The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1897-03-31

Gold coin OBSERVATION-DISCLOSURES. 81, ssl
Silver Observation-Disclosures. 1881
Gold certificates. Observation-Disclosures. 4.04J
Silver certificates ..............,....... oS. i20
Legal tender notes and greenbaclls. 81, liz
Treasury notes INSTRUMENTATION. 1890
National bank notes ................... 81, 26J
Total cash .................... $500 SIG
Checks, drafts bills of exchange 50, sos. 945
Percentage of cash to total credits.
} per cent
THE lesson to be drawn from these
figures is this:
Much the larger part of all our com
mcrcial exchanges are carried on by
bank checks or other instruments of pri-
yate credit. These instruments all relate
to Il certain form Of money, i'll place Of
which they for the moment stand. If
uncertainty intervene as to what this
related thing-this moneys. 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 grccnback was issued to pay
debts, not to acquire value, or, il value
was received, such value was either con.
sumed OF converted into value not avail
able III the market. The greonback paid
soldiers and government employees; it
bought powder aud munitions Of war.
The existence of greenbaek is the evil
dence of debt not paid 1t is lien
upon the future.
"A national bank note, ON tho con-
trary, is the evidence of some existing
value which lies somewhere as collateral
for its redemption. To transfer such
values is tho 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 i'll 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. Tho
method of their retirement is wholly
different and subjects the trade and COM
mercc of the country TO less dangerous
strain.
There is 10 reason why the govern
ment should act rs 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 heto noiro of the treasury The
enormous amount of 5000, 600. 600 of
silver. represented by 1898, 600, GOO III
silver certificates, added to the $3.50.
| 600. 600 purchased by the government
under tho Sherman act, constitutes q
standing menace to every business inter
est.
Our whole monetary system is the
resultant of makeshift legislation and
unscientific compromises 1t is time that
reform began. do not assume to offeI
more final remedies, lnmy own opinion
the grecnbacks should be permanently
retired. The silver purchased under the
sherman net should be gradually sold
| and the treasury notes redeemed and
cancelled. Some well guarded system OF
bank note circulation, broader and more
elastic than the present national bank
net provides, should be inaugurated.
Such bank notes should be redeemablC
mt central place and be redeemable in
gold only
TO sum up, the defects of our pres,
ent currency system are: l. y confusing
heterogeneity which needs simplifica.
ton. > The greenback controverts the
principle of paper money--yiz. that ev.
cry note injected into the commercial
system should represent an existing
commercial value. 3. The treasury note
is a standing evidence of foolish opera
ton, the creation of debt fer tho pur-
chase on falling market of commodity
for which the purchaser has no USE;
lies open to the just charge of being both
idiotic and immoral 1. The national
bank note nearly conforms to the true
principle of paper money. but the UNI
reasonable requirements fer security
paralyze its efficiency and operate &c
destroy its elasticity ). The silver GER
| titicate encourages the use of silver TO Il
larger extent than consists with the safe
preservation Of that metal ON parity
with gold
Would u national commission helr
10 promote reform? There is reason &c
hope that il would he of great service il
| that direction Such commission, il
rightly selected, would throw flood OF
| light upon these involved questions
The information il might gather would
be of immense value to all our people
and W. guide us TO wise legislation
~ ation and sentiment are not safe
guit,es i'll matters OF science. A clear
apprehension of true principles will lead