Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-07-12

"What acts on prices is credit, III what
ever shape given, aud whether it gives
rise to transferable Instruments or
not. | viii proceed TO explain
and Substantiate this opinion And
again he says: "A man may obtain goods
upon his note payable at future time
These purchases have exactly the same
effect on prices rs if they were made with
ready money. The credit itself, and not
the form and mode in which u
is given, is the operating cause.
Why was 1t, my friends, that the recent
failure Of Barring Brothers in London
should have brought down the price Of
wheat J : cent bushel in Missouri Why
was 1t that this failure 5000 milos across
the ocean, in a foreign country, IesSened ttG
prices of everything that a farmer had
TO sell in the United Statest
1t was not because there was any less money
in this country after than before the fail
ure. 1t was because the confidence Of the
moneyed mel of the world was shaken in
corporate and individual credit This
caused a contraction of what} The credit
of our people-the 92% per cent-and this
contraction brought down prices, on that
principle that any contraction of the pur-
chasing medium decreases prices.
Mr.. Mil again says: Thus general
prices, during 4 commercial crisis, fall "a
much below the usual level, rs during the
previous period OF speculation they have
risen above it; the fall, as well as the rise,
originating not in anything affecting money,
but in the state of credit"
And in conclusion lie says: THE general
operation of credit upon prices being such
as we have described and then my farmer
friends, suppose this scheme is put into
operation when this new suo-treasury
money comes out, suppose the moneyed
men refuse TO give credit on it or in other
words suppose it should become a depre-
ciated currency you would then see
contraction-6f what7-not Of
the 92t5 per cent, and down prices would
90, and if this credit should be diminished
20 per cent only, then you have lost all your
grain for so per cent of its value, and the
government owns your grain. You hold
your deprecated currency and very soon
the jails would hold the old sub-treasury
advocates.
1t is evident that if any particular mode OF
form of credit IS calculated to have a greater
operation on prices than others, IL can only
be by giving greater facility, or greater en-
enlargement 10 the multiplication of crediR
transactions generally.
Now, my brothers, it is of the most vital
Importance to you, your family and our be-
loved order, that you fully understand this
argument, for the whole sub-trcasury
scheme is based upon the statement that
the volume of the purchasing power is a
fixed volume, and It's advocates claim
for il but one great merit, and
that is that It will make this VOL
ume flexible, but the foregoing argument is
unauswerable and clearly proves that 921<
per cent of the purchasing power Of this
country is credit; and therefore, of course,
il fiuctuateS, increases and decreases, ex-
pands or contracts with the needs Of BUSH
ness.
Make your sub-treasury advocate answer
this argument before you let him go any
further, for this lies at the very root of his
whole scheme, and you owe it TO yourself
and yours and to our beloved order to sea
that he answers it fully and honestly.
Another unanswerable objection to this
sub-treasury is that its author says that this
volume of currency could be increased by
the farmers during the fall and winter
months in order to enable them to have
more money to handle their crops.
But if this scheme is for the purpose OF
getting more money to handle his crop, how
is he to get the money! Why, by putting
his crop in government warehouse where
he cannot handle it. He cannot get his
money until his crop is locked up by the
government, and he cannot handle his
crop while it is locked up. Then
suppose we corn and wheat raisers lock up
our weat and corn, we thus draw it out Of
the market, and as the volume of money il
now greatly increased and the prices Of
everything spondingly higher, ana tho.
wheat and corn out of the market, what are