Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1874-07-17
The Financial Question.

EDITOR BULLEI1N:-The sentiment
in this section is quite strong in favor
of increasing the amount Of paper
money in circulation, and l for one
am Of the same mind if it will result
in benetiting the toiling farmers of
the west, but whether it would so re-
suit, is mixed with doubt. Money is
short in the west, and the prices are
too low, and the farmers are in debt,
and their farms are under mortgage.
Is it because there is too little money
in the United States? If yes, we
should have an increased currency;
if no, then instead of demanding
more money we should inquire after
the true cause Of our poverty, and en-
deavor to apply the appropriate rem
edy.
During the last six months money
has ranged from to per cent. in
New York on satisfactory security,
and has generally been in excessive
supply at those rates, while in Iowa
the supply has seemed short at 10 per
cent. These. facts would seem to
show, not that there is a deficiency
of the circulating medium in the
whole country, but that the equilibir-
UNI is disturbed and that while we
have less than we really need, the
eastern portion Of the country has an
excess.
If this view is correct would it not
be wiser to try to correct this Unequal
ity, and elevate the west TO its proper
place by known and natural means,
than to launch out upon the limitless
ocean of imitation? Knowing SO well
as we do that however much we may
swell the volume of currency, we
shall still maintain our relative infe-
riority until we do correct the ine-
quality and take measures to keep our
share Of money among us.
If we would manufacture the wares
that we use, we should 60 far toward
restoring the equilibrium, but SO long
as the farmer sells his steers and his
hogs and his grain, and Immediately
pays his ''store bill" with the money
he receives, and the merchant trans.
mits it to New York by first mail, to
pay for the goods that should have
been made at home, the west will be
drained of money, however much
there is in the nation at large. And
if the farmer through initiation gets
more for his products, he will have
to pay corresponding increase for
these goods from the East.
Come easy, 90 easy, is the law, and
experience has proved that a redun.
dant currency promotes extravaganza
and corruption, in high places and in
low places. Having lived in this
State and observed the workings OF
the imitation which prevailed about
the close of the war, l am satisfied
that to that excessive initiation is to
be attributed the greater part of the
debts and mortgages that are burden
ing the farmers of Iowa to-day. Live
hogs sold at 10 cents and wheat went
to about $3.50. This was a great
stimulus to the farmer and inevitably
raised great expectations, on the
strength of which agricultural nipple
ments were bought, wild land was
added to the farm, buildings were
erected and a general looseness ofex-
penditures was INDUCED in-on cred
it-but the bubble burst and the beau
tiful panorama vanishcd-all but the
debts.
The United States is owing about
twenty-three hundred million dollars,
represented by bonds, the interest on
which is payable in gold. Now, any
appreciate addition to the circula-
ting medium will carry up the price
of gold, computed in currency.
The holders of these bonds are main
ly rich men and do not need the graf
uity, but the addition would increase
the value of their gold dividend and
add Just so much to their already am
pie incomes, and this must be paid by
somebody, and like nearly every 9th
cr expense it will finally come out of
the producing class.
A good share of the mortgages on
the farms in the west are overdue,
and liable to be foreclosed at the
pleasure of the mortgage or owner
of the mortgage. 1t is conceded that
an addition to the currency will re-
duce its value or purchasing power
just in proportion to the amount of
increase. Now, the man who has a
two thousand dollar mortgage on my
farm, upon which he is receiving two
hundred dollars per annum, will not
look with indifference upon an act of
Congress which will certainly reduce
tho va1,,a or n,,rchas inu nOwor If his