The herald., 1896-06-21
A MONEY SYSTEM
BY S. 8. GORDON

Permit me to suggest the system OF
paper money very briefly outlined pc
low as a settlement of the sharp CONNECT
of opinion on the financial question.
President Cleveland seeks to obey the
law requiring the maintenance of the
narity of gold and silver by Offering
to public creditors their choice OF the two
metals. In his official position there is
no other course for him to pursue What-
ever may be his personal views Oh tne
causes of the financial depression or MS
anxiety to afford relief. The 16 to Sill
yer people want speedy reller ana they
demand the only relief that to them
seems possible. The conflict is not be-
cause patriotism is lacking on either
side or proper appreciation or the man
cial evils that are upon us, but because
our financial system is wholly wrong and
does not admit of an adjustment OF con-
ficting interests that is either talr or
satisfactory to both sides. Sufi1cient
paper money should be issued to supply
all the legitimate demands of business,
but every dollar of it should equal IN
value the best dollar the world knows.
But these two things are not possible
under our present system without injus-
tce and hardship and great waste Oh
the public credit and meansO
The distinguishing feature of our pres
ent system is the promise to redeem In
gold all paper money on demand. This
applies to paper issued by the govern
ment directly as we'll as to that lssued
by the banks by government authority.
Now, the amount of paper money is sew
eral times larger than the amount OF
gold owned by both the government and
the banks, and the redemption OF 1t all
in gold is, of course, impossible. The
| government has made promise that it
| cannot keep if called on by all VINO hold
it's promise. This is a discreditable po-
sition for the government to be in, and
| a strain on its credit.
The immense hoard of gold kept by the
government and the banks for redemp-
| ton purposes is maintained in idleness
| at a great loss of interest, and otherwise
| besides the injury it does to business
| by being withdrawn from circulation
| and use. Paper and gold should be kept
| at par, but not at such a waste of credit
| and means when it can be better done.
| not only without loss or cost, but at an
actual profit, as shown below.
First-The unlimited coinage of silver
and gold on the same terms, at the pres
ent ratio of Is to 1.
Second-The issue by the government
| of it's own paper as money; not as
| promise to pay money or as represen-
| tative of money, but as absolute money.
! Make no provision for the payment or
| redemption of this paper in coin, but
provide the following for keeping it at
par Will cOlH.
/. Pledge the faith and credit Of the
| nation to keep it at all times at par with
gold and silver, or with the more valu-
able of them, if they differ in value
| 2. Make it legal tender and the only
| legal tender money; that is, take away
| from gold and silver their present legal
tender quality.
8. Permit no other paper money to be
| issued.
! A. Require all payments to and by the
government to be made in this paper
| except the payment of government obli-
! cations already made payable in coin;
| that is, all government business to be
| done with paper money.
5. Issue enough of it to supply the busi-
| ness needs Of the people, but only SO
| much as will keep at par with coin.
6. Issue government bonds bearing low
! rate of interest and make them and the
paper money intercharg geable at the will
| of the owner. a.
| Z. Require the president and the sec
| retary of the treasury to keep this paper
money at par by withdrawing portion
| of it from circulation whenever 1t shall
| go below par and to continue such with
drawal until it shall be restored to par,