The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-12


for the foreclosure notices and the failures
which fill our papers. But, say our oppo-
nents, it is not the want OF money 1t Is
the want of confidence that makes the times
OF confidence in what? In Dur money? No,
our money Is so good that 1t takes two
bushels Of wheat to buy the silver dollar
where it used to take only one. 1t is want
Of confidence in business-7in production. You
can safely challenge any m9Hs to point out
line of industry today thcf roTases profit
unless 1t enjoys MONOPOLY Ealing prices
and prosperity cannot exist tagether 1t is
this condition Of affairs, that has silenced
the MILL closed the shop and turned hum
dreds of thousands of efficient workmen in
suits Of fall in prices. Prof Marshall, of
Cambridge university says: "a fall in
prices lowers profits and impoverishes the
manufacturer, while 1t increases the pur-
chasing power of those who have fixed in
comes. So, again, it enriches the creditors
at the expense of the debtors; for IL the
money that is owing to them is repaid, this
money gives them a greater purchasing
power. and if they have lent it at fixed
rate of interest each payment is worth
more to them than 1t would be il prices were
high. But for the same reason that 1t en-
riches creditors and those who receive fixed
incomes, 1t impoverishes these men Of bust
ness who have borrowed caflital and it i'm
poverishes those who haya to make, as
most business men have considerable fixed
money payments for rent, salaries and
other matters
FALL OF PRICES.
The fall in prices since the demonetization
Of silver is nearly so per cent, as Is shown
by our statistical reports, and no one can
assert, and give valid reason for his assertion.
that we have yet reached the bottom. Less
money and q narrower basis for credit relative
to the amount of work for it to do always
has and always will produce lower prices.
Six years ago, on the floor Of the house of
representatives, / stated it as my conviction
that IL we ceased to utilize more silver for
yhn0 Mould cn1
Minnesota. Not dollar of new silver has
been added to our coinage in three years, and
Accent wheat is upon US.
The same rules which govern the prices
OF other commodities govern the price of
money. IL corn Is more plentiful as COM
pared to wheat in one season than It was the
previous year, 1t will take more corn to pro-
cure a given quantity Of wheat than it did
before. If all products have been produced in
larger amount than has been the increase
in money, 1t will take more Of commodities
who takes a load Of produce to market does
so to procure money. If money has become
scarcer, as compared to products, he is COM
PEELED to give more of his products for the
dollar and that is what he has been doing
since 1878. The gold standard advocates ad-
NIT this. After the passage of the Sherman
act, adding $500 900 ounces of silver to our
circulation monthly, prices advanced almost
Immediately.
Wheat and all agricultural products rose
with the price Of silver. Hon. Jerry Rusk,
on page of his report for 1890: 1.-The re-
cent legislation looking to the restoration of
the bimetallic standard Of our currency, and
the consequent enhancement OF the value of
silver, has unquestionably had much to do
with the recent advance in the price of
cereals. The same cause has advanced the
price OF wheat In Russia and India, and in
the same degree reduced their power Of com
petition. English gold was formerly ex-
changed for cheap silver and wheat pur-
chased with the cheaper metal was sold in
faf Pow eyp1d Af,,af~
vantage Is lost by the appreciation Of silver
in those countries 1t is reasonable, there
fore, to expect much higher prices for wheat
than have been received in recent wears -
President Harrison, in his message to con-
gress In December. 1890 said: .'The enlarge
ment OF our currency by the silver bill un-
oouotediy gave an upward tendency to trade,
and had marked effect on prices, but this
natural and desired effect Of silver legisla-
t1on was by many attributed to the tariff
act"
The fall in price of our export products
affects us nationally as it does individuality
1t makes 1t more difficult to make both ends
meet. We produce and export more cereals
meat products and cotton from year to year
but without appreciably increasing the value
Year. Pounds valua
1873 ................, l. 200 063 $50 $201 635 376
1895 .3.517, ,4ss 10s 2O4, 500 $50
Wheat
Year. Bushels Value
1873 ..................39 80 204 2S5 S45 654 ia
1895 ..................76.1O .76. 1O2 704 AZ 2o5 ee9
1t Is gravely suggested that if we sell for
lower prices, we buy cheaper. If debt were
unknown, our people might heed such an ar
gument, but even then the falling prices
would take from the producer large share
of his products from year to year for those
burdens which are comparatively fixed Our
taxes are substantially the same as they have
been heretofore-not lower. It takes nearly
double the products of the farm to pay them
that 1t did fifteen or twenty years ago. So
with freight and similar charges.
ON MY FATHERS FARM
in sibley county in this state, we have raised
on an average 1000 bushels of wheat yearly
for the last fifteen years. The average price OF
wheat in Chicago for the years 1882 1883
and 1884 was over 81 per bushel., The aver
age price for 1S93 1894 and 1895 was 62 cents
This year it is less. The freight rate from
New Ulm was Is cents per 100 during the
first three years and 20 cents during the last
three years. 1t took little over 200 bushels
or about one-tenth of the crop to carry it to
Chicago during the first period and 3S7 bush
els, or nearly one-ffth of the crop, to trans
port it to the same market during the latter
three years. What is true of wheat is true
Of all other farm products. 1t is this insid.
ious drain on the farmers earnings-talxing
larger snare OF his products year after year
for interest. for taxes, for freight for in
surance, ETC.. that leaves him without a sur
plus at the end of the season and without
means to be anything but an indifferent Gus
toner OF the local merchant And still; many
or the latter advocate the gold standard
while self-protection, 1t would seem would
prompt them to favor policy that would
XIII the goose that lays the golden egg Again
when we consider the indebtedness of our
people and the fact that tie gold standard
and failing prices make It practically inn
possible to discharge it, the situation ap-
pears grave. On Jan. 1, 1890, according to
the United States census report. the mort
gage Indebtedness OF the people of this state
was $197, 745,9S9. The interest charge on 1t
was over s15,000.000 Add to this the rail-
road, the municipal and the unsecured and
commercial Indebtedness aggPegating a much
larger iarger amount tnan the mortgages, and we
nave an interest charge the inductries
and productions of the state which probably
exceeds SAC, GOO coo per annuIn Is it any won
der that merchants complain of dull times
and that business is slow3.
For this state of affairs opponents offer
no remedy. The gentlemen who recently met
at indianapolis propose the pet scheme of the
bankers for issuing bank currency. / do
not believe for q moment that the Amer
lean people will ever again farm out the func-
ton OF issuing money to private corporations
bank currency, the increase In our circu-
lating. medium by that means would afford
only temporary relief. 1t would not affect
the prices OF our great staples which are
! fixed by the markets of the world Nothing.
but the restoration of silver to its position as
standard money can affect the general level
/ of prices throughout the commercial world
/ Why should it not be restored? Why should
not the mints be open to silver as they are
1 to gold? 1t is conceded that 1t was mis-
take to close the nlints to it. No states
| man in anv country has ever claimed or re-
.ceived credit for his participation In its de-
monetization. On the contrary, every Iegis-
lator, connected with that act, has repudiated
any knowledge of how, or Why 1t was passed
and has apologized for his connection with It,
/ 1t is said that we cannot have free coinage
Of silver at its present ratio, for the reason
! that TIE silver bullion in a silver dollar is
worth only SO cents enly mind It is a
| most remarkable thing that silver bullion is
worth as much as It is. measured in gold.
The use for money has always been the prfn-
cfpal use Of the metals When that use was