The Saline County journal. [volume] (Salina, Kan.) 1871-1893, 1876-03-30

It is useless TO say that contraction
did not produce this result. 1t did pro-
duce it. 1t created in various ways an
additional demand for gold and If any
man supposes that by creating an add
tional demand you can lower the price,
he is only fit for situation in the asylum
across he Eastern Branch.
Sir John Lubbock, the learned Lon
don banker, estimates that in London
% per cent. of all business exchanges
are made by means OF ordinary bank
transactions, checks, drafts, aud bills OF
exchange, little over 8 per cent. in pa
per currency, and less than = per cent.
in coin. It has been assumed that the
same rule would apply to business in all
highly civilized countries, but | would
call attention 10 an important fact
While tba; rule of business may apply
10 great centcrs of trade, il does not and
cannot apply 10 remote localities. Take
our Western States, for instance. There
the farmers, mechanics, and in short, the
bulk of the laborers East and West, have
nothing to do with banks. Not one In
twenty of them ever have bank ac-
count. Each bushel OF wheat and each
pound Of pork requires just~s much
money in currency or coin 10 buy 1t.
The farmer when he sells q load OF
wheat, generally spends part of it, and
takes the rest home with him. He
plays banker fol himself He has other
purposes in view, tor which he reserves
the money TO be used as occasion re-
uuires. He has confidence that the
money of his government will be good,
and thus immense amounts III the aggrc-
gate are locked up. But when you at
tempt 10 increase the value Of currency
by contracting It's volume, he Is The first
man You touch and the first TO suffer.
You take away from him tie power of
exchanging produce for other commod-
tiles, ana they have either to be sold
at vastly reduced rates or remain on his
hands, even while others are starving tor
want of them. There is another strange
miSstatement 1t was estimated that f
gold supplanted paper, firmers would
ret Il gold dollar instead Of - paper one
for their wheat. They would get moth
ing of the kind. 1t is tie foreign de-
maHd that sustaius the price. five ship
Il million bushels of wheat 10 New York
more than she wants, it would st once
decline; but the foreign demand fixes
and regulates the value. AT certain
points it pays to ship it, and the decline
ceases. If wheat Is 81 in grecnbacks its
price is about eIghty-six cents IN gold
That il the value, and although the stan
dards differ. the value il the same. /
will tell YOU what this change OF values
wouId 90, however. It the farmer owed
that dollar he could pay his debt with
the grcenback, but after such a change
in standards he wonld get no more for
his wheat, but would have to give Il
per cent. more Of it to pay his debts.
Those who use this clap.trap must think
the farmers very stupid to believe
il.
No man who has ever examined the
subject dares deny that credit is one Of
the must important levers which can he
set in motion to raise the condition Of
The working classes. Where mechanic,
by the aid Of credit and enterprise, can
be made into master workman, and n
laborer into a svstcmizer of labor, An i'm
mensc blessing is conferred. The door 10
the highest places Is open 10 industry,
skill aud enterprise. Those who are will
ing to strive. and who have the nerve and
brain, have the power to make them
selves far more useful.
The real secret OF the demand for The
contraction and final extinction Of the
legai-tcudcr notes is to increase the value
Of money, its purchasing over and in
terest and 10 give bankers the control
of the money market. | have al
ready cndeavored 10 show chat the rate
of interest is now too high for safe and
healthy business, so we do not want TO
take steps to advance it. Neither dc
we wish to transfer tho power OF con
trolling paper money from the govern
ment 20 the bankers. Neither 30 we
wish to reduce the Volume OF the pres
.nt currency beyond the point whore
the laws of trade fixed it. The national
bank note could have been issued TO great
err extent if any bankers wanted them,
and wonld call attention to the fact
that at the passage Of the resumption
at eighteen millions less OF lerai-tender
was issued than could have been issued
under the law as it was supposed -
stand them.
There are two facts connected with
gohi and PAPER as currency that are
worth considering. 1t IL estimaie ed that
. per cent. per annIm of bank paper J.
worn oui, lost. and destroyed while ia
use. On tho the three hundred ani if
* millions of national bank notes. that
is snug seven millions year for the
bankers. On the four hundred and
twenty millions Of legal-tender and
fractional currency, it il m income OF
eight millions and quarter. deduciiuc
The slight expense OF printing, 10 the
Government.
How is it with gold +? II is estimate.
by sla,isiicians, that gold in active cir
NIlation loses ] per cent, by friction
ceery wear. I think this too high an
estimate. II it was possible 10 have the
whole ofoar circulation OF seven hundred
and fifiv millions in gold, there would hc
wasted seven millions and 4 halt annual
IL; for we wonld bavet o buy gold to re-
place IL. and in one or two hundred
years the original stock would al be
gone.