The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-05-03
ANOTHER BOMBSHELL.
Fired By I Skilled ATtIIIerist IN PoIItIco-
Economics.
The President Of the National farmers
Alliance Of America Is On The
Qua ter-0eck.
Does Contraction Of The Currency Diminish
PrIces2
SECOND ARTICLE.

Suppose for moment that the coun-
try could be suddenly deprived Of all
money and reduced to resort to the pri-
mitiye method Of exchanging products,
viz: barter. What would be the result?
distress and ruin, back
ward movement IN civilization, a re-
lapse toward barbarism.
Is there any doubt of this3 If this
would be true if all the medium Of ex-
change was destroyed, is il not also
true in equal proportion if part of it
is destoyed? Does not principle operate
through partial lesscning Of prices as
would operate through total destruc-
ton of prices, which would ensue in
case all money was destroyed? Mani
testify yes.
A stock argument of the gold bugs
in favor of contraction is that rs the
volume Of money is lessened its purchas-
ing power is increased and that this
fact affords a full compensation to
society.
The fact is undcniablc. BY the con-
traction since the war the purchasing
power of the dollar has been increas-
ed three-fold, to the enormous enrich
ment of the class who thrive by the
manipulation of money and cores
ponding impoverishment of all men
who live by the products of their
labor.
The vital point Of all produccrs-and
by this | mean all laborcrs, whether
agricultural, mechanical or unskilled
is not the purchasing power Of
money, but the purchasing power of
products, or in other words, prices.
Around this point revolves the whole
question. Labor is fixed quantity,
like land. The hours of each day are
limited and our days are numbered.
That cause which fixes the price of
products determines the price of labor
and this repeatis the vital point
for all laborers.
Let us suppose the case of the farm
or upon whose farm is thousand dol
lar mortgage, drawing 10 per cent.
This interest he must pay by the sale Of
products. O., the sale of labor. Sup
pose he produces wheat, and the price
is 81 per bushel, it takes one hundred
bushels of wheat, or the labor required
to produce that amount of wheat to
pay one years Interest.
Suppose wheat is only fifty cents per
bushel, it now takes two hundred BUSH
els of wheat, or the labor required to
produce two hundred bushels to pay
one years interest. The question o;
price is undeniably the vital point il,
this case to all parties. To the farmer
it determines the cost to him of borrow
ed money-to the banker it determines
the value of his income from interest
Diminishing the price of wheat, rs
supposed in this case, has doubled tC
value of the bankers mortgage and
halved the value of the farmers labor
and land, though the rate of interest
remains nominally the same. Thi.
principle is appliable in all its ranifi.
cations and is appliable to all labor
alike.
When, by lowering the price of the
farmers products, the farmer is hin.
dered from building the barn. as sup
posed in my first article, and demand
to that extent is clogged, the effect on
labor other than agricultural is quite
as disastrous as upon the farmer. II
remains unemployed, or employed only
part of the time.
Labor lying idle is the most utter
loss that can be inflicted upon society,
excepting destruction by tire or flood.
remembering that the same day and
hour never comes twice in mans
lifetime. As "chockfull of days
works" as any man may be only holds
just SO many.
1t will be seen from the above that
we have two great interests whose
welfare is apparently Numerically op-
posed, when the prices of products is
considercd-the producers of all kinds
on one hand and the men who live by
inco mes derived from interest on the
other. If there actually is . conflict Of
interest here, which class ought to be
first considered? Which class is most
useful to society? Which class pro.
duces all wealth? Which class is nu.
merically the largest? Which class is
absolutely essential to the welfare, in
fact the very existence of the social
fabric and which might easily be dis
pensed with? imagine there is only
one correct answer to these questions.
But deny that the conflict Of in.
terests between these classes is any.
thing like SO great as it at first appears
In flush times, when prices are good
and all labor is protitably employed
men use borrowed capital freely. Ir
such times they borrow, impelled by
enterprisc-to make improvements. to
extend their business, to open new
sources of wealth. to employ more
labor.
In times like tho present they Dor.
row from necessity, to refund old loans,
to pay interest, to replace unavoidable
deficiencies of income. In flush times
borrowing means prosperity, in hard
times, it means distress. The result te
the money lender Is economically the
same. Sentimentally. if that was
worth considering. in one case he may
have the consolation of ministering t
progress, refinement, enterprise, in thu
other of drawing blood from an almos,
exhausted and depleted body.
In my next article / will inquir,
whether money has actually decreased
IN relation to products and whether tn,
present supply Is inadequate.
J. BURROWS.