The Superior times. [volume] (Superior, Wis.) 1870-1912, 1895-04-13
Oar Currency.

above heading, We find an article on
our financial questson which is well
worth repeating and we gladly give it
place in the Times, as follows:
For the past three years men of all
classes have been trying to locate the
hidden cancer which is eating away the
PROSPERITY of the nation. One device
after another has been tried, only TO
find that the drain still continues. 1t
il now generally admitted that the great
trouble lies with the currency. Finance
Is a difficult subject to understand and
the majority of voters make no effort
to do 50. 1t is difficult for even train
ed business man to forecast with any
degree Of certainty the result OF any
national financial legislation.
Five distinct plans are now before the
public. each with strong advocates, ask
ing to become the permanent financial
policy of the nation. They are known
as State Banks, the Baltimore Plan,
Gold Monometalism, Free Coinage of
Silver and Bimetallism.
The State Bank system is well under
stood and needs no explanation. 1t Is
not practicable because it does not fur
nish national currency, but one merely
local, and in these days of travel people
cannot stop to change their money at
the border of every state. 1t is cum
brous plan and will never be returned
by the American people.
The Baltimore Plan came up before
congress the past winter and was de-
feated. 1t proposed to mend matters
by revising the national bank system,
making the currency more "elastic."
There has been great deal of declusion
on the subject Of elasticity Of currency.
Wild cat currency was elastic-yery
much so.
The Baltimore Plan proposed to do
away with the deposits of government
bonds now required before a national
bank can secure a charter and issue
notes, and require only five per cent
guarantee fund with which to take up
the notes OF failed banks. Then banks
would be allowed to issue notes up to
the par value Of their paid capital in
stead of as now, 30 per cent of their gov
eminent bond deposit.
Advocates of this fail to see that the
true principles of elasticity in currency
is interchangeability. The Canadian
system is elastic because it is made up
of chain of banks, with one center
bank, all responsible for the notes of
all the others. In that way if local de-
mands requires an unusual amount of
money in Kingston and there is little
demand in Quebec, the notes are sent
from one bank to the other They do
not strive, however, to make their cur
rency elestic at the expense or safety
by allowing any bank to issue more
notes than its capital warrents in order
to meet the large local demand. The
only way to make our national bank
note currency elastic is to incorporate
this principle of interchangcability by
having central national bank. Then
when there is demand for money in the
west the notes can be sent from banks
in the east, thus meeting the needs of
the people and equalizirg rates of inter
est. The system works this result in
Canada. 1t Will be found that the most
successful and staple banking systems
Of the world have been founded on this
principle, with one wonderful, central
bank
Gold recommendation is the basis the
currency is on now, 1t has been on
that basis every since 1873, when a
harmless looking bill slipped through
congress in the last days of the session,
the import of which was known by very
few of those who voted for it. So
treacherously was it worked that even
President Grant did not know It's mean
ing and said afterwards that, had ne
known, he never would have signed it.
The silver dollar was made the unit
or standard in 1882 and maintained so
until 1873, when the gold dollar super
seeded it. 1t seems to have been the
opinion Of those sturdy old Revolution
lists who devised our constitution and
laid pretty good foundation for a ma
ton, that silver was the best standard.
1t might be well for us if our latter day
legislators wouldIslow up long enough
to find out why. 1t might have been
FOR the same reason that they mostly
wore homespun instead of broadcloth.
Wouldn't it be better for us if we were
a little more homespun? The most of
us have worn sackcloth lately. Com
mon, strong, everyday things some
times do us better service than any 9TH
er. Silver is the "homespun" of cur
rency.
1t is now widely believed that gold
recommendation WAS seCretely put upon
this country by English financiers
whose interest it was to depreciate
property, thus enhancing the value of
gold, 80 that their gold bearing bonds
would double IN value This has GER
tainly been the result
+ Fitted in hand to hand fight with
gold recommendation is the free coinage
of silver. Silver men have prcjudiced
the cause of silver by the extreme
ground they took in the Bland and
Sherman bills in forcing the govern
ment to buy a fixed amount of silver
every month. 1t was wrong to demon.
etize silver, but forcing it upon the cur,
rency in that form only made matters
worse. Like al compromises where 4
principle i involved, it was miserable
failure. The true fight should have
been for the demonstration Of silver 10y
repeating the act of ISIS.
Silver Is a precious metal. II is a:
imperishable by exposure to the ele
mentS as gold. 1t leads itself TO rar,
and beautiful chasing. 1t masses a,
beautiful an ointment in filagree as COL,
= - l,Sp.l tho would ,,-,r q, 1900, -,