The Farmington times. [volume] (Farmington, Mo.) 1874-1902, 1899-09-07
The Monetary Problem.
QUEER TALK OF EXPERTS. +"
Ing GeId Crrtinestps--iiia
stlnnEr RrnkoninE.


stlhhEr RrnKontpE.
we h-,r been NJ long accustomed Ia
queFr talk an financial topi's from
those who hy experience msy lay claim
TO expert knowledge that nothing Of
the sort now surpr,ses us. II may be
that those who pcrni, their friends "a
call themselves experts submit to 'ht
infic;lou with ihr sumr modrsiy which
causes a Gcorg'au 20 bow 10 the In
cyiiable when his y ghhors call him
! colonel" lie may know M little
about military AFFAIR." AZ tame lion
.-nows about ;he Jungle. but II His
nelghbors ;aks notion "a call him
Colonel" he !, comps. led to submit ia
the inevitable, aud. ia couTsc If time
II may be. he even goes 80 far a. "a
plume himself on the title. With this
precrdent in ,irw. Ne have long age
ceased to be shnck,d or surprised when
u financial expert puts forth state
mcnt which, uu examination, refuses
10 stick together.
!, viii be- remembered that the New
York journal Of Comm r's, IN view OF
the scarcity Of paper currency 10 the
metropolis, has been urging The sec
rotary to renew the Issue 81 gold Ger
tidcates which was suspended 10y Sec
rotary Carlisle when the amount ul
gold ia the treasury fell below hun
drcd million. Our readers need not be
told that the editor OF the journal OF
| Commerce Is the suundcst ot Sound
money" men. Indeed, n any rtNpon'
sihlr person should favor what :,
called Imitation" Ia biz hearing, ih,
editor would forthwith take TO his bed
aud remain there until the doctor
could be called In 60 apply restorati,ei
| and t0nics.
This, OF course, r. only another way
OF saying that the journal ~ Com
mrrcr could not be induced 10 ad'
voraie any plan or proposition moi
thoroughly IN accord with the doe
trinr> and devices d the gold party
Aud when II advocates the issue Of
| gold certificates We may b. sure that
| II does 10 IN the interest uf the mer'
camille and commercial communities,
which are its largest clients. The Ger
iihcatet in question ere simply repre-
sensations Of deposits Of gold in the
treasury or suhiroaNury, aud are used
Rs currency as being less cumbersome
and more convenient than gold itself,
AID that the demand for them IL ur'
rrht a shown by the fact that con-
siderable pressure has been brought
10 bear IN the secretary Of the treas
ury to carry out the law which pro
vidss for the suspension only when thu
amount Of gold In the treasury falls
below one hundred million.
The secretary has not only refused
10 comply with the demand, but until
lately has kept locked in his own
bosom his reasons for refusing. II
was rumorrd last week that such a
considerable pressur" had been brought
| ~ bear on Mr.. Gage that he was on the
point 81 cunseuiiug. lIul Un Saturday
Last. when he was approached by the
correspondent Of the New York Even
Ing Post, De- denied the rumor, and
stated that he j. holding the matter in
hheyaucc, being unable at thi, time
~ say what course he will pursue. Bu,
/ b. made no homes Of stating the Ubjec'
tions that had occurred TO his mind
aud he puts them in this shape:
with all the grceubHcks and silver cer-
| tlnratsH and Window notes now outstaud.
| irE In the government name. / question
. ~ u s.NY. . Ia
paper currency by IN addition OF mass
| n gold certificates, which would compete
With the rest Of thu market already SUM
| riHntig supplied u a. true that the de-
| nominations OF the Eo.d certificate being
never less than 3Zl. would naturally pre-
won't their becoming an important com
y, iiior In exchange, as they relate ~
the Ordinary rstail trade Of the country
but. on the other hand, there would be no
special benefit IN adding them for " the
circulation should ever become REDUNDANT
and contraction should follow. the tcnden-
8 of isEsi tender notes and siivgr - tii.
Gates toward The treasury for REDEMPTION
would BE- augmented by the added supply
~ the circulation Of god certificates
Now. the gold certificates, which the
secretary il urged % issue, will sim
ply be evidences of gold coin or but
lion deposited in ihr treasury 10y banks
and other holders who find II ineon-
,cnlen, 70 use the coin or the metal
In trade, " to store II away In their
vaults. The certificates. IN their es-
Sence, are warehouse receipts, and they
are issued against the gold instead OF
exchanging greenbackS therefor. They
would not In any true sense be an ex-
pansion OF the volume OF money. but
would enable banks aud business men
10 utilize instantly large amount Of
gold which il now lying idle.
Moreover, II. as Mr.. Gage says. the
market ia already sufficiently sup
piled" these certificates would not en-
ter into circulation at all. because
there would be no demand for them.
They would 'bc held by the banks sim.
ply as evidences Of gold deposited In
the treasury, On the other hand. II
there is a demand for them, rs a good
many people Intimate with the trade
situation assert, they will simply rep
rcsrnt so nnch gold coin aud will not
add dollar TO the volume of money.
II IL someS hat difficult 10 follow the
Eccretary's reasoning In the conelud.
circulation should ever become redun-
d,ut aud contraction should follow. -
he says, "the tendency OF legal tender
notes and silver certificates toward the
treasury for redemption would be aug
mented hy the added supply In the cir
eulation OF gold certificates"
Wen, what of Il? With respect, to
the gold certificates. the treasury has
no responsibilities whatever save those
that belong TO a warehouzrman. They
would not represent the gold which
has been exchanged for government
notes; they would simply stand for
gold which had been deposited In the
treasury for Safs-keepinF. The de-
mand which the secretary is now sup
posed TO be considering is not that
gold certificates shall be Issued agains,
air; what the banks and the mercantile
community of the metropolis are now