Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1895-11-01

49, Il .st !. II. 4-a .s,. VOL
LIS MIME NV. j
Ne are buying more than We are selling,
and settling the difference IN yellow
coin, ought not TO be 8 cause Tor alarm.
nor is it, but the fear Of inability OF the
government to MAINTAIN its credit A. the
dominant source Of anxiety, and this
/ condition will continue as long as the
& situation remains 40 1t is at present.
Why not redeem them, once for AL,
either by means of bonds. or exchequer
bills, TO be paid out Of future revenues.
i it is considered undesirable to retire
the circulation, let the greenback and
sherman note be made tho basis Tor An
issue Of bank currency, IS suggested
later in this paper. The gold for the
purposes Of shipment abroad to adjust
balances, now 90 readily obtained from
the treasury, should be furnished by the
banks. which have ample facilities tor
providing every requisite for the carry
Ing on Of internati onal trade. Then
banks have the POWER Of raising the
rate Of discount, whenever the with
drawal Of gold becomes burdensome,
and can thereby at once establish the
equilibrium of the exchanges. In other
words, when the rates Of interest 20 up
debts fall in value, and the money re-
turns, attracted by the higher rates.
The government has no power to dis
count paper or raise the value of money,
hence it is compelled to dispose OF its
bonds at the best rates obtainable to re-
plenish its gold reserve.
At this time the gold reserve is below
the legal limit. but as we are selling
breadstuffs and cotton, there is not
likely to be large exports of the yellow
metal until the new year, when more
bonds may have to be disposed Of, thus
entailina still further loss and mourning
more Indebtedness. It. Is the most
suicidal policy ever attempted by q
great nation.
~ A Charge of Dangerous Delay.
We have delayed too long now in Sc
curing action upon the currency ques-
ton. I take it, all agree that q new
plan of finance must be evolved, but
what shall it be? It is generally con-
coded that the government should be
relieved from the task Of furnishing a
currency, but as practical question
viii congress be willing to retire our
noll-interest bearing notes, even III the
face Of the danger constantly threate IL
ing? The policy of the government
for many years, has looked to the
gradual retirement Of the public debt
and the consequent d 'scontlnuance of
bonds as basis for circulation for ma
tt;onal banks. Secretary Chase made q
wise and patriotic move when he sug-
gestea that banks furnishing currency
with the bonds of the nation as security,
as it enabled him to provide large sums
of money to carry on the conflict then
pending. And while the system has
proved IN admirable one and has stood
the test of time, furnishing facilities for
the internal trade of the nation, it can
not be said with truth that the currency
feature of the system is at all adequate
to the existing conditions, nor indeed,
founded upon q sound principle of
finance. The bill holder is secure be.
yond a doubt, but aside from this fact,
the notes do not perform the service re-
auired, save in a limited way. A
currency based upon securities or
land can never respond to the
demands Of commerce.. At present
the national bank notes are redeemed at
Washington, only when SO badly mu-
tfiated al to make them disagr eeable to
handle. Secured by United States
bonds as they are, the public has no in
terest in presenting them. They con-
stitute q rigid currency without any of
the real functions incident to the paper
money, to be put to work when needed
and retired when no longer required. In
addition, a paper currency issued upon
securities NAV, under some circum-
stances, result in the direst confusion
and in financial chaos. Had our gov
eminent chosen to follow the course Of
other large borrowing nations and re-
newed her debt, instead of paying it off,
it is possible the same results might
/ have ems ued haSs In 1884, when Ameri-
CANS were deeply bitten with the cur
rency mania Of basing issues of paper
upon "securities.'
Currency Must Meet the Nations Needs.
Bonds, public stocks, mortgages, land,
etc., were made the basis for paper
money, and the usual results
followed - wild speculation and
overtrading with plenty Of time to re-
Dent before commerce resumed its nor
NAL conditions. AS a distinguished
writer truly says: 1.-The principle Of
basing paper currency upon land and
upon public funds are absolutely iden-
tical and equally vicious. To permit
man to spend his money in buying a
part of the public debt, and to have it
as well in the form of notes, is as rank
an absurdity as to permit him spend it
in land and also have it as notes. That
nation can spend it's money in destroy
ing its enem les and have it too as bank
notes or cur ncy,', is wild and mis-
chevious delusion."
I think it can be assumed that in the
future we ARD to have some kind Of q
naper currency, based upon the credit
of the institution emitting it. The prob
lem then befhe us is to evolve a plan that
viii, first OF Ill, be adapted to the con-
ditions which surround us, and one that
win be likely to meet with the approval
of the law-making power. It must be
rememberedIthat there exists in many
parts of the country, an unreasonable
prejudice aesinst banks in general, and
National banks in particular, and the
legislature will look askance at any
scheme fof currency reform that grants
10: ,>1;v;1ooas IN hanks So in