The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-11-14
Then you say that business has not
evived because people feared contrac-

IcV4VON OOCduSo people 1oafeO COOCraC
ton?
Precisely. The resumption act CAV,
notice to every producer that legisla
ton would lower the price of his pro
ducts. As the characterization Of sill
yer by Germany, the United States, ano
several other nations created new and
untried conditions, no one could tell
how far prices would fall.
Manufacturers have been unable tt
sell their goods at profit because the
contracting of the currency steadily
lowered prices. Business men will
eagerly push forward whenever
they think contraction has ceased. or
in other words, whenever business can
be done at a profit.
Where then does all this talk about
fear of initiation come from?
From men who know better. From
politicians and attorneys of the money
lenders. 1t is repeated by thousands
Of men who are ignorant Of the mat
ter. 1t is cunning cry raised to de-
lude those who are suffering from the
effects of gold policy, and to keep
them from informing themselves of the
facts and voting accordingly.
Have not capitalists feared to lend
money on obligations payable in cur
cency for fear initiation would render it
worthless
No. Look at the quotations and
you will see that the United States
bonds payable in currency are higher
than the bonds payable in coin.
There is evidently want of confidence
somewhere. What have the money
lenders been afraid of?
They have lacked confidence in the
money value of the property offered as
pledge for security of loans. Hence
they have required large amount of
property to secure small loans. In
other words, they feared the result of
contraction upon the security for their
loans. Money has been freely offered
for loans payable in greenbacks provi-
ded the security for its payment was
made greater than is usually required.
This would not have occurred if there
had been fear of initiation. Fear of
contraction has wrought the mischief
and unsettled confidence. When this
fear is over confidence will return.
Lately it has been difficult to loan
money. Is not that evidence that
there is too much money, and that
we should cure it by specie payments?
No. 1t simply shows that trade is
SO depressed and Improbable that bu-
siness men cannot afford to pay inter-
est on money. In specie paying Hol-
land it has been difficult to loan money
at one per cent per annum. Now if
two per cent on call in New York
proves that there is too much money
there, then the money of Holland needs
contracting more than ours. England
and Germany also have too much mon-
cyl if your argument is true.
If our currency were still more con-
tractcd there would be more difficulty
in lending it than at present, simply
cause prices would fall lower, and the
fall in price would be a heavier burden
for the business man to bear than Z per
cent on steady market.
Does not the present low rate of in
terest show that we have too much
money?
An Irishman, accused of beating his
wife, said he had nine reasons why the
charge was false. The first reason was
that he had no wife. l answer your
question by saying that interest is not
low, and has not been for several years.
But has not money been quoted in
New York at two per cent on call, and
are we not selling four per cent bonds
Yes. but that does not prove your
point. The real test whether interest
is high or low is-How much labor
does the man who borrows money have
to expend in order 70 pay the interets {?
The four per cent United States bonds
are heavier burden on the American
taxpayers now than the six per cen:
bonds were ten years ago, because wa
ges have been reduced and our exports
sell for much lower prices in gold than
they did then. The interest on loans
In this State Conn., has l,een reduced
from seven to six per cent, but in re-
atty interest is higher instead of low
er.
Six years ago common laborer who
owed six hundred dollars on his house
could pay years interest with 81 days
wages. Now he must work SO DAYS.
What effect would the adoption Of a
GreenbacIz policy have in Grating a
uemand for money?
There would be no difficulty in loan
ing money; 0 .rowers could then make
profit by doing SO.
What effect would 1t have O {
rate Of interest:
Interest would be noninalIy highpr.
but in reality lower; that is, it could
be paid with less days labor than now.
). P. Phillips, in NEW HAVEN Usros
ROYAL ASSESS NATIONS.
The bullet Of the assassin ever loves