The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-10-18
CARL SHCURz.
How Imitation SwindIes Farm
erS.
Short and Easy Answers to an InAa-
tionist's Catechism.

OnlO, AT the Town OF ManSneIQ ne aQQeQ
one effective point to his usual address,
showing how Imitation bore heaviest upon
the tillers of the SOIL
Gen Schurz said the farmers are persis- |
tently told by the inhationists that an ex-
pansion of the currency would benefit and
the resumption of specie payments injure
them, and yet nothing can be clearer than
that of all economy interests the agricultu-
raj suffers most severely from an unsound
currency, such as we have. The farmers
produce but a few staple articles for sale,
and he has a considerable variety of arti-
cles to buy. A portion of some of the
most important staple products is export
ed, and the price of the whole crop is reg
ulated by the foreign market. The farm
er receives the price paid at Liverpool, LESS
the cost of transportation and the profits of
intermediate operators, with the premium
on gold added; but the prices of their sta
pie in the foreign market are measured by
the specie standard prevailing there, and
not driven up by any paper mutations, and
they are also depressed by the competition
of the products of other agricultural coun-
tries. While thus receiving comparative
ly low prices for what he sells, he has, I'M
der our currency system, comparatively
high prices to pay for everything he buys
in clothing, shoes, groceries, household and
farming utensils aud SO on. And why is
this SO? The value of an irredeemable
paper currency constantly fuctuates. The
importer of goods, the merchant, the man.
utacturer, when Offering their articles for
sale, first adds to the price which they
would sell under specie payments the pre-
MUM on gold, but they know also that
they run the risk of the huctuation and
possible depreciation of the paper money
they get for their goods, so that If they sell
on time, the sum of money which they receive
in payment when the purchaser pays the
note may not represent the same nominal
value represented when the sale was made.
The merchant or manufacturer protects
himself against his risk of loss by making
another addition to the price Of goods he
sells. Usually the goods pass through
several hands-those of the jobbers, the
western wholesale dealer and the retailer
before they reach the consumer. Each
one of these Intermediates runs the same
risk of the depreciation of the paper cur
rency, and protects himself by making an
other addition to the price on his part
And who has to pay the three or four ad-
ditions to the price made by the traders
for their own protection against the huc-
tuations Of paper money? Of course the
consumer. In this case the farmer. The
price Of everything he has to buy, there
fore, has been run up not only by the pre-
MUM on gold, but far beyond that by the
additional percentage covering the risk OF
three or four intermediate traders All
this is owing to the nature Of our currency
But does not the risk of currency fuctu
ations affect also the price of the products
the farmer has to sell? Yes, it does but
in the opposite way. The tradesman who
buys the farmers wheat and ships it, the
merchant who ships it to New York, rul
the same risk of currency huctuation also
and try to protect themselves. But they
cannot put 1t on the price of the whea
they have bought, for the reason that thu
price of that wheat at New York and Lily
erpool is determined by the market there
which market is controlled by the coupe
tition of all the agricultural countries o
the civilized world. How, then, do thes
traders protect themselves? BY de
Quoting the percentage necessary to pa
their risk from the price they pay the far
mer. The farmer flatters himself that
gold goes up he gets for his products tn
benefit of the high premium on gold bu
buO lloh VI llIC iIduOSLudu WHO UuyS ITOL
him being deducted, he gets considera
bic percentage less than the full premium
while on the price of the goods he buy
the risk Of the tradesman is added to tn
premium, and the farmer has to pay COT
siderable percentage over and above tina
premium. Thus the farmers candle burn
at both ends.
The character of our paper currency
consequence of its imitation blows up tn
prices of everything the farmer has to buy
and the same thing runs down the price
of all he has to sell. When he buys
thing, the risk of currency initiation
against him, and he has to pay for i
When he sells his products the risk
currency initiation is against him, for it
deducted from the price he gets. Eve
under favorable circumstances the farme
does not make much over and above hi
expenses, but under such currency
makes still less, (Great applause.)
The general also commented on til
statements Of the infatiouists that gre;
injury would work to persons in debt by
specie resumption in 1879. The fact wa
he said, that the prospect of specie r.
sumption would tend to discourage poop
from running into debt, One of the effec
of an irredeemable paper currency was
stimulate folks to extravagant living an
running in debt, which the prospect of spt
Gle payments would prevent them frol
doing.
AT the town of Canton Mr.. Schurz al
swered set of questions put to him by
lawyer Of the place which well expresse
the current fallacies Of half educated me
on financial questions. He said:
Colonel Meyer, in very friendly spiri
admit, and at the same time, suppos
not without desire to embarrass me-
(aughter)-has propounded these que
tons. L am very much obliged to him f
the opportunity which he affords NJ
(Cheers.) He asks: Is it feasible to brir
about the resumption of specie paymel
by force of legal enactment merely.
If not, then in what other way can it |
effected2 My answer is, whether resum
ton can be enforced by legal enactmel
depends, as Colonel Meyer very We
knows, upon what the legal enactment j
As to another way-yes, there is anoth
way, and that is the way we are advise
to take by infationists themselves. 1t
to run up the initiation of the current
until the bubble bursts and general pro
tration and ruin follow, and then when Il
exploded currency is swept out of the W:
by the CONFUSION to gather up what lit
gold and silver we can find, and with tn
little to begin anew, cursing the iuflatio
lists tor their schemes, and cursing GU
selves for listening To their advice fGre