Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1898-01-03

- ths peup1e-Wiehout ssspeosiD II
spscis payUeDss asd . resort 10 further
tgses a euvesnucns posea ThesU = %
Soabs that u our eovsrumcns wess re-
heved az ies existing demand obligatjms
ssd CT euFssscy syrss~ PIT IN vUking
Rd9 - enla has1s e WooM Be- a.
sirel pnible fu - % 90 through .
~ vlooss sospepsioa Il specis ~.
Dese y ~ dsfsneemeus Il our ume>
sssy ysepm. n var sAoald cone, IL
value 10 The cosntry q the ability b
thus svo6d tie indirecs losscs following
from depscriascd currency, inflated
pricss ,epd financial dcmRalisatio6
would b 20 esvas tbas tho burden of
ppying % now our demand obligations
vosh b as nothing IN comparison.
We hav . total volume q pper and
silver In circulation smouuting to COOS,
7ss. 0s1. all resting for its vaiuc O The
efcdit Of the eovesnment les only the
bslliou value Of the oliver. Thas crcdis
10 maintainablc only - q whole. The
paper Of the United States could not b
dishonored and It's silver upheld. Il IL
necessary, therefore. that tho govern
ment should keep large rrscrvc fund In
GOLD Such fund in the hands q the
government 10 defensclcss against A.
tack. In countries where the govern
mcnt has no demand debt outslsnding
and the gold reserve Is held By hanks
the nations stork of gold il capable Of
somc degree Of protection through tho
rate Il interest charged for loans But
our government has no such resource.
rs great gold reserve Is an open mine
free 10 MI who bring its notes. And rs
the entirc monetary system Of the coun-
try hangs upon that ono reserve tho cit.
nation is one Of uncertainty and hazard
against which no insurance II possible.
AS against these serious disadvantages
there Is no advantage which can pos
sibly Be claimed for paper money in tho
form Of government notes over any 9TH
CT fcrIp Of paper money equally good
cxcops the saving OF interest ON 10 much
Of the public debt a. Is represented by
tho notes But this supposed economy Is
more apparent than real. Indeed when
wc consider all the facts such notes aro
an extremely costly form Of money.
In order TO create the gold reserve re-
quircd for resumption In 1879. bonds
wcrc sofd 10 tho amount Of eos, 900, 600.
During 1916 s2G2. 9i5, 400 more wero
sold to protect the same reserve. Tho
situation was then complicated by def.
icit In the revenue, and IL may DO said
that tho necessity for tho later sales
aruS partly from that cause. Not to
enter upon that question closely, IL is
clear that with interest TO pay ON $751;.
900. 900 Of indebtedness incurred chiefly.
II MT wholly, In consequence Of the cxist-
ence Of tho government notes and eiAQ.-
900, 900 Of reserve lying idle in he
trsssury, the saving in interest BY the
Unitcd States notes is . small gain CON-
parcd with tho unending burden Of pro-
vidins fof their redemption. We havo
aircady redeemed them In gold nearly
twice ovvr-esss. Gsi, 0ie-sincc 1870.
and they sre all outstanding yet
Worse than this. however. Is tho In
jury which results from the element Of
uncertainty which Is inscparablc from
such . currency. Such injury IL none
the less real because is may be unpcr.
ccivcsl Il may 20 long unnosiced. like
friction In machinery OF malaria In the
air. but IL has Its effect nevertheless,
and when 70 reaches an acute NANTES.
tasion. such CO VIC have experienced
within, shc last five years. the loss occa-
sioued1s beyond computation.
The silver cusssscy.
We have cas-. 355. 03i Of notes Of 6
and under and eco. 1876, 7ss Of silver dol.
lars In actual circulation, making o to-
tai of tsI&ssi. $40 Of Current uIQuey In
usc. exclusive Of gold. in denominations
of o.. ~ and -. Our total stock Of sill.
YER dollars IL sl52,si3. '92. This h IN
excessive quantity 20 have ut the exist
ing discrepancy between their legal and
actual values. But with further coinage
Of them discontinued and their parity
assured by the cxchnpgc Of gold fer them
on demand Il Is better to retain them IS
they are than 10 attempt o final solution
at this timcpf tho problem which they
present by withdrawing all silver Ger
tincates over e5 and all other notes un.
der ei0 Q place will 10 made for nearly
all tho silver dollars in . way which
will give tho country the full benefit Of
them for current use without imposing
upon tho treasury any serious burden in
their maintenance.
n.shsso syssea.
The chief difference Of the proposed
from the existing system Of bank notes
Is that u gradually does'away with tho
requirement. that thcro shall DO Q de.
pusit Of bonds with tho government q
. coudisiou for the issuance thereof. AZ
now the notes arc % b first lien upon
ell the resources Of the hanks. includ.
ing the ssockboldcrs' liabilities This
change is necessary because Of the
scarcity Of United States bonds, and the
attempt 10 substitute other boudsVwuuld
lesd 81 many evila Tho change 10 wis
because 10 permits tho issuance Of notes
In the way and at the time when and
for the purpose for which they would be
Issued under natural conditions IL nc
Law prevented. Sech . syssem would
more psrfccsly thas any other give the
country acirculating medium. u would
resdily and quickly sdjuss- from
scasou to ssasuo 10 Dcts the wants a
the bosines Ct the country requiring
hank notes for scunveuicnt transaction.