The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1894-01-16
LIKE A PROPHECY
AEE THE WORDS or MAJOR BACON,
WRITTEN LONG AGO.
Every Prediction Fulfilled and the People
warned Against the Continued Sway
of the Gold Standard, Etc.
Editor Constitution-In handing you, a!

by me in The Telegraph and Messenger or
the 9Th day OF February, 1873, L beg to ado
u few words
l. 10 prevent misconstruction it is proper
10 say that The Macon Telegraph to which
the foregoing letter was originally written
now favorS, under it's present management
the repeal of the 10 per cent tax on issues
of state banks
4 The per capita calculation n this letter,
written sixteen years ago. was based Upon
an estimate of a population of about 49,
100000 in the United States, whereas, the
population now is over 65,G00000.
.. The letter was written Immediately pre-
ceding the date of the passage of what is
known as the Bland-Alison act, by which
the coinage of silver dollars was authorized,
ana the same made lega, tender.
d. The reason why the bills of state banks
would for the most part remain at home,
ana not circulate generally in other states,
is, not because such bills could not be made
good, but because the greater part of the
volume Of any paper money will always re-
| main in circulation in the neignborhood
where 1t is to be ultimately redeemed.
| o. Ihe contention that the increase in
the silver coinage will not be sufficient in
Itsef TO relieve the financial distress of the
| country was not Designed then and is not
| designed now, to depfeciate ~ any degree
the great Importance of the free coinage OF
SiIVcf. Inc silver coin is absolutely essen
| ual 10 prevent the undue appreciation in
| tne N&lue OF money, ana the corresponding
| depreciation III the values of property, and
| it is requisite as large part OF nc coin
| basis upon which the bins of state banks
| are to be issued. The free coinage of silver
| Would OF itself bring great relief to the
| LAX On the issues OF state banks would of
1 mseIL add immensely to the business pros
P pf fboso OF ood iag t country Bur both
| for the desired end. With the free
coinage Ct silver ana the repeal of the 10
| per cent tax there would he every reason
| TO anticipate the full realization of the
| hlSneSt prosperity if TO these are added a
pr2Per ; ,alli lay en- q permanent basis
| anu an individual income tax which will
! require the wealth Of the country to nav
general government. A. o. BACON.
written Fifteen Years Ago
| Macon, Ca, February Z. 187S-Editor TEL
! esfdph ana Messenger: In your issue of
! the 81 instant YOU print the bill recently
! introduced IN the senate by General Butler
/ o. SCUM carolina. which proposes to re-
peai the law imposing the 10 per cent tax
| on. all issues of bills by banks other than
n'Rlonal banks. and in connection Herewith
| you publish an article under the head of
FINANCIAL Wretchedness," deprecating the
| passage of the bill. Tho present distress
OF the country entities questions of dnan-
clal relief to most prominent consideration
and some of your readers are profaundIv
| impressed with the conviction that the re-
peal OF this law is the most pressing need
! OF the country, and that without it's repeal
there can be no material relief to our SEQ
ton at least. AS to whether the repeal OF
! the law and the restoration Of state bank
ISSUES viii result in financial wretched-
ness" we shall probably widely differ and
III anticipation OF such differences il is
peasant before we pursue our diyerGing
roads to be able to state one proposition
upon Whlcn we shall doubtless heartily
a2ree, to-Wit: That the present condition
Oh the country is beyond question one of
decided financial Indebtedness" No
symptom OF this distress is wanting. The
"noie people, stepped to tie eyes in debt
al" "lhOnt fl q e-c-CaT7ng those who at
r1I,,, us cultivation, Whfe without a cir
culating medium, high rates of interest and
fabulous time prices steadily consume their
subsistence; trade langutshing in sympathy
with the distress of agriculture; the mills
stopped while the raw material is at the
door Of the factories and while trained
operatives seek employment in vain; the
wages of mechanics and laborers declining
steadily, and work not t. be obtained at
any Price; those enormously supposed to be
rich hardly daring TO admit TO themselves
how much they are indebted, and now
surely that Indebtedness is growing and
steadily forcing them nearer TO the day OF
confessed insolvency, while the poor impor-
tune for any work which will supply bread,
and the gloomieSt feature of the situation
is that there is hope in the breast of
the most SanGuine that under the present
system each succeeding year VIII fail to
show increasing distress wider suffering
and deeper poverty This is certainly
"fnaMcial wretchedness."
In our agricultural, mineral and manufaC-
turing resources, as q people we possess all
the natural conditions OF prosperity, and 1t
is hardly necessary to enter into an arSu-
ment to show that this general distress is
due not to the absence of values, but to the
want Of a sufficient supply of q circulating
| medium to facilitate the interchange OF
these values, to develop these resources and
keep in motion the natura! industries OF the
country When the supply of this medium
| ig n
country money becomes Unnaturaly appre-
! ciated and property correspondnSlY depre-
| ciated. Property, although intrinSlcaliy val
| liable. becomes q drug and ceases to have
! q market value, and the small supply of
| money shuns Investment in it and is used
! at eXorbitant rates in the transaction OF
| the absolutely necessary business of the
| community. 1t is not difficult to understand
! that such a condition of affairs will speed
lily des'roy the material prosperity OF the
| country.
If, then. it is conceded that the scarcity
of circulating medium is q great evil, and
further that it is the immediate cause Of
| the business depression and general distress
! of our section, we may proceed to inquire
, as to the sources to which we may look
! with any confidence for adequate relief.
Can the promised increase OF silver be
! alone relied on for this purpose? The ami
| mated contest over its proposed remonetiza-
ton has naturally excited high anticipa
| tons of the great good which will result.
| beneficial to the country and to the south
in particular The reasons which justify
and demand it have been repeatedly given
to the public and do not fall within the le-
! gitfmafe scope of this communication
Granting that silver viii be renonetiZcd
that the quantity will be largely increased
and that its restoration to its former posi-
ton viii accomplish great good, the ques-
ton is, will it alone, in it's increase of the
supply of money, effectually and perma-
nently relieve the financial distress of the
country so far as to make further means
Of relief unnecessary? The consideration
of few facts will furnish q negative an
swer to this question
The greenbacks and national bank notes
now in circulation amount to about $780,
600 600. That the amount is grossly made
Quate the distress of the people attests
There is not a civilized country on the globe
that has not much larger supply of money
: per capita than the United States, and there
is no people who need so large a per capita
supply as do the people If the United
States Besides the fact that liV-
ing is more expensive across the water
, | a large proportion of the people make up
| peasantry. receiving very low wages an(
| handling little no money. While here IL
| times of prosperity the labOTing classes re