The advocate., 1897-09-08
Forced Losses on the WorIdIg CereaIg.

crop per capita or the outside world was
only about One-fourth that of the United
States. In other words, the per capita
crop Of this country was fOTty-eight
bushels while the average crops OF sew
enteen principal cereal-raising countries
of the world was only about twelve bush
els per capita. Taking this as a basis,
a then prominent farmer Of Kansas
wrote lengthy magazine article, which
was published in the Forum, predicting
"$2 per bushel for the crop then matur-
ing In the United States" But contrary
to the writer's expectations, prices soon
after began to fall and the decline was
steady and continuous until a few
months ago, when 1t was discovered that
there was prospect of real wheat
famine in EurOpe-in fact, the greatest
shortage that has existed at any time
since the Atlantic cable has enabled us
to figure up the shortage of the worlds
crop in advance OF it's harvest.
This magazine article was accepted,
and doubtless good round sum was
paid for it, because it furnished Wall
street with the very information that
they desired in order to enable them to
provide corner" for 1t. Not having
the elevator capacity to store the wheat
run was made on the remaining cur
rency so that the money could not be
obtained to handle this immense crop
at the advanced figure predicted. The
amount then in~5he Treasury, the banks
and in circulation was probably about
$1,600,000 900 in round numbers. Four
80 al Ivy
under lock and key, as was also about
5000, ,000,0 600 Of gold. And as some Of the
bonds were coming due, the opportunity
was offered to place both the bonds and
the gold in foreign markets. So the
bonds and the gold coin of the Treasury
was started to Europe at the rate OF
$100,000,000 worth of each per annum.
This also took the basis out from under
the national bank circulation at the same
ratio, causing contraction Of the ma
tional bank notes then in circulation
Of $173 100000, leaving only about $127,-
100000 in circulation. 1t was this that
started the panic and drove 154 national
banks to the wall in one year. It also
caused the collapse of 700 private banks
In 1892 the coinage Of silver was stopped,
thus reducing the circulating medium
$50, 100000 more per annum.
Then contraction scheme No. 4 was de-
vised by forcing ~ Secretary OF the
Treasury Foster to redeem the "COin GER
tificates' in gold coin. (Tyhese were
really redeemable in silver as we'll as
gold) But after the death of Hon. Will
liam Window, Wall street really had the
United States Treasury under their con-
troll. In the redemption OF coin certif-
Gates another contraction OF $150,0OO,0OO
was realized.
Next, the amount of the Treasury
notes of 1890 were contracted from $780,
OOO,0 to $4,000, 900, because they had
no coin base behind them. A like run
was made on the $S46, 100000 Of United
States notes, (greenbacks) because they
only had $100,000,000 of gold behind
them, and that was in danger, and Mr.
Cleveland's last Secretary Of the Treas
ury (Carlisle) permitted that to run
down, at one time, to $42,00O,OOO. This
was directly contrary to the precedent
established by Hon. Daniel Manning,
who refused to pay gold on "coin bonds
without paying out a like amount Of Sill
YER. BOndholders refused the silver, and
thus over $500, 100000 Of gold was accu-
mulated in the Treasury under Man
ning's policy, during Cleveland's first
administration. After Cleveland, Har-
risOn-after the death of Windom-chose
a tool of Wall street to carry out their
schemes in the United States Treasury,
as above recited. And contrary to all
expectations, Carlisle followed the
schemes of Foster instead of adopting
the policy Of Manning.
Thus by contracting the currency
th ron fni,r.t hs. nnndinn the Immense CO