New-York tribune., 1899-12-11
THE MONEY DEBATE.

The debate on the money question IN the
House this week will probably run in deeply
worn ruts Disclosure of facts or reasons that
are both new and important is hardly TO be
expected. In large sense the debate on this
bill or any other of like nature finished in
the fall of 1896. The people heard ii. and their
votes set wide open the door for such a measure
Of sound finance : might appear advisable after
the country had been lifted above the prostra
ton Of business and the exhaustion of Treasury
reserves or credits caused by the refusal to de-
fend home industries. Led by the President,
Congress first took hold of the industrial prob
lem. upon which all others depend, and there
has already resulted a higher degree Of pros
perity than the country has ever before enjoyed.
What remains TO be done Is TO fortify the Treas
ury and the currency Igalnst such dangers as
NAV come in spite of a sound economic policy.
The talk about "A volume of currency proper
Toned Ia the business 10 he transacted has al
ways been misleading. y very small share of the
business Of the country is actually transacted
with money of any kind Without dwelling on
official reports which show that less than tenth
of the actual payments through banks are made
with money. il is enough 10 remember that
there is no necessary or even customary proper
I'm pavmcnts and the amount of money in use.
The stock OF money in use outside the Treasury
rose in the spring Of 1892 above 81. 800 0O0 900.
with pavmcnts through clearing houses exceed
ing 81 opN OoO. 600 a month. II rose further 10
about 81 700 900 600 in 1893. and to the highest
point then ever reached. when payments
through clearing houses were reduced 20 about
So 400 600. 600 a month II fell below 81 GOO,-
ments were over 81, 700. 100000 n month. and II
has risen 10 81 .9S6, 100000, with such payments
exceeding $4,000 100000 a month.
Confidence and expansion Of credits are able
10 add at any time in single month credit pay
ments far exceeding the entire volume of money
in circulation. If there Is prosperity in bust
ness and mistaken confidence. the use Of credits
cxpands naturally and indefinitely. and there
* not the least occasion to pour into the chan
nels of circulation tenth or a twentieth part
as much money Of any sort. But II confidence
,s impajrcd and credits shrink. they may at any
time DEPRIVE the country Of tools for payment
In amount far greater than the entire circula
tion. In the presence OF such facts established
nv experience IT is laughable to hear grave
men still talking about this or that supply OF
money as necessary 10 the transaction of busi
ness If distrust prevails government canno
furnish money enough. II II places the sound
ness OF the currency beyond suspicion IT Is Ger
tain that there will be enough, whether govern
mon, provides much or little. All the worl'
,,,r have 10 contribute when this country need
moro money. with It's industries and finance
on a solid basis
The real purpose OF any sound monetar'
,,,oasure * to remove far as possible the dan
cor that distrust may dry up the sources o
cnanc,al credits. What Congress may DO Z
nlace beyond question the redemption In so
.o,n of every note or coin issued by the Gov
eminent which anybody wants to have re