Buchanan County bulletin. [volume] (Independence, Iowa) 1869-1891, 1876-10-13
Moody Grow to j. D. Russell,

}. ID. RUSSELL, Esq: My dear
friend:-Your letter to me in the
BULLETIN was duly received and
carefully read and would have been
answered before this but for the fact
that my health was too feeble. Twill
endeavor to answer the points you
make candidly, as | understand you.
You say Gin 1855 prices of real
estate doubled up faster in Iowa than
at any time during the currency ex-
pansion." l admit it. The bank note
currency of that day was as tearfully
inflated, according to the wealth, pop
ulatlon and then settled area Of the
country, as the government currency
has been inflated during and since
the war. Land was cheaper then and
1t was easier to double up from to 8
dollars per acre than from 10 to 20,
as it more nearly represented the
price of land since the war. So I
am prepared to believe that 'prices
doubled up faster"
You say "Also in California in
ls4S-9 during the gold excitement
speculation ran wilder and prices
were more fabulous than at any time
during our currency infation;" all of
which is true. If you will discover
gold in paying quantities in Buchan-
an county, the same thing will hap
pen again. Land will coup because
land containing gold is worth more
than land without it, even though ev.
cry man in the county was green,
hacker. The rush of emigration
would not carry up prices of nova
bic commodities as it did in Califor-
MIA, for the reason that California
was isolated and Buchanan county is
not. But though this is an inter est
ing Renaissance, it goes but very
little way in aid of an irredeemable
paper currency.
You say "There was one kind of
imitation that existed when | came
here and continued for many years;
that was inflated rates of interest. y
When l came to Iowa in 1855 men
charged SO to 40 per cent for the use
of money, and got it, too" This
was during the time which has been
called by some the ''era Of wild cat
money" There was a general and
fearful over issue of bank note cur
rency, so great that when that infla-
ton bubble burst in 1857, the banks
could not redeem their bills and had
to suspend. You say that in 1855
the land doubled up" and that in
1855 men charged SO to 40 per cent
for the use Of money and got 1t, too"
Your statement / believe is correct.
"Infated rates of interest" invaria.
bly, accompany an inflated currency.
When prices of land are doubling
up every body wants to speculate in
land; money is in active demand.-
Men think they can afford to pay big
interest for money to buy land that is
gong to double up, and money lend
ers take all they can get. The only
way to keep free from unreasonable
rates OF interest is to keep out OF in
tiation.
In considering the subject of the
privations and sutferings of the poor
you ask, "What is the cause of this
terrible condition of those who work
for a living?" 1t is because they
can't get work. Why can't they get
work? Because the mills, factories
aud furnaces where they formerly
worked are wholly partially closed.
Why are the mills closed? Because
it won't pay expenses to run them
Because the goods they make can
not be sold tor SO much as they cost.
Why can't they be sold at cost? Be
cause there is an excess Of manufac-
tured goods in the market above
what the country can use that cannot
be exported without great loss for
the reason that imitation entered into
every item of their cost. Why is
there an excess of manufactured
goods IN the market? Because under
the stimulus of initiation mems heads
were turned and so much machinery
was put in operation that their goods
could not possibly be consumed by
their customers; hence the glut and
stagnation Of business, the closing
OF mills, the enforced idloness ofthe
laborers and their consequent suffer
ing, and they being too poor to af-
ford square meal, their consump-
ton of farm products is greatly di-
minished, and so the western farmer
has cause to bitterly lament the in
flation times.
] believe this to be fair state
ment of the case. Yet know some
greenbackers say that over produc-
ton is impossible; but supposlng
there is yearly made 500 yards of
sheeting for every man, woman and
child, wouldn't that be over produc-
ton? To say that the present de-
preston is caused by contraction is
rs if you said the suffering man
feels in SOLDERING off from q spree is
caused by curtailing his liquor.
But better times are coming; they
are almost here. There is ripple
upon the surface. The excess of
goods has measurably melted away.
Orders for goods are beginningto go
forward, the mills are showing signs
of returning life and soon the wave
will roll over the whole land, if the
currency doctors will keep quiet and
not drive capital back into its shell
by threatening to break up the foun-
dation of our finances and throw cv-
cry thing into chaos.
I spoke of the greenbackers pay
ing the debts by act of Congress-
You answer "All this assertion lacks
OF force is it's lack of truth" Now,
let us look at this little. You pro-
pose to pay debts in ga piece of en-
graved paper, the back little green
ish," which piece of paper has no
value except such as results from it's
intcrchangeability with the 3.65 bond
and which cannot possibly be worth
over IS cents on dollar, and proba-
bly, very much less. Now to bring
the matter right home / will suppose
| owe you hundred dollars Of hon
est debt and should offer to pay you
nd, .o,J n,ooo, oP n,,,,,o,ol -