The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-02-21


that Of contracting the currency by de-
stroying the greenbacks. In pursu-
ance of this plan the act of April IL,
1886, was passed whereby it was pro-
vided that regular and systematic
cremation of greenbacks should take
place.
| Let it be remembered that upon
this government money, the green
backs, the people did not pay inter
est. It was backed by the govern
ment, which made it safe and reli-
able, and issued in sums convenient
for small as we'll as large business
transactions. The money-monger,
with $1,000 in greenbacks, had found
it necessary to employ that money in
order to derive any profit from it.
This added to his care, which appar-
emily was the very thing he sought
to avoid; investments in commerce
and manufacturing required his per-
sonal supervision; investments in
houses and land incurred taxation,
risks, and often loss; but investment
in bonds seemed quite suited to his
esthetical tastes, for they returned a
rich, golden harvest, without any Of
the annoyances Of taxation, insur-
ance or even the care of looking after
his Investment.
Is it any wonder he hailed with joy
the contraction policy, and gladly
gave his 81 900 in greenbacks Ito be
consigned to the furnace), in ex-
change for $1,000 untaxed, interest
bearing bond9 But what of labor
seeking employment for it. Shylock
has invested his property in bonds, he
has no need Of labor; true, labor must
pay the interest on his bonds, but he
has no employment for it. While
this 81, 900 was in government money
it could have given two men employ
ment in some profitable business, but
with his money invested in bonds, he
kicks labor into the street and growls
about the inefficiency of the tramp
law. He does nothing whatever to
advance the interests Of labor, but
drains it's life-blood in payment of
his everlasting interest. By invest
ing the $1,000 in bonds it is taken
from circulation. There is ST. 900 less
for the people to do business with,
and 81 900 more for them ito pay in
terest upon.
Again, by contracting the volume
Of money it lowered the prices Of other
property and added that much more
to the burdens Of the debtor class
For instance, Mr.. Burt bought a
farm for $4,000, when wheat was 81
per bushel. He paid $1,000 cash, and
placed upon it a mortgage for the re-
naming $4,000, which he expected to
pay with wheat at 81 per bushel. A
part Of the $4,000 cash invested in
the farm was Mr.. Burt's savings from
his service in the army. He was a
good soldier and bore testimony of
having seen active service. He was
one of the first to enlist, and stood by
the old flag until the last shot was
fired, then he returned home deter
mined to spend the remainder of his
days in the enjoyment of that peace
so nobly won: accordingly he pur-
chased his farm, little dreaming of
the vicissitudes that awaited him.
Before the first pay day came
the money Of the country had
been contracted Is per cent, the
price Of wheat had been reduced
in the same ratio, from $500
to $3.50 per bushel. Neither the
debt nor interest had in any way
been contracted, and Mr.. B. found it
necessary to hire $3.50 to make up his
payment. He had not been disap-
pointed in his wheat crop, it was even
better then he expected, but for some
ineXplicable reason the price was not
what he expected. He was told there
had been an over-production of wheat,
that the supply was greater than the
demand: and yet he knew that one of
his neighbours, a day laborer, had never
been SO hard pushed to keep the wolf
from the door, The laborer Was sober
and Industrious, Mr.. Burt had often
employed him; but since the price of
wheat had declined, he must ecomo-
mize, and the first step in economy
was to reduce the wages of his
"help."
When the next payment came due,
wheat brought but 81 per bushel, and
Mr.. Burt was obliged to hire $500 to
meet his payment. In applying to a
national banker for assistance, he
found that "money was scarce, but
he would try and get it for him at
one per cent month" Mr.. Burt
concluded to look farther, and after
a long search found "friend" who
let him have the amount at 10 per
cent in Advance. This, taken from
the $500 left him $3.50. The other
$50 was made up by selling a few