davidaulloa/AmericanStories huggingface dataset:
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
DEBTOR AND CREDITOR.

Give Us Legal Tender Currency Main
tanned in Circulation at q Given Amount
Per Capita.
Some one speaking of the financial
problems now before the American
people, and, indeed, before the people
of the world, says:
"In adjusting by law the relations of
gold and silver as money metals in
America care must be taken that the
present creditor does not receive for
his dues a cheaper money under new
system, and likewise that the debtor
does not have to pay his debt in cur
rency more valua BILE than the currency
in which he contracted to pay"
In the above is the gist of the finan-
cial question. So long as there is debt
and credit, the creditor will be con-
stantly striving to make the debt pay
ing medium more costly, that his debt
may be more valuable; and always be-
ing more powerful than the debtor he
will generally succeed. The financial
in this direction. It is more than twice
as hard to pay debts now as it was
from 1865 to 1878, and even later, and
those who had contracted debts pre-
vious to that time find themselves
loaded down with more than double
burden. All the schemes of contrac-
ton, including the decentralization of
silver, have thus been in the interest of
the creditor and against the interest of
the debtor
During all the time of the legislation
pAE 70 1oh
q complaint, because he was taken I'M
awares; he did not know what was to
be the effect of the legislation that
was to crush him. His protest was
heard only when the weight became
more than he could BEAR and then
every bondholder, every mortgage
holder, every note holder, every pap
sucker, at once rose up to shout him
down as calamity bowler.
All the debtor now utters is feeble
demand for justice. He simply asks to
be permitted to pay his debt in the
money of the contract. To deny him
that privilege is robbery.
What is needed more than all else in
money is stable currency, one whose
volume and power cannot be changed
by spectators and creditors, but which,
by the strong hand of government is
held the same for ALL of like value this
year and next, so that when debt is
contracted the creditor may know what
he is to receive and the creditor what
he is to pay.
A legal tender currency issued by the
government and maintained in circula-
ton at a given amount per capita is the
only system of money that will ever
meet this requirement.-M Vernon
Qlls) Progressive Farmer.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
GOVERNMENT BANKS.

They Should Have Power to Issue Abolute
Legal Tender Paper Money to Meet All
Demands of Depositcrs.
In like manner as the United States
has received from Australia it's perfect
ballot law, it is to the Antipodes we
must now look for rational and scien-
tific monetary and banking system. l
find floating about this item:
''The government of Victoria has
taken long step toward nationalism
in a decision to concentrate all savings
banks into one system and attach them
to the postal savings banks"
While from the Chicago Mail clip as
follows:
''The government of New South
Wales has thrown up the sponge in re-
gard to gold and proclaimed bank notes
legal tender currency as the only way
out of the financial stringency there.
From gold to fat money at one jump is
distinctively Kangaroo performance.
Putting this and that together, con-
clude that Australia is to have a sys-
tenn of governmental or peoples banks,
which being the case, the notes or bills
issued by them, such notes or bills be-
ing given the legal tender quality or
money function, would be, as the Chi
cago Times puts it, fat or absolute pa
per money.
AS recently as April 20 bank deposit
ors in London, England, were paid in
terest at the rate of only one per cent,
while borrowers were charged but two
per cent. and this under a private bank
ing system. If we could establish a
system of governmental banks of de-
post, exchange and loan, and guaran-
tee to depositors absolute security, such
depositors would be satisfied with one
per cent, while borrowers could obtain
money at two per cent. and the bank
ing system would be self-supporting
and entail no tax upon the people.
Then, if these banks were given the
power, in case of q run, or an extraor-
binary demand for money, to issue
United States certificates of deposit pos
sessing the full legal tender quality,
such thing as panic would be an i'm
possibility, while borrowers would
never be called upon to sacrifice their
property in order to raise money to pay
their indebtedness to the banks.
GEORGE G. WARD.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

Both of the above clippings are from
the Kansas City Times, the item rela-
ting to the Foster failure appearing
under the following scare head:
coincidence is Shaken-Ex-Secreta
Foster Tells Why He Could not Borrow
What His Failure Teaches-The
Great Folly of Being Too Far Away
From Quick Assets-Lack of Confidence
is Bad-It Causes Banks to Hold Back
Against an Unexpected Draft-A Most
Practical Statement"
Like the Dutchman's flea, the 'sgold
basis" when you think you have your
thumb upon it, always proves an alibi
when you raise your thumb. In the
absence of a panic, it is called ''gold
basis and is dilated upon as being the
immovable rock upon which is built all
sound monetary systems; but the mo-
ment there is a run upon bank, or
banks, and panic ensues, it changes
its name from gold basis" to ''conf-
dence" and is found to have folded it's
tents and stolen away.
He who ever had any confidence in
the ability of the government to main
tain gold payments" is blooming
idiot. With only one hundred millions
of gold and unlimited liabilities, the
prospect for any such con summation
is indeed poor. The term unlimited
liabilities" is used advisedly and is
none too strong. So long as a volume
of paper currency amounting to some
where about five hundred millions can
be presented over and over again and
payment demanded in gold, and inter-
est and dividend paying American in
vestments and securities are held by
foreign nations amounting to anywhere
from six to ten billions, we are power
less to prevent the constant. steady
outflow of gold until the entire stock OF
the metal in the United States is ex-
hausted.
And with the banking institutions
the situation is but very little, if am,
better. the case stands about thus.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
ASSETS
Gold and gold certificates .....o 200, 900
Paper and silver. ........ $50, 900
Debts due from individuals. $500, OO0, 900
TOTAL 6o,OO, 0OOOOJ
LIABILITIES.

Suo ucIOSltOrS :. &4,IU,UUU,UVJ
Comment would be superfuous. The
Australian banks were probably in just
about the same condition, each dollar
in money outside of bank reserves being
loaned out about eight times Now
suppose, what is not at all likely, that
the banks could secure possession of all
but $50, 0OO, 900 of the entire amount of
money in circulation. They would then
have about 81, 100, 600. 900 with which to
pay depositors the sum of 81, 700, 600, 900.
The system is all right so long as the
depositors do not ask for their money.
But if they do ask for it, the first man
out of every six or eight gets his money,
about one-third in gold, and unless he
is willing to buy the property of some
one who owes the banks the banks can
collect no money to give the other five
or seven. In the meanwhile there is
no money in business channels and fail
ures multiply. GEORGE C. WARD.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
No More Bonds.

There are 100000 in gold and 49,
600 tons of silver in Uncle Sans strong
boxes, and yet the plea is made that it
is necessary to issue bonds to save the
credit of the country. Harrison did
not dare do it, and we will see what
Cleveland will do-Lawrence Jeffer-
sOnian
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

For ss5, 600, 900 our national govern.
ment can construct and SIN nish' a
genuine postal telegraph, which will
give the people perfect electric mail
connecting all our post offices-with
net profit on twenty-word telegrams
between all points at five cents per tele-
gram. Francisco Star.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
GEORGE G. WARD.

If the money gamblers of this
country are playing for more bonds
they want to get them at once. This
is the last administration that there
will be any chance Of getting any from
in the next hundred ars.-Lalnar
(Mo.) Industrial Union.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
THE GRESHAM LAW.

The GOld-Bugs Would Mako 1T . Scapogoat
to Bear the Sins Of Their Pernioious
Policy.
The Kansas City Times is very con-
siderate and accommodating journal
While it is true that in each and every
issue may be found the regulation
quantity of gold-bug vaporings, it is
none the less true that in almost every
issue there is also furnished the refuta-
ton of such vaporings. You pay your
money and take your choice. In the
Times of May 2 find the following
choice morsel of financial wisdom:
When Sir Thomas Gresham, in the sixteenth
century, promulgated the principle that bad
money always drives the good from circulation,
It received small recognition from his own gen.
GRAFTON; but its attempted violation by the
quackeries Of monetary legislation has always
brought its own penalty. The Gresham law is
now working with vengeance in this country,
and under its operation if left undisturbed it
will only be question of greater or less time
when all the gold of the United States will be
banished from circulation and will be sup
planted by deprecated silver. Whilst the
daily transactions of the treasury bear witness
to the truth of the Gresham law" those
who refuse to recognize it's immutability fool
ishly ascribe the constant drain of gold from
this cOuntry Tor more than year to a tempo
rary excess OF imports, to the work of the gold
bugs" OF Wall street and to anything and every
thing but the real cause. The Sherman silver
purchase law of 1899 was the latest but it will
probably not be the last, legislative attempt to
overturn the Gresham law promulg ated by
wise and honest merchant in the reign of Queen
Elizabeth
But little further down the same
column I found the following item:
A study of the operations OF the worlds great
banks in respect to gold discloses general dis
position to strengthen reserves of that metal
The Strengthening has been largely at our ex-
pense. The bank of Russia, between April /,
1891, and October 1, 1892 increased its holding
of gold by S122 992, 00O Between the date first
mentioned and April 1, 1893, the Bank of France
increased its stock of gold by 1890, 900; Aus
tria-Hungary by S25, 1871, OO0 England by S19,-
100000; Germany by 49,, $500; Spain by 3d.
$4,000; Netherlands by S4,543OOo. In the same
period the United States has decreased it's
holdidg by s74057, OoO and the New York banks
by $5,517,ON. Austria Hungary has not gained
as much as has been generally supposed, while
France has gained more than the United States
has lost This strengthening of reserves in
Europe is the financial conundrum of the day.
Here is richness for you. From the
American Banker I clip the following
table:
The following indicates the amount OF bullion
in the principal European banks last week. and
the corresponding date last year. The figures
are received weekly by cable by the CONNER
cial and Financial Chronicles:
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

AUSTRALIAN FIGURES.
The real proportions
|of the financial disas-
ters in Australia, duo
to the failure of large
banking institutio n s,
may be gathered from
the sworn ret urns
made recently to the
British government by
the Australian banks.
According to these re-
turns Australia had at
the close of 1892 twenty
colonial" and six
"Anglo-colonial" banks,
with deposits aggregat-
ing S774, 900, 900. Or this
amount S213, 600, 100, or
20 40 per cent, was En-
glish capital. The Aus
tralian ba n ks paid
large interest to de-
positors, and that &C.
counts in part for an
increase between 1889
and 1892 of nearly $780,
OOO, 900 in the amount of
English money on de-
posit. In some of the
Australian banks the
percentage of English
deposits was very large.
In eleven it exceeded q
per cent Of the total
deposits and in five it
Exceeded 50 per cent
During the boom period
of 1888 and for a couple
lOf years after it was
possible to earn inter-
est on the large deposits
and divid ends on
shares, but since the
recent depression the
banks have found it i'm
possible to do business
enough to keep up earn.
ings. The immediate
cause of their troubles,
however, is the panic
among depositors at q
time when it is imprac-
ticable to realize on as
SETS Depositors are
calling for their cash at
a moment when it is
impossible to obtain it
for the securities in
hand without mourning
great loss. Fourteen
lof the banks referred
to have failed in the
last few weeks. These
had S424,722, 3O5 of de-
posits, Of which $l31,-
$40, 855, or over 81 per
cent. were British. If
the Mercantile bank Of
Australia, which sus-
pended in March, 1892.
be added to the list,
there have been fifteen
failures of institutions,
aggregating over S433,-
% $40 of deposits, some
Sl3, 900. 900 of which
were from Great Brit
lain. The locking up of
NEARLY half a billion of
money-pending the re-
ha bilita tiOn of the
banks, it that can be
efected-is a very seri-
Gus matter. But some
of the collapsed con-
Germs have Compare
lively worthless assets
and will not be rehabili-
lated. In other words,
depositors will lose q
large propo ton OF
their 1921, OJu.0 of de-
posts, to say nothing
of the losses of stock
holders over and be-
lyond this enormous fig.
lure. The consequences
LOT this great loss are
bound to be very con-
siderable, not only in
Australia and England,
but on the continent Of
Europe an d in the
United States. - Kan
sas City I ines.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

The function of money is to facili-
ate the exchange of values. It is the
function and not the value that makes
money Pittsburg Kansan.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

THE FOSTER FAILURE.
CLEVELAND, O., May
PA special from Eos
toria, O., says: 1.-THE
situa ton here to- day
so far as the Foster
failure is concerned
presents but little
change from last even
ing. There is a general
feeling Of uneasiness
in all branches Of trade,
but very little excite
ment noticeable in the
streets this morning.
j. B Qormley, the as
signee of Mr.. Foster,
states that further in
vestigation shows af-
fairs to be in even
worse shape than had
been At first thought,
and the liza bilities
would reach 50 O,00J.
and possibly 81, 900, 900,
with the assets much
less"
In response to q tele-
gram sent to him by an
afternoon paper Of this
city Gov. Foster an
swered:
Thanks for your of.
fer of space. My pres.
emit mental distress
precludes acceptance OF
your kind offer to any
extent
"My failure simply
illustrates the great
folly of permitting ones
self to be in debt be-
yond the reach of rea
sonably quick assets
for relief when the
hour of difficult Dor
rowing comes. When
people are in such con.
dition, and the stabil-
ity of existing financial
conditions is shaken.
the result is ina bility
to borrow, suspension
and failure.
Business is largely
done with borrowed
money. Confidence in
the maintenance OF
sound financial condi-
tions is essential to le-
ultimate lending. That
public confidence has
for some time been
shaken in the ability or
capacity of the govern
ment to maintain gold
payments is evident.
The natural impulse OF
banks in such times is to
strengthen themselves
against some possible
and unusual draft.
Then comes inability
to borrow. Decline in
price, suspension and
bankruptc follow.
1.-The country is pos.
sessed of enormous re.
sources which are al
the command of the
government, and il
should say and act in
terms that'will always
satisfy the country
without ambiguity OF
uncertain words tina,
gold pa ments will be
maintained.
CHARLES FOSTER. .
The announcement is
made this morning that
the North Baltimore
Banking Co at that
place. of which Gov.
Foster is a director,
had closed it's doors. =
Associated Press
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07


France has $50, 600, 900 more silver than
all the rest of them combined, she has
S25, 600, 900 more gold than all the rest
of them, leaving Germany out, and four
seventies Of the total gold stock held by
all of them combined. France preserves
the parity of the two metals by treat
ing them alike and giving them equal
legal and coinage rights. The United
States has never attempted to preserve
such parity since 1873, but by discrim-
mating against the white metal does
her utmost to destroy the parity be-
tween it and gold, rather than preserve
it.
In the house of representatives B. w.
Perkins, of Kansas, then a congress
man, on Saturday, February 81, 1886,
spoke as follows:
France with popul ,tion only two-thirds as
great as ours and with barely one Ell fifteenth
OF the territory, sustaius full legal tender
silver circulation of $500 ,DJ) more than
dOubl our OWN and SuStainS it at an exact
parity with gold and has during hese rec Mt
years OF divergence and without any loss in the
volume OF its gold money. although the silver
dollar OF France in bullion is worth per cent
less than our own. And they [monometalists1
hAoW' as every man, woman anu cnllO SnOul0
know, that il the coinage OF silver was made
free. and this. administration would make an
honest effort to promote its usefulness and
value, the silver dollar would be worth a hmm.
dred cents in gold coin in less than twelve
months.
Since then, as the figures show, France
has increased her stock of silver money!
in the sum of s167, 900, 900, and, as the
Times admits, gained 500, 600, 900 in
gold dur ing the past two years.
Either the so-called Gresham law is a
fallacy or the gold-bugs will have to
adopt another Interpretation of il =
George G. Ward in Kansas City Journal.
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07

Now for the application. Notice first
that every nation which has increased
it's stock Of gold, with the one excep-
ton of England has also increased it's
stock of silver Notice, also, that En-
gland, which returns no silver what
ever in the Bank of England, has
gained, in the twelve months, COM
paratively insignificant amount of gold,
only about $4,000, OOO Notice, also, that
Germany has not only lost about s12,-
100000 in gold, but has also lost about
100000 in silver. Notice, further.
that every other nation that shows an
increase in it's holdings of gold has also
increased its holdings of silver to just
about as great an extent.
In this connection it may be proper
to state that Russia is upon silver
basis, the silver rouble being the ''stand-
ard of value.'
Now take up France. The Bank of
France, April z, 1892, held in it's vaults
rs per cent more silver than was held
by the banks of Germany, Austria Hun
gary, the Netherlands, Belgium and
Spain all combined, and by April 6,
1898, it had increased such silver hold
ings about $3.50, 900. Yet, in the face of
these facts, France gained 60 per cent.
more gold in the twelve months in
question than England and the other
five nations combined.
Now take glance at the monetary
statistics of the nations in question, as
compiled by the director of the United
The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-07
THE CLIMAX OF ABsuRDiTY.

An Attempt to Make the Sherman Silver
Act Responsible for the Present Strin-
gency.
The first act in the grand drama
placed upon the boards by the money
power is now being played. 1t will be
remembered that the threat has been
freely made that the western and south
ern banks would refuse banking 40
commodations to the people in order to
manufacture sentiment against silver.
It is also charged, and admitted by the
American Banker, that panic was to
be brought about with the same end in
view. Well, the panic seems to be with
us, at least in its inGpient stages, and,
with rare poetic justice, one of the first
to be caught in the crash proves to be
one Of the principal instigators of the
plot, and one, who more than any other
one man, is responsible for present
monetary conditions. The ex-secretary
of the United States treasury, Hon.
Charles Foster, has failed and has made
an assignment for the benefit of his
creditors
As basis for few very brief re-
marks we submit to our readers the fol-
lowing clippings, printed in parallel
columns, in order that they may 500
that the failure of some fifty or sixty
banking institutions in the United
States since May Is, and an alarming
increase in mercantile failures, has it's
counterpart in a country widely sepa-
rated from this, where there is no sill
yer produced and where is no such
thing as Sherman silver act, and
where, moreover, they have always en-
joyed the blessings (?) of single gold
standard.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-09-18

THOMAS BOWLING & co.. Auctioneers,

AAosAaS DoNkiNE x SO-. Auctloneers,
TRUSTEES SALE OF VALUABLE 9ls + sr IS RIA
He 1kSc 4 81 EhS AS k ssSME AshG GfR Eg
f rG ~ THE DISTRICT OF ooLUN-
BY virtue Of a deed of trust given to Us. and
duly recorded in Liber No. 17ol. folio No. 267 ct
Columbia undersigned trustees viii sell at pub
T rs aueiiSn n front Of the PTepsss on TUESDAY
1898, at FIVE O'CLOCK PM. the following de-
scribed real estate and premises. lying and being
Of and ST a to % Part Of
ing eight 49, acres. more less, being that pa RI
perches Wing south OF Thomas Ftnams road hd rum M
ming southwest from the 18th turnpike north
known "a Battle sse n heinz ties
southwest eight .s) acres OF the tract conveyed by
duly recorded among the land records Of said Dis.
trct in liber No e41. folio $50 seq. bounded on
Of Foods and Prtse. OF on s she uor
west by Fftnam's tract, ON the south and east by
from Fitnam's to 18th street road. or Bpishtwood
'f o iss tas ss sa s
s sTS% William asn M SEee1 ct ga to Charles Grain
after survey of r. n. carpenter October 'I isss'
ct seq. ~ -''-' UNIV '''
of saS for S Be I. sd t.
years, with interest at per cent. payable quar-
Terms Of sale: The purchase money over and
above the trust mentioned to be paid onehalf cash,
sns balance s, in GGe year secured by deed Of
Or Of al sos a The s. option Of the
sale II the Of sale are not com ne With
the risk and cost of defaultins purchaser All con.
'e''''ns w. ii. sH SSii s. H TrSsies
CHAs. A ELLIOT. Trustee.
seo-d&ds Fendall building.