The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-03-31
THE NEED OF MORE MONEY.

minis to silver az the present legal ratio,
as the bullion value OF silver Is only 80
TO 4 as to taking the choice between rob-
bIng the rich or stlll further pauperizIng
the poor, he preferred to rob the rich,
but be thought 1t would be more equitable
to compromise on medium point between
the present bullion and coinage ratio Of
the two metals
In my opinion, there Is conclusive an
ever! based on existing facts, to this view.
10 re-estabiish bimetaliism. as It existed
previous 10 1878. is not robbing the rich.
1t Is merely arresting the conhscation and
exploitation that have been going on 10
this country for nearly thirty years We
d. not propose to take from the bond
holding classes ami the money power any
Of the billions OF dollars that have been
heaped into their Golfers since they began
to manipulate legislation to their benefit
and to tho detriment OF the producers of
wealth. Between 1862 and 1868 the United
States issued in round numbers $500 00O,
Geo in bonds which were sold for 81 cents
en- the dollar. These bonds were Bought
and paid for in lawful money of the United
States, which was paper. The principal Of
the bonds was payable In lawful money Of
the United States and the interest was
payable in coin" In 1869, Shylock hung
l DuL lHIee DIhSS DdlIS at the OlLy Oh w ASH
ington and began operations.
AT time when all absorbing questions
that grew out of the civil war were oc-
cupylng the minds of the people and the
financial policy was giving them little
: concern, Shylock became apprehensive of
the credit of the country. although 1t was
. then better than 1t had been since the
civil war. While he did not make as
much fuss about it then as he does now
he suffered great agony and in 1871 per-
suaded congress TO pass the credit
strengthening act a law that was not
, agitated or discussed among the people
and never came before them as an issue
~
BY the credit strengthening act the
principal of this enormous bonded in
debtedness, reaching nearly three billions
OF dollars. became PAYABLE in coin in
stead of lawful money OF the United
States; In less than thirty days after the
passage of this act the price of the bonds
advanced from SO cents to 81 .05; an enor-
nous tribute levied upon the people with
out any compensation, except small re-
duction of interest which would furnish
4 their apologists with thread from which
. to weave eulogie5 on our magnanimous
a National creditors 1t would seem that
I ordinary greed would have allowed It's
victims a reasonable time in which to re-
cuperate, but not SO in this case. This
''con" was silver and gold at the ratio of
o 16 to /. in which the bonds were now pay
3 able.
AS soon as the credit strengthening act
was passed and the secretary of the treas
Il ury had told the people what n fine bar
+ gain he had made with the National cred
I itors, Shyloek again set up his contrihu-
ton box in a quiet way In the halls OF
congress ana requested two for one, in
this wise. There were two metals that
furnished the money in which these coin
bonds were payable. The bondholders
n consplred to prevent one of these metals
&c from being manufactured into money and
$ thus have the coin money supply depend
solely upon the other metal SO that In
= time the, coin money of the same de-
r, nominations would buy twice as much. II
l. 1873, by ways that are dark, they actually
succeeded In ENGRAVING upon our stat
utes a law that shut off one of our sup
plies OF money in which we agreed tc
pay them and their expectations haze beer
fully realized. We have had to pay the
"a number of dollars, just the same as we
If promised but these dollars would pur-
h chase twice as much as the dollars we re-
ceived
s Now. when we suggest reinstating the
demand for silver, by cpening the minis
Id to it.. we are told that we would be rob
10 bing someone of his Just dues, When they
are shown the very opposite to be the cast
they then say that 50 much time ha:
- eldpSeQ since SnNlONk uONpiHN MS Uithts
~ in 1879 that we could not now maintain
Is any such ratio. The real fact Is that we
&c need more money of ultimate redemption
than both silver and gold would furnish a
70 the ratio of 16 to l.
! = \
y, y, The demand for silver and gold as
lr moneys of ultimate redemption is much
e greater than tho supply has ever been OF
q probably ever will be. The money sup
IN ply of the world today of both gold anC
20 silver is in round numbers, $S00O'O0o, 900
Of divided about equally. between the twt
10 metals at the ratio OF 16 to /. The de
az mand for both metals in the arts Is yer!
nc large and is increasing with population
- and business The yearly addition TO tn,
" money supply OF the two metals is incon
=, siderable We have in this country abou
~ $500. 900, 600 of money, including ali kinds
~. We The banks OF this country have on de
~. post about $500, goo, 000 The loans o
a the banks amount to about 100000 00t
90 The banks have on deposit SS,7G0, 900, 00
~, more than the entire amount of money II
~ the country. The difference between thu
-, amount of money in the country and tn
"a amount in the banks consists of banl
nv credits, Upon this bank credit the peo
- pie have TO pay interest. The difference
y between bank credits and the actua
ne amount Of money in the country Is TIL
,ls hQultlonAl amount oil money the people o
this country need as medium OF eX
or change with which 10 do business The.
NJ are now paying the banks $780, GOO an
is nually In interest to furnish them credi
49,. with which TO do business While it /
~ the function and duty of the government
~ to manufacture three-thirds enough none.
y needed by It's people as a medium of ex
- change It is now only supplying one
= third the amount used and required, TIL
in money supplied by the government 4
- nOn-interest bearing. while the credit sup
~ Piled by the banks Is interest bearing
NO There are. In round numbers. 200 90
oss firms and individuals doing business Il
~ the United States. This does not nelud
~ professional men The amount OF invest
~ msnt. In business. by each concern range
o. from few dollars up to millions. con
~, servatve estimate, acquleseed in by emf
m nent students Of this branch of politlca
80 economy, places the everage amount need
at cd by each business institution at $4,000
~ This amount, multiplied by the numbe
/. OF firms leaves a product OF $4,000 600 00C
y an amount nearly equal to the combine
y currency and bank credit Of the country
iat Therefore the most accurate calculatio
ne we can make based upon existing fact
80 and conditions discovers deficiency q