The midland journal. (Rising Sun, Md.) 1885-1947, 1890-09-05
Friday. Sept. 5, 1890.
A Money Famine.

are beginning to tell with fearful effect on
the money centres. 1t was all lovely as
long as the contraction was only felt by the
farmers in the falling price of their pro
ducts. If the money centres couldn't fur
nish dollar to buy bushel of wheat
half dollar was made to answer and the
farmer had to submit. What was lacking
in money was evened up by lowering the
price of produce. But there is an end
necessarily to all things, and this crowding
down prices has reached that point, and the
volume of money in the country is insuffic-
lent to pay labor and purchase farm pro-
ducts. Labor consequently must be dis
charged and persons and firms conducting
large volume of business, and employing
many laborers, being unable to borrow
money from the banks, on account of banks
being short of money. they are compelled to
curtail business and discharge hands, or the
wages of their hands must come down to
accommodate them to the decreasing volume
of currency OR mosey in the country, as the
price of the farmers produce was beaten
down, while his taxes, interest and other
expenses, especially interest on his mortgage
if he was under one, were kept up.
This plague of contraction. has Travelled
from the farm, where ii was first felt to the
money centres, and merchants and city bus
mess men who must have large sums of
money for short periods to pay balances,
laborers, etc., are now paying Is to 25 per
cent for call loans. Call loans should not
be more than 2 per cent, ard with sufic.
lent volume of currency in circulation to
transact business with they never will be.
1t is estimated that if per cent of the bus
mess of the country is represented in money,
and the other IS by checks and drafts, that
will be sufficiency of currency to conduct
healthy business. That amount of money
is absolutely necessary 10 pay labor aud
carry on the retail business The fact that
call loans are commanding 10 to 25 per
cent and higher, in the money centres is
evidence that the money is not in the coun-
try which the growing volume of business
demands to keep labor employed. This
condition of business has been produced by
the financial policy our government has
been induced 10 pursue, by the gold ring of
England with headquarters for the United
States in Wall street.
The silver bill just passed will put 49,
100000 more money IN circulation monthly
than under the old silver bill, which it
supersedes, but that amount is not nearly
sufficient to supply the demands of business
throughout the country. 1t required
herculean effort from the men in Congress
who were backed up by nearly the entire
labor and producing class of the country to
get even the present imperfect silver law
passed, so great was the bond holding gold
ring contractionists power with those old
moss back Senators from the Eastern States,
of the Edmunds and Sherman class, and in
the administration. The President threat
ened TO veto any bill that completely re-
monetized silver, and hence the present
law was the best that could be got 1t is the
crying evil of the times that the men who
are chosen by the people to make our
national laws and administer the govern
ment, become little else than tools of mo-
nopolies. and are kept completely under the
thumb of the money gambling class Such
is deplorable fact. While the new silver
law will increase the currency 40 millions
yearly the contraction of national bank
currency is going on at the rate of SO mill
lions annually, on account of the great pre-
MUM on government bonds, which has
been created by the bond holding English
money monopoly. The government is
continually importuned by the bankers and
brokers of New York 10 buy bonds, at the
heavy premium of "a per cent, to relieve
the money famine which is constantly inn
pending. This double game has been we'll
managed by the bond holding gold ring.
They first induced the Secretary of the
Treasury in 1868 to recommend the passage
OF national banking law which required
government bonds to be deposited with the
treasurer to secure circulation. Notes were
then printed for the particular banks APP
plying TO the amount of 80 per cent of the
face of the bonds held as collaterals. This
law debarred government from issuing any
other paper money than that called for by
the banks, thus placing the currency COM
pletely in the power of the bankers, The
next step in this scheme was 10 demopetize
silver and make gold the only metal con-
forming TO the English system. Every eff
fort was put forth by this English gold ring
TO have the greenbacks drawn in and
destroyed, and they succeeded in accom-
plishing their purpose partially before the
alarm was sounded and the destruction of
greenbacks stopped. This Jewish money
ring had succeeded so far with their plans
and the next step was TO begin bulling gov.
eminent bonds, and the premium was run
up till it reached % or 30 per cent. This
OF course began to crowd the national banks,
they were not able to stand such premiums
and keep bonds with the treasurer as collat-
eral, for as the bonds approached maturity
the premium must come down. Conse-
quenily the banks began to lift their bonds
and send in their notes for cancellation. and
the currency began to coutract-grow scarce
while the increasing volume of business