The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1895-11-01

regret and humiliation that foreign
have bought our bonds in
large sums, instead of their being
placed at home. 1t is natural that
they should command the highest
premium where money is the cheap
est, and this is the history of the
securities of every country as well as
reliable corporations seeking finan-
cial accommodations.
Among his most erroneous cOnclu-
sions is the assumption that the
banks are responsible for the recent
panic, in denying accommodations
to induce financial stringencies. With
their heavy discounts, largely with
out cOllaterals and based on the per-
sOnaI credit of the borrower. the
banks have more to loose than any
one elsein such financial upheavels as
recently involved the business inter-
ests of the country. Many instances
are known where the capital stock OF
banks was impaired, in some cases
to a quarter and even a third; and
scarcely an exception dividends were
reduced or suspended. Surely sane
men would not contribute to such a
condition OF things knowingly. 1t is
true when the crash came they were
compelled to call in their loans to
meet the demands of their 0epositors,
and if their eXactiOns in this regard
worked hardships, it was to avert
even greater calamitieS to themselves.
The statement that no money goes
over the counter of bank without
interest is true, and it is Just and
right, and the same must be said of
legitimate business IN every relation
OF life. The bank or merchant who
gives away his money or his goods
without profit will very soon reach
the end OF his or it's career. | have
in the length OF my paper trespassed
upon the rules OF the society and the
patience of it's members, and with
presenting the following extracts
from an able paper by Mr.. Hepburn,
comptroller OF the currency, in the
Forum for August, on a subject akin
to that under discussion, l am done:
1.-The silver interests, organized,
active, able, have for many years
dominated all currency legislation,
and opposed all relief to the treas
ury which did not contemplate
the enlarged use of silver. They talk
about the decentralization of silver in
1873. With $64S, 100000 of silver in
| circulation silver is hardly demonet-
lied. They assert that the closing
of the mines to the free coinage OF
silver at the ratio of 16 to | is re-
spOnsible for its marked decline in
value, and affect to believe that the
| restoration of free coinage would re-
store it's parity with gold. Can an
act of congress appreciate the price
of silver from 67 cents to 81 90 per
ounce? If it does in the United
| States, it must in EurOpe-in the
world, in fact. Is it possible that
any one believes that the value OF all
the silver in the world can be appre-
ciated 80 per cent. and maintained
! at that value by the mere fiat Of the
American congress.
The decline in the price and the use
of silver is in obedience to a natural
law. No act of legislation could
have preserved it's value. LegisIa-
| ton can worry and impede natural
laws; it may for a time dam up ma
| tural channels OF trade, but this
simply builds reservoir whose &C
lcumulating Olumeeventually sweeps
all before it with characteristic dam
age and destruction. The free coin
tanning only BIZ grains each would
mean silver recommendation. 1t
| would mean driving out of circula-
lation the $500, 000, 900 OF gold now in
use, thereby, as these people believe,
making a market for so much addi-
tiOnal silver. A premium would send
gold out of circulation Immediately.
1t would take time to supply it's
place with silver. The volume OF
currency would thus be temporarily
red onn-third. A money strin-
gency, currency famine, commercial
crisis. must follow. For protection
against such calamity we are in
debted to the bond issue.
| "No country has a double monetary
standard. All countries that have
| free coinage of silver have silver
recommendation. All countries with
the gold standard utilize both gold
and silver as money. Most OF them
| have as much silver in use as money
as can be maintained at parity
with gold. This is the case with the
| United States at present. Countries
having a gold standard furnigh S7b
per cent. of the international COM
merce of the world. OF the exports
of the United States, "a per cent. are
to countries having the gold stan
dard, and so per cent. of our imports
are from countries on the same basis.
The United States, Canada, all
Europe, Brazil. Chill, and Australasia
are on the gold basis. Mexico. Cen
trail America, most of South Ameri-
can States. India, China, Japan,
Ceylon and the strait settlements are
on the silver basis.