Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1893-08-18
FACTS AND FIGURES.
HOW MILLIONS HAVE BEEN AC-
CUMUlATEO.
Practical Flnancier,s View of the
Conditions OF the Country and
what Has brought Them About
A Suggextive Arrangement.

"hnt mas drought Them About
A suggestive Arrangement.
Alexander Majors book, Seventy
Years on the Frontier" has a chapter
which throws Il glaring light on the
present great financial problem. 1t is
more comprehensive in its review of
the main causes which have brought
about the catastrophe cyclone that is
creating business devastation than the
message of the President, or most of
the resolutions and speeches of the
politicians and bankers that absorb so
much of the time and attention of the
public. Mr.. Majors fortiiies his theor-
les by hard facts that will be recog.
nized rs authority by financiers. The
chapter starts out with an inquiry as
to the cause OF the existence of the
large millionaire class in the United
States, and the methods of its crea-
ton. Not only are there hundreds of
Americans who have amassed fortunes
ranging from $l,OOO,OOO to $lOO,OOO,-
600 within the last thirty years, but
hundreds OF foreigners have accumu.
lated immense wealth in this country,
and now hold it. There is now in a
comparatively few hands an amount
OF railroad securities representing the
enormous sum of $4,000, 600 600 ;
national bonds to the amount of $780,
100000, and State and local public
bonds equal probably to So, ,OO0, 600, 600
The last census reports about 9,OOO,-
600 of pending mortgages upon the
homes and property of the people. 1t
is estimated that the sum of $1,000.
100000 is required yearly to pay in
terest on this Indebtedness. A very
large percentage OF this Indebtedness
is in the hands of foreign capitalists.
1t is a conservative estim ate that OF
10000, 900 900 of railroad stocks and
bonds, one-half is held by foreign.
mostly English, capitalists. To prove
that these foreign holders of Ameri-
can railway bonds did not send us
gold, silver or merchandise for these
securities, the author quotes from the
report of the Secretary OF the Treas
ury in 1891, which states that since
the close OF the war, in 1865, our ex-
ports OF gold, silver and merchandise
exceeded our imports in the sum OF
1872 .OOO, 900; so that it is very clear
we have been sending them an i'm
mense amount OF money and mer.
chantlise over and above the amount
we have imported from them, and
whatever may have been received from
the railroad bonds is still to he ac-
counted for"
Mr.. Majors then reviews the finan-
cial history OF legislation during and
since the war. showing how the $2,-
0OO, ,OOO. 600 of paper money issued by
the government during the war was
put in circulation by paying it out to
the soldiers, sailors and creditors OF
the United States, but the government
would not receive it back in payment
of duties on imports, but would receive
it from any one who wished to pur-
chase 5-2O government bonds, taking
it at its face value. The interest on
these bonds was 6 per cent, payable
in coin. In February, 1868, q law
provided that after July l, 1868. the
paper money shonld not be received
in: exchange for bonds bearing inter.
est payable in coin. The effect Of
this law was to depreciate the paper
currency until it was worth only
about 40 cents on the dollar, but the
soldiers we're still compelled to take
it at its full face value, and even after
the close of the war, in 1865, our gov
ernment issued many hundreds Of
millions OF this deprecated paper, and
paid it out at 100 cents on the dollar.
During the winter of 1866, an
agent OF the Rothchilds went to
Washington and secured the enact
ment of law providing that any per-
son might take any of the deprecated
money issued by the government for
the purpose OF paying off the soldiers
and other expenses of the war, and
exchange it at the full face value for
bonds of the United States drawing 6
per cent. interest in coin, payable
semi-annuslly, and that the money
paid for such bonds should be de-
stroyed within three years after the
close of the war. By this means
nearly 81 900, 900, 900 of the currency
of the country was withdrawn from
circulation and destroyed, and an
equal amount of 6 per cent. coin
bonds was issued in place of the cur
rency that " as 30 destroyed.
"No laws that were ever enacted,
and no DEGREES that were ever pro-
mulgated by any tyrant that ever sat
upon any throne, ever enabled few
to mass wealth as rapidly as they were
enabled to do under the provisions of
these laws"
Under these two laws, the currency
WAS first deprecated to less than so
cents on the dollar, and then this de-
preciated currency was permitted to
be converted at its face value into 6
per cent. coin bonds, enabling the
Rothschilds and other European
bankers to realize II per cent. on their
cash investments in our deprecated
currency. The coin interest on these
bonds, paid every six months in gold
while that metal was at high pre-
MUM, reached the sum of about $45,
900, 900, which the bondholders could
take into Wall street and sell at 5O
per cent. permium, adding another