The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1904-09-28

4
crctlc party was Well-nigh unanimous in
| favor of the same. AS compromise, and
70 stave of 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 mistake, and its only justif-
| evil, that of unlimited free coinage. I'M
der this act we came very near the verge
or silver recommendation. In 1893 CIeve-
land, to his credit, called congress in ex-
ira session to repeal the silver purchas-
ing provisions Of the act Of 1890. The
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
dence, SO wanting during CFeveland's adj
ministration, was restored and with the
passage of the DfngIey tariff law in 1897
prosperity returned, and with prosperity
favor. and this brought in its wake an
abundance of money into circulation,
much of which had been idle and in
hiding during CIeveIard's term. Gold
again became so abundant, not from the
sale of bonds, but through the great in
dustrfal and commercial revival, that
there was no longer any difficulty in
maintaining our currency on parity
h BY the act Of March. 1900, geld was
made the standard of value, and all forms
Oh money ISSUED We're TO De IudlnI<tlI6d 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-
eountered the almost unanimous OppOsi-
ton of the Democratic party in congress.
They were even then. after experiencing
three years Of the blessings of Repub
lican rule, incorrigible many Oh 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
exigencies of trade and commerce have
long ago required and sought a paper cur
rency, more convenient and less bulky
than specie, for the every day tvansac-
tons of trade and traffic, Most, if not
all, of the nations of Europe have for
years committed the task of supplying
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-
pie possessed prior to- that time was a
heterogeneous supply OF notes and bills
issued by state banks under as many diff
ferent systems as there were states, and
banks mostly on am 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-this
was especially the case on the eve of the
great rebellion with no effective provi-
sion for redemption. Such was, in brief,
the only provision made for a paper cur
rency by the Democratic party while they
We're in power
National Bank Notes.
In 1864 the Republican party by 10
per cent tax eliminated this wretched
currency and provided the country with
a national paper currency through q sys-
tenn 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.
Whatever else may be said of this cur
rency, this can truthfully be said, that
every bill has been duly paid and re-
deemed, and no bill holder has ever lost
a penny of the bill he held. The law
originally allowed no banks with a 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 a population not exceed
ing three thousand. This amendment has
tenn Many small towns have taken adj
vantage of the law, and the volume Of
this currency has greatly increased:
In March. 1900, there were 1862 ma
tional banks with an authorized capital
of $615. 0S095 and an outstanding note
issue OF $249, 434,8 T8. On the first day of
July last, there were 1893 banks, with a
capital Of SITS, 679. 1885, and an outstanding
note circulation 0f $40, 235.095. Thus we
have secured In this period ITS7 more
banks, and nearly $200000.0O0 more Of
notes in circulation. In the act of 1900
provision was made for the refunding Of
our interest bearing debt into new 2 per
cent bonds This scheme has proved a
| great success. Our and 4 per cent bonds
| have been to large extent replaced with
| 2 per cent bonds $542. 909,9 or 61.7 per
cent OF our interest bearing debt Is now
| in these 2 per cent bonds, thus reduc-
ing our annual interest charge more than
] SIC, 100000. Tn addition to our national
4 bank notes we have 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, 5a5, SIS; TT S.
4 notes. or greenhacks, 1884. 49l ,97T, treas
ury notes on 1880, S12, 927 psf; silver certih-
Gates: $462 $751; 16s gold certificates, S464s-
/ 81. 70s. 400. 496 in circulation. out OF total
money circulation OF $2,521 ,151 527. Thus
showing coin circulation Of only $S12
| 75l sO31.
Thus IL appears that little less than
one-third OF the money In circulation IS
| coin. and little more than two-thSrds
/ is paper currency. on q parity with gold.
| and a. safe In the hands OF the holder as
gold. While All Of this paper currency
high standard sought by the experts In
finance, yet Il IL In all respects immensely
| superior tQ the paper currency the De-
| mocracy supplied the country with be-
fore The civil war: That WAS largely .an
asset currency. with 40 end ok elasticity