The herald., 1894-01-28
ABOUT THESE HARD TIMES,
Some Pertinent Points About
Financial Matters.
Plans Proposed for the Improvement
of Conditions.
An Interesting Statement of Some
Novel Views on Finance
and Commercial
Matters.

Philosophers teach US that the greatest
problems in life are simple enough even
to the mind of child. If the mind comes
In simple enough contact with them,
and is entirely free from prejudice as to
the results; but very often simple solu-
tions are made foolishly sbstruse by the
habit we impose on ourselves of seeking
them by methods more magnificent and
mystifying than the simpler processes.
This, together with that irresistible in
clination of INDUCING certain prejudices
or predispoaitions that we all possess to
a degree, renders it strange that many
valuable truths are elucidated at all.
The controversies ON the greatest
problem of this Columbian anniversary
the cause Of and remedy for the pres
emit financial distress that has been per-
meating and undermining every branch
OF industry in our country-has been no
exception to this practice. All the
various leading journals and reviews
during the past several months have
been overlooking with eloquent speech
and brilliant composition from the
brains of the trained financiers and
6b1iticians of our country, who,
with scarce exception have in this man
ner handicapped their splendid judg-
ment and native honesty in their first
outset, by seeking the cause and pre-
Bcribing the remedy for this distressful
dilemma, by plans only which must
harmonic with their political or other
established faith or affiliations.
They have treated this question as a
matter solely depending on the use or
abuse o. silver coin as currency-as
though mere trick of demonetizing
one-half the present circulation of the
currency of our land by abolishing sil-
yer coinage, or increasing the same in
circulation to the extent of unlimited
coinage OF silver currency, will COM
mand that "open sesame" to full
fiedged prosperity that the commercial
world is clamoring for. The absurdity
of eithor proposition is very apparent in
the light of reason and simple statistics.
Our statistics show that there is ap-
preximately only 81 in currency in the
United States for every 500 of actual
wealth. Consequently, as long as we
continue in this unsettled condition, in
which every commercial institution and
individual in the United States dis
trust each other to the extent that
commercial credit with each other can
lot be maintained, it becomes neces-
sity that our commerce must be re-
duced to the limits of q strictly cash
basis, and in order to conduct COM
MERGE on q strictly cash basis it is also
necessary to have as much cash In
circulation to transact that commerce
"a there is wealth concerned; and il
we lack SO per cent of the cash requis-
lite for the full demands of commerce,
we would simply lack 80 per cent of
all the commerce that should otherwise
be performed. II, however, we could
arrive at some plan which would abso-
lutely produce that perfect confidence
in our commercial relations with each
other, it would require but very
small per cent of the amount of actual
money now in circulation in the United
States to perform all those requirements
of confidence in the United States; for
it must follow that complete confidence
in the promise to do, or promise to pay,
OF an institution or individual makes
that promise as current in all its essen
tisl properties as any kind of money
which is current, and therefore it be-
comes currency itself in the full sense
of money.
Now the only contamination that we
should deovutly pray for in this crisis
ia the formulation OF that plan which
will nearest produce that perfect conf
dence among our commercial institu-
tions and people. There is no question
that congress has the power to accom-
plish this result in very few hours il
there were enough OF our legislators,
broad, honest and unaefish enough to
primarily have this purpose at heart
above that of personal or political con-
eiderations. But we have witnessed in
our last special congress, convened solely
Tor this purpose, nothing but a politi-
cal wrangle. our most astute statesmen
spending their strongest eloquence and
most studied logic for mere personal or
party profit, and for every grain that
has been milled by that congress, for
the good OF our country, it has given us
not only the conventional bushel, but
Q whole granary of munitions chat.
The simplest and only legislation that
ie needed to effect this result ia to re-
form the banks. They are the fountain
heads OF all commerce. The old state
banking system was good in its day
the national banking system is better.
But in this progressive age we outxrow
even our best institutions. Steam DOW
or was still the wonder of the world
until electricity dawned, and we cannot
do entirely without steam yet. 1t is
largely the foundation of electric power.
80 with the national banking system in
commerce. 1t has been the best finan-
cial system in the world, and it ia still
the foundation of more perfect system
for this age. if that system was COM
pleted to the extent that our national
banking institutions should perform
their functions for the benefit
OF the people who create them,
% their primary duty above
that OF the class who manage them-the
bankers. 1t would require but few and
very simple changes to perfect this re-
form without catering to radical social
ism or favoring any class, and yet &C.
complish unquestionable benefits to the
people, the bankers and all classes I'M
der our government. Our government
need not engage in the business of OPP
Grating the banks any more than at
present, but let our government actually
regulate them, as it merely pretends to
DO at present. Let our government De
amply secured before granting franchises
to banks, and then let our government
stand as surety for the solvency of these
banks. Let 1t guarantee to the people
who deal with these banks against losses
by trusting their deposits with these