The Caucasian. (Clinton, N.C.) 188?-1913, 1895-07-18
Banker Reeds
Strong Talk.
Continued from first page.)

CONTINUED from first pAge)
with commodities. Gold and silver,
when used in such settlements, are
treated as commodities. We want
. sound. substantial currency in SUI
hcient volume TO at all times meet
the demands Of trade. We want no
financial experiments. The expert
ence Of the past should be a safe,
intelligent guide for the future"
GOLD AND SILVER THE BASIS OF
MONEY.
1.-THE history of coinage" he then
goes on to say, lis the history Of
contests between nations. Coin of
gold and silver-gold the represent.
alive OF the sun, and silver Of the
moon--has. since the days when pa
gan worship denominated them
precious metals because, like the
nomad, they carried their worldly
wealth with them, and were indie
pendent Of the edicts of govern
ments.
Either by war and conquest, or
by that more subtitle agency, the
tariff, nations have striven with one
another for this life blood of trade,
and when it's outflow could not be
stopped otherwise, national edicts
have stayed the outward tide by the
process of debasement. This pro.
cess was general in Europe up to
the eighteenth century. Coin car
rying its full weight and value dis
appeared, and was called into cir
culation again by re-issuing at a
less weight. United States mint
statistics show that for the past 400
years fully 60 per cent. of the coin
issued has been lost or consumed in
the arts.
CERTAIN PRINCIPLES DEDUCED.
"The limits of this address have
not permitted more than a brief
sketch of financial history, but we
have before US sufficient evidence
for the deduction of certain princi-
pies essential to a safe financial sys-
tenn.
Il The money unit in circulation
becomes less valuable as the num-
Der OF those units increase. Prices
OF commodities increase and the
debtor is benefited.
'2. Conversely, contraction of, or a
reduction in the number Of money
units in circulation, increase their
value. Prices of commodities d.
minish and the creditor is benefited.
20. Rapid contraction in the num-
Der or money units in circulation
produces commercial disaster. In
further support of the foregoing l
offer the following: Report of
United States monetary commission
1878: AT the Christian era the me-
tallic money of the Roman empire
amounted to 81 800, 100000. By the
end OF the fifteenth century it had
shrunk to less than 5000 ,OOO, 900. Pop
ulation dwindled, and commerce. arts
weal th and freedom all disappea red.
The people were reduced by poverty
and misery to the most degraded
conditions of serfdom and slavery.
etc.
''Sir Archibald Allison thus de-
scribes the effect of Peeps famous
resumption act in 1921: The en-
tire circulation of England fell from
E232, 54e 900 in 1918 to f142,757 900
In 1871. The effects of this sudden
and prodigious contraction of the
currency were soon apparent and
render ed the next three years a pe-
Rod OF distress and suffering in the
British isles. The rate of wages
fell one-half.' etc.
THE historian Hume says: The
disasters of the dark ages were ca used |
by decreasing money and falling
prices. With the increase of money
labor and industry gain new life.'
-! could multiply evidence indefi-
nitely were it necessary.
The following conditions are
necessary for the establishment of a
system of safe and honest money:
"(a) There must be an established
Ind responsible government engaged
q the collection and disbursement of
'evenues.
"(b) That money issued must be
the art or interest of the
ounterfeiter to duplicate.
G2 1t must be full legal tender
or al debts, public or private.
I'D The volume of money issued
must be sufficient to meet the REQUIRE.
aents OF trade and to maintain uni
ormity in the relations been credi
or and debtor, bearing in mind that
persistent decline in the general
verage range of price indicates a
ontraction OF money in circulation,
nd that more money should be
'sued to meet the condition and
Maintain the equilibrium.
"(e) Paper money should never be I
sued beyond the reasonable taxing t
over of the government. Limited I
'Qal tender invites the schemes of I
,e speculator and should never be (
sued. Promises to pay should never 4
issued beyond the extent of the d
asis upon which they rest, and the r
Ill volume OF money of final paw a
Ient should be maintained for their d
'demption. History shows that no 9
her course is entirely safe. t
%. A money carrying with it q
,mmodity of high intrinsic value p
hich is in great demand, will tend p
go out of circulation, whereas a p
oney with less or no commodity g
slue attached will remain in circu- j
ton and serve the purposes of
ade.
THE SINGLE GOLD STANDARD.
The use of gold alone as money Il
fnal payment, as unlimited legal e
nder, is an experiment among the "
atoms of the earth. From 1916 to y,
III England alone demanded gold h
the basis for all her monetary b.
Ansactions Situated as England p,
- during that period, the mistress vi
the commerce of the world, con- al
olling vast possessions from which "a
Q could gather tribute, not being q r
oducer of wealth, but q manipula- 70
OF it, and being the greatest vi