The old Abe eagle. (White Oaks, Lincoln County, N.M.) 189?-189?, 1894-04-26
THE PROBLEM OF THE DAY.


equate supply of money for the uses of
trade and other forms of enterprise, and
how to prevent Its congestion in money
oenters with corresponding depletion in
the channels where it Is needed among
the people.
The first phase OF the problem is not
difficult to solve; it is easy enough to
coin or TO print money. But the second
phase, how to prevent its withdrawal
from use is quite different one-not SO
hard to understand, but very hard to
control.
Money, before it enters the channels of
usefulness, passes into the hands OF in
dividuals and be zones private property,
over which the Government ceases to
have direct coutrol. BY far the greater
portion finds it's way into circulation
in the form of loans to those engaged in
enterprises requiring its direct employ
ment among the people. Once in their
hands it's movement, in small amounts,
is constant and rapid and money is said
to be plenty" though not dollar more
may be in existence than when it was
scarce"
For this use OF money the owners sx-
act rent in the form OF interest; the re-
placement OF the prin ,ipal at a given
time must be secured by the trans
fer Of convertible property to the control
OF the money owner. Mortgages, bonds
or personal securities must rest on tan
gible and convertible property in order
to be acceptable in temporary exchange
for money, the most intangible OF prop
t. for il allowed voluntarily to 90 out of
hand without an equivalent being left in
its place il is irrecoverable il is his who
has it.
Enterprise goes at gallop, and in q
few years loans have exhausted the sup
ply of securities OF the''gilt lt.edged" kind;
older loans become due; the supply of
new money being cut of, and that form:
erly put out being withdrawn through
ropaym ,nt of loans, the squeeze" ls felt,
the wave of prosperity GIBBS, and times
are dull" until things are adjusted be-
tween the money owner and the money
user.
Thus far nothing not legitimate and
according to correct business principles
is to be observed in the dealings Of the
money owners, who may be expected to,
and should, protect their interests,
But here an evil that should not be
permitted by the General Government
Intervenes. The money owners, with the
plea OF threatened losses to themselves,
o ID with selfish disregard of the losses
they may occasion to money users, but
really for the purpose of augmenting
their gains, combine and induce the Gov
eminent to 30 modify the laws in rela-
tion to money that part Of that in ex-
istence may be made TO perform the
functions OF the whole, thus by concen-
tration becoming moro valuable to the
owner and more difficult to obtain by the
user,
The first move in this direction was
the partial demonetizstion OF silver; this
was followed by the resumption OF spe-
Gle payments; and this in turn by max
ing II possible for creditors to demand
gold alone in redemption for any other
form OF money. The effect of this con.
dition is that OF disastrous contraction
OF the currency, though in fact paper
(greenbacks and bauknOtes) aud silver
have equal purchasing power with gold.
Their weakness is in their debt paying
capacity.
The remedy?
Gold, silver, certificates issued on OIL
ther, and paper issued on the credit OF
the Government. should all be declared
legal tenders In payment OF obligations.
public and private. except that gold only
should be receivable in payment Of du.
ties on imports. Proper restrictions
should be placed on the issues OF each
10 regulate their volumes in reference to
gold, whose volume 10 practically fixed,
In order that parity be maintained
Gold only, under present conditions
in Europe, should be received for duties
At the custom houses In order 10 compel
the return 10 this country oi very large
share Of the stream OF that metal which
would undoubtedly he drawn out by
gold demanding countries whose mono.
tary policies are beyond the reach Of
American Legislation BY this means tho
Government could keep It's vaults sup.
piled with all the gold II would require
under the system Of finance suggested
II IL right that the Government should
maintain its credit at homo and abroad;
but IL is not clear that Is desirable or
necessary to put the minority Of its citi-
Eens under hardships to do Il.