The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1896-10-29
CONFIDENCE NEEDED RATHET
THAN MORE MONEY,

! THAN MNtNE4 MNlN = l.
4 Mr. Eryan'S main argument, and the
one which appeals more than any other
to the people. is tha, moro money is
needed in circulation tc conduct the
business OF the country and 70 raise
the prices OF property
During the silver panic" Of lSSS
when money was So scarce il lent FOR
20 per cent, SO per cent, and even as
high as so per cent interest. when bus
/ mess houses were failing, and banks
closing their doors, the same argument
was urged by the silver men against
the repeal Of the sherman silver pur-
chase act via; More money is needed
in circulation to conduct the business
exchanges OF the country"
At meeting Of the New York cham
ber OF commerce, held on July 9Th, Of
that year Mr.. A, Foster Higgins, who.
opposing a resolution favoring repeal OF
that act, conceded that according to
the general opinion OF the authorities
on that subject. about S per cent Of
the worlds business was conducted in
money and the other 80 per cent on
credit"
In reply to Mr.. Higgins and in sup
port Of the resolution for the repeal OF
the act. Mr., John Clafin said:
Suppose we could increase the cur
rency OF the country 10 per cent a year
and suppose, by doing that, We should
diminish the confidence and conse-
Quently the credit only 10 per cent.
Most likely We should diminish it 30
per cent or morel
Ten per cent of one thousand dol
lars worth Of business done on cash
basis is $lOO. That is the amount you
have increased. Ten per cent Of the
$4,000 which is done on credit is only
Sl,O00, You have gained 500 in sub
stantial money, II you please. and you
have lost 81. 900 in credit, and practical
ly we are just that much worse OF.
We could better afford to lose 10
per cent OF our money. II by that means
we could regain confidence. than we
could AFFORD to gain 10 per cent OF our
money and lose per cent OF conf
ience.
After 1879. when We came to a specie
basis. we were not in the depths OF de-
preston or distress About the best |
years in my remembrance were 1879
and 1850" (See report Of proceedings
by the chamber Of commerce in all New
York papers of July Z, 1891
Can Mr.. Clafin's argument be sue
gainsaid? II not. is 1t not
clear that confidence in the business
is not only more necessary
to conduct the exchanges Of the coun-
Try than an increase Of currency. but
that 1t is nine times more necessary?
II our currency is to be increased at
the expense OF our credit (or Of public
would not the exchanges
IF the country be promoted by fore
going the increase of currency and
keeping our credit (or public confdence)
The entire currency in circulation,
according to the statement Of the L. s.
mint, issued on October lst inst, in
'luding bank notes, is S1,5S2, 900 900,
which conducts, as is conceded only
per cent Of the exchanges Of the
country. II all credit were gone, and
he other 92 per cent of the exchanges
which at present are conducted on
,redit had to be conducted for cash,
line times more currency would be
or about s14.23s. 100000. To
,oin this sum of silver dollars, at the
present coming capacity Of the United
states mints Of s., 500 900 per month, or
80 10000 per year would require over
90 years! or, at the present rate of
printing treasury and national bank
totes Of S1,25O,O0O per day, it would
equire over 80 years and we should
hen have afoat over forty times as
much government paper as we had
Turing the war; and meantime, during
II these years, we should be suffering
he pangs Of bankruptcy.
Is it not evident that it is better as
veil as infinitely cheaper, to keep our
.redlt Cor confidence) good and dis
,ense with the increase of currency?