The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-09-18

sPECiaEN rot.

me kind OF Bc=h E1a.EtzEzl n--luil1rz AiIEu-l
she CreduIsus Farmer to swallow
! Ell circulating notes were issued &c
All the farmers who vViah 60 borrow.
/ how much would such notes be vvorthg
! Perhaps the value of farms and theiE
/ equipment and stock may be so, 0oQ.-
/ 600, Coo or more, and st hatf their value
! $40, 600, 600, OCO could be loaned Even
I tha $50 per capita for which the ma
] 1oral alliance asks would not go FAR
I The increased issue of 81 SEQ, O0o, 600
] might answer for about siEth OF th6
! farms Bot with what deceucy can tha
/ government provide for small fruc-
] tion and leave the rest 20 sufferl Or by
l what practical method cen it CoufuG
I loans TO uctuai owners OF farms really
/ cultivated and prevent absorption Of all
/ the money by real estate spcculslura
/ and operators in town IctsP No pro-
I ventiou Is possible In order 20 have
] enough money 70 go around with the
y farmers, there would have b be issued
Z two or three times as much as they
. would want Meanwhile, long before
Z the $50 per capita should be issued. thl
/ paper would have dropped iu value so
] that no farmer would wish TO take it
for his wheat, and yet he could get no
/ other money, for gold and certificates
| and notes redcemanla in gold would DO
locked mp and boarded "A merioan.
Bauzer.
The foregoing IS bosh, pure and un-
. adulterGtCd bosh, and ] am convinced
by a steady perusal OF the American
I Banker, that the man who wrote H.
I knew it wss bosh.
/ First-EEere is nothing contained IA
/ the demands Of the alliance that ever
. hints at equipment aud stock" being
made the basis OF an issue of cireulat-
ing notes
Secoud-There is. perhaps, in the
hands Of the people outside Of the
I Unitsd States treasury, 81, ,2gQ, 600, 600
. which would be increased to about So
2O0, 600, 900 by a per capita circulation OF
I $50 per capita, giving the people O.
banking capital of s., 600, 900, 600, with
/ which 20 go into the banking businca
on their own account
Third-The national banks alone.
/ with com bined capital amounting to
less than $780, 600, 600, have managed to
loan out almost -, coo 900, 600. How
/ did they do itP I answer, by q svstom
known as deposits, loans and dis
counts"
Fourth-If the national banks can
loan s., 900, COO 600 with a capital OF
500, 600, 600, what is to prevent the peo-
pies banks, with the same system OF
deposits, loans and discounts. from
ioaniug s., OO0, 600. OCO with capital OF
s., 900, 600, OOO2 Aud il the people by
lOauiug their own credit TO themselves
au two per cent established shat as the
national bank stockholders have TO
loan their money at the same rate or
let 60 lie idle in their vauits2
Fifth-If the people loaned their own
credit 70 themselves at two per cent,
paying one per cent upon time deposits.
could not the borrower pay not only
] the interest but also one-siEteenth or
the principal as easily as he now pays
/ eight per cent interest? An would not
that furnish an annual ioanable fund OF
$3.50 600, 600 If there were "a, 600, 600, coo
loaned out TO begin with?
I SiNth-Does the American Banker
think shat the farmer would borrow
just for the FUN OF the thing. or rs it
prepared TO admit the falsity of Mr..
l Porter's mortgage statisticsP 7 ask this
] question because, If Mr.. Porter tells the
truth, less than S3, 600, 600, 600 would pay
/ of all the present existing mortEgsgcs2
Scveuth-YVheu these mortgages were
paid of what would those % whom the
money was paid do with such money,
unless they either invested 10 iu legiti-
I mate productive enterprises, or loaned
/ It out at two per cent?
Finally. a few words in re ference TO
the depreciation of the peoples money,
which the American Banker affects 20
fear so greatly.
In the first place, the people would
issue not promises 70 pay money but
money itself full legal tender money
/ thus putting it outof the power OF those
who own what little gold there IS in
the country to reasonably depreciata
] their couutry's currency by putting O
premium upon gold A fun legal tender,
absolute paper dollar will never, never
depreciate.
In the second place the American
Banker is entirely losing sight or or
purposely Ignoring, "a potential factor
which Is in fact the solvent OF the
D Iu.-.-.Tr-- HaHEa Hr
governing the case, thus; The value
Of currency may be safely Increased ia
an inverse ratio 20 any reduction Of iu-
/ tcrest that may be made I Vyill go
Z further than that ana affirm that if SO IS
not so increased 1t villa be equivGieBt
TO a contraction of our currency Let
me c1zpl ain InCome-ProduCing prop
; erty is worth that amount of money
upon which it viii pay she prevalent
] current rate of interest, hence a farm
; that viii pay six per cent upon ST. coo ia
worth sI COO. Bat II the current rut1
5 OF interest is reduced 20 two per cent
? the farm at once becomes worth a3, 600
B therefore a reduction of interest from
2 six TO two per cent accompanied by
an increase ira the volume of money "a
D three times che former volume would
have the same effect as if two out a
every three dollars were retired from
circulation, interest remaining at thG
7 present rates
2 The American Banker need have no
r. fears but that the people know vvhn
they want and Just how it will aifec
I them. and it may also rest assured that
D knowing what they want they iEteuc
2 to have just that and nothing else
E George Q. Ward, in Topeka Advocate
Conditions In Ezausas-
The people OF Kansas are in debt
/. many OF them ineEtFicabIy SO. It ID
a4FTHHFH4a
Z three-inch editorial declaring that thi
4 state IS the cream Of prosperity zng
= that every one who says TO the contrary
! is O. calamity hoWlsr. It is especially