The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1897-02-20
CHAPTER V.


The little company had again assem-
bled on the evening following the ad-
journment recorded In the last chapter.
All showed an interest and Henry had
insisted on having some friends pres
ent. but John had objected saying they
would not understand the connection
with what he was saying with what
had been said the previous evening.
When everything was In readiness John
took his place standing at the desk and
begun.
what does falling prices for twenty
three years mean to civilization? What
does 1t mean to business? What does
1t mean for the wooden mantel busi-
ness? Are falling prices benefit or
Injury? l am going TO answer these
questions. We are a credit people. We
make contracts to pay money at a day
in the future. They are contracts to |
pay dollars. To get the money with
which to meet these contracts the peo-
pie exchange their property or services
for the dollars. If when the time of
payment arrives 1t requires more prop
erty or services to exchange for the dol
lars, It becomes hardship that was not
anticipated by the debtor.
"Ninety-five per cent of business" he
| continued, lis done on credit-contracts
| to pay dollars in the future. The PEG
pie contract debts payable from thirty
days TO ten years In the future; and the
renewal of ten-year mortgage means
twenty years. Our cities, corporations,
State and the nation execute bonds due
in from ten to forty years. The debts
Of this country, public and private. at
the present time are about forty BILL
ions of dollars. They have increased
since 1872 from about six billions, when
the national debt was large part Of ii,
to the present amounc. They are now
concededly thirty billions. Our rail
way bonds are six billion. one-tifth OF
the amount; the amount due the bank
ers on discounted papers alone is anoth-
er one-ffth. All debts, national, mu-
niclpal. corporate and private, are now
conceded to be thirty billions, Why
did debts increase? Failing prices tel
) the story. The merchant has been com
2 PEELED to mark down his goods. pur
r chased ninety days ago. to meet the
I prices of his competitor. who purchased
D yesterday. He has failed to realize pro
2 fits he would otherwise have made. 1
+ means he cannot meet his payments
4 and he borrows from the bank to pa,
n the wholesaler. lie renews his debts
Il he now becomes n dependent on bank
t Prices continue to fall-they have fallei
g 80 per cent in % years. lie not alon
u struggles TO pay his natural expenses
but must in addition pay a regua
I fixed income to the bank. The tim
e comes when his line of credit at III
bank will not be increased. and he sell
or mortgages his property. The sam
IL has been true OF manufacturers an
other business men: and that is wha
IT has Increased our debts from six bill
Il ion IN 1872 to over thirty billion in $50,
l. This is wide difference and yet 1t
wider still In 1872 less than five bill
> ion bushels OF wheat would have el
= changed for the six billion dollars wit
" which to have paid the debt; but no.
at the average price of wheat for I'll
= present year. 1t win take about sixt
billion bushels of wheat to pay the del
of thirty billion dollars. 1t is sixt
against i've. AS measured in the gre.
staple products OF the country whea
" cotton. corn or oats. the increase in oil
- Indebtedness has been over ten fold
&c The money dealer holds contrac
:. against the people calling for dolla
u OF twice the value they were forme
We ly. That is not all. Failing pric
us forced the people to borrow mon,
eu and increase their Indebtedness to Il
'u money lender, until now 1t is thir
Isl billion Of dollars. The ability of Il
Vi people TO exchange their property T
10 dollars has not only decreased, b
their obligations to pay dollars has
as creased. These are facts the mon
at lenders cannot deny. The evidences
ie- II are plastered all over the countl
nd Chicago has recently sent big bat
X Of gold bonds to London. We are |
s. ing taxed here in Chicago s per ce
ed and still more has TO be borrowed
nd pay old bonds or defray expenses
OF the city-it, too, like the merchant,
ms breaking down The lack of Il norI
res supply OF money has resulted in
I'd people becoming bonded to the MOI