The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-22

1 have named. The object of money is Ia
make exchanges between buyers and SELL
ers, between wage earners and employers;
and also 1t is a measure or denoIninator
which fixes the value of the things thus
bought and soil and of the wages thus
earned. T. is also the standard of money
for what is called deferred payments, or
the standard of money in which debts are
raid. 1t is also a store CT money or of
value whereby If a man earns money and
does not for the moment wish to use it.
he can lay it aside and nave it when
needed. Therefore, as respects postponed
payments and as respects the storing of
value, it is important that the standard OF
money shoul1 be stable. And if it is stable
Tor these purposes, 1t also must be stable
In making exchanges and in measuring
caa a Any money Is g9od Tor making ex,
to the wage Garner. And If it is so accept
able: it also becomes a measure of value
Tor the things exchanged or earned
DIMINISHED CREDIT MONEY.
so in our country-and our country is a
good llustration-we have different kinds
of money. We have gold. which answers
the third quality of money, n~amely-that
quality which is most stable in its value,
and, therefore,, the standard of postponed
payments. We have silver as money be-
cause 1T is acceptable to all our people in
the United States in making their ex-
changes. We have paper money because it
is also acceptable in making exchanges.
We have also what we call credit money,
winch is neiher gold nor silver nor paper,
but 1t is the credit of individuals or organi-
cations whereby it's exchanges are made
without the use of any of the kinds of
money have described. This credit money
is estimated in our country to amount to
at least 80 per cent. of all the exchanges
tnat are made here. That being so, this
class OF money-if may call it money-be-
comes the most important of all, because 1t
Is the greatest in quantity, and, therefore,
as credit Is increased or retarded, we have
an ample or a diminished supply Of the
iiccGSSdTy money 10 carry on our eX-
changes.
II have heard 1t sometimes said by those
WHO support Mr.. Bryan that we have not
money enough. We have as much money
now as we had in 1892, except that some of
IL Is neId IN the treasury as reserves aris-
ing from the sale of ~bonds-these reserves
having been increased for the purpose of
maintaining the standard of value or the
parity OF all our money. In 1892 our busi-
ness was active, the circulation was active;
ana we transacted three-fifths or certainly
tWo-nftns more business than we have
transacted IN the last two years, and there
was no complaint as to the amount of
money. But our credit money, that money
tWnicn IS the most important in making
tnese exchanges has been diminished very
largely, for the reason that during the last
Two or three years our credits have vastly
diminished in every portion of our country,
because those who have money have not
been willing to risk 1t under the conditions
that surrounded them, and those who deal
IN credlt money have found it necessary for
themselves to hold larger and stronger re-
serves In order to maintain that credit. So
liza ny Inc operation CI the cOnQ1tlOnS that
we had in the last two or three years there
seems to be in many instances a lack of
money. whereas it is not a lack of money
but a lack of credit. We now nave in the
United States money to the extent of s22. O5
per capita, according to the estimate of the
Secretary of the Treasury on the LIST of Oc-
money OF any nation that l know of that
transacts in any degree the business that
we transact in the United States. II is
larger than the money of England. 1t is
only excelled in any civilized state by the
money of France, where the situation as
ours. There is but $40 per capita of money
on our northern border, in Canada, and yet
the prices there do not materially differ
I'VE are told sometimes that in Next
co there is a degree of prosperity that we
1age f but fR sl.s5 p and capita iPitateii in ah Mexico zfe 5hf ~
money and a little over 81 of metallic
money, all of it silver. So when our Pop
that word without offending any of YOU
talk about a lack of money In our country,
and the prosperity of Mexico in the same
breath. if we want to emulate Mexico we
should have a per capita Of $4s5 instead
of a per capita of $22.05. Now that Is our
situation as respects money. l may a little
later on, with your patience, inquire into
the reasons of the methods whereby we
are to increase our money by the free COIN
age of silver, if that will interest you'll
know that it will.
TIE Of 1873.
"Now we are told tina in 1871 am not
going over that in detail--we demonetized
silver in this country by dropping the sill
yer dollar from the coinage, and thereby
destroyed one-half of the money Of the
world. The history of that act of 1878 is
familiar to you l suppose, made SO by doc
uments and public speeches for the last
four or five years or longer. That law was
first suggested by Secretary Boutwell,, of
Cabinet, in 1S70-three years, or
nearly so, before 1873. He suggested it in
with the reformation of our
mint and coinage laws. He recommended
yer dollar was worth s1.03l2 as measured
with gold, and that the dollar was quite
one not coined In any quantity.
Mr.. Knox, who prepared that bill for him.
suggested that we ought to adopt a COM
mercial dollar in lieu of it which should be
in exact accord with the dollar of Mexico,
and thereby compete with Mexico for our
silver in the markets of China and Japan
and the East generally. One gentleman
Mexican dollar we should adopt the Span
pure silver than was contained in the Mex
lean dollar. These two Suggestions came
the documents connected witt the subject
were printed; later in the same year a new
batch OF in the form of letters
the bill. and otherwise, were
printed in the House; SO there was full and
detailed information upon the whole SUBJ
ject as early as June, 1870.
when this bill passed the Senate, as 1t
did during 1871, it contained no provision
for a dollar of 412h grains or any other. 1t
went to the House and failed for want of
During the next session of Congress
it was taken up in the House and passed.
it passed the House it provided for
a dollar of 1854 grains, being equal to our
two half-dollars; and it was stated on the
floor of the House that this was for the
purpose of making it similar to the five
pieee-a five-franc piece being worth
96. AZ cents, while this dollar was worth
96 cents When that bill came to the Sen
ate in the course of the debate, this
348-grain dollar was struck out; that
being a dollar that was to be
coined by the government; the
IN the bullion to go into the treasury. 1t
That 420-grain dollar was to be
coined in a different way from the dollar of
The House. 1t was to be coined at the
.equest of whoever might hold silver bull
ion. whether he lived in the United States
IF elsewhere. The government bound itself
Inder that law of 1S73-because this Senate
was inserted-to coin into trade
of 400 grains all the silver that came
% the mint, charging only the exact cost
If coinage and no more. So that in that
of 1878 there should have been no de-
nonetization of silver in the sense of re-
letting silver from our mints.
In 1878 we had no silver coins in cir
in the country and no gold coins
n circulation except on the Pacific coast.
we had no silver to sell and
or all the silver that came from our mines
here was a provision made in that law
or its coinage, so that it cannot be truth |
'ully said that there was a demonetiza-
ion of silver in the sense of destroying, |