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

and less gold.
This will be better understood by an illustrations: Sup
pose all the gold in the world were destroyed, except
the gold in one thousand gold dollars. And under thess
circumstances the demand for gold would remain a.
what it is now-with nations scramblir for 1t. nations
states, counties. cities and corporations issuing bonds to
get it. billions OF dollars payable in gold. and the anan-
cial system Of so many governments based thereon. A
single one Of these gold dollars, OF these thousand gold
dollars left in the world. would by the State OF lE
nois. applause, and a voice, That is plain.O
EFFECT OF THE C OF 1873.
With the strain that had Heretofore been shared by
both metals. shifted by the act OF 1878 and subsequens
legislation on to gold, as our only primary money. with
silver reduced to the position OF token money. no longer
coined at the mint and handed back TO the person bring
ing the metal. but purchased with gold by the govern
pent and coined into token money to represent the dearer
metal, there came a rise in the value OF gold. The duty
that had heretofore devOlved on both metals was per-
formed by one. The debtor was no longer to have the
right TO regulate the demand. The law was TO fix 10
with the sumption OF specie payment TO follow in 1879
on gold alone. Silver was no longer to cut any figure In
our monetary system as primary money. Thereafter.
when value was expressed in terms OF money, II was
to mean gold or its equivalent. The government that
had, Heretofore. walked ON two legs, was now to under
take the difficult task of walking on one leg.
And silver was degraded TO the position of base coin,
md used as token money TO represent gold. Then came
the rise in gold. The demand for it doubled. and the ef-
feet was that it, and the money representing it, bousht
more and more property, as the demand for it increased
But, as it increased in purchasing power or exchanges
bic value, we continued to refer TO it rs a dollar.
II all the gold in the world were destroyed except the
gold in a single gold dollar, and our only law for making
primary money called for the gold in that gold dollar.
as the only money and standard Of value. we would stil
call 1t a dollar-as measured in itself 1t would b. a dol
lar, but as measured in eNchangeable value with prop
erty 1t would buy the western hemisphere. SO the dol
lars rise in value as expressed in relative value with
other property, but do not rise in value as expressed In
themselves.
DISTRES THE RESULT.
The effect OF this change in our law can only be under
Stnnd hy fnIIowinpf the result Of tho aDDreciatiou OF gold
OF, what is the same thing-the fall OF prices. Price Is the
value OF property. as expressed in money. And the value
Of property as compared with money has declined. Gold
and its equivalent has gone up. The equivalent has fol-
lowed the gold up Us the tail OF the kite follows the kita
Property, seeking the market, has purchased less and
less money. And what is the effect OF all this on the
prosperity of the American people?
DEBHS.
We are n credit people. We seem never to have had
cnoupb money to do business on n cash basis. We have.
nerforce. been compelled to do business on credit. The
merchant buys of the wholesale house ON credit. The
wholesale house buys OF the manufacturer on credit. The
volume OF money does not seem TO he as large as the Vol
ume OF business. To give employment 10 labor and to
construct sanitary and other improvements, our cities
COMMITTEES and States have issued millions Of dollars OF
bonds, all payable ut n long time in the future. Abous
Sc GOO 600 900 of railway bonds havd IN issued. to say
nothing of bonds issued hy private corporations and
notes and mortgages executed by tens of thousands Of
our citizens. The nation, as a result OF the war, issued
bonds for 81, TOO,O 10000. These debts. individual, cor
porate and government. have been made payable from
thirty days to forty years in the future.
We are a credit people and % per cent. of our business.
II has been found, has been done on credit. These debts
call for payment in dollars. They are not debts payable
in property. The property must bc1 Exchanged for dol
lars with which to discharge the debtN
Railing prices require more and more property to pay
the debts. A debt contracted as late as 1884 for SLOOo.
could have been paid. had wheat not declined In value
from that date, with 1000 bushels Of wheat. But with
the declining value of wheat in exchange Tor Sold dob
lars or their equivalent, it now requires 1000 bushels OF
,yheot tn nav the debt of 81 900. The effect Is conisca-
ton OF the property of the man who executed the note
for 81 OOO. unless he can. by extraordinary toll, and In
creased capacity OF his farm, raise the 1000 bushels Oh
wheat.
With falling prices, the merchant, with goods on HIS
counters purchased six months pEor, has hd 10 MARI
down his prices TO meet the prices OF his competitor.
who purchased goods yesterday. Manufacturers, who
purchase raw material as long as twelve months belors
turnipg out the finished fabric. have found that falling
nrices have taken AWAY the profits they would Otherwise
have made. So that, through n long era OF falling prices.
business men have been compelled to contract debts they
otherwise would not have had to incur. II the mer-
chant had not marked down his goods. 10 meet falling
nrices. he would not have been compelled to 90 TO hS
bank to borrow money. II It had not been FOR falling
nrices. and resulting depression in business. more taxes
vonld have been collected that have been shirkcd or
delinauent. and cities. States and counties would
not have had to issue bonds TO borrow money. An-
plauseD
Tbo resrIt has been that our debts have been Increased
The debts OF this country, national, Stale. county, munich
pal, corporate and individual, In 1873 was about $1,000
600 600. They are now cOncededly S30.OOO.OOO,mO, and .
much foirer and more impartial estimate Of them is $40-
0oo 600 600. At $50 100000 900 what does 1t mean? Some
NAV be formed Of their magnitude when say that
the total assessed value Of all the real and personal
nroncrty I'm the United States, by the census OF 1880. lisa
little over S2I, 600 100000. We are In debt, as a people. to
the money lenders, more than the total assessed value
OF all our property. The fair cash value 'estImateD OF
all the real and personal property in the United States In
$50 900 1850. 1t is fair to say that all that property
sold under the sherin's hammer for cash would not more
than nav the debts Of the country.
We are. naturally, n prosperous nation ana tbs great
evil OF rising price Of money and the falling price OF
nroperty has gradually brought us to the condition that
IL now exciting the apprehension OF all good citlzenzL
Nybo, is the effect? What Is the effect OF this enhanced
yalue OF money-tbese dear dollars and the inability OF
the PRODUCERS OF wealth and the owners OF property 10
exchange their products and property for money with
which TO discharge their debts? What is ia. eject on
ciyiliZationg What is the effect on the happiness OF the
people? The condition thus brought about by the en-
HANGED value OF gold, and dollars made OF gold, II to