St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-07-12
FREE VINTAGE.

FREE VINTAGE.
Silver has not yet been demone
tlzed 1t is still money and doing =
large snare in regulating the commerce
o. the world. But that its existence
as money Is threatened there cannot he
the Sllghtest doubt. The metal silver
mas lost its character Of money in the
soid standard countries, and the same
obstruction is threatened in the conn
trleS still holding to its use. The use
OF silver for fractional currency and
perhaps for money in sums of SO and
under, while it would benefit silver to
some extent, would not be sufficient to
steady It's value, for there is now moro
silver in existence than could be an
proprlated in this manner. and prod11c
tlon most go on. Silver must be made
use OF as money just as gold is money
or II Is doomed and will eventually go
the way of copper and brass. Is the
world prepared for this contingency
"hether 1t comes quickly or is strung
OF through d century? 1t would mean
the destruction of caital to the extent
that silver now represents capital.
international action has mainly
caused the trouble with silver and if
may be depended upon to stay its prog.
reSS doWnWardS even # it should he
never restored to it's old ratio. This
threatened destruction of capital is the
true ana only necessity for bimetaI-
ISM The stock of gold is ample to
transact the business of the world, and
There Is no actual requirement for the
use OF any other metallic or standard
money, although no loss and some
Dement'S would follow the concurrent
use OF silver aside from what have in
dlcated. Free coinage at this time at
any ratio is impracticapIe. No gov
eminent could be induced to omen its
minis to silver at the old ratio
Equally impracticable would be coin
age at a higher ratio This would
either depreciate the value and stand
ing OF existing coins or demand the
heaNy loss of recoinage. There is.
hoWeVer,no apparent objection to coin
age on government account, and an in
ternational agreement to this end
would seem both possible and practi-
cable. The profits of the seigniorage
IN case silver should rise in value
would be an Involvement which would
influence every nation to Join in the
movement. To relieve it from the
changes of a variable market and the
influences of speculation and combina-
ions the silver, instead of being OBJ
tanned by forced purchases, as under
our sherman act, might instead be Civ
ell an established mint price, lust as
Sold Is now priced at the Bank of
England, and which price need not be
hlgher than the average commercial
value for the current year. At this
price 1t could be received freely at
very mint, SO much of the bullion be-
ing coined at the present ratio as
would be required for its purchase and
the remainder held in it's bullion form
as a reserve instead of gold. and. as
all of the minis would be open to it.
THIS bullion could be used the same as
gold in the settlement of international
balances. We should in this way have
Tree mlntage instead of free COMA ge.
me value OF silver would be made
steary all over the world. 1t is NOT
possible that any considerable addi-
ton would be made to the volume of
silver in the gold standard countries
under this arrangement unless it was
wanted and the price was made suf
hclently high to obtain it, but the mon
etary systems of these countries can
easily sustain without injury or risk
a. largely increased amount of silver.
- A NEW CURRENCY.
The money question is, however. not
confined to that of silver. The
question of a new currency has
not received much attention or favor
aRle consideration in the West. Among
bankers and business men generally
there exists sentiment in favor of
the national banks being permitted to
increase their note issues upon the Sc
elrlty of government bonds. but the
politicians and public generally seem
opposed to it. In my own opinion all
schemes of increased paper expansion
should be discouraged and efforts
should be concentrated in an endeayor
to, obtain proper congressional action
FOR the Improvement and not the re-
tirement of the present government
currency. After resumption in 1879 orr
government notes ceased to be fiat
money; on the contrary, they became
vested with the characteristics of fine
best bank note currency 1t cannot he
claimed that since redemption these
notes have failed to perform the func-
tons of a safe currency. Elasticity. il
is true, is lacking, but it is doubtful
if any safe currency can be constructed
which will work automatically. ex.
panding when the occasion iustifies
and contracting when redundant. The
natural principle of elasticity can, I
think, be attributed to capital alone.
which gives expression to it in the
movement of money. So far as our
national currency is concerned it is
not a privilege Of sufficient value 20 he
worth contending for. If the financial
basis Of the country is assured we can
afford to have the note Issuing privi-
lege repealed, with the exception of
such limited volume as may be re-
quired to continue our national or
garization as banks Of deposit and dis
count. These results, If accomplished.
ii is true, would be the rererss of the