Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1896-10-29

the banks or the United States, subject TO check, S,SOu|-
100000. This is the supply of money necessary for the
transaction of business. II indicates what a normal
supply of money is for this country. That is. S4.So0.OU0-
900 is in the banks subject to the check of the people
on which they are doing business. This is what the
reports of the banks show. How is it made up? We have
all told. in this country, about 81, 600,O00.O0O of ali forms
of money And yet. with only $1.GOO.OOO.OOO of money
of all kinds in this country we find that there Is S4.SOo'
100000 being used by the people. How do they get il:
In this way:
\. deposits in bank. say. $4,000. &. borrows the Sl0.-
600 from the bank. but does not take the money; it is
placed TO his credit. Now the $4,000 has swollen to
$4,000 on deposit. The $4,000 is still in the baak-
G. comes in and borrowS il. and places it TO his credit.
Now there is $4,000 on deposit. Interest is being paid
on $4,000 of it. a. has $4,000 to his credit. the capital
in his business, on which he is paying no interest X
and c. have each $4,000 TO their credit as capital in their
business, and they are both paying interest.
This is how we find there is S4.S00,0OO!OOO on deposit,
with only 81, 600, 100000 in the country. 1t shows that
business demands $4,S0O.oOOOOo. 1t shows that bust
ness is borrowing $4,000, 100000 OF it. If it did not need
it it would not borrow 1t and pay interest. The lesson TO
be learned from this is:
That the country needs S4.SO0OOO. 900 to meet the nor
NAL demand for money. 1t needs it just rs ii needs a
normal supply of wheat or anything else. II you want
to confirm this, take the loans shown by the TreaSurers
report at 81, 69.ST9,493. With only 81, 6OO,O0O,OOO in the
government, they are loanins three times that sum
This money is furnished how? The banks furnish it with
the credit system, by which one dollar is made to circu-
late in place of three that are needed, and the banks
collect interest on two of the dollars. For each dollar
in existence we are paying the banks interest on TWO
uOiAsllS- luis IL lt a. A"N ann "oAN - "NNN 'H
ume of money in existence up to the normal volume
With $1,GOO,OOO.OOO in existence, the people are using 1t
and paying interest on more than $3y3OO.OOO,OOO addi-
tional. This interest varies from u TO Il per cent. AT u
per cent. it is Il tax of SOS. 100000 annually 10 support
this system in supplying the shortage in our money vol
ume. (Applause)
The banks are interested in holding down the volume
of money, and supplying the remainder needed with
their system. (Applausel They take the quantity Of
money in existence and stretch it like 4 piece of rubber.
And they sometimes let loose of their end. 0+aughter)
When over ay1riciOuS thew sometimes stretch IL too fur
and break themselves, but rs Il rule it is the people that
get hurt and the bankers are benefited. So. If we were
flooded with all the silver in the world available for
use as money we would not have TO exceed a normal sup
ply of money. (Applause) The world has been under
the control of the money dealers. The people have
been made to suffer on account thereof. We have never
had 4 normal supply of money. and have had to tax our
selves as a people to the money dealers to conduct the
business of the nation. Should the world ever be cIIan-
cipatei and an unSelfsh and intelligent civilization be
in control OF it the people then living will wonder at the
existence of such Il period as that in which we live. and
will recite with wonder to their children the statement
that there was n time when all the business OF the world
was conducted on Il financial system. based on twenty
two feet of gold. Q.ons continued applausel
A SILVERS VICTORY WILL PRODUCE A PANIC
They say the election of n free coinage President and
Congress will produce a panic.
The answer is this: As soon as it is known that a free
coinage President and Congress is elected. silver Will
begin to advance. Silver's advance means the decline of
gold. AS everything fell with silver, so will products
advance with silver. Gold will be the only thing that is
falling, and falling gold means the depreciation of it and
its equivalent. Money will be declining in value, and
property will be rising in value. Declining money will
seek investment in those things that are rising. IL is
approaching money that is boarded; depreciatins money
seeks investment in the rising markets. Mhhey will go
actively into circulation. Gold will not be boarded as
it is now, but will seek Investment in those things that
are rising. (Applause)
Put silver in competition with gold again as money
and you take the enhanced value out of gold. The knowl-
edge that it is coming into competition with gold will
start the decline of gold. lADDlauSeD When in is known
that Il new crop of money is coming to compete with gold
in the demand for money. COLDS decline will have begun.
(ApplauseD The wheat crop in existence, in the cIeya-
tors and granaries, begins to decline when it is known
that n large new crop of wheat is coming TO be in c"mpe-
tition with it. ApplauscJ This is true before the new
crop is harvested. And when it is known that Il new
crop of money is coming to compete with the old crop. the
old crop will decline in value. CApplausel As soon as it
is known that a free coinage President and Congress is
elected, we will have passed the rubicOn. and the begin
ming of prosperity will have come. Applhusel Unless
despotism undertakes to override the will Of the people.
They say our security holders will throw our securities
on the market in a rush for gold, and that these sccuri-
ties will fall in value and n panic in stocks and bonds
will be produced thereby. 1t will be their loss aud not
ours. If they are foolish enough to sell us our securities
at the fearful sacrifice they predict, it will be our gain.
and their loss. (ApplauseD We will be the gamers and
they will be the losers. They will not do il. 1t is lot
natural that they should. 1t would he a mad panic of
their own making. (AppIausel Rising prosperity in the
United States would strengthen those securities and not
depreciate them. Applausc)
col CONTRACTS.
They say gold would go to Il premium, and those who
owe debts payable in gold would be unable to get it with
which to pay their debts. The answer is: When silver is
in competition with gold and taking its place as money,
gold will be cheaper than it is now. (ApplauseJ We will
buy more gold in exchange for our products when the de
mand is less OH gold, than we can now. CpplauscJ 10
satisfy the most skcptical. l will Illustrate it his way:
Suppose for a time, while these gold debts are being
paid, that gold is at n premium of 10 per cent. over sill
yer. You would exchange your wheat, for instance. Tor
81 in silver and with the silver buy 80 cents in gold,
whereas, now you receive only 80 cents in gold. BY put
ting silver in competition with gold as money, Tor all
purposes except the payment of gold debts, the value is
taken out OF gold, and you buy 20 cents worth of gold
for n bushcl of wheat. whereas, you now get only 50
cents in gold for the buShel of wheat. tAppdausc.J
The free coinage of silver means that those VINO owe
gold debts will the more easily pay their debt with gold.
(ApplauSeJ
They say that creditors will sue their debtors in a
scramble for gold. Well, that is what they are doing
now. Bankruptcies can hardly occur more rapidly than
they are occurring now. When il is known that RELIEF is
and the creditors seek to slaughter an already
distressed people, the people who have won n victory al
the November polls will be able 10 take care OF them