The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-01-20

gency that calls for come remedial
action. Treasury notes have always
been received with favor, notwithssapd-
ing that for political purposes they have
at times been severely attacked, except
when they we're greatly below par un-
der the gold measure. The reason
! why gold went to a. uranium. was
that it was given larger functions
than greenbacks. it would pay dues to
the government whom no other monsy
would, including treasury notes. No
kind of money ever ia at discount that
will discharge all classes OF obligations.
When that is the case every class OF
money 10 at par with all other classes
in all business transactions. Even
national bank notes HAYS not bsen dis
eliminated against, though they are not
legal tender.
1t 10 a prevalent theory OF finance that
paper money ia not good unlesa 1t can
be exchanged in coin, and as the law
now is, for gold coin. without discount.
1t is called rsdeemsble curreacy as if
swapping dollars is resumption. There
is no absolute redemption exec pit in
taking back the thing in extinguish-
ment OF debt Whsn treasury note is
taken by thu governments in paymsnt Of
Cue it is redeemed but it is not re-
dsemed il another piece OF money OF the
same denomination is given for it.
That is o trade and by it no obligation
oh ;& ha
tice aud Lawful 80 make contracts pay
able in United States gold coin, in
domestic trsnsactionl gold would MT
De better than other money. II ia only
better because il is given lsrgar funo
tons.
The single standard is insisted on.
though there is not gold enough in the
country to maintain q sufficient v1lume
OF circulating medium exchsngeable Tor
gold coin to inset the demsuds OF bu.i
medium OF exchange in international
trade. Our financial policy. therefore,
Is governed by the requirements OF for
eign instssd of domestic commsrcs,
though the latter ia II times greater
than the former, and ia OF Importance to
the country in ratio Of IL to l. No coun.
try creates d money fot circulation ia an
other-it ia orested solely for domestic or
national use. There il no world 4 money,
not even gold coin, for when gold is en-
ployed to settle an international obliga
ton it i5 taken no. as a coiu, but By
weight and inene,s. In such case it is
taken as com modity having fixed
value. There is no necessity in dumes-
tic affairs that the international rule
should be rccozn zsd, Not only no
necessity, but it ia extremely hurtful,
for it 80 limits the volume of what is
called good money ae to seriously restrict
enterprise and cripple business. II there
were gold enough to supply the demands
of business there probably would be
no demand for any other class OF money,
but as there is not enough, in order to
supply the deficiency, there are advo-
Gates of free silver coinage and thu issu-
ance OF treasury note, or other classes
of paper money. Tns difficulty in con-
RIcsb is tu6 GIL ia w Q5NiSS HUNS pihu
that will supply an adequate volume OF
circulating medium without breaking
away from the single gold STANDARD. All
such efforts will ever be futile; it is a
thing that cannot bs done.
The true way is to adopt policy that
will supply domestic needs, and let in-
ternational affairs take care OF them
selves. There have bsen three interna-
tional conferences on the money oues-
ton and on our invitation, with no
result creditable or respectful to Us as
nation. II we nova on in our own way,
European nations will begin to think
that We do not regard ourselves a de-
pendent on them, and they will be more
likely to consent to something We can
accept than if we go on petitioniag and
supplicatins as We have done in the
past. 1t is high time that we should
adopt policies which are promotivs OF
our own Interests which are American,
and untnctured with the ideas and in
huence OF rival nations.
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