The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1874-03-24
THE INDIANA STATE SENTINEL TUESDAY, MARCH "a 1874


from every decline in the gold premium,
whether that decline was occassioned by the
operation Of the laws of trade or by the sales
of gold by the secretary of the treasury. In
addition to all this, the government 80 bonds
were issued TO the amount of several hun
dred millions; certificates of Indebtedness
for immense sums were also put into use;
the army was paid OF, and period of wild
speculation and extravaganza followed as a
natural consequence. Hence we find the
price of farm products carried to a great
height. And farther, owing to the disturb
ances OF war, which called million of men
into the field, ard to the destruction ofsever-
al hundred thousands ofthe laboring classes
production In agriculture was so far dimin-
ished that we could little more than supply
our own wants, and the foreign markets had
little influence upon prices. From 1870 to
1874. the production of cereals having
was annually created over the home de-
mand, and consequently as that surplus
must be exported, prices were brought down
to the specie standard and are now, as we
have seen, less than before the war. II
wheat now brings Sl.50 in New York, it is
because 1T is wolth 81 30 in gold Git the prem
ium be 10 per cent? to send TO Liverpool in
stead of coin. So of all other agricultural
products. Such being the indisputable facts
In the case, every farmer, if he viii reflect
upon the matter can determine for himself
whether an inflated. deprecated currency
like the present, is advantageous to him or
otherwise. 1t is this view of the case which
the relation Offarmer's products to gold hold.
If we now turn to
THE OTHER SIDE.
of the inquiry. we find the agriculturist
suffers further loss from the increased
price of all he purchases for the supply of
his family and the expenses of his farm.
How formidable this loss is, each man can
determine for himself if he will compare his
general expenditures with what they were
before the war. How much does it cost him
to live How much is ten dollar note
worth at present for the purchase OF all
commodities, except farmers products, as
compared with 1860 ? Will ten dollars now
bring more than six dollars and fifty cents
would formerly? If not, there is
a loss of35 per cent or $3.50 upon every $40.
For the purpose of boots and shoes, clothing,
machines and tools for farming operations,
for furniture and fixings, for carriages and
harnesses, for all the sundries and etceteras
of family expenditures, will a ten dollar
note go farther than six dollars fifty cents
before tie imitation? For the payment of
local taxes, how does the currency of to-day
compare with the past? If public buildings
are to be erected, roads and bridges built,
schools sustained, and paupers and crimi-
mails to be provided for, will ten dollars go
farther than six dollars fifty cents once
would? So far as the erection of buildings
and the keeping of them in repair are con-
| cerned, my own experience is that
the present currency Is worth but little
over fifty cents on the dollar. l erected
block of stores in 1872, and when completed
asked the contractor, who was one of the
best and largest contractors in the county of
Worcester, how much the building had cost
more than it would have done in 1860, and
he replied, lone hundred per cent.-that is
double what it would II years ago." 1 did
not need to be told this, for L was conscious
of the fact; but wanted his opinion in con-
frmation of my own. In the foregoing facts
and considerations, we discover what the
real depreciation of the currency is.
Many thoughtless persons are ready
| to say that the depreciation is shown
by the difference between gold and paper,
which is but about ten or eleven per cent,
the gold premium; but this is an entire mis-
take. The present paper currenSy can be
used only at home, for the purchase of COM
modities or gold for export. As none but
the importer wishes to purchase for the lat
| ter purpose, the masses use the currency,
but about sixty-tive cents on the dollar.
Gold has no more relation to general prices
than wheat or tobacco. THERE'S still another
most important result. The railroads
cannot afford to carry as cheaply as
they could under a sound currency.
All their expenses are largely increased by
the imitation, and the difference thus occa-
stoned land it is very great, must becharged
upon freights and passengers, and paid by
the farmer, so far as he employs them in
transporting his products. In this way the
| farming interest suffers far more severely
than the manufacturing. Cotton CLOTH for
example, would perhaps average in value
| forty cents per pound, ct least; while wheat,
corn, flour, beef, pork, and the like, would
not exceed in value on the average probably
more than four cents per pound: If so, al
though his products are carried at less rate
per ton, he would still pay at least five times
as much of the extra charges Of
the manufacturer. Again, the farmer
should consider that the trader
or mechanic must obtain a larger
amount of profit than formerly, because the
money he receives has less value. Ii ten
dollar note will command no more COM
modities now than So 90 would formerly
then the trader must chargeSl0 for the profit
he once charged but So 50, in order 10 get
the same compensation. And this he does;
indeed he probably charges more than this,
| for he naturally desires to keep mp the same
rate of profit, and will, if practicable. Sup
posing that the dealers rate of profit before
the war was 20 per cent. Then, for a coat
which cost $40 he would charge Sl2; but
when expansion has carried the cost oil his
coat to SIS, he will charge SIS at
the same rate of profit; and the pur-
chaser pays So as profit, instead of
81. At this rate the farmer must pay upon
all he purchases. AS a necessary conse-
quence of this state of things, merchants
and traders have made large accumulations
since the expansion of prices, which sums
have been charged, of course, upon farmers
in common with all other customers.