Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-10-13
HOW INFL47IO-V SHIlDLES FiHV
Frs.

Among Gen. Carl Schuz's recent speeches. IN
Ohio at the town Of Mansfield he added one etiec-
five point TO his usual address-showing how In
aation bore heaviest upon the tiilers Of the soil
General Schurz said the farmers are persistent
w told by the inationiss that an expansion Of the
currency would benefit and the resumption OF
Specie Payments injure them, ard yet nothing can
be clearer than that Of all economy interests the
agricultural suffers most severely from unsound
currency, such as we have. The farmers produces
but few staple articles for sale, and he has con-
siderable variety of articles to buy. portion OF
some of the most important staple, products Is eX-
ported and the price of the whole crop is regulat
ed by the foreign market. The farmer receives
the price paid Liverpool, less the cost OF Trans
portation and the profits of intermediate operators,
with the premium on gold added; but the prices
of their staple in the foreign market ale 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 countries. While thus re-
ceiving comparatively low prices for what he sells,
he has under our currency system, comparatively
high prices TO pay for everything he buys III
clothing, shoes, groceries, household and farming
utensils and so on. And why i, this sor The
value Of an iiredeemable paper currency constant
" huctuates. The importer of goods, the mer-
Oh ants, the manufacturer, when offering their ar
ticles for sale, first add to the prices which they
would sell under Specie Payments the premium 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 mer-
chant or manufacturer protects himself against
bis risk Of loss by making another addition TO the
price Of goods he sells. Usually the goods pass
through several hands-those OF the jobbcrs, the
Western wholesale dealers and the fetal r before
they reach the consumer. Each one of these in
termediasies runs the same risk OF the deprecia-
ton OF the paper currency, and protects himself
by making another addition 10 tthc price on his
part And who has to pay the three or four addi-
lions to the price made by the traders for ther pro-
lection against the fluctuations of paper money !!
OF course the consumer. In this case the farmer.
The price Of everything he has to buy, therefore,
has been run up not only by the premium on gold,
but far beyond that by the additional percentage
covering the risk Of three four intermediate
traders. All this is owing TO the nature of our
currency.
But does not the risk of currency fluctuations
att ct 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,
run the same risk Of currency huctuation ALSO
put it on the price of the wheat they have bought,
for the reason that the price of that wheat at New
York and Liverpool is determined BY the market
there, which market is controlled by the compe,-
tion of all the agricultural countries of the civil
lied world. How, then, do these traders protect
themselvess By deducting the percentage neces-
sary to pay their risk from the price they pay the
farmer. The farmer fatters himself that if gold
goes up he gets for his products the benefit of the
high premium in gold but the risk of the trades
man who buys from him being deducted. he gets
a considerable percentage less than the full pre-
MUM, while on the price of the goods he buys
the risk of the tradesman is added TO the premium
and the farmer has to pay considerable percent
age over and above that premium. Thus the
farmers candle burns at both ends.
The character of our paper currency in conse-
quence Of its imitation blows up the prices of
erything the farmer has 10 buy, and the same
things runs down The prices of all he has TO sell.
When he buys thing, the risk of currency int1a-
ton is against him, and he has to pay for it.
When he sells his products the risk Of currency in
tiation is against him, for it is deducted from the
prices he gets. Even under favorable circum
stances the farmer does not make much over and
above his expenses, but under such a currency he
makes still less. (Great applause.)
The General also commented on the statements
of the infationlsts that great injury would work
TO persons in debt by specie resumption in 1879.
The fact was he said, that the prospect of specie
resumption would tend to discourage people from
from running into debt One of the effects of an
irredeemable paper currency was to stimulate
folks to extravagant living and rnnning in debt
which the prospect Of Specie payments would pre-
vent from doing,