one gold dollar or present
weight and tineness, means dollar com
mercially worth less than fifty cents, but
BY the fiat of the government made to
pass for one hundred cents. 1t means
that the seigniorage or apparent coinage
profit, j. e., the difference between the
cost of the silver bullion, in open market,
and the face value of the money into
which it is coined, shall hereafter enure
to the benefit of individuals and not the
government.
1t means that an individual may take
500 worth of silver bullion to the mint
and, coinage free, obtain silver dollars
with which to pay 5000 worth of debt,
and would thus mean the reputation of
so per cent of existing indebtedness. The
sagacious instinct of trade would correct
such wrong as to future contracts by
doubling the price of commodities. 1t
means an imitation of prices without an
increase of values. 1t means that the
5000, 100000 of gold now in circulation
would go to premium, would cease to be
money, would become commodity sim
ply, whether coined or uncoined. 1t
means a contraction of our currency
equal to the amount of gold which ceased
to circulate as money. 1t means general
unsettling of values, the decentralization
of business, a great injustice to present
creditors. Just what the effect would be
upon business interests for each business
to have One-half of it's bills payable and
one-half of it's bills receivable virtually
repudiated is Il matter for speculation and
l trust the good sense and honesty of the
will forever leave it in the
realms of speculation.
Roth the Bland law and the Sherman
law injected into circulation n fixed
amount of money monthly. without regard
to wants of commerce. However great
the demands of trade, they could not i'll
crease such amount one lot or title. And
since the government can only put out
money in payment of debt or in exchange
for value. this criticism of absolute want
of elasticity must apply TO any govern
mental currency. 1t can never be respon-
sive 70 the varying wants az commerce.
The proper money function of the govern
ment is SET forth in the constitution. 1t
A
llate the value thereof. a power withheld
from the states. and there | believe its
function of creating money should end
halievn that MI naner money under
1roncr restrictions. should be issued by
he hanks Tins and fins only. can
m elastic CURRENCY no obtained Our
PRESENT honknote currency nossesses all
-be GOOD qualities eycent elasticity. No
.nrrencv secured Inv stocks mr. bonds can
loesosS that quality Now in order to
ssnn 500 0OO cirrnlotion hank must
NV Sid 600 for honds and dpnosit n rr
lnmntion fund of S15OO And instead of
nc,aosing their means for halnin% tbeir
Ild +ba n,III;a h,, tbp t,,nnon-
;"n +ho,, inni, IN SI0 5Oo and diminish
IN, 'lloS S,,a w ~ ~ ,,,l,I;n ht. tbot
,neli po"ei " III" 'i' puOiiO ~ 'Ai'''
'ntouh''
All propositions FOR bond security CON
,emplate maintaining the value OF such ut
east 10 per cent IN excess OF the currency
issued, ana the power OF tne Dahk taxing
)ut such circulation TO ana me puDllc Is
Dy such per ceI!aSe uiilIili i ~ Eul t
'ency to be elastlc must De ISSUED against
credit. Banks must nave power mus TO
'reate money. IN no otler way can cu!.
'ency be elastic. IN no otller WY can II
meet the wants OF commerce. FROM the
very nature OF Things the government
,nnnot give such currency.
The banks can ana the DahhS
'nly can with prudellce anu salelS NC ol-
owed to do so. There IS no more money
n the country IN 1871 than there was III
.S93. Now money. clogs the vaults Oh
,ur banks and begs, investment at a lower
ate per annum than the premium OF
erred, one year ago. for a single service
md which failed to lure 1t from hldlllS Ill
safes and vaults. Any volume OF currency
nay prove inadequate in a panic. sun,
lad the Canadian law obtained IN TINS
country in 1893, the national banks could,
under its provisions, have added over
$500, 100000 to the currency of the coun-
try, and with such law currency fam
inc would hardly have been possible.
An elastic currency is needed not alone
in times of distrust, but in course OF ordl-
nary business. The harvesting OF the cot
ton crop calls for an extraordinary amount
Of money in the cotton belt. currency Is
brought from money centers to supply TINS
need. Currency in that section is expand
ing Under the system proposed by the
Baltimore bankers the banks IN the cotton
region could largely supply this local de-
mand and to such an extent save the eX-
&c inn NOR