The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-27
Solution of the Currency Difficult,

.
In his report and formulated bill. the sec
rotary Of the treasury only looks at the side
OF this question In which his capabilities
have been trained-to wit: the banking inter
ests.
The settlement CT this money question Is
very easy If reasoned out logically. The
condition is that there IS in circulation a
larger amount of promise to pay, CT paper
money, than there Is Of gold to redeem It,
The evil arising out OF this condition Is the
redemption in gold Of paper money redeem
able In silver The remedy for this evil is
either ~ to redeem In silver the paper money
redeemable In silver and to redeem In gold
the paper money redeemable in gold: or (2)
to call In all the paper money redeemable
in silver and issue silver coin therefor. The
hrst plan has been repudiated on the ground
that to make this distinction would destroy
the parity OF the two metals. To adopt the
second plan would not lessen the circulating
medium, nor interfere with the parity of
both metals, because 1t is only substituting
the thing Ghe RESI- for the paper promise
to pay 1t, and would abrogate the unconsti-
tutional and idlouc system of the govern
ment acting as warehouse and issuing ware
house certificates. by storing the silver and
Issuing paper promises to pay that silver
when demanded.
Logically stated, there is more paper money
than there is of gold reserve to redeem 1t
the surplus being the paper redeemabie IN
silver, which in the effort to maintain the
gold standard is redeemable in gold; hence
the remedy is to cut off this overplus but
as the circulating medium could not be thus
contracted. the promises to pay in silver
should be called in and the silver issued
in the place OF the paper promises to pay
because there Is no common sense In storing
the silver and then issuing promises to pay
out that silver when demanded. especially
when the promise Is demandable IN gold
though payable in silver.
The first step is to call IN and cancel all
the silver certificates by paying out thu sill
stored in the government warehouse for
its redemption, and then We are at the end
OF the idiotic business OF storing silver for
the redemption OF silver certificates. but re-
deeming such certificates IN golc.
The next step is to call In a propordonate
amount monthly or yearly OF the gold GER
tifcates or the paper redeemable in gold
and issue paper money or promises to pay.
bottOmed on taxes Import duties). and set
apart a portion of the import duties yearly
or monthly for their redemption. This will
abrogate a gold reserve obtained by bonds
and ultimately redeem al paper money or
promises to pay.
Under the constitution, the government Is
limited to the power TO coin gold and silver
as a war measure; but can Issue promises to
pay without the legal tender clause; because
the debates in the constitutional convention
expressly assert and the constitution was so
framed o. that the government and no
state las the power to issue paper money,
and (2) that the government and no state
can make paper legal tender and 90 that
the government, though limited to coming
gold and silver can nevertheless issue prom
ises to pay, but without the legal tender
clause. john Kelly