The Canton times. (Canton, Miss.) 1893-1906, 1895-02-01
The CurrelCu.
horrors.

! The Currency,
:. THE first idea for the common peopl
to get permanently grounded in thei
minds in order to understand Nationa
finance, is thatthe United States treas
ury is not a bank, to issue money. re
ceive deposits and charge interest. II
simply collects taxes from the people
to pay its running expenses and enable
it to meet it's obligations and keep its
credit good. 1t has the power to coir
money and f. it's value, for which il
only gets paid the difference between
5.lr market value Of gold and silver ind
| its coinage value, which is called the
seigniorage. The pure metals are too
soft for money and ten per cent of al
| 10y of baser metals are mixed with
them. This is its only source of profit
Under stress of great emergencies, like
the late war, the government issued
paper money, greenbacks, by the mil
lions, with a promise to pay in gold
and which the supreme court has in
vested with legal tender power. In
1875, under the resumption act, which
means the government was to call in
gradually all its paper money and can
Gel it, SO as to come to a specie basis of
sound money, the Secretary was pro-
ceeding to carry out the law. In 1878
this act and process was nullified by a
law forbidding their cancellation, and
Today, with the outsta bding treasury
notes added. there is in round mum bers
about $500, 200, 900 worth of legal tender,
paper m honey payable in gold, whenever
presented at the treasury. 1t will. be
readily seer how poorly provided the
government is with a 100000, 900 gold
reserve to meet these obligations, and
how completely it is at the mercy of the
bankers, who can, or have bought up
these notes and keep them to raid the
treasury and drain it of its gold. The
only way for it to replenish its gold
avoid bankruptcy is for it to sell bonds.
By this process it is only question of
time when the government will have
to sell SO many bonds as to impair it's |
credit, and create great interest bear |
ing debt. The world knows this and it |
has unsettled business. This legal ten
der paper money must be gotten rid of |
but it must de done gradually in order
10 prevent disastrous contraction of |
the currency. Secretly Caslisle's plan
is to make them basis as far as posi-
Bile for money circulation instead of
bonds, which would eliminate nearly
half OF them from immediate use, and
handle the balance until such time as a
IA " can be passed for their cancellation.
ind the government be able to carry it
nto effect. His plan also proposing to
make all banks responsible, through
70 per cent deposits as guarantee
unj, and their paid up capital, assets
nd tax for the redemption of their
'wn paper money instead of by the
government. Were it not for this feat
re, the bill would pass at once. The
'anks want the government to stand
pioneer for their bills and they TO draw
interest semi-annually in gold on
onds, besides the interest they make.
he Carlisle plan also advocates the
ia te banks, under the same guarantee ,
S national banks. No objection as to |
Jundness of the national system can /
e urged, nor to the state banks also,
! spite of the cry of wildcat money. I
Iillions upon millions of money is de. /
osited every day ia banks all over the c
,untry aud simple unsecured certif @
lte of deposit given. These same b
inks, bills of issue backed by their {
lpital stocks, assets aud guarantee t
ind deposited with the state, would |,
'rtainly be safer ttan a simple certid- f