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February 14, 1895.
THE WEALTH MAKERS. 3- TeEMESWllW The Following Artdole Is Taken from the January, 1895, CTGLISH REVIEW, WHICH SAFE Investors Depend on for Advice and Re liable Information The Financial and Commercial World aa It la. Is Trade Going to Revive? concluded. What hope is there, under such condi tions, of a recovery of trade like those we iiuve been accustomed to after each crisis in finance between 1840 and 1890? We -confess we can see but little. The mere -expansion of population does something, no doubt, to increase the demand for common commodities, staples of life, -co does an extremely low range of prices. But the power hitherto exerted by the latter in stimulating a forward move ment, is now so much less than it was.be--cause the financier has no more worlds to conquer. Also it is less because the growing poverty we speak of forbids higher ranges of prices. Consumption can only be kept at its actual point, or enlarged, by continued cheapness. What would the condition of our own working population be were wheat to stand for the next five years at 40s. a quarter? Its -condition now is not altogether one of Elysias bliss, with bread cheaper than the world ever saw it before. Our over grown cities can only be kept from be soming centers of revolutionary energy by the excessive, and, probably enough, the increasing cheapness of the necessa ries of life. Low prices do not inevitably, or al ways, mean loss to the producer. They re, of course, in no small degree the le gitimate offspring of the augmented power over the forces of nature which iimn has acquired by his mechanical in ventions. A condition of over-indebtedness merely helps to accentuate the ten dency, but it does that to a degree suffi cient to cheek new developments of en ergy in financial speculation. The rela tive power of each group of forces to send prices down, and keep them down, can- jiot be measured; but we are safe in say ing that money, above all, borrowed money capital, is, of them all, the least aide to defend ijself from the effects of the reduction in price it has contributed to produce. The margin of profit whicji jops to pay interest on debt is really the first to disappear, but its disappearance may be kept from becoming manifest by tlie simple expedient of pouring in more and yet more borrowed money. A state which keeps adding to its public debts may hide the inability of its inhabitants to pay what they owe for just so long as it can continue to borrow; a manufac turing company which omits to write down the original cost of its buildings and machinery, or to extinguish tlie price charged for "goodwill," may continue for years to pay dividends not really earned; a railway corporation which dis dains to admit that there can be such a thing as perishability in any of the works and appliances upon which its capital was originally expended, and which pays every additional lamp, or tie, or wagon cover with new capital, can easily hide for a generation the decay of its earning powers; but in all these instances the money spent as capital may be perishing as an interest- or profit-bearing factor every year that passes. Too often also the new money put into fresh enter prises has the effect of destroying the value of what has been spent on old. The trade of a maker of old-iashioncd sickles may be destroyed by the new factory for steam-reapers, and a fresh invention in these latter may sweep away the profits of the earlier producers. In the struggle for existence between nation and nation, trade and trade, or inven tion, the money invested is always the first sufferer. Because this law rules, it follows that every nation which borrows should do so for as short a period and to as small an extent as .possible that all borrowing should, in fact, be temporary; and it also follows that no kind of interest- or dividend yielding capital, not even the share capital of powerful monopolist corporations like English or American railways, should be looked upon as ever lasting in its revenue-yielding attributes. Within a stated and tneasureable tune, shorter or longer according to the nature of the industries in which it is sunk, it ought to be paid back. Many private manufacturers write 10 per cent off their capital account every year, and find it barely euough. No company or corpor ation in the world can afford to do noth ing in this direction without someday coining in peril of destruction. Still less can any nation afford to saddle itself with debt for all time. However favor ably situated it may be, the debt will one day destroy its good name, and bring its government into disrepute. Especially is this true of nations which borrow abroad. To these, debt is a shirt of Nessus, in the embrace of which they gradually lose their vitality. If these statements are true, and the very exceptions which may be cited will be found on examination to prove them to be so, then what the world is now suffering from most of all is an over burden of interest- or profit-exacting capital which has become dead. Dead capital, capital whose interest- or profit earning capacity has perished, which has left nations with excessive taxes to pay for which they get no return, lies clog ging all the avenues of trade, stifling new enterprises at their birth. This dead money capital whose profit-yielding power has spent itself or been absorbed by the competition of rivals, or killed by the poverty of a people or by the de mands of the working classes is kept in a state of apparent vitality by being transmuted into 'banking deposits," into "public securities," with "quota tions on the Stock Exchange"; but it is none the more really alive for these, and the mass of it has now become so great that it seems almost nn impossibility for a new manifestation of speculati veenergy to have free play on a largo scale until some at least of the dead rubbish shall have been cleared out of the way. A great increase in the output of gold" cannot supply the necessary lifting force, 1 for, after all, goM is not the life of man kind. Spain had once gold and silver in an abundance exceeding that of any other state, ancient or modern. Yet old Spain decayed, and the Spain of today will never more recover aught of the former magniticance. The reader mast not ran away with the idea that the truth of these observa tions involves an immediate world ca tastrophe. Nations, even debt-consumed nations, do not perish in a night. All we wish to indicate is the drift of events in this modern world of steam and elec tricity, unprecedented capitalisation of inventions, pawning of human lives. The turning-point of a descent towards uni versal decay may not have been reached, and atill what is said above may be true in every particular. And even if we are on the downward road, the descent is nearly sure to be for a time slow, because the expedients of mankind are number less, because the capacity of mankind it self to stagger along beneath burdens which seem intolerable has again and again in the world's history proved itself to be immeasurable. We are simply dealing with the scope for, and probabilities of, a revival of trade on the old lines, and of a like mag nitude to those which have been the se quels of formsr collapses in the world'a airy structure of credit. And our con tention is that existing circumstances give hardly anywhere a ground for hope that what has been in this respect will be. A slow expansion may take place, and, should China be thrown open, a great, but transitory, outburst might once more occur; but over the greater part of the world the avenues of trade are filled with the wreckage and used-up ref use of the past to an extent which pre cludes the hope of a revival great enough to send prices up so as to revivify money capital whose vitality has been exhaust ed, and to give employment to the enor mous masses of idle "banking credit" a great deal too much of it based on capi tal, money already spent, whose vitality has died out which now encumber every great money market in the world. A languid commerce, prices which, if they spurt up a little, fall straightway back again to the "knockout" level, "cheap money" begging to be employed these are the present characteristics of busi ness, and to all appearances they will re main the predominant characteristics for many a month to come, for as long, in fact, as we deliberately continue to ig nore manifest insolvency; or for as long as we can do little more than float loans to help those who are, by means of these alone, enabled to keep up an appearance of a capacity to pay their way. Some new discovery is required to al low the simpers of modern national de velopment, with the help of borrowed money, to begin their work anew; and even with that the ruins of the past must first in many places be swept out of the way, else there will be no room to oper ate in. If Mr. Maxim should enable all mankind to take to flying, who would supply the money to buy flying machines for Portugal, for Brasil, for the Argen tine country, for Australia, lor any oi our debtors over the earth? May we not say of the grand modern system oi devel oping the world by borrowed money, "The revels are over, gentlemen; it re mains but to gather up the debris of the feast"? Financial cooks may construct "resurrection pies" a la Baring, and beautifully sugared pie-crusts out of this debris, articles which go to a market premium before they reach the consumer and become as ashes in the mouth, ew gaws of credit which fill the city with wonder, but the substance and the life are gone all the same. Of a truth here also "The old order changeth, yielding place to the new," and what the new will be no mortal can yet say whether a higher brotherhood among the nations and races of mankind, or an Armaged don of fiends around which the civiliza tion of which we boast shall disappear as completely as those of ancient Rome, or still more ancient Egypt. What we can see is the dead calm which preludes and ushers in a change. And all Europe stands armed, its best energies devoted to a preparation for wars, which will be the letting loose of hell. Sanguine, in deed, must the mind bo which can expect a "revival of trade" on the old lines un der such conditions. L. P. Davis. D.D.S., dental office over C. R. I. P. R. ticket office, sw. cor. 11th i, 0. BOYD FARMERS SPEAK Som More Most Be Done at nee, if Done at All Editor Wealth Makers: At a meeting of fifty men held on Jan uary 30, 1895, in Bush precinct, the east precinct of Boyd county, containing fifty four square miles, and polling 125 votes at last election, which meeting was to see about getting seed and feed for next spring, a committee of three men was chosen to draft suitable resolutions for publication, which -resolutions are ap pended: Resolved, That we view with alarm the vacillation of the Legislature in making provision for seed and feed for drought sufferers; for what is done must be done quickly, before wiuter breaks up and.it spoils the roads. Resolved, That we disapprove of coun ties and precincts voting bonds for seed and feed, as time will be consumed and seeding made too late, and because our precinct lacks enough taxable property to afford sufficient bonds for seed, as there is only personal property to tax. Resolved, That we must have seed, or much land must lie idle; because without feed our horses cannot tend much corn, and without hogs a large corn crop will riot be worth much, as it is too far to market. Resolved, That we disapprove of food supplies or grain being all sent to our county seat, as nearly half is given to fa vored men for hauling from the railroad to the county seat and from there here, when some of our men stand ready to haul free from the railroad at Verdigris or Running Water. Resolved. That we condemn the selfish misrepresentations of the real estate men who write to the Omaha Bee, denying the widespread destitution, lest the knowledge of it should hurt the sale of land. John A. Eiwkinic, Chuis Jcht, Thomas Levi, Committee. Mr. John Erskine was chosen commit teeman to look after seed grain for the people of Bush precinct, and Win. Alford, Thus. Levi aud Chris Larson were chosen to assist in distributing the grain ac cording to the acreuge. John A. Euskine, Sec'y. Dr. Davis, crown and bridge work, Jltb & O. THE ECONOMIC SITUATION (Continned from lit page.) the laborers starve. Land is the ma terial upon which labor ia bestowed. It embodies labor. This is the orthodox view. Bnt the new economists add to the three factors of production named a fourth, and very powerful one, vis: the sovereignty of the state the law-making power. .This will mark an epoch in the econo mic thinking of the people. The factor laud all natural means of production without which factor wealth or economic goods cannot be produced this factor is reduced to private property by the sovereign power. This enables the owner to exact rent for its use whether he uses it himself or leases it to a tenant or other user. Capital is private property and the owner of capital exacts interest for its use whether he uses it himself produc tively or loans it to some one else. Labor, where slavery and serfdom have disappeared as legal systems of labor, it viewed as the private property of the laborer, and hence is bought and sold for a wage. Labor is private property. This established legally, slavery and serfdom disappear. Thus the three fac tors of production are owned as private property. Land alone produces no economic goods. Capital alone produces none. Labor alone produces none. Kept abso lutely separate, all wealth production ceases. In time the laborers starve. Landlords and capitalists survive longer, but ultimately their ranks are thinned out, and if any are left they become sav ages, and individualism disappears. This organization of the features of production was effected by the sovereign power of the state. This power in all states means practically the power of the dominant social class. Only by bringing together the factors, land, labor and capital, is wealth, econo mic goods means to support life and make it endurable and pleasant pro duced. Under the system of private pro perty what force brings them together? Self interest. Natural wants. But what are the terms on which the factors shall come together? Let us see. If landlords and capitalists permit others laborers to use their land and capital to pVoduce the means of subsistence the one demands rent, the other interest; because the users laborers have produced the means of subsistence by use of their private pro pertyland and capital and for this boon, the laborer must divide the pro duct of his labor into parts, and retain only a share of it himself. Further on we shall see bow his share is determined. The user of land or capital or both, must produce commodities from the sale of which he must obtain the money, or means.'with which to pay rent aud inter est to landlords and capitalists. The sovereign power has established the doctrine of private property in laud and thus clothed the owner of land with the power to exact rent for its use. If the owner of land himself uses productively his land, he exacts rent for its use from the public. He strives to exact this by sale of his products to the public at such a price as will enable him to distribute to that factor its reward or legal privi lege. . J If, on the other hand, he leases his land to a tenant, he exacts from the ten ant rent for the use of his private prop erty, and then the tenant must look to the public, i. e., to the market, to recoup enough to pay rent to his landlord from sale of his products. This arrangement removes from the lord of the land all risks of bad seasons and a poor market In case rent is paid by giving a share of the crops, this divides the risk between the landlord and tenant. No man, or class of men, made the land. None can destroy it. One gener ation uses it, must use it to live. It passes away and leaves it to the next. Private property in land is purely a legal right. A franchise is defined as a particular privilege conferred by the state. A little reflection will shnwthat private property in land is a franchise in a natural mon opoly, and one of gigantic proportions. I only wish to bring your attention to this point, and I leave it with a few quo tations from eminent men in different spheres of social life and thought and in different stages of civilzation: "The earth (land) is the common prop erty of all men." Pope Gregory the Great. "The land of every country is the com mon property of all the people of that country, because the Creator made it as a voluntary gift to them." Right Rev. Nulty, Bishop of Meath. "The earth belongs in usufruct to the living; the dead liavn no right or power over it." Thomas Jefferson. "No man made the land; it is the orig inal inheritance of the whole species." John Stuart Mill. "Soldiers, not lawyers, were the first conveyancers of land, and blood was used instead of ink." Herbert Spencer. That wan when the dominant social class instituted their legal right to pri vate property in this primary factor of production hind. Having quoted the convictions of two religionists, two political philosophers, one speculative philosopher, whose thoughts have influenced and still are in fluencing the world, let us call to the stand two eminent savages: "What! Sell the land? 'Why not sell the air, the sea, the sky?" Red Jacket. "The Great Spirit has told me that land is not to be made property, like other property. Theearth is our mother." Black Hawk. The "Great Spirit" of the savage was an intuitive insight of the same reason as were those of the "civilized" philoso phers. To continue the explanation of the productive process in connection with the landlord, it should be added that, in the case in which the landlord uses his own laud aud cannot tax the public, by i'lBMU mt you Wlicn Writing to UiU Advertiser, DON'T WAIT. For a Cold to Bun into Bron chitis or Pneumonia. Check it at Once -WITH- AYER'S Cherry Pectoral. "Early In the Winter, I took a severe cold which developed into an obstinate, hacking cough, very painful to endure and troubling me day and night, for nine weeks, in spite of numerous remedies. Ayer's Cherry Pec-, toral being recommended me, I began to take it, and inside of 24 hours, I was relieved of the tickling in my throat. Before I finished the bottle, my cough was nearly gone. I cannot speak too highly of its excellence." Mrs. E. Bosch, Eaton, Ohio. Ayer's Cherry Pectoral Received Highest Awards AT THE WORLD'S FAIR sale of bis products, enough to pay rent, owing to a low market, in such case he loses his rent, and if the same condition of the market prevails in case of the ten ant, he has to take outof the shares that belong to his capital aud labor the amount of the landlord's rent. Under our legal system rent is para mount to labor in the case supposed. Thirty-four persons in England own 6,21 1,000 acres of this primary factor of production land. The Duke of Sutherland owns 1,358, 000 acres of land. His rent income is 8500,000 a year. The labor and capital of an army of tenants contributes to this income. ' Capital is private property and de mands interest for its use. If the owner of capital uses it productively, he exacts from the public interest for its use. He recoups from the public this interest by sale of products or services. In case he loans his capital to another he exacts interest from the party Dor- rowing who, like the tenant, must recoup from the public by sale of products or services euough to pay interest. If he cannot get back from the public by sale of products or services enough to pay the capitalist he must take from such factor of production as he owns labor and pay it. Interest is above laDor, le gally, in this case. The borrower of cap ital must fulfill his contract. It is the function of the courts the government to enforce contracts. Thus it is that land and capital through the institution of private property be come silent, persistent and steady forces in drawius to themselves a share of the social wealth. If the owners of land and capital have enough of either or both, they can live on the income drawn by these two factors and devote themselves to the pleasures of the world, or masquer ade under the humanitarian hypocricy called philanthropy a term which has come into the language since the rise of the present industrial system. The factors land and capital are things that exist outside of landlords and capi talists. They are not a part of the physical being. The factor labor ia the laborer, laboring. We speak of it as a commodity to be bought and sold in the market like cot ton and iron. When the laborer is separated from the factors of production, land and capital, the only way by which he can produce the means of subsistence is to sell the exertion of his labor power measured by time for a wage. Thus it is seen that the wage system of production is the necessary outcome of an industrial system based on private property in each of the three factors of production. It is also plain that rent, interest and wages can be distributed to the factors of production only out of proceeds which arise from sale of the product, aud also that the share which each factor shall draw in the distribution of the proceeds depends on the price at which the com modities are sold, relative to the cost of production. "The greatest discovery of my life is that the men who do the work never get rich." Andrew Carnegie. Have the men who do the work found out how the men who do not do the work get rich It should be remembered that a man s real wage is not the money price he re ceives for a fixed time of labor, but the quantity of good things he can get for the money price. TO I)E CONTINl'KD.J Dr. Davis, teeth oil gold plntes, 11th A 0. taERYVpPAlRV5uPPI!5 BuiterTubnapdcl5v The roA Complete StotKf vtrytturtfff f ruiunyb BUTTER AS2CHKSE MAKING. Boilers and Gwfi&WSSU Feed-Cookers far llustAlui ftfeloue, Addrcsa fREAMERYpACKAOEMfiife PtpT.E, K,AM4ASClTy.0. m their AilvU In Mil Peper. TAKE NOTICE I Book and Job Printing In all ita branches. County Printing Lithographing . Book Binding Engraving Of all kinds. Blank Books In every style. Legal Blanks The Red Line Stereotyping From snperior hard metal. Printers' Rollers Made by an material. Country Printers as lor terms. WEALTH HAKES PUD. GO. Lincoln, NeV. GET A HOME A CHOICE RESIDENCE three miles from postnfflcefor sale. It Is just ontsidi the city limit of Lincoln, in the shadow of tiro collegia, between them and the eity: two blocka from street car line, and in splendid neighborhood which enjoys all the luxuries of a city without its taxes, noise and dust It is a good gar den farm, new houae, barn, windmill, best well of water, with water connections in bath room and kitchen. A complete ayatem of irrigation. Fifty cherry, twenty. Ave apple and other fruit trees, also 10,000 strawberry plants, planted in 1894 enough native firewood for cooking stove. Here ie the prettiest and most valuable holding in real estate about the Capitol. If you desire to invest where large re turns cannot fail to come your way, in vestigate this offor. The colleges afford an excellent market for garden, poultry or dairy products. The owner wants to sell and change occupation. No mortgages. If you want this offer address, J. II. DOBSOltV 110 IX St, Lincoln, Keb. I . S. This tract consists of ten acres. J. W. Gastob, Pin. t. P. BouiB, YloeFres. ' O. L. Lisca, Tie Fanners' Mntnal Insurapce topy of Nebraska. The Largest, Beat and Cheapest Farm Mntnal Inanrance Company in the "State. ,.. Over ,. 14.000,000 Insurance p. Now in Effect . . . Lomm Paid More Promptly than Any Old Lin I !. on hand. " ., 5 Loaaaa 4 ... t Paid X O - jr. ana ugntninir, ina ana -iornaao, hum rer unit, Has ran Ton years without any AnHimnt Furalshee Insurance to the Farmers at Actual Coat. All Lomm Paid In Fall and no debts itaadlng against th Company. Home Office: 245 So. 11th St , PURELY Z o " s NEBRASKA. MUTUAL. FIRE, LIGHTNING a CYCLONE INSURANCB COMPANY. Over half million lnsared. Have paid over KOO.00 In losses. Have had bet on 10c per 1100.00. J. Y. M. SwiAAaT, secretary, .m LIBERTY LEADERSHIP! The Wealth Makers (Against th wealth Taken.) Published Weekly Six Years Old No Other Paper like It Send 25c. for three month's trial subscription. Address, THE WEALTH MAKERS, Lincoln, Neb. innim iiiiiiiiiiiiii Ayer's Sarsaparilla creates an appetite and gives tone to the digestive organs. and Supplies . . From the simplest style to the most elaborate. Series, the handsomest Blaak fa tks eountry, printed on Bona rsper at lees expense other houses furnish them on ordinary flat paper. expert from the best and most duraWe Having county or other work, which they themselves handle, would make money by IN LINCOLN! ' W. B. Lima, See'y. Stat Agent. a. Gushamtib, Tnm Company Doing Bnttness. Insures against Fire LINCOLN, NEB. MUTUAL Lincoln, Neb. CT"Aenw wanted. TIN6LEY & BURKETT, Attomeys-at-Law, 1026 0 St., Lincoln, Neb. OsUeetlons made and money remitted lame day aa collected, IfS Xj Anuty-two another Home-Seekers' Excursion. On February 12th the Burlington will sell round trip tickets to all stations in Arkansas, Colorado, Indian territory, South Dakotu, Texas and Wyoming; to all stations in Louitiiana on the St. L. I. M. & S. Ry., K. C, W. & G. Ity., Texas Pac. Ry. and So. Fa. Ry. lines, excepting New O-leans; to all stations in Missouri south and west of Harrisonville, Spring field and Clinton; to all stations on th A. T. & S. F. Ry. and Pecos Valley Ry. in New Mexico; to all stations in Utah, except those on the So. Pac. Ry., and to all stations in Nebraska and Kansas, westbound only; one fare for round trip tickets plus f 2, provided such fares art not less than f 7. For full information apply at B. & M. depot or city office, corner Tenth and 0 streets. Gkokk W. Bon.nell, C. P. & T. A. 84t2