The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1894-11-07
THE FINANCIAL QUESTION.
Against she Theory of Over-Production
as the Cause OF the Great Depression.

Against she Theory of Over-Production
as the Cause OF the Great Depression.
To the Editor of The Herald anG
News: Since having an article on tht
financial question published in youl
paper, have had many to attempt tt
convince me that over-production was
the real cause of agricultural depres
sion, but I must say that their argu
ments appear vague and meaningless
I suppose that gold monometalists ane
over-productionists will admit that oul
homes have declined in value since the
demonitization of silver.
will take the following from stats
tics of the Government report and We
will see that the decline up to 1890 has
been one hundred per cent. The aver
age value per acre in 1870 was $500, TO,
for 1890 it was S2S, and the decline since
1890 has been enormous.
Now, to follow the trend of their ar
guments, we added Alaska to our ter
ritory several years ago, and the prodi.
gious increase in acreage was out Of al
proportion to the steady increase in de.
maDd for homes, and, as a natural re.
suit, land had to decline. Such is very
vague, but it is just as logical as the
arguments which contend that there is
an over-production of cotton, while the
majority of our people are in actual
need of cotton goods.
| admit there is an over-production
to the same extent that an Injustice
has destroyed the demand. If we dis.
continued entirely to plant cotton
would that restore to our homes and
personal effects their former value. II
seems that gold bugs and over-produc.
tionists can see only one side. They
contend that il one half of the cotton
crop could be destroyed the other hall
would double IN price. They talk 8
great deal about supply and demand
and, at the same time, ignore that fun
damental law, by misapplying its prin'
ciple.
We once had an adequate supply OF
money to carry on the business of this
country and prices were normal and
satisfactory. In 1873 one half of our
real money was destroyed, but gold
monometalists refuse to admit that the
remaining half has doubled in value.
Now when [ speak of money power,
mean spectators in gold and not all OF
our banks, for the banks business is
increased in the same proportion that
the ability of the people to handle
money is increased. The money power
can now corner the only real money
and reduce prices to any extent desired.
Except where our imports exceed ex.
ports, foreign trade is our debtor. Last
year the excess of our European exports
over imports were $203, ,526, ,617, and
yet there is a continuous flow of the
only money that measures values from
our country to Europe. Now to keep
the token money on parity with the
redeeming money, it must be with
drawn from circulation at the same
ratio that the volume of the basal
money is reduced; the effect of this is
that prices must decline all along the
line.
There is nothing under the sun more
subtle and insidious than the money
power, and Mr. Cleveland is now look
ing on at the country writhing for life
in its deathly coils with an Indifference
that bespeaks his assent, and when we
complain of the oppression there are
some who are ready to read us out Of
the Democratic party.
Germany adopted the gold standard
about the same time we did, and /
have just read in report Of their late
monetary conference that their agri-
cultural districts are rapidly becoming
depopulated; that farmers who were
once we'll to do, are now actually the
recipients of aims. They do not attfib-
ute this stste of affairs to any o7erpro-
ductiop, bnt admit that it is the natural
consequence of the great appreciation
of gold that silver-standard coun-
tries are enabled 10 throw their
native products on the German market
at prices far below the cost of produc-
tion in Germany.
There was some evidence submitted
to Congress in 1892 to prove that silver
had not gone down in relation to com.
modities, but only ia relation to gold,
and the following is the substance of
part of that evidence: India does busi-
ness on silver basis. The Indian
shipped his cotton to London in 1888
and received 1878 cents per pound.
The A Anerican also shipped his cotton
to London at the same time and re-
ceived l3.78 cents, because gold and sill
yer were then at par. In 1892 the In.
dian shipped more cotton to London
and still wanted 13 75 cents. In the
meantime we had adopted the gold.
standard and silver had gone down to
80 cents an ounce. The Englishman
goes to his bank and finds that he can
buy 1878 cents of Indian silver bills
for cents in gold, so the Indian gets
1878 cents for bis cotton and goes home
satisfied because his silver had not gone
down in relation to any commodity
The American also shipped more cot.
ton TO London in 1892, and finds tina.
the Englishman had bought the In
dian's cotton for 8 cents in gold. Now
he has to take 9 cents and be salts
fled, as be has the gold standard. oipct
1892 the divergence of the two metals
has been unprecedented, and the abili
ity Of The Americans to compete ha!
been correspondingly destroyed. 1t ii
time for the American to awake to {
realization of the fact that it is q suici'
dal policy for him to any longer at
tempt to compete while under the golC
standard. But the money power ant
its henchmen say we must have 81
honest dollar. Now. I am willing II
concede to the creditor the right to hi
pound of flesh, but not to one drop 0
unnecessary blood, and if a dollar mus
demand more and more of labor's pro
duct to be honest, I contend that j
would be to the public veal not to hav'
it so wretchedly honest.
Suppose we take up the dishonest
dollar that we have heard 80 much of
and see if We can discover how it came
to be dishonest. In 1873 scheme was
conceived in Europe and matured al
Washington in committee to demon
etize silver, which was the embodi
ment of theft itself, and 80 adroitly die
England's satellites manage Congress
that our represen tatives did not know
until after a considerable lapse of time
that they bad actually destroyed the
money function of silver. There was
M hill fhet Dassa6 Conorpss nor coI1ld