New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-04
MN MONEY FOR FARWERS.

Mr. Clark IIowcllS contributes to " he New
York Herald" what may be called an anu
Cleveland outciy. lie entirely agrees with MI.
Cleveland that some settle mont OF the hhahc ii.
question must precedc action on the '''fih'
But his argument is III effect, that the DEMO
cratic parry will go cycr1Stingy to pieces uil-
less il manufactures and issues more money
Financial relief" he calls II, alter fhc man
nor Of Western and Southern statesmen. 1heSe
ncopIo of the West and South, he reasons are
mortpapc,l TO the hllt, and nothing except
financial relief will keep them IN the Demo
cratic party. Mr.. IlovclS was obviously I'M
fortunate in writing his letter the very day
the results of the census OF mortgages APP
pcarcd. showing that sevcn-cighthS of the out
standing Indebtedness on the farms had Dceh
incurred in tho purchase of land or IN the
putting up of new buildings. Only an Insig-
niticant fraction, in most OF the states not Il
twentieth. originated in the inability oil farm
crs To make ends meet, whether through thcir
own incapaciy or from misfortune. man
ci,l relief, for tho men who havc bought more
land than they can pay for is not more equI-
table than relief for the spectators who have
sold moro stocks or more grain than they are
able to buy.
II is strange that man of Mr.. llowcllSs in
formation does not ask the question how more
money could help those who have borrowed
moro than they can pay. lie ought to Know
and presumably he does know, that the rate
Of interest charged for the use Of money or
for deferred payment; is always higher where
the money to be PAID is questionable in quality
than where it is unquc>tionably good. Thus
To, pxl,n wi
wants il at 4 lower rate of interest than a
mortgage promising t. pay silver or paper cur
rcncy OF unknOwablc value. In what concclr-
able way, then. would it help the comparatively
fow mortgagod farmers of the West and South
10 havo the monetary basis altered or the sup
ply of money indefinitely increased? No one
can help seeing that these farmers would gam
nothing unless tho currency had become so
superabundant that prices had been greatly
inflated. But if the dollar were worth only
30 cents. for example, so that tho mortgage
for 81 900 could be paid off with property now
worth only $500, tho few indebted farmers
might perhaps gain while all other farmers
would lose And even in that case it is to be
remembered that tho indebted farmers could
not get their mortgages extended If they should
not be able to pay exactly on time, and they
would have to pay gold, or any possible
premium on gold, in order to get their debt
continued Then, too, the farmers would have
to pay ont for everything they require, incnd-
ing labor. quite as much more rs they could
possibly gain in increased price for their prod
uct,. Prices would rise all around, measured
in deprecated currency, aud they would have
to pay just as much more for all that they
might wish to buy and for the wages of hands
| as they would gain in difference on the value
| Of mortgages or deferred payments.
Bad money is not financial relief for any
| body. But if tho Democratic party thinks so.
| as Mr. HowclIS plainly declares, Mr. Cleveland
| has a hard time before him. He cannot afford
| to give the Western and Southern farmers Il
chance to discover by melancholy experience,
how much deprecated currency would cost
them for he would thereby alfrunt his Eastern
supporters If Mr.. IIowcllS is right, the DEM
ocratic party had better 90 to pieces at once
| rather than two years hence.