The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1898-01-03

specie payments and a resort to further
Issues OF government notes. There il no
doubt that If our government were re-
lieved OF its existing demand obligations
and our currency system put in working
order upon gold basis ii would be en-
tirely possible for us to go through
war without suspension of specie pay
ment on any arrangement of our none
tary system. II war should come, the
value To the country of the ability to
thus avoid tho indirect losses following
from deprecated currency, inflated
prices and financial Generalization
would be 80 great that the burden of
paying OFF now our demand obligations
would DO as nothing in comparison.
We have total volume of paper and
silver in circulation amounting to $685.
72S, 0S7, all resting for its value ON the
credit Of the government, less only the
bullion value of the silver That credit
is maintainable only as whole. The
paper Of the United States could not be
dishonored and its silver upheld. 1t is
necessary, therefore, that the govern
ment should keep large reserve fund in
gold. Such fund in the hands of the
government Is defenseless against at
tack. In countries where the govern
ment has no demand debt outstanding
and the gold reserve is held by banks
the nations stock of gold is capable Of
some degree of protection through the
rate of interest charged for loans But
our government has no such resource.
Its great gold reserve is an open mine
free TO all who bring its notes. And as
the entire monetary system of the coun-
try hangs upon that one reserve the sit
uation is one Of uncertainty and hazard
against which no insurance is possible.
AS against these serious disadvantages
there is no advantage which can pos
sibly be claimed for paper money in the
form of government notes over any 9th
er form OF paper money equally good
except the saving of interest ON so much
of the public debt as is represented by
the notes. But this supposed economy is
more apparent than real. Indeed when
we consider all the facts such notes are
an extremely costly form Of money.
In order to create the gold reserve re-
quired for resumption in 1879, bonds
were sold to the amount of sos, 900, 900.
During 1894-6 SAGA, BIO, 400 more were
sold to protect the same reserve. The
situation was then complicated by def.
ioit in the revenue, and it may be said
that tho necessity for the later sales
arose partly from that cause Not to
enter upon that question closely, 1t is
clear that with interest to pay OH $751;
600, 900 of Indebtedness incurred chiefly,
if not wholly, III consequence of the exist
ence of the government notes and $780,
600, 600 of reserve lying idle in the
treasury, the saving in interest by the
United States notes is q small gain COM
pared with the unending burden of pro-
viding for their redemption. We have
already redeemed them in gold nearly
twice over-$54S, 6s1, 0l6-since 1879,
and they are all outstanding yet.
Worse than this, however. is the in
jury which results from the element Of
uncertainty which is inseparable from
such currency. Such injury is none
the less real because it may be unper-
ceived. 1t may 60 long unnoticed, like
friction in machinery or malaria in the
air, but it has its effect nevertheless
and when Ii reaches an acute manifes-
tation, such as we have experienced
within the last five years, the loss occa-
stoned Is beyond computation.
The silver Currency.
We have 1854, 800, OBJ of notes OF 50
and under and $50, 1916, 1888 of silver dol
lars in actual circulation, making to-
tai of s414,551, Sl9 of current money in
use, exclusive of gold, in denominations
of 81, So and So Our total stock OF sill
YER dollars is S452, 7l3, 702. This is an
excessive quantity to have at the exist
ing discrepancy between their legal and
actual values. But with further coinage
of them discontinued and their parity
assured by the exchange Of gold for them
on demand it is better to retain them OF
they are than to attempt final solution
at this time of the problem which they
present. By withdrawing all silver GER
| tificates over So and all other notes un
der $40 place will be made for nearly
all the silver dollars in way which
will give the country the full benefit OF
them for current use without imposing
upon the treasury any serious burden il
their maintenance.
Banking System.
The chief difference of the proposed
from the existing system of bank notes
is that il gradually does away with the
requirement that there shall be q de
posit of bonds with the government al
q condition for the issuance thereof. Al
now the notes are to be first lien upor
all the resources of the banks, includ
ing the stockholders liabilities. Ihl'
change is necessary because OF thu
scarcity of United States bonds, and TIT
attempt to Substitute other bonds would
lead to many evils. The change 10 WIS.,
because 1t permits the issuance OF note
in the way and at the time when an'
for the purpose for which they would d
issued under natural conditions II M
law prevented. Such a system woui'
more perfectly than any other give thu
country circulating medium. 1t woult
readily and quickly adjust itself from