The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1904-09-30

party favored the proposition, the Demo-
crctic party was well-nigh unanimous in
favor of the same. AS a compromise, and
to stave off unlimited free silver coin
age, the act of 1890 providing for the
monthly purchase of a prescribed guam
tity of silver was passed This law turned
out to be a mistake, and it's only justifi-
cation was that it prevented the greater
evil, that of unlimited free coinage. I'm
der this act we came very near the verge
of silver recommendation. In 1893 Cleve-
land, to his credit, called congress in ex-
ira session to repeal the silver purchas-
ing provisions of the act. of 1890. The
chiefly owing to the united efforts of the
Republican party in congress. The pas
sage of this act somewhat relieved the
tension, and the election of 1896 having
again placed the Republican party In
power, commercial and financial conf
dence, so wanting during Cleveland's adj
m1nlstratlon, was restored and with the
passage of the Dingley tariff law in 1897
prosperity returned, and with prosperity
came a large balance of trade in our
favor, and this brought in its wake an
ABUNDANCE Of money into ,S circulation n
hiding during Cleveland's term. Gold
again became so abundant. not from the
sale of bonds, but through the great in
duStrial and commercial revival, that
there was no longer any difficulty in
maintaining our currency on parity
with gold.
Bv the act of March, 1900 gold was
of money issued were to be maintained at
a parity with gold, and it was made the
duty of the secretary of the treasury
to maintain such parity, and the ways
and means for maintaining the same We're
provided. The passage of this act en-
countered the almost unanimous oppoSl-
ton of the Democratic party in congress.
They were even then, after experiencing
three years of the blessings of Repub-
lican 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 throughout the civilized world, the
eXigences of trade and commerce have
long ago required and sought paper cur
rency, more convenient and less bulky
than specie, for the every day transac-
lions of trade and traffic. Most, If not
all, of the nations of Europe have for
years committed the task of supplying a
paper currency to a single bank in each
country-under government auspices and
under government control, in order to
secure uniformity and safety. Great
Britain has her Bank of England, Ger
many her Imperial Bank, France the
Bank of France; and each 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 dlt-
ferent systems as there were states, and
in as many different forms as there We're
banks. mostly on an insufficient basis,
easy to counterfeit, and generally clrcu-
lating at discount in states distant from
their place of issue. From time to time
many of these banks would suSpend-thls
was especially the case on the eve or the
great rebellion-with no effective proVl-
sion for redemption. Such was, in brief,
the only provision made for paper cur
rency by the Democratic party while they
were in power.
National Bank Notes.
In 1864 the Republican party by a 10
per cent tax eliminated this wretched
currency and provided. the country with
a national paper currency through sys-
TEN of national banks under government
supervision and control. The notes of
these banks are uniform in figure and
shape, are based upon the security of gov
eminent bonds deposited in the treasury,
are not easily counterfeited, and are cur
rent at par throughout. the country.
rency, this can truthfully be sald that
every bill has been duly paid and re-
deemed and no bill holder has ever lost
penny of the bill he held. The law
originally allowed no banks with less
capital than $4,000 but under the gold
standard act of 1900 provision was made
for banks with capital of only $4,000
in places with population not exceed
ing three thousand. This amendment has
largely popularized the national bank sys-
tenn Many small towns have taken ad.
this currency has greatly increased.
In March, 1900, there We're 1912 ma
tional banks with an authoriZed capita!
of S615. 9OS.095 and an outstanding note
issue of S249, 1878. On the first day of
July. last, there were $3.50 banks, with a
capital of S775 go. 335 and an outstanding
note circulation of $449. 235, 095, Thus we
have secured in this period LIST more
banks, and nearly $20OO00.000 more of
notes in circulation. In the act of 1900
provision was made for the refunding of
our interest bearing debt into new per
cent bonds. This scheme has proved a
great success. Our 3 and per cent bonds
have been to q large extent replaced with
9 per cent bonds. $542, 800, $780, or 61.7 per
cent of our interest bearing debt is now
in these per cent bonds, thus reduc-
$16O00,O00 In addition to our national
, bank notes we have a large volume OF
other paper currency in circulation.
On the first of last July the following
paper currency was in circulation:
National bank notes, $433. 81. SSS; U. s..
notes, or greenbacks, 1884 491 .977; treas
ury notes of 1890, $50, 1927, 2S7; silver certif-
Gates S462, o7S, us; gold certificates, S464,-
81, 70S, 40O,496 in circulation. out of total
money circulation of $2,521, Isl, 527. Thus
showing a coin circulation of only $S12,-
751 OBJ.
As Good as Gold.
Thus it appears that little less than
one-third of the money in circulation is
coin, and a little more than two-t thirds
is paper currency, on 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
high standard sought by the experts in
finance, yet it is in all respects immensely
mocracy supplied the country with be-
fore the Civil war. That was largely an
asset currency, with no end of elasticity.