The herald., 1896-06-30
A PERSIAN TALE
BY EDWARD T. sUnWALT

A great many years ago the people of
Persia thought it would be wise thing
for the government to buy up all the
wheat, both domestic and foreign; it
would make market for the home
raiser, and provide an ample supply, in
case of any possible shortage in the
future.
The treasurer was authorized to issue
notes in payment for the grain.
Vast quantities We're brought to the
government storehouses; as fast as one
was filled another was erected.
The farmers were happy; home mar
ket was created, and the government
notes were readily taken, as they pass
ed current, and no one refused them.
Money was in abundance, and every one
had plenty of it. New enterprises were
inaugurated; there was an active de-
mand for all kinds of labor; the whole
people seemed prosperous. Farm lands
were eagerly sought after, and the prices
went up. Lands that had lain idle for
years were sowed to grain, and large
portion of the population turned their
attention to the growing of wheat.
Spectators commenced buying in out
side markets and selling to the govern
'ment at an advance; production in
creased enormously, both at home and
abroad.
The money of the government still
passed current. and was not discredited
even in payment for foreign supples.Thc
constant and steady purchases by the
government increased the price-holders
of the grain preferring to sell to the gov
ernment rather than to individuals. For
some time everything went as merry as
marriage bell" but alas a change came
over the spirit of their dreams. The
question began to arise. What was the
government going to do with the vast
quantity of grain that it had purchas-
ed? Everybody soon became a seller
and there were no buyers except the
government
. The government purchases continued,
but the sellers demurred at being oblig
to take the notes of the government.
and being unable to get anything else
in payment, discounted the notes with
the money changers. At first only q.
small discount was charged. But as
the quantity of the paper issues contin-
ued. a larger discount was demanded.
This at last became so great that the
government passed a law making it
penal offence. for any one to refuse to
take the money at par; the only effect
of this was to make the money lender
more rapacious in his demands, owing
to the risk in case it became known that
he had taken the money alta discount
Foreign sellers refused any longer to
sell " tue SONcTllHlelt anu take tne1T
pay in notes. and sold the grain at any
price that could be obtained, when pay
ment could be had in any money other
than the government notes. This
brought about decentralization in prices
and home sellers soon followed the eX-
ample of the foreign ones. and when
the government finally decided to dis
pose of the wheat it found no buyers.
The final result was that the govern
ment found itself with an enormous
amount of grain piled up its warehouses
and no buyers and a deprecated cur
rency that no one wanted at any price.
Wheat, which had commanded a high
price at one time, dropped so low that
there was no longer any inducement for
ing was no longer profitable, and these
lands also deprecated in value, and ulti-
mately could not be sold at any price.
All the better kinds Of money had been
taken out of the country by the specu-
lators. and nothing was left for the peo-
pie but this debased monev. which had
worthless. and all kinds of business was
labor. and had there been it could only
be paid for in this debased currency.
Finally to save the people and the ma
ernment decided to reduce the amount
time bond, at a low rate of interest, re-
deeulable in good money.
This measure restored confidence, but
and it was lesson to both people and
tIa