The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-10-23

AICADLSuOD w 6ASng III OOOAAAB
ga great part of the capital employed
in the business of our land has passed
into the hands of creditors who have
neither toiled nor spun, uthold securl
ties and mortgages. The discourage
ment caused by this state of things is
very deep. After it has continued a
number of years a sense of hopelessness
masters the entire business world; all
desire to undertake business enterprises
is paralyzed; a multitude of establish
ments arc closed; the laborer is forced
out of work; and laborers a we'll as the
whole middle class of the population
are made to feel that a great mlsfor-
tune has come over them. The result,
in fact, reaches still further; a crowd
OF people who were once well to do IN
business have nov become recipients
of aims"
2. This injury to the debtor must at
last involve the creditor, since the
debtor is becoming unable to pay,
3. A set back to German agriculture
is manifest, referable, On the one hand,
to the necessity of selling a constantly
increasing amount of deprecated agri-
cultural products in order to pay
wages, interest, rent, leases, taxes;
and, on the other hand, to the increased
power of competition IN the part of
other countries, silver countries, that
is, and countries on a money basis of
deprecated paper. In proportion as
their silver or paper loses in power to
buy gold, these countries enjoying in
effect a high export premium, are able
to throw their native products upon
the worlds markets at prices far be,
meath what it costs German farmers to
produce them, so plunging these latter
in deep distress.
4. The demonetiza alton of silver Is
also working a more and more visible
injury to German manufacturing in
dustry:
(G) On account of the ever-lessening
ability of the farmer class to purchase
manufactured products.
o. On account of the decrease in ex-
ports to silver lands and of the cons
quent recoil upon the home market of
the articles hitherto exported thither.
(c) On account of the competition
offered by the rapidly developing a
ufacturing plants of silver lands,
favored by the low cost of production
there and by the premium upon expor-
tation therefrom produced by the fall
in the gold price of silver.
Unless means are taken to prevent,
it will not be long before the manufac.
tured products of the silver countries
will find the German market, To i'm
port Indian yarn into Germany is
already a paying operation.
5. A suppression Of the desire to en-
gage in industry is the natural result
of falling prices. Instead of being ap-
piled to undertakings that are for the
peoples economic advantage, capital
seeks investment in securities consid-
cred certain to pay interest. Lower
rates of interest result. In order not
to suffer from this, uncertain foreign
securities are purchased, Occasioning
heavy losses of German capital, espe-
cially bad for small investors.
6. Capital cannot permanently keep
clear of the injuries which debtors
suffer, nor can it remain unaffected by
the falling off of production. Ooliga,
tions made payable in gold lead to the
bankruptcy Of individuals, as well as
o States [Greece, Portugal, Argentina
Z. Constantly increasing difficulty
besets countries which are financially
involved by having gold debts to pay.
Instead of being able to reduce their
finances to order, they are confronted
with an increasing agio upon gold, and
also, corresponding to this, with an in
crease Of the premium upon the pro
ducts which they export. This expor-
~tation, moreover, is to the disadvan-
tage of the manufactures and the agri-
culture of the lands having the gold
standard.
8 There results a permanent injury
and exhaustion of Germany's silver
mining industry, which cannot be nor
mally carried on at the present prices
of silver. But as silver mining ceases
there also lease in great part the pro
.uction of copper, lead, zinc, etc. In
way many millions are yearly lost
to the income of the German nation
many thousands of laborers are de-
of bread; entire districts of Ger
many are ruined.
9 A falling of amounting to billions