The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1891-01-14
LETTING OUT THE SECRET.
MR.. PAT CALHOUN TALKS LEARNEDLY
ON THE FINANCIAL SITUATION.
His Theory and Reasoning Don't
Seem to Square With Well EStab.
Iished Opinions and General Ac.
ceDted Truths.

at accunuating money, We presume few
would deny.
But when he strikes the subject OF supply
and demand, and undertakes 10 reason from
cause to effect, his ulterances are more Inter.
esting than instructive.
In connection with what We are about to
say, IL might be said that th ere are three dis
tinct departments of journalism, viz:
| l.. That corner In country newspaper
seed or the egoListlcal school master.
| 2. That part Of city newspaper which Is
devoted to periodical interviews with alleged
| financiers on the causes and effects OF this or
that depression or plethera OF money.
| s. The predictions or forecasts OF the wealth
| er.
Each OF these departments may have sepa-
rate and distinct effects upon different classes
| OF readers.
| Persons who may be In Jail, and destitute
OF Sunday school literature, and all such per-
sons as are suffering with insomnia, would be
delighted with the productions OF the literary
hayseed and the learned school master.
That part OF the city newspapers which treats
Of the financial disturbances by way of inter.
| terviews, afford humorous or ludicrous read.
what he doesn't know. These Interviews FUR
| nish an abundant meal for all that class OF
people who throw open their mouths shut
their eyesnnd swallow all that is thrown into
them. They are then sufficiently ignorant t0
60 off and instruct those fellows who don't
| take the papers,"
The weather predictions and the play upon
aimless object Of looking nj the dexterous
Snowman toss and catch balls.
Here, for instance, Is q solid chunk OF some
thing, which would explain the scarcity OF
money:
"It Is due" said Mr.. Calhoun. "lo q pumber os
causes but chiefly to the defects Of our financial sys
tsm including the unjust tariff taxation 1t is true
that the reckless nancierng by the Argentine Rcpub-
lie caused the loss to the English Of great meny mil.
lion dollars seriously embarrassed the great honse Of
the Barings and felt throughout the entire nan.
cal circle of England. This caused the sale In this
country OF large amount OF American securities held
abroad and thus the trouble 10 distant South America
tons to forestall the Mckinley BILL and speculative
investments In fixed properties, also contributed to
the financial stringency."
To scientific flnancier all that Mr.. Calhoun
says may be perfectly plain and thoroughly
But suppose the English did lose money.
II wasn't burnt or otherwise destroyec.
Somebody has II, and IT. is worth 10 the world
just as much to-day as II II was in the safes OF
England before the coming OF the financial
III inrs Of The RRn5s,aes p se DID
cd circumstances could con tribute to the hard
times, the "fnancIal stringency" was on be.
fore their trouble came. Rather, their trouble
was result OF the stringency, and not the
The Mckinley bill and the tariff business
may be said TO be the deep water into which
financial prophets retire, when they are at Il
loss for asslgnable cause, and have nowhere
Mr.. Calhoun attributes our present trouble
10 our finances In part to the luck OF q "fiexi.
ble' currency.
What MIR. Calhoun means by "fexible''
currency Is . secret from us. "Flexlble" being
big word. We will turn 10 Webster, who de.
fines the word thus:
Capable Of yielding TO the Influence Of 9th.
ers not invincibly rigid or obstin ate tracta.
bic; manageable; duciiIe; too easy and com.
The "hexibilIty" of the Confederate money
consisted IN continued expansion, and we pre-
| sume The "hexible' currency for which MIR.
Calhoun yearns Is O sort or depreciated paper
with which 10 pay of the farmers for their
cotton bales. In business circles only stable
II Is true that the United States government
could prlut any amount OF money at pleas
| ure, but how can 1t distribute such money
ey, except in the regular way in " hich il now
goes In and comes out Of the public treasury
No country can prosper With an unstable
currency.
Here's solid chunk of wisdom, which M must
be very consoling 10 farmers who live In "dry
streaks." Mr.. Calhoun says:
"Tu the extent, therefore, that the crop Is surplus
the currency becomes dist throughout the coun
try districts, and thus the money is severe drain on
the financial centers.
ITO illustrate It forciby suppose that the
entire cotton crop, estimated at IOOO0 bules was
surplus this year and worth $40 bale we would
have surplus of $500 0OOO,O 900 disrihnted from the
Caronas to the Rio Grande. The South would DO
wonderfully pros erous and yet the d. an under our
present financial System OF 1900 OOO from the mon
ry cent.s aud 50 distributed would have brought ruin
and bankruptcy upon the financial and commercial In
btitutiUns Of the country"
As the law OF supply und demand regulates
the movement OF money and crops Mr.. CAL
houns first proposition would never mate
rialize. When the "surplus" crop began to
drain the money centers, the price would 60
down. the farmers would hold their crops, and
the money centers would hold on TO their
money, no matter whether IT. was gold, ''hexi-
BILE" currency, or representative currency.
is amazing. If We had seven million bales OF
surplus, We would like Tor MIR. Calhoun 10 tell
us how the money centers could be induced to
put their three hundred millions into our sur.
In Abbeville, when the crop is too large the
price Is depressed, and the farmers refuse to
sell a portion OF their cotton.
II Mr.. Calhoun had said that, whether the
crop was large or small, IL commanded about
the Rame amount Of money, lie would have
come nearer the iact.
Mr.. Calhoun sayS:
9Th. enormous disbursements tor pensions In the
North and West rs well as the surplus cotton crop In
he South, have put an Immense sum Of money, die.
trbutvd in small sums into the hands Of those who
are not bank dspositOrs"
The Idea that the disbursement OF money
among the masses " no do not hoard or depoS.
1t their money would bring hard times IL
something new. The pensions are distrih.
uted with something like regularity, and 1t ~
generally conceded that Its circulation adds
TO the prosperity OF any particular commu-
nifty.
good. MIR. Calhoun says:
"Ano' her important cause Of the financial strngcncy
which must moi be overlooked, is the fact that The
government through its unjust tariff taxes exturls in
small sums from the consumers oil over this Country
vast amount Of money, which 1t gathers into its
treasury. All Of this 1t Is unable TO get back
to circulation. through extravagsnt government
al Disbursements, and IL compelled to buy with the
surplus bonds ut high premiums. This system not
only unduy taxes the poor, but demands for its pay.
ment each year nearly Onethird OF the circulating
dum and hosrds large quantities. Of this medium In
the treasury. When compelled by financial stringsncy
to adopt the extraordinary means VI bond purchases
to prevent bankruptcies this currency is turned loose
not In general distribution but only to those who have
least need iur It, and who beyond doubt " ex-
tent hoard It."
The Government returns TO the people all
the money which 1t EFFORTS from them.
Therefore Mr.. Calhoun's idea that the Govern .
ment is responsible for our trouble Is falla-
cious. Practically, there Is no such thing as
"hoarding' money. 1t must be put In crcu-
latiou TO be rcmunerativp. AS long as 1t IL
"hoarded" Its value ceases. WHAT Mr.. CAL
houn says about "unduly taxing the poor" Is
on par with much else that he has said. All
citizens are presumably taxed alike, In pro.
portion TO their possessions.
| The rich put their money IN visible property
and cannot escape taxation, while the word
"poor" presupposes the idea that the person
referred to has no property.
! MIR. Calhoun says:
"You at once see that the government has sought
bonds at high premiums, 1t has not only retired to
considerable extent bank notes actually In circulation
but II has by enhancing the price Of the bonds
dered It less profitable to issue currency upon them,