, 1877-10-21

In the volume OF their traffic and in rates OF tral
poEtation, while their debts have remained nor
nal!y the same. bur really increasing. In order
t make the decreased receipts meet thc intcrt
on their bonds, they arc forced to reduce ths
optrating expenses to the lowest possible polH
Their struggles seem to be in RAIN. and, unie
that system can be changed which is making ca.
Dollar which they owe more valuable and at Il
= same time causing hhr1lkage in their bus1nes
and which is cha,ning labor aud nll other form
of capital to thc chariot wheels OF money capita
they will, one after another, be swallowed by 4
! bondholocEe. In the end the Stockholders will
entirely out Of the account. and the contest will
r between different classes of bondholders, II IL,
c4n be called n contest where victory is assured
| advance To the lIcnB WHICH have priority
WEIGHT AND BuLK1SEss OF SILVER.
| So FAR rs convenience Of handling is concerned
II is enough to say that both gold and silver
bulky aud heavy for the ordtnary transactions
business. Only 4 minute percentage OF large IA,
ments Is made in either metal, nearly all Of thel
hc,nE made with paper, or by transfers of credits
What is called cold in the markets and in the ban
reserves IN this country is, TO considerable tx
tcnf not really that metal, hut certificates OF II,
deposits OF it issued in ,noney-note form by tn
| SECRETARY o. The Treasury OF the United States
] snch certificates may and ought to be issued ui,ol
the deposit OF silver which be held at less tis
Than gold They should be issued for bars Of bot
metals, stamped at the Government assay Offices
az well ~ for Coins. They would he much NOR
convenient for money use than coin of either met
al. The habits and prejudices OF the people o
ihe United states are confirmed in favor of saft
lEper money. II bv safety i. meant constant con
sertihillty al will into coi paper money could 1T
kaier than That based dollar for dollar on @.
! bullion in the Government vaults Such pape,
| would be universally used in transacting lhe busl-
ness ef the country. cerrldcatc in uloney-uote
| form issued by the United States Treasury for a
| deposit Of silver in its vaults would be- neither
| heavier. bulkier, nor less convenient than like
certificate issucd for deposit of gold.
always have had and always must have II tendency
| to concentrate wealth. TO enrich the few. and 10
imposerish and degrade the many. THIS tendency
il subtle, active, and portenious throughout the
world today.
EFFECT OF CONTRACTION ON REAL ESTATE.
When money begins to become scarce, by rca-
eon OF ehrlnkaSe in its volume. the AtSt effect
upon real estate is found to be- not decline Of its
nominal prlcc, but dIninution in the number Of
Transactions. :t, Market reports quote zeal estate
dHN: FER Gales, tut prices firm. :" This sta.,na-
tian 1s ascribed to Temporary causes, old speedy
recovery predicted In order to 1nu:ntain prices.
the terms of purchase are made easier. The
amount Of cash payments is reduced, and the de-
fcrged payments, secured by mortgage OH the prop.
erty, extended over longer periods. After time
prices are unnatural'y held up for : short period
by the struggles of those who have purchased upon
these extended credits and by the tcnacty Of own
crs who refuse 10 sell 1T lower figures and mort
gage their own property protraci their power to
hold: The staguaton Of voluntary transactions u
finally followed by the activity OF involuntary ones
ure Of mortgages.
a.pon any material decline in the price of real
estste large class Of investors, believing that the
the reaction which they think is sure to come knccG-
iy. enter the market and temporarily cheek Tie de-
Cline Another fall in prices sweeps The and their
eotuteiy certain that bottom prices have been I
reached. and sure ihat further decline il impos-
slhle, came ln as purchasers. Each succeeding
fortlhes his conclusion mat present prices
are oofteIa prices By comparing them with anu find
n- that 1hey are no higher tla; the prices OF some
pesoo in the past which is arbitrarily assumed to
be standard level, below which subsequent prices
could never permanently go. 1t is overlooked that
psce IS only Inc expression Of relation. and that
~ correct conclusions be drawn fron cum
'7rison OF the p11ccs Of twn periods unless co.l-
oarison be also 1nale Of the money stock, popula-
ION. and exchanges Of bush periods. Contrary to
" " eaculatlons, Us the volume Of money shrnks
hc fate OF their predecessors. These operations |
epeat themselves until universal d=1ru-t prevails,
nd until it is found thar, when money is .ccrca:-
ng IN volume. prices have 10 bottom except re-
edins, one, and that they are inezorably ruled b.
be volume Of money.
CONTRACTION AND THE FARMERS.
Farmers whose lands arc not ,2orteagad, and !
aelr employees who 1t least are insured arsiuet |
osoiute want. best escape the evils Of tho times
ut lhe prees ot agricultural products must finally
ccline with the reduction in the number ami |
leans OF the consumers. The tendency OF falling
rtces is to break down the vast diversified inter-
us al The country, and to force constantly in
feaslns proportion OF the population into the one
nglc primitive industry Of cultrating the sulla
he United states, instead Of continuing highly
o:nmerclal and manufacturing nation, will, until
ail!ng prices are Checked. become more and more
agricultural and pastoral I
EFFECT or CONTRACTION ON SECURITIES.
Securities have already become 80 impaired | {
lFoush falling prices that oanabr capital has ntd
trghted from the newer and sparselv settled
ct1ons OF the country. ana accumulated in large !
MOUNTS IN the great financial centres, where se- !
II securities Of individuals have generally ceased
be avaiable. except at the highest rates uf in a
rest orat rninonsly Iou valuations. Money can ! a
borrowed readily oul3 upon such securities ~ | !;
nds which are based O1 the unlimited tax. .levr;uc n
wer OF the Government. or upon the bonds anu Il
acks OF nrst-clsss tEunkllnes OF railroad corpo- :,
lons+ whose frcyat and fare rates are practically -
az upon the entire population and resources oi ! .
resions which they traverse an! supply. The q
9se more ample securities has become very | Ii
en-. and such securities command money q, | y
low rates These low and lowering i,
ensth and industrial prosperity. are Il ., 81
usc Of increasing psostration. Large accunu- =;
at money in financial centres. nrtead OF u u
ion, or cven proof Of sufficient circulation, ii
unnstakable evidence of coEcestcd condi~ II
n. canscd by decreasing, and insufficient cir, | ~
a1on. The readiness with which Government | q
nds bearing very low rate of interest taken, in
tead OF showing that the credit OF the Govern d,
mt has improved is melancholy evidence Of the r.
,strated con1it:on to which industry and trade J.,
se been reduced. There need bc no nase in re- o. o.
i considered low. Unless the progress Of tic pl
world in tEe policy OF contracting p;
'ney by dcn'onetzing silver is checked. bonas u
.sing much lower ratc OF interest than any vet nc
cred will be gladly accepted b. captaitts here Is
anj1 5scsvpet asa prices are fain the lender
when il Il returned 10 him, i loan Of nuncy be
,ad with IN addition Of lI5 nc: cent in TN nr 81
asins power OF the principal and interest. be- | tn
es vi The interest paid. Those who have loaned b.
lfcy 10 this Government since 1861 have already ~ -
eitcd nearly us much In the increased ya1uc ri III
u principal rs in interest. and all tue proba ec
:e4h,