The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1897-04-07

Nv bNth~A pANNS w
determine this can be found than the
counter of a bank, and the following
statement of the amount of each re-
ceived by bank in this city on a re-
cent day will indicate their relative inn
portance in that direction:
Gold coin. 1852
Silver coin. ......................'.''. lo'SIg
Gold certificates. S.................''..'' otUi0
Silver certificates. ..........:..;.. S,lZS
Legal tender notes and greenbacKs.. Sz,iIz
Treasury notes. es......................... LoaSo
National bank notes.. o4'zod
Total cash. ..!............:. :.......": $26S Sl6
Checks, drafts. bills of exchange. ..$5, SSS'945
Percentage of cash to total credits,
five per cent.
"The lesson to be drawn from these
figures is this:
"Much the larger part of all our COM
merical exchanges is carried on by
bank checks or other Instruments OF
private cerdit. 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 person
al credit is shaken. Commercial ex-
changes fall off, trade languishes and
industry declines.
"The greenbaclk 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 evil
dence of debt not paid. 1t is a lien
upon the future.
"a 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 act
i've. Thus they enjoy the principle of
elasticity, wholly lacking in any pos
sible form of direct government issue.
The method of their retirement is
wholly different and subjects the trade
and commerce of the country to less
dangerous strain.
Il 4
"There is no reason why the govern
ment should act as warehouseman for
either gold or silver. Such function is
outside it's proper limit of action. But
we are faced by the condition, and it is
the bette noire of the treasury. The
enormous amount of $500,000,000 of
silver represented by $33S,000,00O in
silver certificates, added to the $780,
100000 purchased by the government
under the Sherman act, constitutes a
standing menace to every business in
terest.
"Our whole monetary system is the
resultant of makeshift legislation and
unscientific compromises. 1t is time
that reform began. do not assume to
offer more final remedies. In my own
opinion the greenbacks should be per
manently retired. The silver purchased
under theSherman act should be gradu'
ally sold and the treasury notes re-
deemed and Cancelled. Some wei
guarded system of bank note circiua'
ton, broader and more elastic than the
present national bank act provides
should be inaugurated. Such bank
! notes should be redeemable at centra
place and be redeemable in gold only.
"To sum up, the defects of our pres
ent currency system are: l. A confus
ing heterogeneity which needs sim
plifcation. 2. The greenback contro
verts the principle of paper money-viz
that every note injected into the com
mercial system should represent al
existing commercial value. 3. Tht
} treasury note is standing evidence of ;
: foolish operation, the creation OF {
debt for the purchase on falling
market of a commodity for which tht
purchaser has no use-it lies open to thu
Just charge of being both idiotic anc
immoral. 4. The national bank not
: nearly conforms to the true principle o
paper money, but the unreasonable re
quirements for security paralyze it
efficiency and operate to destroy it
elasticity. 5. The silver certificate en
courages the use of silver to larger ex
tent than consists with the safe preseu'
walton of that metal on a parity witt
gold.
"Would a national commission hell
to promote reform? There is reason t.
, hope that it would be of great service il
that direction. Such commission, j
rightly selected, would throw flood o
light upon these involved questions
The information it might gather woult
be Of immense value to all our peopl
and would guide us to wise legislation
Emotion and sentiment are not saf
guides in matters of science, A clea
, Apprehension of true principles will
lead TO correct action"
Watson Accepts the Verdict.
In a letter printed in the New YorI
World of March 0 Thomas L. Watson
ex-candidate for vice president, says:
: "If there was any clear meaning il
4 =. - a L. I,.