The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-22

Eventually Causing Crash
sI.et Gold and silver, Set Free, Go
Hnnd In Hand to Do the Monetary
work of the World as They Did
it For themselves For Years.
washington. D. c.. Dec. 21--lspecial.I
notwithstanding over a hundred
members are on the list as desiring to
speak on the currency bill now before
the House, Rawlins was recognized to
close today's debate. and made short
speech that was intently listened to by
all the members present and created
an agreeable sensation. Silver men are
/ earnest in congratulations to Rawlins.
Rawlins devoted his time to pointing
out the effects that would follow the
contemplated law. He said the trainers
make market for United States bonds
and appreciate their value by making
them basis for bank note issues. 1t
had that effect, but this bin, by de-
stroying bonds as basis for circulation,
would cause immediate depreciation On
six hundred millions in bonds now out
standing On the other hand. govern
ment notes would be made a basis for
circulation, and there would be imrae-
+ date demand for the entire existing
amount with the result that as a basis
Tor credit such notes would be IA per
7 cent more valuable than any other
{ money including even gold. as 80 per
( cent OF the business Of this country is
done on credit This privilege is enorrn-
ously valuable. Bonds increased great
ny IN value under. the present law al
lowing an issue on them in a ratio OF
a hundred to ninety. Then how great
) ~ Will United States notes increase
V Wnen the issue ratio is a hundred to
I ellrty. Inns currency law will newt
(. auly result IN bank notes being in1rne-
4 alately Withdrawn from Circulation
/ and held for an expected rise In valve.
Effect Of the Withdrawal.
! This withdrawal would bann.n bafors
the banks could issue new cl1rrenev 10
i III tne vacuum, consequently there
would De an enormous and sudden con.
| tTdction, whose Oppressive results win
4 pc increased by the fact that bank
q notes are made a prior charge upon all
assets ana resources of banks and no
sdIety FUNDS are required 20 secure de-
posters This will impair condolences
IN the banks. and together with the de-
postorS anxiety to secure governments
notes viii likely precipitate. a run upon
crash OAo''
! If the act continued in force LONG
enough the banks would probably f7oo5
tne country with their issue, driving o1t
an other money except denon1fnationsI
SILVER United States notes would he
at premium over gold, gold over bank
notes and silver money high because Sc
- scarce. Bank notes, contrary to the
Vertable into lawful money, because
WIN gold hoarded, government notes
! 1!eiu Tor speculation and silver demone-
elzed. there would not be sufficient law
IuI money to redeem them and il the
government should insist upon their re-
u aiai ptIon there would be a great finan-
cldI CRASH In such case the hanks
would likely take refuge Under the
maxim that a peoples safety IS ~
supreme law, thus the banks vou1d he
suIlclently potent to procure leg Station
\ Monopoly OF Money Making.
Making their practices lawful ha,.-
ing thereafter a monopoly on FURNISH
ing money with little expense and n,
responsibility, they would probably is
sue the maximum amount allowed
which would probably be billion and
haf. Measured by such money val
| ues, winch are not fixed abroad, would
advance, domestice trade would he
| simulated, gold not in demand here
would go abroad. The consequent in
creased demand for small denonoir1a-
tional money would result either in an
enlarged use Of silver or free coinage.
or IN what IS more probable, permits
sion to banks to issue smaller notes.
| Under such circumstances it would be
! difficult to underestimate the power OF
the banks. All our business, wealth
| and prosperity would be dependant
upon them and at their cap
price and mercy. Even Jackson's iron
| will and indomitable courage could
hardly make the old United States
bank conform to the law. Mutual res
possibility for the issue would prob
ably cause powerful banks to drive out
| the smaller ones by securing all gov
eminent notes and thus controlling the
| bank issue. Other currency having
| been driven out by their issue their
power would be absolute; they could
contract or expand the currency, raise
I or depress values, create or cure pam
| les, promote or paralyZe industry, adj
vance or retard commerce, holding for
veal or woe the people as in the hol-
| low of their hand Having thus mas
| tered the people they would be likely
| to sieze and exercise the sovereign
power OF government.
Rawlins closed in these words:
Careful consideration of the workings
OL ILLS OIIl, SIIOulQ IL pass, reduces IL
| to an absurdity. None of the pro-
posed schemes looking to an enlarged
use of paper for money are more COM
mendable. All are paltry subterfuges
and should be sent to the madhouse,
| They will not lead to a sound ana
stable currency. Il is strange that
! public men are so n1isled by false fires
or the glamour of patronage or so dis
| traught by the fanaticism. of eastern
| finance that they are unwilling to see
or follow that straight way, that old
and honest way which leads to saliva,
ton. Let the people of the mother
earth dig the precious metals from her
bosom with an untrammeled right to
mint both kinds into money upon the
same terms at a fixed ratio. Thus let
gold and silver, set free, go hand in
hand to do the monetary work of the
world as they did it for themselves for
years.
| Frank Steufenberg will be appointed
postmaster at Caldwell, Ida, in a few
days. Much pressure has been made
for this change and the administration
has at last come to time.