The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1893-09-22
A FINANCIAL cATEcHIsM.
rom Kate Fields wushlngton:-

What is money:
Whatever the markets Of the world
ecide.
What is used as currency.
Gold ard silver.
Have these metals always been so
kpplied?
No. Australians once used stone
|labs as the medium of exchange: Feiee
Islanders used red feathers: Romans
used oxen; female slaves served this
purpose in ireland before the Roman
Invasion: eggs, iron, tin, Zinc-all have
been used in the process of evolution
from the inferior to thesuperior article.
Is then the medium of currency a
process of evolution?
1t is, most emphatically. The slow
moving finger OF time has not changed
hts motion for second since 1898, when
England subordinated silver to gold.
Why did she?'
Because she reached higher level,
and the world has not receded from
that position, The more precious of
the metals has universal preference.
In protesting against gold you protest
against the forces of evolution.
Is the Sherman purchase law respon-
sible for all our woes?
1t did not cause the Federal Bank of
Australia and fourteen other great
banks to fail in 1898, nor the Barings to
fail two years before. The Anglo-Sax-
on had over done the business of the
conquering hero in distant lands. but
we are unquestionably the primal cause
of our own present distress.
How so?
BY class legislation we turned from
our shores the golden tide of foreign
capital, and forced it to seek lodgment
in bankrupt, insolvent. irresponsible
and unprosperous countries.
/ When did we begin our mistakes?
In 1878. We have been trying to set
/ ourselves against the tide which is run
ming round the world-the tide of a
/ single standard. 1t is as useless as for
King Canute to attempt to turn back
the ocean breakers, when, seated on the
beach, he ordered them TO stop.
Did our coinage OF silver begin in
1878?
Yes. When we resumed gold pay
ments in January, 1879, we notified all
the world that the United States o
America would pay its debts in the
money OF the world.
What was the consequence?
The money of the world began to SCI
our way.
Who control the money of the world:
Primarily the middle and poorer
classes of England, France. Switzer
land, Holland and Germany. 1t is no
the money of plutocrats that comes il
blocks. 1t is the aggregate of small
savings.
Did gold come in rapidly?
Yes. The largest total was the tisca
year of 1881. when it reached a total o
s97, ,466, ,l27. The net aggregate for 81:
years ending June 80, 1893, was $lS7,
67l,O27.
What was done with this gold?
1t built railroads. waterworks, i'm
proved highways and largely develope
the great west, the very states tha
now denounce the metal to which the
are SO deeply indebted.
When did the gold tide cease:
On June 30, 1883. when it was learne
through published reports that the 81
/ yer in circulation at that date ha
reached the sum ofsl20: :95S,7ll. A yea
later the aggregate outstanding rose
S169, ,6O5 900 and in 1885 it attained tn
colossal proportions OF Sl7SO0O.OO0.
What were the results?
English capitalists began to pull OIL
and they've been pulling out ever since
Is this the reason English gold wei
to the Argentine Republic?
Precisely. The English wanted to
sure OF gold payments. When thos
South American investments failet
their remaining American securitie
were thrown on our markets to say
themselves from ruin. We almo
broke our backs trying to take care
them.
What would happen if we should +
peal the Serman law?
The events Of 1879 would repeat thel
selves. Millions of dollars would lea'
Europe for our shores. They won
fill all yhe veins OF commerce. The
would contest all the channels of circ
lation.
Would money be cheap?
So cheap that you could borrow it
New York ON good collateral for lie
than , per cent per annum, and it wou
flow all over this broad land.
Why have silver and gold grown
far apart?
R,,r nv Er