The herald., 1896-09-27
Of God and Democracy"
WILL FREE SILVER HELP CALI
FORNTA7

Questions constantly asked are:
First-Would the proposed free coin
age OF silver at the ratio of 16 ounces of
silver to Of gold be of direct benefit to
the state of California?
Secondhand II so, what would be the
source, nature and extent of these bene-
fits?
attempt to answer these without the
incentive Of an essay prize.
The free coinage of silver at the ratio
or IL to l would benefit California be-
cause:
First-It would arrest the shrInkage
or values-the falling prices
Second-1t would arrest the farther
appreciation of the gold held by the
few.
Third-It would furnish a larger and
higher price market for agricultural
products.
Fourth-1t would stimulate: (a) Do
mestic and interstate trade; OBJ manu.
featuring industries; (c) mining.
F1fth-It would cause the supply of
employment to the unemployed.
THE SHRINKAGE OF VALUES.
In California, where conditions are
better than in many other states in the
union, values are upon the decline. The
farmers acres and the capitalists city
| lots have both deprecated, and are con-
tinuing on the downward scale.
Lucky" Baldwin, one of the largest
| single owners Of landed interests, city
and county, in the state, recently tes-
| titled In court as follows
| Q.-Were you not once rated a ten
times millionaire?
Al guess I was, but values have
] shrunk since then.
IN Los Angeles young man saved
his money and on monthly installments
| Duiit home few years ago that Abst
Szo0O Today he cannot get over $1,000.
| Ior MS investment. if he can get that.
Anu an property values have fallen and
are railing In proportion. Why have
values shrunk?
Ihe cause OF falling values is con-
| traction. The contraction of mon ev
caused the diminution of the value NJ
property as expressed in money. The
volume IN money gauges porperty val
| ue. BaldWin's property has inherent
Tor 1ts uses and utilities just as much
value as it was when he was rated a
ten times millionaire He has inst Is
many square feet of land in San Fran
cisco and as many acres in Los Angeles
! county and elsewhere, his hotels will ac-
commodate as many guests and his acres
| produce as many oranges, grapes and
wheat, but the value expressed in mon
| ey Is less because money has appre-
ciated. The cause of its appreciation is
| sAC AoSh VI NOiuIIle III circulation. The
| effect of this shrinkage on Baldwin and
the young man with the home ia TO inn
pair their credit in proportion to the do
cline in value Of their property. And
thus it is with all owners of property in
California.
California, according to the census q,
1880, is one of three states which has
the largest mortgage average, which Is
$500 per capita. 1t has the enormous
mortgage debt in acres and lots of s241. :.
C5O,1S1 Its annual interest charge or
this debt is $2,225. .000 Thus it is eyident
that property is mortgaged to the full
limit. Recently in an interview in the
Chronicle, John B. Steffen, a well-knowr
banker and business man of Sacramento
is quoted as saying:
'The savings banks have vast sum,
on hand and they cannot make good use
of more money in these. dull times, 81
they discourage people from making de.
posits.'
The reason Of this ought to be. but +
is not, plain to Mr.. Steffen 1t is because
the people have nothing to borrow from
banks and if they did there is no institu.
| tion that would pay for lack of none,
| circulating among the people to buy
| what they desire and need.
California produces about $500, 900 sill
yer bullion at present per annum. Free