Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1897-08-25

service they render they necessarily fail in that
effort They must adapt themselves in some
degree to.the varying prices of the commodities
produced by their patrons. But, in additi, n to
that, large portion of their prosperity depends
upon TRANSPORTING TO their patrons the consum-
able goods from the factory and from the marts
OF commerce, and when the consuming capacity
and the purchasing power OF their patrons is
gone they lose large part OF their revenue.
THE MINING AND FARMING REGIONS.
Now. SO far as the mining region is concerned,
which embraces this large area, the reason of
the distress IS apparent. The principal indus
try of those States is the mining industry. Silver
mining is the basic industry OF six States and
three Territories, just as coal mining and iron
mining are the basic industries of Pennsyl-
vanla; and when the prices Of their product
went down through the adverse legislation re-
sulting in the gradual paralysis OF the use OF
silver, general prostIation ensued throughout
the entire region,
The managers of these railroads, who conduct
them mainly in the interest of the foreign hold
ers of the gold bonds upon them, did not realize
ths. They wished to maintain the gold stand
ard. They wished to malutain ireights and
other charges payable in gold, so as to pay the
interest upon their gold debt. They did not
realize that the mortgages upon these roads
were really mortgages upon the. communities
which they served; that they had gold mort
cages upon silver mines, and that, with the de-
cline OF siyer mining those railroads would go
into the hands of receivers.
Such, however, was the result. Within sixty
days after the repeal OF the Sherman Act every
transcontinental road, with the exception OF
the Southern Pacific which taps the fertile val
| leys of Southern California, yielding products
capable of paying large freight rates to the rail
road. went into the hands OF receivers. The
Northern Pacific the Union Pacific, the Oregon
Short Line, the Atchison, Topeka and Santa Fe,
which serve not only the mining but the agri-
cultural region, all went into the hands of re-
cevers, and coincidently with the decline of
silver the prices of wheat and OF cotton went
down. So the arning capacity OF these roads
was lost, and 1900 miles OF railroad went into
the hands of receivers within two or three
| years after the repeal of the Sherman Act in
| 1898.
Now, these are the facts. Although we may
differ as 10 the cause, the condition OF these
railroads indicates the general prostration OF
of the communities which they serve Now.
what do you propose TO do? Raise this tariff
| wall higher TO protect the manufacturing inter
ests of New England and the Middle States.
But, ask, why are they suffering to-day? Their
suffering has only become apparent within the
last year. They did not realize before that
there was bond OF sympathy which bound
them to the mining, the cotton and the wheat
growing states.
But they realize it to-day. They find that the
consuming capacity and the purchasing power
of these States have been lost. And you may
raise this tariff wall as high as you want; you
may have some beneficial effects from it in the
restoration of the revenue of the country. you
may have some beneficial effects from it in
steadying this decline in wages which is now
going on in New England and the Middle
States; but you can not by that act restore the
/
the Southern, the Western, and the mining
State.
Now, let us consider what is the real cause of
this fall in prices for that is what the distress
me- ans; that is what the suffering means-sim-
ply fall IN prices And in what are prices e.,
| the process of evolution through the past
twenty three years. has been made the only
substantial money of the civilized world I?
Gold. SO that it is low prices measured in gold
that Is causing the general prostration of this
country.
APPRECIATION OF GOLD.
Now, let us trace the history of gold mono
metsllsm. We find that prior to 1878 three
countries only in the world were upon the gold
Notwithstanding, Portugal, and Turkey.
Those who contend that the gold standard was
the cause of Englands greatness will perhaps
account for the general barba, ism of Turkey
and for the prostration and lack Of enterprise OF
ergurated with reference to money, the result
OF the Paris conference, and in reading the
proceedings OF that body you will find that the
general impulse which animated the members
of it, according to the debate, was the desire TO
secure universal money and a stable standard
OF value. And without much consideration
without any consideration of the quantitatiye
theory OF money-of the relation Of the guam
tlty OF money to credits and values, they de
elared in favor OF the gold standard because
gold was mole beautiful metal, was more con-
venent to handle, and contained the greatest
value in the smallest space.
SO in 1873 the United States led by some oc.
cult influence which no one has been able 10
explain, being then upon a paper basis, with.
out silver or god-when its silver mines were
opening up in their abundance, as if Provi
dence had presented a special b nefaction &c
a.d us in The restoration of specie pay ments-
inaugurated the crusade against silver and, in
conjunction with Germany. went upon the gold
st inGard.
Now, there is a great difference of opinion
among the advocates Of the gold standard as to
whether or not gold has appreciated | shall
not take up time In lengthy discussion as to
this: But let me read TO you the prediction Of
D.. Linderman, at that time the Director of the
| United States Mint, an advocate of the gold
standard, with reference to the effect then APP.
parent and which he.said would be more appar
ent in the fall of prices On page II Of Dr. Lin
derman's report for 1873, he said:
The countries adopting gold as the sole meas
ufe OF value have, as necessary consequence
assigned subsidiary position for silver. This
system increases the use of gold money and
decreases that of silver for the same purpose,
or, in other words, enhances the value of the
one and depreciates that of the other. While
the demand for gold for coinage has materially
increased, large quantities OF silver hitherto
III circulation as standard money in Germany
Denmak, and Sweden and Norway and consti.
tuting treasury and bank reserves in those
countries, will, by the substitution of The gold
Standard, be thrown on the market as bullion
and aid In its further depreciation.
On page q OF the same report Dr. Linderman
saws:
The gradual adoption of The gold standard
and consequent demonstration OF silver, will
| vi COulSe. Dt iDllOWtu Dy an 1ncfe'Se IN the
value of gold, or what is the same thing de-
crease in the price of articles measured by It,
Indeed, 1t is quite certain that this effect is
already perceptible in some po,tons OF Europe.
Be that as it may, however IL is safe to assume
that Germany will soon have substituted three
hundred millions of gold for silver heretofore
used as standard money, and that Denmark
sweden, aud Norway will require nearly as
| much more, in consequence OF changing their
standard from silver to gold. Now add to the
foregoing the requirements of France and the
United States in the near future. and IL will be
readily understood that gold must appreciate In
value
Here, then, we have the statement as to the
then existing condi ions by determined adyo.
cate of the gold STANDARD and prediction as to
| the consequences which would ensue in the
future-a prediction which has been absolutely
verified by events.
But our friends say that the production of
gold has incrt ased, aud that this increase will
do away with the difficulties created by the
gradual discontinuance of the use of silver.
Now, let us look at the condition of the gold
stocks OF the world to-day, with view to de-
termining whether or not this appreciation of
golu is likely TO continue or is likely to be di-
unfinished. Aud p oppose for my statistics, to
rely entirely upon the report of the Director of
the Mint appointed by Mr.. Clevelaud-Mr PIES.
ton; ana certainly no one will accuse him Of
making statistics III the interest of silver or In
the interest of bimetallism.
In his report, based upon statistics gathered
iiom the most eminent statisticians of The
world ne says thai the total gold stock of the