Los Angeles herald., 1891-08-31


people refusing to take their own money
in trade, and, Notwithstanding all the
force bills they could enact, the paper
failed as circulating medium, with the
result OF an utter paralysis of all busi-
ness and final Reputation.
Fourth-The Argentine Republic. In
1873 this nation established bank
called the Hypothecary or Mortgage
bank. Anyone could obtain loan to
the extent of one-half the value of his
land, said value to be fixed by the ap-
praisers for the bank. The bank gave
him mortgage bond, called a
cedula, which was to run for twenty
four years, at from 6 to 8 per cent.
interest, two per cent amortization and
one per cent commissions In ten wears
our 500 ,00O, 900 of the cedulas had been
issued based upon the land OF one pro-
vince. In 1879 this was annexed to the
national bank. Its paper was at par
with gold It's issues reached in March
1891, $3.50, 600 900, worth about 25 cents
on the dollar, irredeemable and decreas-
ing in value every day. Some estimate
the indebtedness at 500, and others at
$40 per capita for every inhabitant of
the Republic, with credit gone, business
paralyzed, and no one able to predict the
final result.
Another plan OF very different ma
ture is that of unlimited free coinage of
silver, paid for by our gold at 20 per
cent profit to the seller, we would end
by losing all of our gold and having a
debased metal to represent our treasury
certificates, and no market for it ex-
cept at great loss. Where would be
the justice to the masses in buying
this enormous amount of silver
from foreigners at 9such q profit?
How long could our3 cx3dit be main
tanned in this process, ,aslour Influence
is about one to twenty-four? AS to our
own producers of silver they are too
small a part of the community to ask
for such special legislation. The Latin
union stopped the coinage of silver
thirteen years ago to prevent being
bankrupted by this very unloading pro-
cess.
would ask such as refer the prosper
ity of France to this law, to account for
the bankruptcy of Italy under it. The
condition OF Italy proves that France
owes her prosperity to other causes,
namely, thrift, industry and economy.
The study of the history of England
under Henry VIII and his predecessors
will explain the condition of industrial
affairs in Italy. l would like the advo-
Gates of free coinage to answer this:
Why would it not be better for the gov
ernment to buy gold instead of silver,
and thus escape any possible loss ?
Either would be .unwaranted by justice
or political economy. Such legislation
could be termed special only. How
can any one nation maintain
M, ~. yoIs oil hOt
classes of our people demand more
money than we have? Two stand forth
only; that OF the speculator, who would
use billions and end by being harder up
than ever, and the debtor class, who
want to clear their deficit by flood of
cheap money, borrowed from the gov
ernment. In using government money,
based upon the national resources, we
would be mortgaging our property to
ourselves only, and unless to limited
degree, we could by no law or sophistry
maintain such paper at par (see France
in 1720.)
AS to there being a scarcity of money,
opinions differ. One of the ablest fnan-
ciers of this country states that during
the hard times of last fall and since, he
has been offered unlimited money at
two per cent. and was begged to take it.
The attorney of Gould informed me that
his co-partner kept on call $50, ,000. 900
to corner any stock or clique at will.
The speculator always cries hard or
flush times and is governed entirely by
whether he belongs to the bull or bear
side. The debtor is always hungry.
Neither can be trusted as to statement
of our necessities. Government is in
stituted for higher functions than spec
ulating in it's own currency, to suit
either class. It cannot do so without
debasing its credit, and as there is no
authority for it, we should see to it that
such an amendment to the constitution
should never be passed. If England
can get along with less money per capita
than we now use, and in addition buy
our gold, our best properties, and keep
on at it steadily, what does it prove?
That the cause of business depression is
elsewhere than in the amount of gold on
hand. Why? We are the same people,
governed by the same laws and business
methods, and yet we are in the slough
of dependency, commercially, and they
are getting RICH.
The cause can be easily explained by
study of our political economy, ex-
pressed briefly by the McKinly bill.
Their system keeps all their labor en-
ployed, while ours only employs per-
centage OF our labor element. To illus
trate: preceding the year 1860, we car
ried IS per cent. of our export trade to
Europe in oul own vessels. Now we
carry about 15 per cent. Who
is responsible for this enor-
nous loss to our people in wages
and money; for labor only brings money
to US. The Mckinley bill allows mate
rails to he used in the construction OF
vessels of subsidized line to be inn
ported free, and as q result San Fran
cisco gets . contract for q 1000 ton
steamer for the Pacific Mail company.
How much money will that one vessel
give us of California? Why are nearly
all of our wooden mills idle? The for
eigners who are deluging our country by
their numbers, are destroying the field
for our native-born youth, and many of
them sending all their money to their
native land as fast as gained. From a
careful study of it's history, / can find
nothing but disaster attendant upon the
use of government credit, and believe
that to the weight and fineness OF our
circulating medium only should its
certificate be attached.
Marine Intelligence.
BosToN, August 30.--Arrived the
Gcvthio fro m Tivorn00l 3i3si =. ,rS-ff