Word: moneyed
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Dates: during 1890-1899
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...above remedy could be only a temporary one. The permanent remedies are two, (a) retirement of the legal tender notes, or, (b) separation of the two functions of the treasury. According to the latter plan, if the government is to continue to issue convertible paper money, it should set up a separate establishment which should be entirely free from the fluctuations of revenue. This is the principle on which the currency of England rests...
...gold reserve. For this could be remedied by the former plan of keeping down the volume of currency. The real argument for the complete retirement of the legal tender notes is the danger of over-issue. This is the familiar argument against the issue of inconvertible paper money...
...find out with very slight error the amount of money in the United States, because currency of the first three classes does not go out of the country. The only difficulty is with class 4. We know, of course, the amount of gold in the treasury and the national Banks, but the estimate of the amount of gold elsewhere cannot be found out accurately. The treasury estimate of 367.6 millions is probably far too high, although it is difficult to put one's finger exactly on the error. One hundred and fifty milions would more nearly represent the true state...
...perfectly evident to every one that our finances are in a bad state. The fundamental difficulty is that there is too much money in the United States, more than there would be of specie, if there were no paper substitutes. The familiar reasoning of economists is that, when there is a redundancy of the currency, prices rise, imports come in and gold flows out. The outflow of specie in 1893 and 1895 is generally looked on as a proof of the superabundance of currency. But this is not at all certain and economists have much to learn about such occurrences...
...illustration of the hap-hazard legislation in the United States is that practically the whole mass of paper money is made to depend for convertibility upon gold. For the legal tender notes are redeemable in gold and the silver certificates, circulating side by side, are practically as good as legal tenders and the national bank notes are convertible into the latter. But the United States has never been able to find an effective method for maintaining the gold reserve. In fact, the trouble lies in the fact that the U. S. treasury performs two functions that should never be united...