Capital journal. (Salem, Or.) 1893-1895, 1894-03-20
Reply to Country Jake.

me q space to say a few words T.
Brother "Country Jake" partly in ex
planation of some things the type
made me say which were not In th
manuscript. He thinks 1 should b
slammed into jail and fined for sucl
slanderous statements, end this nigh
be the best plan to stop investigation o
this Subject. The IN ia the letter wa
made In type and this stated billion
where millions was intended, (actuallJ
the conservative estimate is 30 billions.
Then ] said: " Any one can see that a
money decreases in volume or busines,
increases In volume 1.-THE effect is t.
lower value of every thing as compar'
ed to money" The type makes volume
read value, which changes the senst
entirely. So in several other place
that does not make 80 great difference,
probably caused by poor writing, bu
there is plenty of facts left that Coun-
try Jake carefully avoids mentioning
He knows that wheat will not sell fol
90 cents today average in three or i've
principal markets, and L am told thai
IL cannot be sold in Sllverton nor Sa
lem for cash at any price, in any large
amount. The prosperity of the United
States, mentioned by Bismarck, was
the "average" made up of the dollars
ofthe many and the millions of the
few. AS we'll cite the average rainfall
OF this state to prove that there has
never been a drouth in Eastern Oregon
nor flood in the Willamette.
Then he says Lincoln signed those
laws, yes, under protest, and as the
only alternative to the dlsmembermen
OF the union.
Will he favor us with the remarks
made by Lincoln on the subject. Also
John Sherman when the contraction
policy was inaugurated?
But for the present we will accept &.
Us statement that the taxes, penalties
etc. do exceed the 3 per cent that is
received on the bonds. Does he mean
to assert that per cent is the average
since the bonds were issued? i guess
not. Again, If the government gives
the bank 100000 on u 100000 bond,
there 10 evidently, all but $4,000 of
that bond paid in money. Now, at
the and of tho s,a.- 49, Stsa'ts N--.''-
$1,000 Interest. Is that or 80 per |
cent. Get your pencil out. The bal
ance due the bank Is $4,000 until he
returns those notes and the interest
drawn is $4,000. See?
Now the Average Populist" does
not immagine, nor assert, that the
banker goes off with both bond aud
money at the end of the charter limit,
but they do assert and can prove that
the bank has the use of both for the
full term of the life of the bank.
Then comes qIibble about the
amount of illegal tender" in circulation
which has not varied in fifteen years.
The amount stated agrees very nearly
with the report OF the comptroller
which is near 3l8l millions. They
have not varied because 1t has been
over fifteen years since the green.
hackers caused congress to call halt
In the "retlrement policy aud the su-
preme court said they were right; but
that Is outside of the question. 1t is
the national bank currency that |
stated could be expanded and contract
ed at will, and this statement is
carefully evaded by q. j. Now about
the contraction about 1865 to o.
These are not ROarlcks nor Swanks,
but reports of U. S. comptroller. In
1885 the "debp Aug. Slst. was S2,sl5,.
907,026.05. The bonded debt was
81, ,l09,5s8 l9l. Then the balance In
use as money was 81, 7S6,82l 1866.
Page S5 OF comptrollers report In 1889
as to the bonded debt at various periods,
says that on June 80, 1869, the bonded
debt was 81. l66, SOS, 02O.
The bonds issued from Aug. 81, 1865
TO June 80, 1869, were exchanged at par
for legal tender, greenbacks and OF
course the bonds could not be used as
money and the greenbaeks were "rt-
tsredN and burned, there was IA con
traction in less than four years OF over
one billion of dollars. There are SOME
quibbles about what OF the different
"evidenees OF debt" were, or not In use
rs money, but any far minded person
must admit that all but the bonded
debt was used rs money by the people
at that time. Now the point make
is that the national banks have the
power TO increase or diminish the cur
rency volume 10 almost any extent,
arbitrarily, as will best serve their in.
leresls; that IL has been done in the
past and that such power Is contrary
% the best interests ofthe people OF The
United States. Can Il be denied
Now as 10 those failures" statist cs
Or 1879 and 1898, No one has said
bat the absolute number OF failures
gsre the same. On the Contrary Il
gas stated that ia proportion 20 busi-