The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-06-17
FALSE TEACHER

ly repudiated a score or so of pestient noun
tebanks who are vexing the air by spouting
financial idiocy in their name. Among 9th
ers the Bloomington Appeal assumes to be
an especial nouth.piece of the farmers and
in their name utters preternatural nonsense
like the following:
To the farmers who have trust deeds and
sale mortgages upon their FARMS we wish to
ask this question How are you going to
nav them off and save your farms from sell
ing without equity of redemption remaining
in you?
There is a cause for these extremely hard
times, and especially for the scarcity OF mon
ey among the people, that can be removed,
and at the same time remedy provided that
will enable large proportion OF the farmers to
save their farms and property and it lies
with the debtor class OF the country to say
whether they will remove the causes .or the
strlngency in money matters and at the same
time provide a remedy for the existing evils.
At this time the administration is destroy
ing millions Of dollars every week, which
forces up the rates of interest and the value
Of farm products down to starvation prices.
The debtor class OF the nation must reverse
these things and increase the amount OF mon
ey in circulation and by that means force up
the price OF their products.
The AppeaE is an advocate of the Kelly
Campbell bottomless shinplaster currency
scheme, and by increasing the amount OF
money in circulation means, therefore, a
plentiful issue of irredeemable paper under
that scheme--so plentiful that the farmers
who have trust deeds and sale mortgages
upon their farms" can get relief by paying
them off with "cheap" money-monsy worth
10 or 80 cents on the dollar. This is the plan
by which the "debtor class" are to be reiev.
ed and the business Of the country revived,
the rate of interest lowered, &c.
Has il ever occurred 10 this wiseacre that
when the paper money of country has once
sunk below par, no additional issue of cur
rency can increase the value or purchasing
power of the sum total? Thus we have in
this country now about $750,OO0,OoO of paper
money, worth, in gold, about $665 100000.
Add S750OO0, 900 TO this, and il would in.
evitably deprecia,e so that the sum total
would be worth just the same $665,OOO,OOO
This is a law of finance that the experience
of the world has shown to be as inevitable
and immutable as the law OF attraction.
But on the other hand, let US see what
would be the effect Of return to specie
payment. By the very act 12i9 per cent.
would be added TO the present value of our
currency, or, in round figures, about 100000,
600 This would be real gain-an actual
accession of wealth, the same as if, by the
motion Of necromancer's wand, that sum
was new created and distributed among oul
people. Could not the debtor class who
are generally not poor people, but have
about as much owing TO them as they owe
we'll afford to pay their debts at par when
such an addition has been made TO the gen
eral wealth of the country, in which they
> shared alike with all others.
But it is hard to argue against this delu
sion that the business of the country can b
revived by an increase OF paper money, wher
no mind but one that is affected with spe
cies of insanity can take it in. The country
has VIGOROUSLY already more paper money
than il needs or 1t would not be below par
Interest is lower than 1t has been at any pre-
vious period in our history, and the banks
are full of money begging for customers 10
borrow and use it. An additional issue
plethora OF the banks.
Has the Appeal ever given thought to the
history of the monetary crises or panics in
this country? Once In about every twenty
years they have returned with the regularity
Of the seasons. We had one in 1919, follow
ed by the inevitable attendant, stagnation in
business. How long did that stagnation last !?
| 1t lasted until 1928 Then business began to
revive throughout the country and period
of great prosperity followed Then came the
panic and suspension of 1887 and the great
stagnation in business that followed. How
long did that last before business revived and
the country began TO be prosperous again ?
Five years. Then came 1857, at an interval
of twenty years, and business had not revived
when the war broke out and changed the
whole face of affairs. And now comes the
stagnatiOn of 1878, and has not the Appeal
sense enough 10 see that nothing but time,
tCOHOulys HOucsty anu IcutuCHHiCHt VII IL
quidate Indebtedness and accumulate a sur.
plus which will set business in motion again
and make the country prosperous ence more.
1t Is not more money, therefore, that the
country now wants, but prudence, and above
all, patience. With these we can look as
confidently for return of prosperity
within year or two especially if matters
are severely let alone by the currency thinkers,
as we look for the return OF seed time and
harvest No addition TO or elimination of
the paper circulation can materially affect
this result. Every country always has a
sufficlency of money if it will depend for Its
supply upon the natural laws of trade. No
government agency, and no agency ap-
pointed by government, is needed TO pro
vide an adequate supply of money, or di.