Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1896-06-21

1t. So, il wo were to- destroy 10 pei
cent OF the money 10 per cent OF the
monetary vsine OF property would
pass Away with it. Now, the value OF
all the property OF the country is
many times greater than the aggre.
gate value OF al! its money, and the
reduction OF property vnluc in money
Is Just so many times greater than the
amount Of the reduction ctthe rleGey
in which the asee-sment or valuation
is made.
With diminishing currency and di-
minishing values Of property, it is
quite evident that the burdens OF debt
and taxation is increased. The debt
remains a fixed figure. There isa less
supply OF money from which the fund
must be derived TO pay it; there is
n less aggregate valuei OF property
from which the fixed debt must be
hquidated. The creditors demand
draws with the same power, and, in
deed, with increasing power, since in
terest uccumulatos day by day, while
the supply OF funds on which the de-
mand is made dimiuishes, md the
supply OF property from which the
funds must be extracted also dimin.
ishes. Hence, u larger proportion OF
the debtors property must now be
taken topay the debt. Just SO with
taxation. Public expenses, such as
fixed salaries, contracts to supply
armies and build navies, to conduct
schools, and construct roads and make
other improvements, and interest on
public obligations, all these items in
the continuous budgets remain ut a
stationary figure. and the funds to
meet them must be derived from de-
Ginning values OF land, OF personally,
and OF business. The assessments
made for taxation before the con-
traction Of thei currency took place
remain, while the subjects of taxa-
ton are shrinking in value. The tax.
payers must now pay Il sum which no
longer represents the value on which
it was based. The burden is increas-
ed, the power to bear it is lesSened.
soon as the -reassessment comes
the diminished value OF prowerty is
that taxes must be increased
i'll order to discharge the fixed obliga-
tons.
Credit must necessarily be Impair
ed under these circumstances. We
may say OF it, as has been said OF in
interest, that interest follows the debt
rs tho shadow the substance, and
follows property and ability to
accomplish rs the shadow the sub
He who has trusted another
to pay money must place reliance up
the others property to make good
his realization. That reliance is
the creditors faith that the
means will be forthcoming to meet
the outst anding obligation. This
must weaken us the creditor sees
the property declining III value. The
and the security for its per-
formance are parted Tho creditor
makes haste to collect lest he lose.
Other creditors in similar cases do
likewise. Debtors with depreciating
properties are pressed, their holdings
are thrown upon the market, and the
conditions are stimulated
and precipitated by the steps taken
to forestall and prevent loss.
With n weakened credit all enter
prise must feel the checkrein OF hest
~tation, doubt, and distrust. The cir
.ulating medium now secrets and
and hides itself in banks and
and stockings. He who has
money fears either to loan it upon or
invest it in property which is declin-
ing i'll value. Self-interest stays his
hand and he refuses to buy. for he
says to himself:H Tomorrow | can
buy cheaper Bank of undoubtcd
'olvency finds funds accommodating in
heir vaults and staying there. be.
cause money is constantly increasing
n purchasing power, just in proper
lion us property is losing in selling
The unjust csteward who
his talent III Il napkin he
comes the only prudent fnancicr, for
Il no loans or buys he may lose, while
the napkin the talent is growing
iaily III it's power to command what
property the owncrs desire.
moncy,hcnped up III banks.
superficial observer cries ont:
Money is plentiful; see how much of
it is piled up here!' lie forgets that
it is stagnated, piled up, and heaped
together for the very reason TINT there
Is no temptation to invest it or circu-
late it III loans upon declining values;
no forgets that il there wore moro OF
it values would rise and not decline.
and II would then pour out i'll volume
tempted to turn itself into property
order to get the benefit Of rising
he forgets that IL there was
more OF it it would he fulfilling the
mission which its very name, "circu-
medium implies it was destin-
ed to perform. 1t would be circulating
rom tho owner "a tho farrarr ail lao
landowner, and from them TO tho In.
and to the merchant. from them
the manufacturer, from tho manu-
facturer to the lumbcrmun, tho miner
quarrrymau, the mechanic and from