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MONET AND CREDIT.
A CLEAR ANtt CONCISE STATEMENT BY A. J. WARNER. The Actual Value of Lawful Money and Bank Credits Upon Which Business Is Done —The Benkfeidy Proposed by the Bi metallic League. ~nA comprehensive view of the present situation must embrace in one whole the entire volume of money and credit. Before the panic set in the total vol ume ,of money in circulation and in banks, consisting of gold, silver and un covered paper, fell somewhat short of $1,500,000,000. Of this a little over sl,- 000,000,000 was in the hands of the peo ple and something less than $500,000,000 in the banks as reserves. Upon or out of the $500,000,000 in the banks as reserves a purely credit currency, in the form of bond credits or deposits, had been built up, amounting, including the reserves, to $4,500,000,000, making a total volume of money and credit of $6,000,000,000. But from this should be deducted $500,- 000,000 of reserves on which the $4,000,- 000,000 of pure credit rests, this being already included in the $1,500,000,000 of lawful money. The total volume of money and credit then stood as follows: Lawful money $1,500,000,000 Bank credits 4,000,000,000 Total This volume embraces everything by means of which cash transactions of every kind are settled and business obli gations of every description, involving money, are liquidated. The claim therefore that 95 per cent of the entire business of the country is done by means of credit has no foundation in fact. The volume of both money and credit, by means of which all business is transacted, is before us, and there is nothing outside. If the efficiency of money and credit, dollar for dollar, were equal and they performed equal work, then the proportion of work done by money and credit would be as $1,500,- 000,000 to $4,000,000,00, or as 27 to 73. But the relative efficiency of the cur rency part of this volume of money and credit combined is always relatively greater than the credit part and in times like, these is vastly more efficient. At all times the efficiency of money, dol lar for dollar, is probably at least two to one of credit. The money remains from year to year and passes many times from hand to hand, while the credit part comes and goes, rises and falls, as expectation and confidence rise and fall. This volume of credit is therefore quite properly desig nated “confidence money.” It is made with pen and ink by writing credits in the books of depositors in banks, on which they are allowed to draw checks. It is chiefly from loaning this form of credit that banks derive their profits. It is an agency of vast importance in commer cial transactions and safe enough if kept within proper limits. But the recent creation of this form of currency in the United States through the multiplica tion of banks has gone far beyond safe limits. The country has been literally banked to death. In other words, bank credits have been created beyond all bounds of safety, and hence the collapse. Instead, therefore, of an effective vol ume of $5,500,000,000 of money and credit now the credit part has been largely ex tinguished by the destruction of confi dence, while at the same time much of the $1,500,000,000 of money has been hoarded. What is needed at such a time to sus tain legitimate business and restore con fidence is a Vpiick enlargement of the volume of actual money. Nothing else will do it. It will be a long time before confidence will again rise to a height that will permit the banks to float $4,000,- 000,000 of credit or make it approximate in efficiency to a like volume of currency. Moreover, to the extent that this vol ume of credit takes the place of or sup plements actual money it is as potent to raise prices and expel gold as its equiva lent in money. In good times, when credit is at its best, the total volume of money and credit, as above shown, may rise to $5,500,000,000. At such times debts are freely created, but confidence breaks, credit collapses, and the whole volume is reduced, as now, to not one-half what it was six months ago. As the $4,000,000,000 of bank credits arise out of the $500,000,000 of reserves, the withdrawal of $100,000,000 of the re serves necessitates the contraction of the volume of credits by $800,000,000. Such contraction can never take place with out a collapse such as we now see. This is the condition when debts created with a volume of currency are often required to be paid. In England the proportion of bank credits to actual money is much greater than in the United States, and their system could, not be maintained a twelvemonth were it not for the continual stream of money flowing into England from her investments outside. That is quite different from our condition. What is wanted now, and it should be done quickly, is a substantial increase in the currency part of this volume of money and credit. It is only at an enor mous sacrifice that any gold can be ob tained to supply the deficiency, and enough to meet the present emergency is out of the question with any sacrifice possible. Let congress therefore at once, besides coining all the silver in the treasury available, authorize the immediate issue of at least $100,000,000 of treasury notes, redeemable in coin, as provided by Sen ator Seward’s bill, and take up matured bonds and buy all other bonds offered at not exceeding a fixed limit. How unwise and unreasonable at such a time to legislate to reduce the volume of currency or to restrict the supply of Standard money with the expectation that credit will take its placet It is im possible. More primary money to pay with, and not more promises to pay gold, is what is needed—more money and less credit, not more credit and less money.—A. J. Warner. THE PRICE OF WHEAT. "Xto Mam From Indiana** WT P i»in. How We Are In England's Grip. J. H. Beadle, the well known corre spondent, writing from 1 Chicago to “hik county paper,” the Rockville (Ind.) Trib une, explains how conditions which formerly influenced the world’s wheat market have changed. He says a sur plus of wheat or other grain is produced on every parallel of latitude from 63 de grees north to 53 degrees south, and sow ing and reaping are going on somewhere every working day in the year. The plow and the harrow run every day in some English dependency, and the sickle is never idle in the fields from which Eng land draws her grain supply. Then he continues: “Two other facts must be noted. When the season is bad on the western continent, it is apt to be good on the eastern; when bad north of the equator, good south of it, and if it should happen to be bad all around the semicivilized ryots of Egypt, India, etc., can dispense with the use of flour and take advantage of a slight rise in prices. And India, which but yesterday began with an ex perimental shipment of 340,000 bushels, is now relied on for 80,000,000 bushels a year and canon occasion bring it up to 60,000,000. “The world is just ‘lousy with wheat,’ and this year’s crop, though considered short, will certainly reach 2,400,000,000 bushels, while the normal requirement has never yet exceeded 2,300,000,000. As to that, however, nobody knows what the demand would be if commerce were free, for even in enlightened Europe there are 120,000,000 people who eat rye and cheaper stuffs for bread. It is not to be supposed that they do that for fun. “England has her fingers upon the world’s pulse. When our officials in March or April or May announce a shortage in our crop, dispatches fly on the lightning’s wings to all her depem dencies, and the area sown is increased. Her greatest advantage, however, is rap idly growing greater. The world owes her $12,000,000,000. Mr. Gladstone in parliament put it at $10,000,000,000, but the head of the exchequer corrected him, Nearly all the notes, stocks and bonds which evidence this debt were acquired over 20 years ago. $5,500,000,000 “Seven nations and provinces large enough to figure as nations have since demonetized silver, and so the power of gold to buy the proceeds of labor has in creased at least one-third. You need not go out of Parke county to prove that. The result is just the same practically as if the rest of the world had made England a present of $4,000,000,000. The goldites call free traders the friends of England. Supernal powers! What would the abolition of every tariff in the world amount to compared with the addition of 33i per cent in purchasing power to her claim for $12,000,000,000? “The yearly interest she receives on it is a little over $500,000,000. When the debt took final form, this would have bought (1872-3) not more than 480,000,- 000 bushels of wheat in New York. To day it would buy 715,000,000 bushels. If not one pound of grain were raised in the United Kingdom, the interest on what the world owes her would bread all her people, fatten all her cattle, make whisky enough for medicine and snake bites and leave gold enough to bribe the free trade editors! If you will take the prices of silver, wheat, com and cotton in 1873 and note that as each nation or province demonetized silver its rate fell from 2 to 10 per cent, you will see that while produce fluctuated according to the crops there was in a term of years a close correspondence in the decline of all four. Now, if we complete the work of demonetization, and the medicine continues to operate as it has operated, there must be another general and con siderable decline. “But it may not so operate. lam com pelled to argue on the general principles of political economy; but, like all others, they are subject to unforeseen accidents. There may be a great foreign war. There may be a worldwide failure of a crop, though very unlikely. The farm ers in disgust may quit raising wheat till demands outgrows supply. And lastly, there may be immense goldfields opened in the as yet unprospected re gions of Africa, Australia or British Co lumbia. These all failing, it is idle to ex pect high priced wheat for a long time to come. And if demonetization is forced through congress, as I now think likely, there will be a fall some time before there is a rise, and possibly a year or two will elapse before you will see 75 cent wheat west of the Alleghanies.” In opening his speech upon the silver question in the senate, Senator Allen of Nebraska described himself as an hum ble member of a new political party which had recently come into public no tice. That party had been made neces sary by the constant drifting away of the nation from its moorings. It was hour ly growing in numbers, courage, intel ligence and discipline and would sooner or later force the two old political parties to administer the affairs of the govern ment in the interest of the people, or would force them into disintegration and death. , Lay Off Capitalist Politicians. By laying off some men and curtailing the time of some Others, the employing capitalists are setting labor unions an example worthy of emulation. Now let the laboring men unite at the polls and lay off a few capitalists. The capitalist is losing nothing these times. At worst, he is only failing to make something. This is not the case with the working man, who is either patronizing pawn shops or who at best is only failing to lose something.—Western Laborer. Sacrificed Principle For Spoils. The temptation to be at least seeming ly in favprof the recommendations made by the executive, who holds the party patronage in his hands, was too great to be resisted when the supreme moment arrived, and not a few doughty cham pions of silver sacrificed principle for spoils.—Pittsburg Commercial-Gazette. Allen Is All Right. WATSON’S TRIUMPHS. A POPULIST CHAMPION WHO WINS HIS HEARERS’ HEARTS. Popular In the Cities and Towns as Well as In the Agricultural Districts —For the Negro’s Bights—What a Traveling Correspondent Saw and Heard. When I reached Augusta, Ga., I was surprised to find that the conductor and motorman on my electric car were in such active sympathy with the People’s Party as to regard Tom Watson as the greatest man in their state, if not in the south. I was then on my way to the little town of Thomson to see Mr. Wat son, but it had not occurred to me before that the city of Augusta could possibly be in his district. I knew of Mr. Wat son as the congressman who had left the Democratic party to join the People’s Party, and I supposed of course that he would not have dared to do this unless he had distinctly a farmer constituency. I found, however, that the city of Au gusta Was in his district, and that he had made the fight knowing what odds he had against him. These street car men did not say whether or not they had voted the third party ticket, but did say that there were thousands of men in Augusta who were ready to vote any ticket if they could prevent a repetition of the frauds by which the Democrats had beaten Tom Watson. Fraudulent voting on a large scale, they said, had been begun at Au gusta in the local option election about a year before, and in the congressional election all the frauds of the liquor campaign were doubled and quadrupled to defeat the Populists. Negroes, in stead of being debarred from voting, were voted at one polling place after an other until the city of less that 40,000 people had polled a vote of nearly 14,000. In other words, there were 4,000 more votes counted than could possibly have been cast by legitimate voters. What I heard of the campaign during the few hours I was in Augusta greatly increased my interest in meeting Mr. Watson. When I reached Thomson, my interest was still further increased by the bitterness with which my hotel pro prietor spoke of him. The town, I soon found, had been tom in two by the cam paign, so that Democrats boycotted Pop nlists and Populists boycotted Demo crats. The lapse of eight months had somewhat allayed the feeling, but had not removed it. Of the private charac ter and ability of Mr. Watson every one spoke in the highest terms, but of the People’s Party the Democrats generally spoke with such bitterness as northern Republicans have rarely shown toward Prohibition seceders. When I had talked with Mr. Watson for a little while, I understood how he had been able to make his marvelous campaign. His manner of talking was far from being oratorical, yet as I talked with him I found myself thrilled as 1 have rarely or never been by a political orator. The People’s Party movement is to Mr. Watson a part of his Christian ity, and this was so unmistakable that it did not seem to me at all strange when one Democratic storekeeper afterward told me that the negroes had a kind of “voodoo worship” for Mr. Watson, and another told me that “some of the peo ple around here look upon Watson as a ‘second comer.’ ” Mr. Watson, it may be said, conducted the first campaign in the south in which the white people had it preached to them that the negroes should be protected in their full rights of citizenship. “When,” he told me, “the white people hold all the land and all the culture, and, as we claim, the superior brains, it is ignominy for us to cry that there will be negro domination if the negroes are given the same chances as ourselves.” In the cam paign the negroes became convinced that Mr. Watson was making a fight for the poor, and when he appealed to their bet ter emotions in its behalf they followed him with the same unswerving loyalty they had once given to the Republican party. When the Democrats held their great barbecue at Sparta, Mr. Watson was holding a meeting in an open square, with no feast whatever for his listeners, and yet for the three solid hours that he talked his great audience of negroes would not stir from their places, though the couriers from the barbecue kept rid ing up and shouting that the meats were being served. It was a camp meeting excitement, and “Yes, Lord,” would come back from ignorant old men who knew nothing but that their hearts were touched. What is more, this emotional enthusi asm lasted through the campaign and be yond it. Neither threats nor bribes could persuade the negroes of that county to vote against Mr. Watson, and when a fund was afterward raised to enable him to make a contest before congress a great deal of the money came from sub scriptions of dimes and half dollars brought in by the negroes. This work ! ing together of negroes and whites in the People’s Party campaign had its effect upon the Democrats. Before the cam paign was over negro orators were speak ing side by side with white orators on Democratic platforms, and the color line was effaced in politics.—C. B. S. in Out look. *f > £ ■'* •' Who Ate the Anufehiftt*? - I A few years ago four men were hung, one goaded to suicide, and three more imprisoned for the crime of being an archists. Yet it was never proved that , these men disobeyed the laws of their country, but only that they talked against the law. Today we have a set of Nebraska railroads that are trying by every plan to circumvent the mafimnin rate law, we have a president who sus pended the execution of the anti-Chinese law, and we have a secretary of the treasury who openly violates the silver purchase law. These people do not talk against the laws, but simply override them. It is doubtless a terrible thing to bean anarchist. Good people are taught to tremble at the name. The only quee ■ tion now is, Who are the anarchists? — I Alliance-Independent DOCTORS 'AND DISEASE. Mr. Sibley Pays His Respects to the Quacks and Makes Some Inquiries. Following isan extract from a speech of Congressman Sibley of Pennsylvania during the debate on the Wilson repeal bill: “My friends, it has been amusing to sit in this house and hear the diagnosis that the different schools of physicians and empirics have given of the malady of the patient. And they have got as many different maladies as there are dif ferent schools of doctors for their treat-' ment. Here comes one who says the pa tient is sick, and the trouble with him is that there is lack of confidence. All he needs is to have confidence, and he will soon be well again. Why, up in Penn sylvania the other day a bank closed its doors where I had several thousands of dollars on deposit. “Now, 1 have absolute confidence in the president of that bank, the people of that community have confidence in him. and he has confidence in me, but neither of us has any money. That is what is the trouble. I want to tell any man who proposes to heal this disease by adminis tering a dose of confidence medicine that he has got to inject that medicine into ev ery patient at the same time, everywhere in the country, or it will not work. You cannot give a dose to a man in this com munity and another to a man in another community and hope that your confi dence medicine is going to cure. “But another says the difficulty arises from overproduction overproduction of wheat, of wool, of oil, of coal, of com, of cotton and beef. Overproduc tion of cotton! Why, I drove out through the slums of Chicago four weeks ago and saw men, women and children in tatters. Overproduction of wheat, and we read that in the west people are starving for the very necessities of life Overproduction of fuel, and yet they froze to death in Pennsylvania, the land of fuel, last year. Overproduction of oil, and a million of our people roam in darkness this night for want of it. No. sir, it is not because of overproduction. It is because of under consumption, be cause of the lack of the necessary money to purchase these absolute necessities of human existence. “But there are other classes of doctors, other schools who tell us that we are getting down to ‘hardpan,’ that we have been going through an era of infla tion and that it is necessary for us to get down to first principles, and they say we are going down to hardpan. Why, my friend, the farmers, the work ingmen of this country, were down to hardpan 15 years ago. They got down to bedrock 10 years ago. They went down to where they scorched the soles of their shoes five years ago, and they are getting today, in this year of our Lord 1893, down to the point where it is scorching their feet, and the fumes and odors of hell come up to meet them. And yet we are told we are getting down to hardpan. I want to know how much farther toward sheol we have got to go before we get there?” GOVERNMENT INSURANCE. A Proposition Comes From Kansas to Add an Insurance Bureau to the Postoffice. A Topeka correspondent of the New York Times says: “S. S. Snider, super intendent of insurance, has become sponsor for a novel scheme, whether original or not he does not say. It is a vast pension plan by which the govern ment is to insure every man, woman and child in the nation on the endow ment feature of some of the life insur ance companies. “The government under this scheme is to issue endowment certificates at small cost, so that the poorest working man can avail himself of this provision for his old age. This insurance is to take the place of and in fact run out all the present insurance companies. Each postmaster is to be made the agent of the government insurance depart ment in connection with his other duties, charging but a nominal fee in addition to the small payment required by the government for carrying the risk. “It is estimated that, with all the life insurance of the nation carried in this manner, a revenue of $100,000,000 a year would be derived, and a further saving of over $100,000,000 a year would be ef fected to the insured. Mr. Snider thinks that a policy for $3,000 could be carried at a cost of not to exceed $lO a year, and that there never would be danger of lapse. He would save all the salaries now being paid to officers of in surance companies, the accumulation of vast sums of money, and give absolute security. His plan makes the minimum insurance $3,000 and the maximum $20.- 000, hoping thus to encourage every man in the nation to take out a policy. “There are those who seriously con sider this scheme and who will endeav or to create public sentiment in its fa vor. They would add this to the postal system, the government ownership of railroads, the money plans and the gov ernment ownership of all lands not in ac tual use.” We Get Nothing. We have always opposed a change of ratio as now exists between silver and gold, and we are gratified to see the stand taken by the reform congressmen from this state on that matter. The present ratio, 16 to 1, is as coiTeot as can be made, and'tWproposition to increase the amount of silver in a dollar is only made to confuse the minds of the peo ple. Besides the lack of argument in favor of the proposition, a glance at the attendant expense and time necessary to make the change will convince any one of its lack of wisdom. It has been stated by the director of the mint that it would take four years to recoin all the silver and would cost from $100,000,000 to $200,000,000. The free coinage of silver would not settle the cur rency question even when coined at a ra tio of 16 to 1. We have stood for that or nothing, and we are to get the noth ing. Now, the only thing for us to do is to turn our eyes in the direction of a free paper currency issued direct to the people mid keep the fight hot till we win the victory.—Cotton Plant. The Auroraphone. A Romance by Gyrus Cole. Paper 50a. Fifteen thousand years ahead of our day! The present Ms of the In- Habitants of the planet Saturn 1 A history of all we are passing throagh* and the outcome I Communication at la4s established with the planet Saturn through auroraphone messages. Sprightly in style, sensible in its logic, scientific in itiif ' denouements * * * accessories of out-of-door adventures and d&ring escapades, a ghost story and a love story, artistically blended with the auroraphone messages.—Religio-Philosopmeal Journal. j H , ESAU; or, The Banker's Victim. By Dr. T. A. Bland. Price only 25c. Five Copies, SI.OO This notable new work gives, under the guise of romance, A fascinating story of toue, war. and injustice, pre senting thrilling scenes from our late civ il struggle; A tragic page in the history of the mortgage sys tem, which is year by year fastening its tentacles upon the free homes of the in dustriat classes; A* vivid portrayal of the iniquitous financial policy which has characterized the plntocratio reign of recent years, and under which the toiling millions of a great nation arc struggling with euer-decreasinq hope. Buy it, read it, and let your neighbors see the story of their own struggles, that they may better understand the reason why their eondi tion is growing more and more hopeless; why an aristocracy of a few hun dred in this country and England are becoming all-powerful. DRIVEN FROM SEA TO SEA OR “iXTXST -A_ A[) Art 1/ FOR EVERY FARMER On the American Con - Kill IK tinent 10 Read-40,000 Sold When it Was $2 a Volume. Now issued in Paper Covers, and Sold by THE GREAT WEST at 50 Cents a Copy. 414 Pages. With the Last 75 Pages an Appendix Entitled “A Body Without A Soul.” This work, written by C. C. Post, of Chicago, is not second to any book in its power over the hearts of men. It is thrilling—more, it is start ing- With some of the facts in connection with the land robberies the ed itor of this paper is familiar. Uent to any address, postpaid, on receipt of Fifty Cents ADDRESS GKRHLAJT "WEST Washington Brown, Farmer. By Leroy Armstrong. 60c. in Paper. “This,” says the editor of the Great West, of St. Paul, “is a book to be read by the laboring people; and by the capitalist. The characters may seem extreme. They are not. They are real, and are found every day by men who travel among them. It is a power. People who read brash like the “Golden Bottle” may turn to this story with delight,’ DARE YOU READ IT? WASHINGTON BROWN, FARMER. By LEROY-ARMSTRONG. The Story of the Year. "Ton dare not publish that story,” said a prominent Board of-Trade man who had ex amined the mannstript. “I dare pnblsih It if the people dare r< ad It,” said the Author IT IS THE FARMERS' GOSPEL. PRICE-CLOTH, $1.00; PAPER, 50 CENTS. FOR SALE BY THE Great West. The Coming Climai In the Destinies of America BY LESTER C. HUBBARD. 480 pp. In Paper, 60c. New facts and generalizations in American politics. Radical, yet constructive. An abundant supply of new ammunition for the great reform movement. “Mr. Hubbard’s work will awaken men to the dangers and the remedies. It is a splendid book to lend bo your neighbor.”— Dr. Fish. The Rice Mills of Port Mystery. BY B. F. HEUSTON. PAPER BOUND 50c. This is a romance of the twentieth century, embodying the most telling argument against a protective tariff that has ap peared in many a day. “It is a strong showing for free trade, and any one desiring bo get posted and crammed with good arguments should read It Detroit News. . . “It is a story— and, when half way through or more, It stnnned ns with a denoument unexpected.” BUY IT NOW. WASHINGTON BROWN, FARMER, By LEROY ARMSTRONG How the Farmers Bold their wheat. How the Board-of Trade was be tten. How the Railroad King was captured. IT IS THE STORY OF THE YEAR. BUY IT NOW. PRICE—CLOTH, $1 00; PAPEB, 50 CENTS. SEND TO THE Great West