The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-12-30

this respect m%easurably improved, the
lower price at which bonds are now
available having rendered the condi-
lions of issue somewhat more profitable.
but IL Is practically certain that this
process has not been carried sufficiently
far to furnish the necessary conditions
for an elastic currency.
But again, even an increase I'm profit
ableness can not vail unless the ma
chinery of issue and redemption is eff
ficient. The forces which work respec-
lively for expansion and contraction
must have easy and unimpeded action.
At This point our present aw is not
only inadequate. II is positively evil.
II limits the moun of circulation
which may be retired during any one
month. and prohibits reissue for six
months after retirement, thus actually
putting "A premium on inelasticity.
Further. the machinery of issue and re-
demption Is unnecessarily slow and
clumsy. Even II a bank decides to ex-
pand its circulation. the process can
scarcely be completed ill the special
need has passed. In like ann con-
traction can not usually be brought
about till Ions after a plethora has
worked much harm.
The foregoing describes the exper-
fence OF ordinary times; for the case
Of the monetary panic, when there
arises a demand for an immediate and
very great increase in h stock Of
current moneys, absolutely nothing has
been done. We thus have every reason
TO expect that. should another crisis as
serious as hat of 1898 overtake the ma
tion. we should experience a monetary
famine of equal severity. should
again be obliged to resort to numerous
extemporized devices very doubtful as
to their legality N still more doubt
full as 4. their efficiency.
What has been said concerning tho
continued lack of security and elasticity
applies In substance to every other re-
cognized need OF the monetary sys-
tem. Almost no progress has been
made. IL thus becomes evident that the
only method by which we can insure
that, when less favorable conditions
arise. there shall be M recurrence of
the disasters formerly experienced. Is
10 bring about some more or less fun
damental changes In the monetary sys-
TEN itself.
II. The Security of the standard.
Under existing conditions. the only
wise and consistent policy OF the
United States Is the frank recogni-
ton Of the fact that the actual none
tary standard Is now. and for some time
to come will be. gold. and the adop-
ton of legislation which shall insure
the entire stability of that standard.
until uch time as the nation may have
decided 10 establish some other. As
sent 10 this statement does not COM
init any n to the position that the
gold standard Is. abstractly consider
ed. the most DESTROYS one. As Is well
known. n large number OF economists
hold TO the opposite opinion. But. as
Is also well known. the particular sub-
stitute which such economists favor. I.
e.. International bimetallism. is at pre-
sent. and for a long time will be. out OF
the question. In consequence. the pre-
else form which the question of stand
ards now takes In the United states.
is as to whether the currency shall
rest on a gold basis. or on a silver
or paper basis. Thus stated. IL can
have. to the majority OF economists,
but one solution. Under existing condi-
tons. the gold standard is. for the
United States. the best available. This
being the case. Il IL the duty OF the
nation to render that standard as
stable as possible and To remove all
uncertainty as to its maintenance and
its easy working; for uncertainty as 20
the basis OF the currency must always
be a menace TO prosperity.
With respect to the means through
! which increased stability for the stand