The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-08-06

Amasa Walker on the Causes Of De
rpspssion IN Agriesltrre.

fR-v--ri - ~TTSI'rF
Hon. ", G: FlsgE, PrssidentI Illinois FArmer' State
DEAR SIR: Your letter Of the 5th of
November Is at hand, requesting me to
furnish paper TO be read at the approach
Ing annual convention of the Illinois State
Farmers Association, ''UpOi our currency
in relation to the interests Of the indus
trial classes"
The other course, in nowise inferior 10
its injurious influence upon agriculture, is
the false and disgracefnl condition Of our
monetary system.
In calling your attention TO this subject
would first ask you to notice the striking
fact that the prices of your great staples
are no higher on an average now than be-
fore the war, while all other commodities
have advanced from rs to so and even 10
many cases to rs per cent. Farmers
should direct their minds especially to this
consideration. They should inquire why
II is that their products do not rise when
all other commodities do. If they exam
anime into the matter carefully. they will
discover that their great staples do not
rise equally in price because the country
produces surplus Of these that must be
sent abroad tor Market and consequent
ly must be sold at what they arc worth in
gold to send to Liverpool or other foreign
ports: Flour, wheat, corn, pork, beef,
lard &c, are sent as q remittance instead
Of gold, and theI efore must be sent at their
value in gold, sinoa that ID the universal
standard Of value in the commerce Of the
world. - -'
Farmers products, then, are sold at
gold prices, plus what little gold premium
there may be, while all the farmer con-
sumes must be purchased at currency
prices, from rs to IS per cent. higher, in
consequence OF the excessive volume Of
our paper money,
II TURNER'S will look at these facts they
cannot fail to see that they are obliged to
sell at low and buy at high prices, and
that this is one Of the chief causes of the
depression of their branch of industry.
When they do perceive this Of course they
will demand a return to specie payments,
for they will see that since there cannot
be two prices for their product-one for
home consumption and the other for ex,
port-whatever they are worth to send
abroad must determine the price of the
whole crop.
This being so, no class suffers so much
from defective currency as the agrlcult-
ural. The, manufacturer makes his goods
under a deprecated currency, and they
cost him so per cent. more; but he sells
them under the same currency and gets so
per cent. higher prices, together with his
customary rate OF profit. So of all classes,
except those who produce commodities the
surplus Of which must be sent to foreign
market.
Under such a state Of things the farmer
cannot hope fora great prosperity as is
found in other industries, and should
therefore insist upon the restriction Of the
currency to par with gold; and as that is
utterly impossible, except by Withdrawing
q part of the present superabundant Cir
culation, he must insist upon contraction.
There is no escape from this alternative.
All attempts toeyade or avoid it will be
found utterly futile-will only complicate
the situation, make o bad matter worse
aud proloDg the suffering of the agricult-
uralinterests. ..T-'' v.r' -t-~'
To this opinion, so confidently asserted
methinks hear some farmer reply, "Ah
but am in debt. My farm is mortgaged
Were that paid off might listen to con
traction, but until then l shall object
But, my friend, you are, allow me to say
greatly mistaken, You owe money. How
can you ever pay it9 Certainly only b.
the profits you can make by farming
Then the more the expenses of conducting
your farm and supporting your family ar
reduced, the greater surplus you will hav
for discharging your mortgage. If you
grain, beet, pork, &c, bring as much a
they do now, while your expenditures ar
greatly lessened, would you not haye
larger amount of profits wherewith to pa
IAk A = Al
were the natural volume of currency re
stored your crops would bring the sam
prices as at present, while your expense
being reduced, you would have a create
margin of net income.
Suppose, for illustration, your whole in
come now to be $4,000, and that your ex
penditure, after paying taxes, repairs
interest upon your mortgage, &c. leave
you nothing wherewith to. reduce til
principal, then, if your products bring a
much as now, while your expenses are
per cent. less land they would be more tina
that, you would be able to pay an annus
instalment of $400, which would clear o.
the mortgage IN Eve years. And yet to
this you need not deprive yourself o
family OF anything you now enjoy So tn
sooner the currency IS restored the soone
you will be able to, discharge your mort
gage. 40 49,
If, in addition to this, you are able to Sc
cure the protection Of the national govern
meDt against the impositions of the raj
roads you would have still greater bal
ance in your favor.
The farmers Of the United States ough
now to enjoy far higher degree of pros
perity than they have ever done before
The introduction of machinery has so faci
itated production and reduced the amour
OF labor required that they ought to secur
greater profit than at any previous period
and would do so but for the wrongs they
suffer from the two causes that have beef
mentioned.
If this be true, and it is so demonstra
bly,, the farmers of the country ought t,
unite their voices and their votes in favo
OF the contraction Of the currency till a
par with gold. If they do this they will
certainly accomplish their object, sine,
they hold the balance of power and cal
dictate such terms as they please For
tunately their interests are indentical will
those OF the entire country. What farm
ers need all classes need, except Away.
those who prey upon the earnings of othel
people; but farmers, above all others
should understand that their peculiar in
terests can never be promoted by the
issue of paper money. Were 500 600,
O0Q or $l,00O,000,0 900 more in greenback.
or bank notes now to be put in circulation
agricultural products would not be in
creased in value by penny. Such al
issue, while it could not raise the price o
his products in foreign markets, would en-
nance the cost Ut production and all tn,