Middletown transcript., 1897-04-17
ssThe lesson to be. drawn from these

The lesson to be. drawn from these
figures is this:
Much the larger part of all our COM
mercial exchanges are carried on by
bank checks or other instruments Of pri-
vate credit These instruments all relate
to certain form of money, in place Of
/ which they for the moment stand. If
uncertainty intervene as to what this
related thing-this money-is, or is to
be, distrust and confusion enter In.
The mighty agency Of personal credit Is
shaken. Commercial exchanges fall off,
trade languishes and industry declines.
"The greenback was issued to pay
debts, not to acquire value, or, If value
was received, such value was either con-
sumed or converted into value not avail
able in the market. The greenback paid
soldiers and government employees; it
bought powder and munitions Of war
The existence of greenback is the evi-
dence of debt not paid It is q lien
upon the future.
ga national bank note, on the con-
trary, Is the evidence of some existing
value which lies somewhere as collateral
for its redemption. To transfer such
values is the only ordinary and proper
occasion which calls for their issue. The
volume in which they will appear
marks the rise in prices or an increasing
quantity Of existing things. Like the
bank check, they will be in active serv-
ice when trade and commerce are active.
Thus they enjoy the principle of elias
ITCHY, wholly lacking in any possible
form of direct government issue. The
method of their retirement is wholly
different and subjects the trade and COM
merce Of the country to less dangerous
strain.
There is no reason why the govern
ment should act as warehouseman for
either gold or silver Such function is
outside its proper limit of action. But
we are faced by the condition, and it is
the bette noire of the treasury. The
enormous amount of $500, 100000 Of
silver, represented by $S38, 900, 900 in
silver certificates, added to the $780,.
600, 900 purchased by the government
under the Sherman act, constitutes
standing menace to every business, inter-
est.
"Our whole monetary system is the
resultant of makeshift legislation and
unscientifc compromises. tits time that
reform began do not assume to offer
more final remedies. In my own opinion
the greenbacks should be permanently
retired. The silver purchased under the
Sherman act should be gradually sold
and the treasury Eotes redeemed and
Cancelled Seine well guarded system Of
bank note circulation, broader and more
elastic than the present national bank
act provides, should be inaugurated.
Such bank notes should be redeemable
at central place and be redeemable in
gold only
ITO sum up. the defects Of our pres
ent currency system are: 1. A confusing
heterogeneity which Eeeds simplifica-
tion. 3 The gTeenhack eontroverts the
principle of paper ploney-viz, that ev-
cry note injected into the commercial
system should represent an existing
commercial value 8 The treasury note
is standing evidence of a foolish opera
ton, the creation of debt for the pur-
chase ON falling market of a commodity
for which the purchaser has no use-it
lies open to the just charge of being both
idiotic and immoral T. The national
bank note nearly conforms to the true
principle Of paper money, but the un-
reasonable requirements for security
paralyze its efficiency and operate to
destroy its elasticity. 5. The silver GER
tifcate encourages the use of silver to
larger extent than consists with the safe
preservation of that metal on parity
with gold
"Would national commission help
to promote reform? There is reason to
hope that it would be of great service in
that direction. Such a commission, if
rightly selected, would throw flood Of
light upon these involved questions.
The information it might gather would
be of immense value to all our people
and would guide us to wise legislation.
Emotion and sentiment are not safe
guides in matters of science. A clear
apprehension of true principles will lead
to correct action.