Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1895-04-04
THE MONEY QUESTION

financial and literary Journal OF New
York City, thus addresses the Hon.
Richard =. Bland:
Sir,-Your position before the coun-
try as heretofore legislator and as a
leader in the Congressional treatment
of currency questions entities you to u
respectful hearing upon the silver
problem; but it equally imposes upon
you the obligation Of ready explana-
ton when your public statements re-
lating to these matters are honestly
called in question. We therefore
deem it proper to ask your attention
TO certain statements contained In
your paper on "The Future Of Silver"
appearing in the March number Of
1.-THE North American Review"
~ You say" bank paper unlim,
tied would effectively drive the gold
from TIE country" DO you mean, by
unlimited exemption from all res
friction upon the amount Of notes
bank may issue? If so, will you spec
ify any representative way IN which
exemption from limitations has been
proposed or sought during the recent
public or Legislative discussion Of this
question? Has any important scheme
Of currency reconstruction been pro-
posed which allowed Of note issues in
excess Of an amount equivalent to %
per cent Of the banks capital? And
have not the recent plans put before
Ia, tI,iu it.p uitpnI
to put check upon excessive issues
through providing for II more rigid
system of bank note rrdcmptlOnS than
that which now exists? What ground
then have you for covcrtly insnnatlng
that an increase of bank circulation
might have the effect Of driving the
gold out Of the countrJ?' Is it that
you desire to restrict bank note circu-
lation in order to reconcile the country
to the fate of being thereby compelled
to augment It's stock Of silver dollars"
GU lou say, wealth and poPu
proportion To the increase in the out
put Of gold and silver" WIN you
please explain your very wide depart
IRE from official statistics Ia making
this statement? The United States
mint report shows that for the year
1873 the output of the two metals was
$l7SO0O, 900, and for the year 1893
was $3G6,OOO,O0O, showing IN increase
within twenty years Of lOj per cent.
Within the same period, tho united
populations of the United States and
of the seven largest nations Of Europe
rose from 3OS millions to 800 millions,
showing m increase Of 29l per cent in
the population Of the great confusing
nations, against an increase In the pro
duction OF the precious metals Of lO5
per cent 1t thus appears that your
statement as to the relation of growth
of population TO the joint output of
gold and silver Is erroneous to the OK.
tent of the difference between 295 per
cent and los per cent, May we snE
gest that explanation ut this point Is
due to your readers?
(3 You here advance the further
proposition that an increase in accum-
ulated wealth calls for u corresponding
thIlNuut III 'll' uihp'Nllb w lh'luil'h
money, Here agaiu is II very broad
and bold assumption without y hint of
demonstration. A vast proportion Of
the worlds wealth probably it might
be safely said three fourths consists
of fixed property, such III lands, indus
trial plants mines, railroads, ships,
dwellings, and other buildings, etc.
These forms of wealth rarely change
hands, and when they do the transac-
ton is usually settled through checks
and without any use of money. The
increase In these relatively permanent
kinds OF property therefore calls for
no appreciable increase in the volume
of metallic money. There are, how
ever, forms of wealth an increase of
which does necessitate an increase in
the Instruments of exchange; which
instruments, however, need not nee
cessaIily be either gold or silver, but
may include any tool from gold to
notes of exchange. We here refer to
commodities required for the sustenta-
tion, clothing, comfort, recreation, and
satisfaction of the gustatory tastes of
mankind, These are mainly the
prepared products OF the various
crops, which are continuously disap-
Pearing in consumption and are CON
tinually subjects of sale and re sale.
The exchanges of these products, in
the various stages between raw mate
rial and their coming into the hands Of
the retail trader, ARE settled through
checks and without the intervention
of money; aud, therefore, in respect to
the industrial and Wholesale trausac-
tions in this class of property, an in
crease in their volume cannot be snid
to require II "proportionate nor any
material increase in the volume OF
money of any kind. The principal re
quirenent Tor the use OF money comes
from the purely retail commences; the
transactions OF which are mainly set
tied In currency, which may be coin or
notes according to the varying none
tary systems Of the different nations.
In respect to the transactions in these
II ftng Ia, l,., ~.