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H6e Nobraoko. Indopendont FEBRUARY 8, 1905 Letters From the People 4 Plans to Prevent a Panic , Lincoln, 111., Jan. 23 To - the Editor of The Independent: I suggest the following 'plan to pre vent a panic: If we must have a national (com modity) base for our money, why shall we in sist that it be confined to gold alone? I would suggest that we "stop the coinage of gold on private accounts and issue a full legal tender treasury note in such volume and denominations as may be demanded by the legitimate trade and commerce of the United States." Let this be the only paper currency recognized by law. Make it a full legal tender for any and every debt that may be contracted under the folds of the American flag. Make it "redeemable on de mand" in any and every commodity produced in the United States at its market value, including both gold and silver bullion." The clause touching redeemability could be omitted to advantage, but for the ingrained su perstition of some good people that money must be "redeemed in coin" to be of any value. This, in my humble judgment, will be ab solute perfection in money and make it impos sible to gain wealth merely by swapping dollars. John Sherman said that it required about $50, 000,000 of new money to be put in circulation each year to keep even pace with the increasing business and population. (See speech on repeal of Bland-Allison act in 1890.) Mr. Sherman may not be infallible in his judgment on that ques tion, but we may clearly indicate the need of more or less money by the average level of prices on twenty -to forty staple commodities produced in the United States for a period of, say thirty or forty years. This plan of regulating the amount of new money to be issued each month or year, would be as responsive to the wants of commerce' as the steam engine is to its gov ernor. But if it be objected that government paper would be unsafe (?) without coin behind it, I would suggest plan No. 2 as follows: "Stop the coinage of gold on private accounts and require the secretary of the treasury to buy each month not less than five, nor more than ten millions of dollar's worth of bullion, gold and silver, and coin it as fast as purchased at the present ratio of 16 to 1 (though preferably 15 V to 1) and to buy that which is the cheapest at time of purchase, i, e, gold, at $1 and silver at 75 cents per ounce; or gold at $16 and silver at $1 per ounce; or gold at $20 and silver at $1.25 per ounce, and continue thus to buy and 'mint so long as either metal remained at, or below, par, i. e., gold $20.67 and silver at $1.29 per ounce. It may be objected that we cannot buy gold at $12 per ounce when silver Is 75 cents! Let us see: I would buy 10,000,000 ounces of silver at a cost of $7,500,000. I would coin this into $12,929,292 of full legal tender money, of present weight and fineness. With this I would buy 625,000 ounces of gold at par; I. e., $20.67 per ounce, or possibly less in competition with silver. But $7,500,000 is the cost of 625,000 ounces of gold, which is just $12 per ounce. By this method we may be able to add new money to the circulation as needed, and will not be compelled to depend on the uncertain and irregular output of our mines, nor to asset cur rency based on "nothing but wind." I believe this to be a feasible, honest and practical plan to supply the people with money either made of the metal itself, or a paper money based on all commodities produced in the United States at their market values, including both gold and silver bullion. I respectfully solicit honest crit icism from any man. D. L. BRANCHED. Mortensen's Ambitions i Ord, Neb., Feb. 1. To the Editor of The In dependent: Of course we are seeing another re publican ticket nominated, and many of us are not aware of some of the things going on. It seems that the Sixth district is to have more "than its share of officers in the state, as Brown and Mor ten sen are both from this district. I had the op portunity several .years ago of hearing the fa mous "Bill Green" and Norfis Brown debate. Brown was entirely out of place, debating with Green. Brown is not a debater. I am not personally acquainted with Brown, though I have seen much of him. But it has the appearance to me, that if the people are to put Brown up and remove a man like Allen, that same mighty financial factor is at work. We are looking at Brown as the La Follette of Nebraska, because he defeated the railroads in the tax case, The political movements in this state, and also in the United States, have been peculiar. These fellows who are falling over themselves to whoop it Up for the administration, wiii probably be tak ing a back sneak pretty soon. This reform talk of the administration is all a farce which I can prove by facts that have come to me in the past six months. The State Journal is the same wily old duck that it always was! It is cheaper to talk reform and get these standpatters into office than to "but in" as Mark Hanna did in 1896. I happened to be very much concerned in Valley county politics this fall and the party up here which is boosting Mortensen for governor could not even get up resolutions in county con vention. Now they are whooping up dll kinds of reform, and also have their pockets full of passes. The great fight in the state convention this last year, I believe, was nothing more than a fight between the Rockefeller and Hill interests. In fact it looks that way. ,It is the same old thing over again. They talk reform for the purpose of holding on to the reins of government. Every time we support the policies of the State Journal and boost such men as Norris Brown, we are simply whetting the axe with which to behead ourselves. But they have the idea that Mortensen is the big-hearted whole souled, honorable and honest "Pete." Of course it is not known over the state that the "Morten sen machine" in Valley county was snowed under this last fall so deep that resurrection is almost impossible. But yet this is the case. The tem perance issue- and the governorship in Valley county were the questions which brought on the most desperate fight that this county has ever known, and the "Mortensen machine" went down. The "Mortensen machine" lined up on the side of the breweries and undertook to elect a gold democrat, on a populist ticket, in opposition to the regular nominee of the republican ticket, who was supported by the temperance people. The "ma chine" undertook to handle both the populist and republican parties in order to control the county in the coming contest for governor. The conten tion came on the office of county treasurer and the Mortensen machine was beaten just one hun dred and twenty-nine votes in the county. I may have an opportunity to discuss this question at greater length at some future time. All this talk that Mortensen is to be forced to run for gov ernor, in order that we must have a man who will see that the railroads keep their place, is pure, unadulterated lying. I tell you, it is the coin they are after, and Rockefeller and Hill have compromised for the purpose. . ' WALTER JOHNSON. Solving a Puzzle Bonner Springs, Kans., Jan. 29. To the Edi tor of The Independent: Harry Stevens propounds a riddle; I like riddles so I have a guess com ing. Allowing that $600 is the average yearly wage of the working man, I guess, first that $100 goes back to capital in the shape of rent. Second, that $400 is spent for merchandise which has passed through the hands of three or four differ ent parties who have each made a profit that is paid by the consumer and as this profit goes back to capital, I guess capital gets $100 back in profits. - Third, I guess $500 goes to Uncle Sam as revenue, and $50 more to pay interest on the bonds and dividends on the watered stock of manufacturing companies and railroad companies who have handled the goods. Of course this is not paid direct but is added to the cost of the goods and amounts to the same thing in reality. Again, "capitalists are glad to invest in govern ment bonds that draw only three per cent inter est. Yes, but they deposit them with the govern ment. The government pays a'year's interest in advance and gives them $90 on the $100, in na tional bank notes to loan at customary rates. . . William H. English, democratic candidate for vice-president in 1880, after serving for fourteen years as president of the First National bank of Indianapolis made the following report : "We i commenced with a capital of $500,000. During the fourteen years we have run the bank we have returned voluntarily to the stockholders $500,000. During that time we have paid in dividends $1,496,000. I now turn the bank over to you with the capital stock ($500,000) unim paired, and on hand there are $327,000 of undi vided earnings, besides $36,000 premiums on our bonds, and besides a large sum to our credit for lost and destroyed bills." According to the statement of Mr. English his bank's profits for fourteen years amounted to $2,359,000. Seven per cent on $500,000 capital, fourteen years simple interest $490,000. Rate per cent of profit made by the bank, 33.7 per annum. Mr. G. G. Williams, president of the Chemi cal National bank, of New York, stated before the house committee on banking and currency that his bank had a capital of $300,000; that its divi dends were 150 per cent per annum, and that the shares of stock were $100 each par value, and were selling on the market at $4,500 per share. Please figure out the rate per cent. arvitol -ftwffoe-a -Art vt-f V? Hnftfl-4t-Tr- fiWnfl' - accumulates much faster than bank capital and the banking business is considered slow by all the "frenzied financiers." I guess capital drawn from industry or from the annual product of industry gets not only seven per cent, but a good deal more on the average, though many small capitalists may loan money for less. The annual wage of the working man is not paid out of capital; but from the product of his labor. The wage earner gets a part of the pro ceeds, the balance goes to capital or profit and to pay Interest and rent; interest and rent and the usual allowance for depreciation or -wear, in surance, etc., must be paid as well as wages before any net profit or dividend can be made. A .business that will not pay dividends is not profitable and is not continued very long. And many industries pay good dividends on stock, composed largely of water, as every one ought to know. -Now here, is a problem in percentage for those who like to figure: Mr. A. deposits in the ba.nk mortgage notes to the amount of $10,000. The notes draw an average interest of five per cent, which the bank agrees to collect and place to A.'s credit free of charge. A. is allowed to draw ninety per cent; or $9,000, against the notes, which are held as collateral. A. immediately draws the $9,000, and loans it at six per cent per annum. What is .A.'s annual income from interest; what is his actual investment in notes, and what is the rate per cent on his actual in vestment? Does he owe the bank or the bank owe him,. and how much? Does the bank gain or- lose, and how much each year by the oper ation. O. C. MILLER. Says Increase Is a Fiction Bridgeport, N. J., Feb. 2. To the Editor of The Independent: I appreciate reading The Inde pendent but think it is like the Commoner and other reform papers generally. They have left the great mass of industrial slaves to their fate. Ninety per cent of the whole people are more helpless than they ever have been before from a money standpoint, and this is the only question, in my opinion, that can interest the industrial slave. A hungry man can think of nothing but bread, neither can an intelligent slave consider anything greatly before freedom, and the web of delusion is being wound tighter and tighter every hour around him. Not only the less educated people but some of our great leaders as well are in the web. In a letter in The Independent of January 25, says the vast increase in the world's supply of gold since 1897 has given us a cheap money. No doubt the writer means to say that there is more money in the hands of the people to consume each other's products. If that is what he means to say, I think he is great ly mistaken, for I do not believe he can show by facts and figures of the government that there is "as much" even in the hands of the legitimate business people, while there is a plenty of facts and figures to prove there is less. He also says there was too little money in the country in 1896." Then he asks: "Is there too much now?" How a man can ask such a question as thatif he has any knowledge of the transactions and conditions of the treasury of the United States, I fail to seefor there are positive facts and figures of the government to prove that the increase of gold has not increased the volume of lawful money to the amount of one dollar, and I will defy any one to prove by the facts and figures of the secre tary and treasurer of the United States and the comptroller of the currency, that it has. J. P. SHAW. , Agrees With Mr. Schweizer Manley, Neb. Feb. 3. To the Editor of The Independent : In The Independent of February 1 I think Mr. Schweizer of Woodlawn, Neb., hits the truth in the freight rate bill by Senator Dolli ver, in that he believes the salary is the main thing of the whole business and I think his letter is just to the point in the whole matter and is my idea of all the bills that have. so far been introduced pertaining to the railway rate question. There is no sense or justice in making such a committee with such a salary as that to rob the people when we all know, as Mr. Schweizer says, they will not be .allowed or have a chance to do any good if they should happen to be so inclined. Go on with your good paper work. W. B. ESSICK.