The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-09-25

ly the fact that all forms of money, me-
tall1c or otherwise, must come from Gov
ernment of some kind, int being admitted
that there is no such thing as private
money even though that function
is now being exercised by national banks.
While the plan of banking as set forth in
the Omaha POpulist Platform may be as
good as any, if not the best, yet national
legislation would be necessary to secure
that end, and that would mean a delay of
most probably eight years, even under IA
vorable political changes and conditions
That it will ultimately prevail is very
probable; but here the question arises,
Can the American wheat and cotton-rais-
ers live without combination to secure
better prices and until that object is at
tanned? AS one engaged in the produc-
ton of one of these items-and sharing in
common with my fellow producers the
penalty of forty-cent wheat and eight or
ten per cent money! am of tn opinion
that they cannot. The extreme point of
tension between the creditor and the av-
erage debtor producer has already been
reached. The present temporary lull in the
matter of foreclosures-which is very
generally mistaken for an improved con-
dition of the money markets. ordinarily
due more to fear of loss by the creditor
than it is to any consideration for the
debtor. The creditor class know that
wholesale foreclosures at this time, when
lOw-priced products and high-priced
money prevail, would result in their loss;
so they make the best of the situation by
announcing that they have more money
than they know what to do with" But
this is not true. They still want their
money, and they want it Immediately,
and they will start in foreclosing when
ever the condition of the land market
insures sales at the face value of the
mortgages. It was knowledge of this
fact that prompted the suggestion of
wheat and cotton trust with it's auxiliary
banking department. The idea is to fun
nish an immediate means of relief, not
only in the matter of better prices but in
less burdensome loans as WE'LL, and it is
now my desire to divert attention from
the plan of Government loans embodied
in the Omaha platform. The banking
system herein suggested, based upon
mortgage bonds, while far superior to the
present system for both the depositor and
the borroWer-giving to the one, as it
does, mortgage bond instead of an unse
cured certificate, and to the other an cas-
Ter method of repayment-is still inferior
to the government bank, because it neces-
states, under the present national bank
ing laws, the use of private money, as in
the case of all other banks.
The wheat and cotton-raisers' associa-
tion, however, would be entirely independ-
ent of the banking plan suggested, except
as regards cooperation or mutual air,
and the relations existing could be sew
cred at any time that the Government
would come to the rescue in the matter
of making loans, but the necessity for
producers association will always exist.
While it is true that any increase in the
money volume would have an immediate
effect in raising prices of products, yet it
is equally true that these prices can be
maintained only by combination.
That the price of anything and every
thing can be regulated only by combina-
ton, is a fact admitted upon all sides.
Even gold is no exception to this rule.
1t is a matter of history that the yellow
metal-now worshiped by the money
changers as a thing possessing some d-
vine poWer-WaS once so seriously threat
ened by what they are pleased to term
"over-production' that these same mon
ey mongers took steps to prevent its fur
Their use as money. They were afraid
that the obligations payable to them in
the coin of the United States, gold or
silver, would be paid entirely in gold,
and it is more than probable that their
fears would have assumed the form of
legislative enactment if it had not been
for the fabulous silver mines of Nevada.
The discovery of these and other great
silver mines about that time gave rise to
another fear, and that was that silver
would become too plentiful, so they has
tened back to the fold of the golden calf
and commenced a systematic fight upon
the white metal, which resulted, as every
producer knows, in its characterization
Since the money changers, tnen. have
demonstrated very clearly, if not to the
entire satisfaction that the price of any
thing can be established only by curtail-
ment and combination, this suggests
and makes it even necessary that we
adopt their tactics and fix the price Of
wheat, and cotton curtailing the
output, if necessary, to a single
bale of one and single bushel of the
other But it will not be necessary to re-
duce the output to any great extent in or
der to realize fair prices, when the or
ganization is once under way.
The question, then, is organization:
How can this be accomplished?
Incorporate a company under the name
of "The American Wheat and Cotton
Raisers' Association" with a capital stock
of say 81 100000, divided into 1000 900
shares of the par value of one dollar
share, the objects of which shall be to
buy and sefl wheat, cotton. corn and
other breadstuffs, both raw and refined,
to establish and operate flour mills in the
several states, to establish and operate