The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-05-06


pardoned by Gov. AItgsid. addressed .
large labor meeting here this evening On
the subject Of the International labor day.
bat his arguments we're strictly socialists.
TEE NICARAGUA CANAL.
The Issue u Bo.ds fer Iss Gem
sesucsioa Wssld Help The Country.
TAcoxA. April q, 1894
To THE EpIroR: There Is one way by
which the construction Of the Nicaragua
canal. by money raised through the sale OF
government bonds. or bonds Endorsed by
the government, would relieve the coun-
try, which does not seem TO be understood
generally. or even recognized as practi-
cable. The opposition TO the issue Of
bonds by the government. on legitimate
occasions and for legitimate purposes, ~
this would be. il due to . fault Of under
standing.
remember that when the city OF Port.
land Was considering the question Of issu-
Ing bonds tor the purchase Of the old
water company's plant. II. W. Corbett.
vice president Of the First National bank
aud an extreme conservative on financial
questions. contended that il would be
great advantage to have those bonds
some $400. 900 in amount-held by people In
that city. for, he said, they would be the
best kind of collateral on which to raise
moaey. In other words, il would be
equivalent to 90 much new money. Or that
amount of new credit. which is practically
the same thing. II is in just this way, on
. larger scale, that the issue Of $500 000, 600
- IL s..f< -
United States, running for . long term Of
years and payable in gold, would
furnish this country \ highly trans
ferabls new credit to that
amount A gold bond Of the
United Safest is practically just 40 good
~ gold coin a. the basis OF credit. Il il
equally available ~ means Of payment for
goods. stocks or land. The bonds Of our
government are part of the circulating
medium by which business Is transacted.
To make this statement understood 1t
must be remembered that in actual trans
actions. purchases and sales, representing,
say 500 coo. COO not over s.. 0o0, 900 or $iO.-
COZ, 900 in actual currency 10 ever used.
The other 50 or IS per cent Of the value
involved Is all settled by private credits.
represented by checks. drafts or bills If ex.
change. These instruments Of exchange
that form over 80 par cent Of what, in .
general way. We call money. which repre-
sent money and perform the work Of
money, all rest on credit Now, II from
any cause credit 10 destroyed or curtailed
these checks, drafts or bills Of exchange
become. to greater or less degree, I'M
available AZ medium Of settlement, and
the burden 10 thrown upon the or 10 per
cent of gold, silver or paper currency, Of
which there 10 not enough in existence to
do the work, cannot be in tho nature Of
things. and ought not to be. The result is,
Of course, . stringency and panic. such as
this country has just been passing through.
1t Ii easy to see that an increase OF or 2
per cent, more or less, of actual currency
10 q very triti!ng matter. compared with 40
or SO per cent. reduction in tho credit rep
resentatives of money that accompanies
and follows q loss of confidence.
What people really want when they say
they want more money, or that tho coun-
try needs more money, Is not more actual
currency, but larger and iirmer basis for
credit currency. The chief utility OF Q
coin currency, as Henry G. Carey was the
first to teach, is attained only In the de-
gree that coin becomes the basis Of that
very credit currency which supersedes the
use Of coin. The benefcent power Of coin
Is most felt when Ii is mos; invisible. The
great objection to gold recommendation is
the limited basis it affords for credit cur
rency. II the leading commercial nations
should agree upon the establishment of q
mint par between gold and silver our basis
for credit currency would be that much
La ri La. ftsHl - A. oh ~ "a
dition of silver to the ultimate money of
tn. world would DO . triiiing advantage
compared TO tho increase OF credits that
would result from doubling the basis OF
credit.
Some ten years ago . writer In the North
44merican Reviese said: Even now the
United States is bringing upon the world
q severe monetary stringency and greatly
enhsncing the purchasing power, while
destroying the productive power of money
By the payment Of the national debt" By
the withdrawal Of these bonds, which were
basis of credit, We have been contracting
the worlds circulating medium. Next IA
the demonstration Of silver the rapid pay
meus of our national debt Is most
responsible for the present great
eurtaiiment in credits. As the writer re-
were circulating, either OF which would
nave been equally available as means of
payment for goods. stocks or land One
was the national bond. the other the gold
which paid the bond. Today, the bond
being paid aud burned. there Is bat one.
Hence the gold which has swallowed the
bond has increased in purchasing power.
st the expense of goods. stocks, land and
people. The zeal OF our patriotism Ii eat
ing Us up" Ii was no, the burden of tax
alton attending the payment OF the bonds
which rendered /; destructive of indus
tries. but the fall in all commodities. due
TO the enhanced power of gold coin. which
IN turn Is due 20 the elimination from the
worlds currency Of half = million or more
dollars per day of highly transferable
credit.
Now, IL the payment of our national
debt has worked this way. TO contract
the basis Of credit the issue OF new bonds
would repair the loss. and by legitimate
method, furnish that additional credit cur
rency which we need While ii 10 true
that nothing but actual money will pay a
deai - an abstract proposition, and
that nothing bus gold is avail
able for this purpose, II gold alone
Is 10 be accepted as ultimate
money. IS . matter Of fact ii neves comes
10 this. and If is did. debts could not be
paid, for there is not gold enough Oar
national debt gas 80 rapidly paid. not BIZ
accommodations Of gold. but by the pro-
daesion OF wheat, corn and cotton; be-
cause ne were producing At the time. as
the United States census shows. the art5-
eles of weaith on xach large scala a fail