The record-union., 1898-01-26

The safety of the Republican Government
was never so clearly demonstrated as on
November 3, 1886 Either the verdict rem
dered on that day determined that the
value of the United States dollar shall
be and remain in both debt paying anu anu
purchasing power the equivalent OF 29S
grains of standard gold, or that election
determined nothing.
| am not unmindful of the fact that pos
sibly a few voted for the gold standard
in the hope that international bimetalllsm
was attainable, but they wisely recordeu
their vote in favor of the maintenance OF
the present gold standard until Such time
as international bimetallism should be
secured. Now that the most earnest ana
good faith attempt thereunto has taiied,
and amid such circumstances as to leaC
all thinking men to believe that nothing
can ever be accomplished along that line,
it follows that the gold standard must De
maintained forever
This being settled. what remains to be
done? The people have a right to expect
something. They went to the extreme
limit of their opportunity in demanding
security against financial depression, com
mercial upheavals and industrial aglta-
ton. In view of the oft-repeated declara-
ton for national honor and the paynelnt
and discharge of every obligation, public
and private, in a currency equivalent 10
gold, it remains for the lawmaklng power
render judgment in accordance thereWith,
and make the decree perpetual ialiuTe
SO TO do will endanger every interest,"
every industry, every enterprise, ,, 6,,ia a,io
force and widespread extent as TO rem
der what we have seen, in comparison,
but summer zephyr nen !, 9Ilesrs IN elI
hesitate, the whole army may well be NIL
ed with apprehension. The COMMANDER
who has captured an important position
and refuses TO fortify it, but, on the con-
trary, freely discusses the wisdom OF
evacuation, exposes himself to fout at
any hour of the day or night. A con-
ident army following a brave o1lcer NH NH
enemy The officer that follows an army
Will soon find his forces on the run, ana
if he is not very fleet of foot they Will peat
This, gentlemen, is no time for expert
ments There is no occasion Tor expert
menting. The financial history OF every
nation of any commercial importance :
justifies the assumption that the laws OF
trade, and the laws of commerce, ana the
laws of economies, and the law OF supply
and demand and the law of competltlon'
are like the law of gravitalon, OF uni
versal application; and If lett free 10 pI op5
crate will do more TO eduaiize burdens anu
distribute blessings than all the laws that
socialism can propose.
We must have a paper currency | pc,
lieye the country at large, without feSd@ru Al
to party, agrees to this proposition: w e
must have paper currency ana oL SUI :
ficient volume for the needs of great ana
prosperous people. with many Varlea ~
terests. Those who believe m N the pIln-
ciples indorse at the polls in 1896, together
with those who accept the Herdict lneil
rendered as of binding force, agree tnat
every dollar OF paper currency must pe
redeemable, directly or indirectly, eX-
changea BILE or convertible, al par for gold.
The value Of every dollar of United States
money, whether of coin or paper currency,
must be the equivalent of 25S grains or
standard gold. The gold coin must be
the touchStOne the test, the measure Oh
of value of every dollar. by whomsoever
issued or howSoever expressed. rms pa
per currency. the volume of which must
be coext ensiVe with the needs OF the
country, should all be issued by the Gov
ernment or by the banks. The tune mas
passed by when the Government should
Issue a part of the paper currency tother
than coin certificates) and the banks a
part.
There seems to be a widespread i'm
preston that the banks will reap a great
harvest if they be permitted to buy IN
terest-bearing bonds, and posit them with
the Government. and then issue a IKE
amount of currency to be loaned out al
interest. Armed with an argument based
on these suggestions, the opDosers OF
sound money and currency reform seek
to arouse prejudice and think we are too
apt to dodge the issue when We ought
manfully to meet il, fearleSSly TO combat
1t, and logically and successfully to refute
it, Suppose if you please, the Govern
ment should refund its entire public debt
at per cent. interest, and turn the bonds
over to the banks at par 2ot course am
assuming something would not advocate.
nor consent to. but / am doing 1T for the
sake OF the argumenU. | say, suppose IT
were to issue per cent bonds, sell them
of currency to the full face thereof.
What would be the result? 1t would ap-
pear exceedingly profitable, and would in
vite capital very rapidly into banking
channels
Does any one suppose that the rate of
interest woud remain where ii is now? The
banks of the United States have not been
Naying 6 per cent. dividends for the las
five years. In a very short time compe-
tition would force the rate of interest so
low that banking would be no more prof
nrGGanr W0I1id
same effect as bounty on sugar; the
price to the consumer would be reduced
TO the extent of the bounty. There has
been no scheme devised. whether involv-
ing the sub-treasury system or warehouse
certificates or leans to individuals, that
would so certainly reduce the rate of in
terest as the one | have suggested II is.
of course impossible and impracticable,
and is suggested only as illustrative of a
great principle that underlies the whole
subject. 1t is necessary that some meas
ure be adopted which shall ultimately
transfer the issue of paper currency, other
than coin certificates. to banks under ma
ticnal control, to the end that a currency
shall be issued. the parity of which can
be enforced in the courts, and which shall
be secured by good and proved assets, am
pie to insure the safety of the issue.
An impression exists in some localities
that the volume of money has something
to do with the price of commodities. No
argument is more fallacious and none
supported by more sophistry. What is
the primary purpose of money? Is; it in
tended that its volume shall balance all
property? By no means. Enough cur
rency is needed to supply the demands of
a great commercial people, and to afford
them medium of exchange Money is
whole nation to be a great wheat farm.
They are threshing to-day in the South.
tomorrow in the Middle States. the next
day in the North, and on the Pacific Slope
by and by How many half bushel meas
ures will be needed to handle he crop?
VIII we require enough to hold the en-
tire yield? Not at all There will be 2
demand for enough only to accommodate
every machine, every seller, every buyer,
every shipper. every warehouse man.
Must they all be of Government standard
test? Certainly not. They must be of the
same size of the same dimensions as the
Government standard. but they may be-
of temporary make, ana yet serve the
purpose as well as If they were made of
cast steel. 1t would be well to have .
few of Government test at every thresh-
ing station, with which to compare each
of the theirs. SO with our money. 1t h
well to have enough gold-aye, it is neces-
sary to have enough gold TO measure AM
determine that every dollar OF contract
and every dollar of bank issue is of the
exact value of the gold coin. To make
the test absolute the paper currency must
be redeemable directly or indirectly.
Whenever one can exchange paper for
gold the fact is established that it Is
of the same value as gold, and there is
no other test possible. 1t is not neces-
sary that our circulation shall balance
our property. 1t is only necessary that
we have SUFFICIENT for the accommodation
of every man. woman and child who de-
sires to use 1t, and who has some use
for 1t.
This currency must be elastic. There
viii be more half bushels needed in the
South on threshing day than will be
needed seeding day. The same thing is
true of the East and the West and the
Pacific Slope. The monetary system that
shall stand the test of ali time must be
automatic in its operations. Wherever the
demand exists there the currency must
spring up in volume sufficient to meet