The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-12
Tho Clamor for wildcat Currency.

As time goes on the frenzy Of the bank
currency fanatics becomes more acute. They
are preparing now to join with the free
silverites in ~plunginR the country into a
reputation of its contracts, with the hope
that, out of the ruins, they may save some.
thing for the banks. The NctD York
Times, for instance, says: at Is by
no means impossible that a considera-
BILE number of those who stood by the
Republicans in 1896, as the sole hope of
sound finance, might reason that It Wouid
be better to let the country 90 the 'chole udy
to the silver basis, and thus start the fight
for the gold standard, unconfused by pro.
tectionism or Republican party aims-a
clean, straight, open fight"
What the Times means by Republican
party aims" it explains to be the policy ad.
vocated by THE Sun of letting the currency
alone, and, particularly, of not retiring the
Government currency notes and substitute
ing for them bank notes secured only by
bank assets. This policy it condemns as
hazardous, because it fails to allay the
discomfort of the South and the Southwest,
which clamor for free silver, or, in its place,
for n bank currency unsecured by bonds
and In amount.
That the demand for free silver and that
for wildcat bank currency proceed from
the same cause and can be met only by the
same or similar measures, is undeniable.
The cause Is poverty, and the remedy pro-
posed is to deluge the country with a flood
of elastic and debased money. unde the
vain belief that some drops of it will reach
those who now have no money at all. By
permitting the establishment Of an UNI
limited number of small banks and allow
ing them to issue as much currency as they
can get out, borrowers who are now de-
prived of thanking facilities" would, it Is
supposed, be supplied with them to their
hearts content.
1t will be said that all the currency re-
form measures, as yet offered, contemplate
the issue of n bank currency amply secured
and limited in amount. This is true, and
because it is true, none of these measures
will suit the Southerners IL Southwest
erncrs who are disconnected with the pres
ent state of the currency laws. What they
want is cheap money and plenty of it.
Good money cannot be unlimited in amount,
and therefore it will be rejected by the Sec
tions which the Times wishes to satisfy.
They will rather cling to their original
demand for the free and unlimited coinage
of ifty-cent silver dollars.
In another article, the Times unwittingly
exposes the hollowness of its pretence that
the discomfort of the South and the South
west with the present currency situation Is
justified, and can be removed by legisla-
ton. 1t says:
..Jf W. bnf m sound and stahle currapcv svstpm n
men felt that their Investments were In every State
| secure from Populistlc assault. and II no unwise laws
barred the way to the extension Of our trade. would
Mr.. SIMMONS advise American investors to put their
money into Europe's 1 o Va at 8 and 3a per cent. ?
Would not his bank parlors be visited every day by
men from Georgia, Alabama. aud Tennessee. from
Texas. from Washington and Oregon. from Nebraska
and the Dakotas. who would lay before him enter
prises of devclopm9n mt and production in which. pru-
dent banker that he IL. he would see an assured in.
vestment return very much greater than the highest
yield OF Europe's due biils? ?"
Precisely so! If the %soundness and sta.
bility of our currency were not threatened
by the free silver and the wildcat bank
currency clamor of the men from Georgia,
Alabama, Tennessee, Texas, and the other
States mentioned, and il Eastern capital
lists could be assured that when they lent
money to those men they would not be
robbed of it by stay-laws, homestead eX-
emptions, and the many other Populist
devices to prevent creditors from collect
ing the debts due them, they might be in
duccd to invest it as the Times recon.
mends. At present the prudent banker"
prefers Gig per cent, with the certainty of
getting it, to the promise of 8 or 10 per
cent, with an equal certainty that the
promise will be broken at the first con-
yenient opportunity.