Waterbury evening Democrat., 1895-02-25

ly pcrcCptible md highly beneficial But do not believe it necessary to go abroad for money. In my judgment a popular loan would meet with almost universal favor.
 What tho country needs most just now." General James continued, lis n man at the head of the treasury depart ment in whom the people can place i'm pliCit confidence. Now, Secretary Carlisle is an agreeable man, legislator of expe- ricncc and clover lawyer, but unfortu- nately he lacks tho qualities that go to make up such a flnanCicr as is imperative ly needed in the secretary of the treasury. If such a man as Charles =. Fairchild could be placed in the position, l believe there would be an almost immediate res tOration of confidence believe also that a change in tho state department would be bcnrticial. If tho Hon. Thomas F. Bayard could be made secretary of state in place of Mir. Gresham, think the move would shortly be found very good ono.
 1t should not be forgotten in consider ing this matter that In order to secure per mancnt relief our circulating medium should bo made moro elastic than 1t is at present. Of course I do not think the route to this much desired result lies through tho devious ways of bimctalliSm. We should go to work to improve the pres ent national bank system of issuing notes guaranteed by government bonds, which we know to be prod uCtivo of a sound cur roncy. and whose only fault is tho lack of hexibility have mentioned. Above all things WIG should not return to the old state hank system, under which tho Circu lating medium was absolutely unreliable.
 The National Bank System.
 National bank notes are mover queS- tioncd. Not one time in 100, l suppose does a man into whose hands one of these symbols of value comes look to sec what bank issued it. A man in California feels just safe when he has note on a bank in Maine as he would If 1t werc issued from San Francisco, and this is not be- cause he knows the bank in Maine is stable. In fact, he does not care and has no cause to Carc whether it is or not. The note is guaranteed by Uncle Sam, and Uncle Sam Is good So. l say, if the national bank currency is expanded in tho proper man. ner, great good will be done.
 The present difficulties have their or iein in tho Barring failure. It took place in England, 10 be sure, but its effect was felt everywhere. Tho fnanciers of the world, no matter how far apart they may be, all belong to one general system, and no ono member of the system can suffer without some injury being generally felt. When the suffering member Is an impor- tant one, the injury is universal and severe. We did not have such a widespread panic as was feared immediately after this fail ure because of the prompt action on the part of the Bank of England, which exer Cised It's Iast power and checked the tide In this country the clearing house issued l certificates in 1890 and again in 1893. believe that the man who did most to save general smash during the troublesome financial summer last year was Frederick D. Tappan of the Gallatin National bank. He called the banks of New York together, and they stood by ono another firmly in taking millions of clearing house certifl- cates. It was splendid piece of f1nancier- ing.
 Il am not prepared to say that the EreenbackS should now be called in. It is a form of noninterest bearing currency | that has stood us in good stead in the past, and am not sure that it has yet outlived its usefulness.
 A BimetAlIist's View.
 Not less pronounced in his views is Mir. A. Foster Higgins, one of the vice presi- dents of the New York Chamber of Com merce and generally known in business circles hero. but his opinions arc diamet- rically opposed to those of General James and other single standard men. Mr Hig- gins firmly believes that the cause of all | the trouble lies in the demonstration of | silver. Said he today:
 From 1860 to 1890 the money of the world was increased by the equivalent of | $6, GOO, 900, oo0, or $200, oO0, 900 year, and this vast annual increase in the circulat- | ing medium was necessary in order to pay the balances only of the worlds tranSxo | tions. When you remember that the prog ress of the world is accurately gauged by | the increase of its money, you will realize | how significant the vast growth of curren- cy during the three decades l have mem | tioned was. It meant undoubtedly that | the world progressed more rapidly in that | time than ever before. Now, no such prog ress could have taken place had 1t been impossible to increase the money up to the limit of the demand.
 Tn 1890, roughly speaking, the total of the worlds money eQualed SIS, 900, 900, . 900, or twice what 1t was in 1860, and one third of this vast sum was in gold, one third in silver and one third in paper
 You see, the $4, 900, 00o, 900 of paper were backed by $s, coo, OOo, 900 of motal about equally divided between the white aud tho yellow. Now, one-haif of this metallic backing of the paper fthird-the silver | has been demonetiZed, and 1t is not at all l surprising that trouble has resulted. Blind Monometallists.
 Everybody knows the annual produc- tion of gold is not equal to tho needed ex. pansion of the currency and the demands of the arts if the progress of the world Is to continue, and yet the blind men who cry out for @ single gold standard. and who arc now in power, both hero and abroad, seem unable to see the facts aS they are. Instead of acknowledging the necessities of the hour and trying to meet them, they talk about the fluctuations oi silver, declare that blmetallists seek only Co infiate prices and to find a way to pay !. thsir debts in ssrr.ncy les vAlaAkte tAeE