The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1896-10-08
THE FARMER.

he gives this matter little fenectlOn
and reasons Us follows:
1T IS true that prices were high
these times and money was made by
all producers. What could the cause
be? Was it because the quality Of
our money was poor? Before the
opening of the war and during the
early part of it money was quite poor,
but times were not so very good.
During the war the population of
the United States was less than half
what it is now. Millions OF men were
drawn from industrial pursuits to
serve in the army and their wants had
to be supplied while they were not
producers The government was a
heavy purchaser of everything and an
immense demand was created with a
diminished source of supply, because
of the large number CT men in the
army who were withdrawn from the
producing classes These are the
very conditions which raise prices, in
creased, demand lessened supply. Why,
| can remember when there were rum
ors of war in Europe, some people IN
this country were inhuman enough to
hope war would come SO that prices
might be raised. War always causes
prices to raise. As l look at it now |
don't see why | was foolish enough to
think for a minute that times were
good because money had deprecated.
The government had to borrow the
money with which to pay the expenses
of the war 1t borrowed to the eX
tent of about two billion dollars That
money came from all over the world
and was spent in this country. That
helped to make times good then. If
all of us IN Manitowoc should start out
and borrow all the money we could
get by mortgaging our farms, while
our credit would remain good we
would apparently have good times.
Money would be free and we would
live high. But when the time for
payment came times would not appear
so good.
That is just what occurred during
war times. The government borrow
ed almost to the extent of its credit
and spent the money in paying soldiers
and buying munitions of war 1t gave
its bonds for this money which is Just
about the same as mortgages on our
farms. 1t has been paying these
mortgages or bonds ever since and
times don't seem as good as when it
was spending the money. OF course
the government must get the money
| with which to pay its Indebtedness
from us. We are paying now for the
| good times we had during and imme
diately after the war Then we rails
ed money by mortgage. Many Of
| these mortgages, or bonds. going to
| foreign countries. some of them being
taken at home, some of the latter being
used by national banks to secure pay
ment of the bills they issue. The
| good times in the COS that we hear SO
| much of now, was just the same good
times that would come to a farmer
who should raise money by mort
gage and spend it freely But he
would certainly have to pay later for
the good times, when the time for
settlement came.
The good times which come from
| borrowing are very delusive as / learn
now from the hard times which follow
| when settlements are demanded. |
am part of the government and
must help pay its debts and [ find
that paying is not ap easy thing. The
greenbacks issued during the war are
the notes issued by the government,
but not bearing any interest We
took them for money and they passed
as money. But people want them re
deemed, as it is only natural they
| should, Every one who holds a note
wants it paid some time These
greenbacks are sent to the national
treasury to be paid. When they are
paid they should be destroyed just as
l destroy a note against me when |
have taken it up, that is paid for it.
But these fellows who are always talk
ing about more money, insist they
should be sent out again as money
after they are paid, and thus they are
used right along to draw gold from
the I. 5. treasury. That is after we
have paid debt we must at once con
tract it again. That does not look
like good business.
Il have been looking up history to
find whether any country has passed
through crisis such as we are now
confronted with. In reading Mac
aulay | find that during the reign OF
William the Third there was the
the greatest difficulty with debased
coinage Macaulay's account of the
evils which resulted are so exactly
like the predictions the gold demo
Gratis are making of the result to Us OF
a debased currency, that | am srlrpris
ed any one should advocate a system
which would cheaper our money.
''Now, there is no use in reading
history unless we profit by the lessons
1t teaches. The experience of others
is safe guide for us, far safer than
any theory of new fedged tinanciers
Any person wanting to learn the ter
rible results of a debased currency
should read Chapter Fl of Macaulay's
history and that portion of the history
of ames the Second which treats of his
issuing proclamation when times
were hard, to the effect that farthing
should pass for a shilling, | should
like to publish all that Macaulay says
regarding these events. but The Pilot
would not give me space. l will give
a few extracts, first telling how the
difficulty began.
Coins We're first made by hand and
could not be made of exactly the same
weight nor were they perfectly round.
The rims were not marked and SO it
was found both easy and profitable 10
clip these coins. After the coins We're
made by mill, they were full weight
and the edges were milled so that
clipping was not possible The ham
mered dollars and the milled dollars
were both legal tender. But the mill
ed dollars being more valuable never
circulated. As fast as they were coin
L 1!