The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1877-02-14
Financial Reform.

1t is not owing to Our errone-
Gus financial system that we have
hard times" say certain wiseacres,
"for England and European nations
generally are in similar condition
of business depression" Just so,
and those nations are sufferers from
a similar cause. They, too, have
sought to reduce money to the sim
gle metal, gold; and have officially
refused to recognize any other sub
stance as legal tender for the pay
ment Of debts Not only SO, but
they have fixed an arbitrary value to
the gold, much lower than it ought
to bear, if it is to be the only n,edi-
UNI of exchange Instead, there
fore, of the general prevalence Of
business stagnation being an argu-
ment against the declaration that
the existence of such depression in
this country is due to the wrong fl
nancial system in vogue here, 1t on
ly proves that such a system will
make hard times in every country
where it is adopted.
Every ordinarily intelligent man
ought to perceive that financial
system which limits the circulating
medium to a scarce material, must
tend to the general impoverishment
OF the community, and to the &C.
emulation of wealth in the hands
of the few. If the material of which
money is made is scarce, money
itself must necessary be scarce; and,
whenever this is the case. interest
for its use will be high. Hence, those
who have money, inaslnuch as they
can gain more by loaning it at high
rates of interest than by investing it
in business enterprises, will only EN-
ploy it in loans. This, of course.
has tendency to diminish the en-
ployment Of capital in industrial
pursuits, and, in consequence, less
labor is needed. Forced to work
for lower wages and thrown partial.
ly or wholly out of employment, the
laboring classes must economics
That means that they must consume
less; and its effect is to further de-
Grease the demand for labor and ag-
ricultural products and augment
the reduction of their prices.
A secondary effect of these in
fuences, in that they depress bust.
ness of all kinds, is to render the
business men and property holders
tributary to capitalists. To obtain
money for their necessities, they
must pay high rates Of interests, and
these, in time, will eat up their bus
mess profits and property. If the
people Of Goodhue county could
know the aggregate sum paid annu-
ally by property-holders of this coun-
ty to Eastern capitalists it would
both astonish and alarm them. To
be sure, ours is rich county, and it's
fertile soil yields a vast amount of
wealth every year; bue if this pro-
cess ofpaying tribute is continued,
the time must come when the prop
"e1ty will be absorbed by the mort
;gagees and instead of independent
land-holders, our farmers will be
mainly renters, working the land for
shares or hire. But the present sys-
tenn will not be suffered to continue
long enough to produce such wide
spread disaster; already changes are
being made in the financial systems
both in Europe and this country.
The recent act of congress, in restor-
ting silver to its place as money. has
already had marked effect on the
business of this country, and when
our banking laws are SO changed
that government bonds will not
draw double interest, the relief will