Mexico weekly ledger., 1895-05-02
Highest of all in Leavening PowerLae U. S. Govt Report
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ABSOLUTELY DUEE
ABSOLUTELY PURE

ness, as the system which [ described
in the last article responded to the dis
covery of new store of wheat, and to
the increase of the desire TO purchase
it. This currency ought TO be issued
by banks, and there ought to be
certain amount of gold maintained for
a reserve. What that amount ought
to be can be best determined by the
peculiar circumstances attending the
business of each bank. In any case it
will be comparatively little. There is
much more gold in the country to-day
than is necessary for the settlement of
balances i'll domestic and foreign COM
merce. The United States Treasury
tries to maintain 500, 100000 of gold
as reserve for the redemption of its
S346, 100000 of greenbacks. 1t is
| abundant, and little demand was ever
| made upon it until the national credit
| and finances were doubted. On this
basis the amount of gold in the coun-
! try would sustain paper currency of
about 81 200, 200 900, nearly $500, 100000
more than we now have as the total OF
all our gold, silver and paper circula-
ton, and $500, 900, 900 more than all
our present money and currency. The
procuring of more gold would be ex-
travagance, for which the producers of
the country would be obliged TO pay as
the farmer paid for the storekeeper's
folly in the case that have imagined.
To add silver would be still greater
folly. What is needed is the divorce
| of government from the whole system
of circulation. If the government
does nothing with money except to
stamp its certificate of their value up
on coins, then we shall not have panics
bred by the fancies of Congressman
who think that the real money of the
country ought to be increased, when it
| is clear from what we have seen that
so long as the standard of value is GER
tain, the country can be left to regu-
late the quantity of its currency by the
law of demand and supply.
| Panics do not result from too little
money, but generally because an era
of speculation has resulted in many
failures. If panics could be relieved
by creating more money, why are they
not relieved by using what exists. In
1898 the loans of the national banks
amounted to S1,s13, 100000. In 1892
they had been S2,171 900, 600. Panics
come not because men have no tools
for the carrying on of trade, but be-
cause there is nothing to trade with,
or because they find out they have
been trading too much, and then fol-
lows reaction or laok of confidence
IN one anoUner winch kills credit, the
life of trade. Our latest panic was not
only largely due to the fear that Con-
gress would do something with our
monetary system that would disturb
trade and commerce and injure our
credit as people, but to some causes
that were world wide in their oper-
alton, and to some that were due to
Congressional interference with the
laws of nature that govern exchanges,
to protective tariff laws that hinder
and eventually destroy commerce.
This country has had great economic
debauch, the terrible penalty for which
has been prolonged and debiIitating,
There is money enough in the coun-
try. There is gold enough for all the
purposes for which we need money.
What the country needs is peace
from the political fnanciers, and from
prophets who believe that the more
moving machines farmer owns the
more hay will he raise.