The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1904-10-01


favor of the same. AS a compromise, and
to stave off unlimited free silver coin
age, the act Of 1890 providing for the
tity of silver was passed. This law turned
out to be mistake, and its only justif-
cation was that it prevented the greater
evil, that of unlimited free coinage. Un-
der this act we came very near the verge
Of silver nonometallism. In 1893 Cleve-
land, to his credit, called congress in ex-
ira session to repeal the silver purchas-
act of repeal was passed, but it was
chiefly owing to the united efforts of the
Republican party in congress- The pas
tension, and the election of 1896 having
again placed the Republican party IN
power, commercial and financial conf
ministration,, was restored. and with tn, the
passage Of the Dingley tariff law in 1897
prosperity returned, and with prosperity
came a large balance of trade r.: 2ud IN our
much of which had been idle and in
hiding during n ter Pom G tha
sale of bonds. but through the: great in
dustrial and commercial revival, that
there was no longer any dltt1culty IN
By the act of March, 1900. gold was
made the standard of value, and al forms
of oG en9 9 be Was ade the
duty Of the secretary of the treasury
to maintain such parity, and the ways
and means for maintaining. the same were
provided. The passag of this act en-
countered the almost unanimous opposi-
ton of the Democratic party in congress.
They were even then, after experiencing
iican rule, incorrigible-as many of them
still are.
Paper Money.
While gold or silver, Or both, have for
centuries been the money standard OF
value through4ut the ciy12ea w src have e
long ago required and sought paper cur
rency, more convenient and less bulky
than SPECIE for a1 the # not
all, of the nations of Europe have for
years committed the task OF supplying
paper currency to single bank in each
under government control, IN order to
secure uniformity and safety. Great
Britain has her Bank of England, Ger Ter
II sgT and fach Of the Smaller
countries have similar institutions. Prior
to the great Civil War our national gov
eminent had no paper currency whatso-
ever. The only paper currency our peo-
pie possessed prior to that time was a
heterogeneous supply Of notes and bills
issued by state banks Under as many or,
In as many different forms as there, were
banks, mostly on an insufficient basls
easy to counterfeit. and generally circu-
lating at discount in states distant from
many of these banks would suspend-thls
was especially the case on the eve OF me
great rebellion-with no effective prov1 f
Sion for redemption. Such was, IN brlef'
the only provision made for a paper cur
rency by the Democratic party while they
were in power.
National Bank Notes.
In 1894 the Republican party by a 10
per cent tax eliminated this wretched
currency and provided the county WIN svg
TEN of national banks under, governmentt
Supervision and control. The notes OF
these banks are uniform in figure ana
ernment bonds DEPOSITED in the treasury,
are not easily counterfeited, and are cur
rent at par throughout. the country.
H;s else may ryb 6f HS'o be OF sad that
every bill has been duly paid and re-
deemed, and no bill holder has eyer eye, lost
a penny of the bill he held 1-+ the 7 1aW
CAPITAL than $4,000, but under the gold
standard act of 1900 provision was MADE lac
for banks with a capital of only $4,000
in Places with poRTh1n e moi has
largely popularized the national bank sys-
tenn Many small towns have taken az
vantage Of the Ha iaw Trea aH1 tns
In March, 1900, there were 2,6l2 ma
tional banks with an authorized capital
of S615. 9OS.O95 and an outstanding note
issue of $24o, 434, S7S. On the first DAY OF
Julv last, there were $3.50 banks, with a
capital of s775, 679, $50. and an OUTSTANDING
note circulation of s449, 235 ,o95, Thus we
have secured in this period l,tS' more
banks, and nearly 5000 100000 more 81 OF
notes in circulation. In the ACT OF l9Ot
provision was made. for the refundlns OF
an. interest bearing debt into new 2 per
cent bonds This scheme has proved a
great success. Our 3 and per cent PONDS
have been to large extent replaced VIII
> ner cent bonds. S542, 800 $50, or GIL per
cent OF our interest bearing debt is now
in these ; per cent bonds, thus reduc
ing our annual interest charge more than
SIG, 900, GOO In addition to our national
bank notes we have a large volume OF
other paper currency In ,clrculatlon;
On the first of last July the e;d Io!lo"1ne
National bank notes, S433, go 800; ~. >.
notes or greenbacks. S334, 491 ,917; treas
ury notes Of 1890. S12 ,927, 2S7; silver certlh-
Gates S462, SIS, 715; gold certificates. S454,c
SOC e2 .o ot of Total
money circulation of fS2,521,151,321. linus
showing a coin circulation Of only SSH:
751, OBI. q - 49,
Thus it appears that a little less than
*one-third of the money in circulation IS
is paper currency, on a parity with gold,
and. as safe in the hands of the holder as
gold, While all of this paper currency
may not, in all respects. come up to the
Sigh standard sought by the experts in
nnance. yet it is in all respects immensely
superior to the paper currency the De-
smocracy supplied the country with be-
fore the Civil war. That was largely an
asset currency, with no end o. elasuclly,