The Providence news. (Providence [R.I.]) 1891-1906, 1896-02-19
ALMA MATER.


buying and selling or exchange OF 900 ds--
Third-lt l. used 20 express capital or prop
cry , how % much money has ,S Jones ,.,ns s Da%c
mill or railroad shares, and perhaps elVVo OF
money Nobody wishes 10 keep much money,
but we all wish 10 Keep the other things.
our country 4 ia trouble. but not for lack
OF capital. We are uncertsiu, both as To our
denominator and as 20 the quality OF our cur
rency, and 30 are pausing 10 settle these
questions, he"ause In tho present stlte or
affairs We can make no calculations for future
narvains. We must reassert ana nx me ae- er
We can, and therefore should have the hest
dollar. lt IL In the end cheaper, surer,
simpler, and calls for no explanations tis
sharp as against a dull tool, ana We need
sharp tools TO carve our way In the world.
ihe great nations. including ours. after
gold coins as the best footrue. the steadiest
d"nominator. and probably they are right. IL
.hey all wish TO thange or modliy this ioo,. .
ruls, we also will do it-for we must play
even with them. II it is.des.Table TO have ono
set of measures and weights for the world, IL
Is shll more essential TO have one standard OK
values. Therefore, until further notice, let 10
Do gold. for Rold coins alone can STAND the
test of fire. and when melted into ingots keep
their face value.
Next. We are uncertain about the quality
OF our national United States currency, be-
cause our great bank OF issue is nat CON
Quoted on good or even on fixed principles
Less than three years ago, our leading imam
cial United States officer denied that the
United states Treasury was bank In any
sense or the word. IL Is a bank or issue. and
yet without BANGING machinery. To-Day ~
has "A decent, and tomorrow paltry, reserve
OF gold, which Is the only kind OF reserve uni.
versaly respected bv the world ana yet this
reserve IL more easily kept good than yours
or mine. IL a merchant has too many demand
loans out, he contracts them by borrowing
money on time or by getting cash from sales
OF property-and the same Il true OF bank.
The United States Governments by an issue OF
time'bonds can promptly contract Its demand
ioans-its paper currency-or can strengthen
its gold reserve until doubt "a to quality or
It's currency II removed. No merchant, or
bank, dares TO play fast and loose with It's
credit No sensible borrower argues about
his own credit, bat b. proves his strength by
paving at once loan due. He foresees tif he
sells his last shirt TO keep himself strong In
cash; and to keep his credit good;
Credit" said an old merchant to me,
"comes from q long course OF honorable. care
ful, wise dealings"
The credit of the United States is less good
than 10 years ago. and the cause is not Tar to
seek.
Tho United States has only to choose its
course. remembering that the lender controls
the rate OF interest, and that to the borrower
OF high credit the lenders are a legion.
In an hour OF diro trouble and perplexity
the United States borrowed millions of dollars
on demand by an issue Of paper currency,
and then made this currency legal tender. lt
was a forced and an emergency loan, and IT
served our turn. Let the wisdom or folly OF
should have been peid For 80 years we have
been at peace and. Notwithstanding frequent
chills, have fiourished like green bay. tree;
but the emergency loan Is still unpaid, and,
! indeed. in a philanthropic experiment, II has
been doubled. Neither has the United States
treasury adopted any fixed rules for the man
agement of its business. its banking depart
ment. which Is the outcome Of this emergency
loan. Today the treasury accounts are so
kept that the cause of doubt about our cur
rency-the national bank-wbetber arising
| from an insufficient revenue or from an In
| sufficient banking reserve, is not clear. Prob
ably both deficiencies touch mems imaeina.
tions and magnify one another. but, IL the
| United states Government chooses 70 keep
atioat its demand notes, 1t should promptly
| divide the business Of the treasury and estah-
| lish a bank provided with large reserve and
the best machinery. With this bank the
regular treasury business of revenue and
| expenses should not be mixed.
We appoint as financial officers men OF high
| character and marked ability, who learn their
first lessons at their Washington desks-and
we pay for their tuition and their mistakes.
We hear from members of Congress fresh and
| crude views on this weli-known ubject, and
officers in the performances Of their duties.
We think ourselves the cleverest people On
earth; we manage our own private affairs
we'll enough, and we mismanaRe our United
OF course, we all have our nostrums for
these evils. bat are not few things clearly
!. Fix the depominator, tho footrule, rs IL
| is at present for the great nations--viz., gold
and there let IL rest until these great ma.
q Organize and strengthen our United
States hank to that degree that no one will
think OF its strength or dount Its demand
notes. Last October II was clear that this
bank needed more reserve at once, and equally
clear that 200 000, 900 was not too much. 1t Is
clear now. Put that sum in the box and keep
that sum there 40 long United States de-
mand notes Tor paper currency exist. A ma.
tlonal treasury has no assets, and should have
no receipts except for daily expenses, and
no
they pre-suppose good cash reserve; but,
inasmu uch as 1t does owe them, ii should keep
a large reserve. Cancel all incoming United
States notes or reissue them only for gold
"But this l. contraction" says some one.
Very good. How much contraction has the
present unwise course producedf IL has put
and kent In the United States box for a year
or more 500, ,0O0, 600 of United States notes,
because they are not wanted in trade. IL has
contracted enterprises and Industries OF all
kinds from uncertainty, and 80 has contracted
to the extent Of 10 per cent. Tor II, 100, OOOOOO
the income OF our people-their wages, savings,
profits 1t has wasted the time Of many work
inRmen end women. and, remember. that time
once lost Is lost forever, for we can never get
today again. II has contracted the interest on
the loans OF the savings hanks and life In
surance companies. which hold the savings
OF the working men and women.
This sum of money IL four times the United
States bonded debt. In times NJ doubt leriti-
mate enterprises starve, for no one ventures
a penny in stormy -weather.-Day- after day
we who sit In the market places turn away
GOOD and sound ventures because we can find
nobody to listen TO them. "We don't know
what to expect" ave Will wait and see, -
saw our customers.
g. Offer TO pay In gold all OF the United
States paper or coin, and whenever the treas-
urv cannot redeem IL let tins paper coin
cease 10 be legal tender DO not ask the citi-
zen 10 take IL IL the United States treasury
cannot take IL.
The United States treasury bank once thus
strenc theped it's notes would come In slowly,
for they are convenient. but, all the same,
let MS redeem gradually all the United States
demand notes aud leave banking 10 bankers,
who know the business. Our Congress and
our Fxocutive have enough other work with.
ont that of banking. Let them retire from ~,
and n thew will withdraw shall We give thein
tho title Of Emeritusf
The club elected their officers for the