The Caucasian. (Clinton, N.C.) 188?-1913, 1895-07-18


ally boarded. except the small
amounts held BY the banks in their
reserves, its value has 50 enhanced
that very little of it can he found in
general circulation. We have seen
the industries and commerce of this
and European nations suffer; We
have seen failures innumerable,
strikes and civil wars. The army Of
the unemployed has steadily grown,
and, notwithstanding unprecedented
production, distress and suffering
have been our unwelcome guests, md
the gold basis is the only universal
factor present
ut should be born in mind that
with gold as the only money of final
payment all other forms Of money
ere ultimately redeemable in gold,
therefore are mere promises to pay
and hold the same relation to the
basis, gold, as the checks of an in
dividual hold to his bank account;
therefore every dollar OF secondary
money Issued to be honest must
have a dollar in gold ready to re-
deem it with.
History shows that to take chances
on the issue of larger volume Of
secondary money or notes than there
is primary money to redeem it with
is dangerous and always finally dis
astrOus. History sho rs, TOO, that the
combined issues of gold and silver as
primary money. have been insufficient
IN, III l.
nations have repeatedly been com
PEELED to resort to less value but
equally effective paper as money Of
final payment, as full legal tender.
In fact, had it not been for this form
OF money the progress of civilization
over the battle fields of Europe and
America would have been effectually
blocked; without it Napoleon would
never have won his great victories,
England's star would have set Water
loo and the United States of America
would never have been born.
1.-The use of gold as the only money
Of final payment is an experiment in
finance, that in the light of history
will result in disaster not only to the
debtor, but the creditor as we'll, when
the inevitable hour of reckoning
comes.
rs. An ideal banking system, in
the light of history, requires close
governmental restriction and super
vision, in that stockholders, note
holders and depOsitOrs shall be fully
protected. 1t is not the purpose Of
this paper, however, to enter into
fuller detail under this heading, as
it is worthy of separate considera-
ton.
broader and deeper than the
question involved in the war of the
metals is the greater question of a
complete system of finance. involving
not only money, but banking, and in
our settlement of this question we
should consult the interests of no
man, no class and no nation; we
should apply the great law of recon-
pense to individuals, classes and ma
tons alike; we should distinguish
between palliative and = remedy,
and We should carefully avoid the
error OF mistaklng temporary profit
for enduring prosperity.
WHERE CONFIDENCE COMES IN.
"And now, Mr. President and gen.
tlemen, in conclusion, have shown
that the law of supply and demand
affects money as we'll as commodities;
that the supply of true money affects
values OF commodities by limiting
the demand for them, and l now
crave your indulgence to refer for a
moment to that element commonly
and correctly associated with finance.
VIZ, confidence. We, as bankers.
appreciate the value of confidence:
without it the banks of America |
would be swept into sea of failure;
without it there would be no govern
ment, no civilization. Confidence is
the basis of credit; it depends for it's
existence upon the ability and the
intention to redeem pledges. Want
OF prosperity is attributed to want of
confidence, because credit has been
too generously extended and &C.
cepted. The ability to redeem pledges
has been found wanting. If we limit
our supply to true money to gold our
rests upon the confidence
'f foreign capitalists in American Sc
,urities, for they are the owners Of
he gold. How must this confidence
% maintained By redeeming our
pledges. How can our pledges be re-
ieemed with an annual gold supply of
80, OOO, OOO, the balance of trade near
y equal, and an annual interest paw
nent of over 5000, OOO, 900 already IN
urredf By borrowing more gold, ,
This confidence will last only so
ong as our resources can stand the
train OF the ever increasing annual
interest tax. The inevitable outcome
must be ruin and disolation prefer
he confidence that rests upon the
alth and strength of American
money, that establishes national
ride and true patriotism, a money
ot subject to foreign interference,
money that stands upon the integ-
lty OF the greatest nation on earth.
nd that is not bought with pledges
emanding an ever-increasing inter- !
st payment and an impossible
ature settlement, l prefer this CON
dence to the confidence that vould
lace Us in eternal bondage to the
over that sits behind every Euro
can throne and silently Yields the
'epter over every European sub.
,ct."
In Old Kentucky.