Wichita eagle., 1890-03-14
ANOTHER THEORETICAL ROUTE
OUT.
THE REPUBLICAN REsUBMIs'N CLUl

HUKLE. Kan, Feb. s, 1890.
To the Editor OF the Eagle
noticed an article in recent issue OF
the EAGLE by c. Wood Davis, in which
he brings statistics and figures TO prove
that the trouble with the farming indus
try is caused by an undue proportion OF
the people turning farmers, and conse-
quently overstocking the market with
farm produce. In order to make this
argument agree with the facts he should
have shown that there is a scarcity OF
labor in other occupations, for if the
farms have more than their proportion
of the labor of the country, some other
occupation must be languishing for the
want of labor. In that case, wages in
those industies would advance. / think
he will have serious tlnIe finding any
such industry in this country. Mechan-
les think there are too many mechanics;
miners ditto, and this is the case
throughout the whole industrial fabric.
There are numbers of miners and me-
chanics among the farmers that are will
ing to engage In those occupations when
ever they can improve their condition by
doing so. In fact, they have only
turned their attention to farming be-
cause all other occupations We're SO over
crowded with labor that farming was
their only recourse. How absurd then
it appears to attribute the trouble to an
overplus of farmers.
In my opinion the low prices of farm
produce is caused by a contraction of
the currency. If we should withdraw
one half of the money from circulation
that we now have it would be impos5l-
BILE to effect the exchanges as rapidly as
we do at present (Which is necessary in
order to meet the wants OF the people,
without reducing prices one half, and of
course if you double the volume of cur
rency prices would advance 100 per cent.
1t don't seem possible that any man Of
average intelligence could doubt this,
but since there are such | will make 1t
more plain. Suppose we take the
amount of money in circulation for the
dividend. and the number of exchanges
effected with this money for the divisor,
the Quotient will be the average price OF
commodities. Now, IL you double the
dividend and use the same dlvlsor, which
represents the same volume of business,
don't you double the quotlent, or the av-
erage price: OF course you do. That is
why John Stuart Mill says that If you
double the amount of money in circula
ton you Just double the price OF COM
modities. If this be true, which it GER
sainly Is, the object of Wall street III
contracting the currency IS plain. They
wish 10 double the value of their bonds,
mortgages, railroad stock and money by
legislation. Now, suppose that their
mortgages called for so many
bushels of wheat and they should
influence congress to change the number
of pounds in a bushel of the same from
60 TO 100 and compel all debtors by law
to settle their debts on that basis,
wouldn't the farmers who had contracted
to pay only sixty pounds be justified III
refusing to pay their mortgages until
the number OF pounds in bushel was
reduced TO its original number: Well,
the contraction Of the currency has had
the same effect and it was intended for
that purpose. and don't 1t naturally
follow that we should elect governor
and legislature that will say 10 congress
that they must increase the volume OF
currency 10 its original amount before
we will collect any more OF your mort
cages or pay any more interest on any
more bonds. Haven't they the same
right to withdraw ali of the money from
circulation and then by the machinery
Of the law take all of our property, a.
they have to contract it at all and
thereby increase the value of our debts
and thus rob Us OF part of IL
According TO the theory of Mr.. Davis
the high price of cattle in 1861 was
Caused by a scarcity OF cattle, but they
swarmed in fSJ3-9-60, hence the price
OF cattle was very low-tiey vanished
in 1862. and consequently advanced
rapidly in price. The facts in the case
are these: Money was plenty in 1856.
and the fore part of 1851, and produce
brought high prices: bur during the
summer OF 1851 there occurred panic,
caused by defective banking
system; a majority OF the banks
failed, and their notes. which
comprised large majority Of
the money OF that period became
worthless and thrice ceased 70 he used as
money. This caused a great contraction /
Of the currency, and the result was that
IN ls-5s, - and 50 produce fell below the /
cost OF production and debts accumulat- /.
ed rapidly. and 1852 the government
came to the relief OF the T.eopIe By issss-
ing greeubacks. and corn. which fell 10
10 cents per bESbeI, advanced 70 81 peT 4
bushei, and the debts disappeared
The reason Why there are too u1anv I.
farmers il that she contraction o. the I
currency has reduced fhe price Of farm I
produce 20 low that II takes the farmers
whole crop 20 pay dividends on railroads. !
interest on mortgages, bonds. etc. This s
leaves nim without Douev 30 purchase 4
the products Of The mines ard factosies.