Mexico weekly ledger. (Mexico, Mo.) 1855-1956, 1898-02-03

the instrument of trade. Every rela-
tion of trade. of need and supply, of
production and consumption, OF pos
session and want, is purely personal,
individual and non political. The
ability Of the people of Audrafn coun-
ty, for instance, TO raise currency for
the purpose of conducting tneir busi-
ness shoul6 not rest upon the whim or
capfies of the Stats. or National Leg
isla6pfe, bnt upon their own integrity
and the eyalus of their property.
Nothing could be more absurd than
to contend that the Missouri Legisla-
ture should direct in detail and con-
troll the volume OF the trade of Audrain
county, or that the trade of the great
West and South should be controlled
and managed by Congress. Yet, it is
equally as unreasonable to say that
the volume of money this trade needs
and which should rise and fall in re-
sponse to its demands, should be de-
termined by legislative bodies, con-
venipg at remote points and at long
intervals of time. / cannot better
illustrate this point than by quoting
from Samuel ]. Tilden's letter accept
ing the Democratic nomination for the
presidency IN 1875: r
"The amount of the necessary cur
rency at a given time cannot be de-
termined arbitrarily, and should not be
assumed on conjecture. That amount
is subject to both permanent and
Temporary changes. An enlargement
of it, which seemed to be durable,
happened at the beginning of the civil
In place of Individual credits. 1t varies
with certain states of business. It
fiuctuates, with considerable regulari-
ty, at different seasons of the year. In
the autumn, for instance, when buyers
of grain and other agricultural pro-
ducts begin their operations they usu-
ally need to borrow capital or circu-
lating credits by which to make their
purchases and want these funds in
currency, capable of being distributed
in small sums among numerous sellers.
The additional need of currency at
such times il FIVE or more per cent
of the whole volume, and II surplus
beyond what is required for ordinary
use does not happen to have been on
hand at the money centers, a scarcity
of currency ensues and also . string
ency in the loan Market" (HIden's
public writings and speeches, vol. II,
page 3s5.) eef
Consequently contend the people
ahnnld he permittad to organize hanks
and issue Tner own currency, WHICH,
under the plan suggest, would be
safeguarded by a few laws making the
issue safe, uniform and easily con-
vertible.
| But the question arises, what will be
the basis of sRch currency and how
will 1t be safeguarded9
The apswer to the first question is, it
win be based on coin, negotiable in
struments and commercial assets in
general, just as the currency of France,
Scotland, Germany and Canada Is, and
II would have it safeguarded in the
following manner:
First. By limiting the issue to the
amount Of unimpaired paid up capital
OF the bank.
Second. By making the notes q first
lien on all the assets of the bank.
Third. BY making the stockholders
doubly liable for all debts of the bank.
| Fourth. BY establishing a general
redemption fund, made up by contri-
buttons from all the banks in the
country, thus making every bank in
the nation liable for the notes of each.
This principle of permitting the differ
ent localities to furnish ther own cur
rency lie nothing more nor less than
the old JeffersonIan doctrine OF local
self government applied to finance.
| My third objection to system Of
irredeemable government currency II
that there is no security against ar
over issue. If the volume of currency
; Is to depend upon the pleasure O
Legislators and not upon the demandi
Of trade, there is no guaranty that thu
issue will not be absolutely unlimited
Whereas under the system advocate
the whole matter will be left to tn
people of tho various communities
! The issuing of the money being left t
the local banks, which are in toucl
with trade, it would be put in circula
ton when trade demanded it an
retired when not needed. The argu
ment that the banks, having mo
nopoly of issue, will make none
scarce, is met by the fact that it wi
,, be q competitive system, and ii tn
banks in existence withhold 'cnrrenc.
other banks will spring up and furnis
the people what they demand
Besides 1T will be to the interest
> each bank to keep out as much cur
, lrency as possible, because idle none
yields NO profit even to him who hold
Iis. Under this system ii would b
Impossible for Lombard. Street Q
lWall Street or any other money cen
: tier to control the volume Of money
the country.
We come now to Mr.. Cauthorn
! question, "But why does not Mr.. Wi
ifiey give one example when the gov
lernment failed to furnish safe an
sound currency to the peoplef"
Imight answer this question by ash
ing Mr.. Cauthorn to cite . sing
+, instance where IL did not faii to ful
!. nish . safe and sound currency, but
I shall answer it by saying that histor
q lie prolific in its lessons against th
O utility OF . government currency.
4 THE FRENCH AsseNATs.
r Our own history furnishes amp
= evidence but I desire to call attentio
d to one Of the most striking and dil
: astrous examples Of the attempt
b the governments TO issue paper none
r In the history Of the world. At Il
close OF the lastcentury when Eccles
!, asticism was overthrow by q