The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1876-04-19
The Republican on Finance.

The Republican on Finance.
The editor of the Republican
discusses the financial question on
the same principle that boys engage
in a wrangle at debating societies.
Now, we have neither space, time,
nor inclination for such occupation.
We write for intelligent people to
read, and do not believe that they
will be satisfied with twaddle; and,
as we aresnot an asp,rant for Office,
nor the servant Of party, we have
mot continually before us the appre-
hension that our utterances may be
disapproved by our masters - the
party managers. In urging this or
any other question, we have only a
single object in view, and that is to
get at the truth. We are always
ready to be convinced that we are
mistaken, for we have learned that
our judgment is not infallible, and
whenever we are satisfied that we
are in error, we hope that we have
sufficient moral courage to acknowl-
edge it and retract.
In what we have hitherto said on
the financial question, we have al
ways insisted that the change must
necessarily be gradual. Not that its
adoption shall require any consider
able time, but that from the date of
its introduction until it shall have
been reduced to general practice
will necessarily be an extended Pc
Rod. Hence, 1t is obviously unfair
to attempt to meet our statements
with presumptions based wholly Up
on the existing condition Of the
country's finances; but this is just
what the editor Of the Republican
insists upon doing. For instance,
he tells us that the sos bonds can
not be negotiated, saying:
A loan of money or currency at per cent.
or 1865 per cent. is a losing investment; los.
ing, because the use of one hundred dollars,
pounds, francs. for one year is worth more
than or 1865 dollars, pounds or francs. No
man will invest his own currency in that los
ing manner in order to make other peoples
currency more valuable.
Now, why is it that interest is so
high as to make an investment at
sos or 4 per cent. a losing business?
If wheat could be sold in this mar
ket to day at two dollars per bushel
instead of one, the editor of the Re-
publican could tell you that the rea-
son was because the supply was not
equal to the demand, or, more truth
fully, because the demand was so
urgent that those who needed were
willing to give this increased induce
ment to bring the supply into mar
ket. But then the price Of wheat is
not a political question, and the
masters would take no offence if a
plain answer were given. Not so
with money. 1t may not be party
policy for the people to know the
truth about it.
TO an independent and intelli-
gent man it is just as clear that the.
high price charged nowadays for
the use of money is a consequence
of the scarcity of the commodity,
as it is that the scarcity of wheat
makes its price high; and because
money is so scarce and interest so
high is the reason why financial re-
form is necessary. And this reform
is opposed by capitalists whose bust
ness it is to loan money, for the same
reason that those who hold wheat
for speculation resist efforts to
reduce its price. The reduction cur
tails their profits. We have known
money in this country to seek safe
investments at four per cent, and
six per cent. was once considered
an attractive rate of interest. Bust
ness was then in 4 healthy condition