Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1897-04-09
''First. gold coin, silver coin-rea,

to real money, however, are not alike.
The national bank note and the bank
check may both be satisfied by the tender
of greenbacks or treasury notes, while
the last two are redeemed only III coin
or in payment Of public dues.
Gin passing it may be we'll to note
the relative usc of these various agencies
i'll the practical operations of commerce.
and trade. No better place to determine
this can be found than the counter Of IL
bank, and the following statement of
the amount of each received by Il bank
in this city On u recent day will indicate
their relative Importance III that direc-
ton:
Gold coin. Sl.SS1
Silver coin l5.Sat
Gold certificates. 4.U4J
SILVER certificates Observation-Disclosures. Us. i-3
Legal tender notes and grec.buclss... 81, III
Treasury notes a5.4aG
National bank notes NORTHUMBERLAND. aA3c.'
Total cash.......... Observation-Disclosures. Ss'D a!i
Checks, drafts. bills of exchange 49,. %. .9li
Percentage of cash to total credits,
5 per cent.
1.-The lesson TO be drawn from these
figures is this:
"Aluch the larger part of all our COIL
mcrclal exchanges are carried oil by
bank checks or other Instruments of pri-
waite credit. These Instruments all relate
to IL certain form of money, in place of
which they for the stand. Ii
uncertainty intervene as to what this
related thing-this money-is, o. is to
be, distrust and confusion enter in.
The mighty agency of personal credit is
shaken. Commercial exchanges fall off,
trade %languishcs and industry declines.
"Thc g%recnback was issued to puy
debts, not to acquire value, OF, if value
was received, such value Was either con-
sumed or converted into value not avail
able i'll the market. The g%recnback paid
soldiers and government employees; it
bought powder and munitions of war.
The existence of Il %greenback is the evil
dence OF a debt not paid. 1t is IL lien
upon the future.
"a national bank note, OH the COZ
trary, is the evidence OF some existing
value which lies somewhere as collateral
for its redemption. To transfer suci,
values is the only ordinary and proper
occasion which calls fer their issue. The
volume i'll which they will appear
marks the rise in prices or an increasing
quantity of existing things. Like the
bank check. they will be III active serv-
ice when trade and are active.
Thus thev 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
MERGE of the country to less dangerous
Strain.
"tTherc is no reason why the govern
mcnt should act as warehouscman for
either gold or silver. Such a function is
outside its proper limit of action. But
we are faced by the condition, and it is
the bette noirc of the treasury. The
enormous amount OF $500, 600, 900 of
silver, represented by S33s, 600, 900 in
silver certificates, added to the $780,
O0O, 600 purchased by the government
undo the Sherman act, constitutes IL
standing menace to every business inter-
est.
OoA AApAo AhOANNNtlN 'N'tNAA - NiiI
resultant of makcshift legislation and
u%nscientitic compromises. 1t is time that
reform began. l do not assume to offer
more final remedies. In my own opinion
the srecnbacks should be permanently
retired. The silver purchased under the
Sherman act should be gradually sold
and the treasury notes redeemed and
Cancelled. Some we'll 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 q central place and be redeemable in
gold only.
"To sum up, the defects of our pres
ent currency system are: 1. A confusing
heterogeneity which needs simplifica-
ton. 2. The greenback c%ontroverts the
principle of paper money-viz, that ev-
cry note injected into the commercial
system should represent an existing
commercial value. 8. The treasury note
is Il standing evidence of Il foolish opera
ton, the creation of IL debt for the pur-
for which the purchaser has no use-it
lies open to the just charge of being both
idiotic and immoral. 4. The national
bank note nearly conforms to the true
principle of paper money, but the I'M
reasonable requirements for security
paralyze its efficiency and operate to
destroy its elasticity. 5. The silver GER
tificate encourages the use of silver to a
larger extent than consists with the safe
preservation of that metal OH a parity
with gold.
"Would a 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 q 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
IN oor,,,% ,a4;,, -