The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-12

that any intelligent person eau doubt
that our volume OF circulating
medium Is too small. No govern
ment creates or supplies money
for use in any other nation. The money
Of one nation, whether coin or paper.
will not pay debts in another BY com
Pdlsion Of law. American gold coir will
not pay debts in England, France or
Germany, nor will their coins pay debts
in this country. Gold in whatever form
will not be taken to settle balances in
international trade except by weight
and fneness. II 10 often urged that
checks do large part in commercial
transactions, bat . check 10 OF no value
unless the money 10 in the bank to
meet it.
The insufficiency Of cur money vol
ums is the grs6test cause Of the present
depression of buAinsss. When so much
has to be done on credit. and there is a
call for settlement, the bulk of dealers
and operators must 90 to the wall. 1t
IL this TACT that causes a loss OF conf
dence, which is go much talked about as
a cause of depression. For the want of
an adequate volume there is q check
upon enterprise. and when that enter-
prise lie bslow it's normal state idlsness
is inevitable. When money is scarce
prices of property aud wages 60 down
and interest rates go up. Men having
money will never invest in industries or
in development Of resources whom they
can make more by loaning. When the
money market is tight interest rates
not only advance but there is more Sc.
verify in the exaction of sscu rity.
Congress 10 at work upon plans which
it 10 pretended will enlarge the mousy
volume. but whether the plans will
have that effect is exceedingly problem
atical. The greater object is evidently
to relieve the governmsnt from the
pressure OF its gold obligations. which are
aside from payment OF interest aud prin-
cipal OF the bonds and redsm ption OF
gold certificates, the outstanding treas
ury notes and silver bullion certificates
issued under the Sherman law. This
latter ia an interpreted rather
than statutory obligation. BY express
language OF thu law they may bs re-
deemed in gold or silver c,io,, hat tbs
secretaries OF the treasury undsr the
previous and present al n nstrAtions
have given effect to a possible inference
rather than to Ok ii Cit Ian gnazs. An
other and jrss Interpretation would
eli innate 500, 900 0o) or more.
A sufficient volums Of monsv cannot
be secnrAd nnd maintansi up,n tn.
basis O. z I'D REDEEM ption, for the simple
reason that there is not gold enough in
the conutry for that purpose. nor can
enough bs secured, for other nations are
as deficient rs We are, and the gold pro-
dnction of the world under ordinary
conditions is hlrely en>nyN to supolv
the demand for use in the ar's and
M tnutacturs, The proso,c. il that
Id production ia the worl! will de.
crease rather than Increase. while there
will hs growth of population, product IN
and commsrcs, and consequently
greater demand for money.
The idea is prevalent that nothing can
be made money excspt this precious
metals, and that paper can only be reps
resentstivs. Considering all those fact,
and circumstance, the, q ,stion is what
shall b. done? TO the gsnsrAl mini
the suggestion OF silvsr eoinaks would
prassnt itself 1t would enlarge the
volume Of N ,ney. aud bv not assuming
new gold onliRatlon'. the governm ,nt
would bs relieved. 1t wonld satisfy the
people ii our paper m ,ue, were redeem.
able and all obligation, in domestic
| transactions were mad, payable 10 gold
| or silver coin, at the option OF the gov
I eminent and debtors. 1t ia a simple
plan, and there ia no reason whv it
would not be effective. to q great extent
at least. in relieving the depression
from which the country is now suffer-
ing.