Birmingham state herald., 1896-03-15

tons in 1870 and 24, 4,500,000 in 1885, as against 51 ,0O0,0 900 tons in the United States in the latter year. The total canal and river mileage of France Is 7730, and of the United States 51, S34, or 30 per cent of the worlds mileage of that character. Add to this the enormous capacity of our great lake system, and the unequaed fa- cilities for the development of internal commerce can be partially realized.
 A Convincing Comparison.
 But the most convincing comparison as a basis of judgment of the matter in hand is as to the relative banking power of France in 1870 and tho United States in 1890 (the statistics for 1895 not being at my present. command) in proportion to the total banking power of the world at these respective dates. In 1870 tho worlds banking power was about SS, 900, 900, 000, and that of France was $320, 900, 900, or per cent. In 1S90-and the proportion is still more favorable to us in 1805-the worlds banking power was nearly $16,- 900, 900, GOO, and that of the United States was 32 per cent of that tremendous aggre- gate, or So, 150, ,000, ,000.
 Of course the gold standard men will point to the doubling of the banking oapac- ity of the world in tho last twenty odd years
 
 and will cite tho very exceptional equip mept of this country in that respect as an argument that wo cannot use any more pri- mary money But it is too plain for dis pute that this great growth in the worlds means of economizing gold, coinciding, as it docs, so closely with the steps by which the volume of ultimate money has been deliberately curtailed, gives convincing support to our position that moro primary money is n crying need of the world. Credit has been expanded to the utmost far beyond the safety limit; gold has ap- prociated beyond all precedent, and to try to meet the demands of business this bank ing power has been evolved. It is an exact index of the increased need for primary or real money and shows conGlusively that the capacity of tho United States today to absorb q new supply of real money is al most incaloulable These considerations are much enforced by the fact that our vast territory of just touched possibilities, with its constantly multiplying popula- ton, affords incomparable scope for the operation and expansion of the energizing functions of an adequate supply of primary money.
 Now, sir, as we havo seen, thero is a de- mand in the world for n large additional
  appreciation of gold and the almost in- calculable multiplication of credits are in contestable proofs of it. The supply of gold has not for many years como any where near keeping pace with the demand, so that even the increasing facilities for using it, of which our gold friends hayo so much to say, have not ayailed to keep it from rising ruinously. Dr. Soetbeer and others have exhibited the immense growth of the demand for gold in the arts and manufactures. He showed how the gold available for coinage averaged $92, 900, 0c0 a year from 1851 to 1870, but $24 1000, 900 year from 1871 to 1881. Mulhall says that during the 50 years, S31-l8S0, the consumption of gold was 160 tons more than tho production. In an article In The Nineteenth Century Magazine for Novem- Der, 1889, the great statistician and gold monometallist, Giifen, said
 ''The precious metals it is admitted on all sides, have an extensive nonmonotary use They are merchandise as well as money. But few people realize that prob- ably this nonmonetary uso is preponderant over the monetary uso itself About two thirds of tho gold annually produced is taken for the arts and if tho consumption of India is included, as being either for simple hoarding or for the arts, then tho demand for gold for nonmonetary purposes appears almost equal to the entire annual production.
 Professor Bemis, the brilliant young economist of Chicago, has recently shown from perfectly reliable sources that during the nine years last past there has been available for addition to the worlds stock of circulating gold money not over Sl5,- 900, GOO of new gold all told.
 Mr. Walker of Massaohusetts-Will the gentleman tell the house how much the economic power of gold in commerce has increased in the last 50 yearsp Has it not increased several thousandfold2
 Mr. Towne-Mr Chairman, I under stand the gentleman's question to refer to the common argument of gold standard theorists that tho conclusions drawn by all statesmen apd economists down to re- cent years as to the limited ability of coin to discharge commercial functions have been abrogated and overthrown by mod ern inventions that have facilitated OK change, as checks, clearing house certifi- oates, book credits and such things. Is that what the gentleman referred to in his question:
 Mr. Walker of Massachusetts-I made it as clear as I could Give your own answer.
 MT. Hardy-Will the gentleman pardon me moment?
 Modern Hocus Focus.
 Mr Towne--I must decline to yield just now, Mir. Chairman, to the gentleman from Indiana. To the question of the gentleman from Massachusetts have only to say this-that it implies one of the great est fallacies with which the case for the single gold standard fairly teems, although I never heard this particular weakness so strongly stated as by the gentleman from Massachusetts. The idea is that by reason of some modern hocus poous you can oom- pei limited amount of real money to go on forever doing an unlimited amount of work. They say "it does not make any difference how much ultimate money you have if you only have confidence" No word in their whole armory Is so sadly overworked as this poor confidence.
 Confidence in what? I take it these gentlemen cannot mean that childlike and bland and innocent reliance upon the es- tablished moral order of the universe which Is sometimes implied in the word "confidenoe. No, sir; these gentlemen use it as business word in a practical sense, and so used it has reference entirely to tho confidence which you must feel in the ability of a man or an institution that