The midland journal. (Rising Sun, Md.) 1885-1947, 1900-06-29
A New Financial Policy and Its
Defects.


the public the benefit of his financial
theory. Mr.. Barker cannot claim it as
original, for Coxey we believe was its
originator and explained the theory be-
fore committee of congress in minute
detail Like Coxey, Mr.. Barker would
get rid of gold and silver money and sub
stitute a purely government paper cur
rency. In order to get this money issued
is the important part ofthe plan.
1t must be issued direct to the people
for services rendered the government by
them. Mr.. Barker, following Coxey's
lines, would organize vast system of
public works by building railroads, tele-
graph and telephone lines, and system
of irrigating works in the dry country
west of the Missouri river. These works
would employ all labor not otherwise
occupied, and in the payment of such
labor the government would put its
money into circulation.
| Following this plan of issue is that of
redemption, which would not be in gold
and silver coin but in 1.-The net earnings
Of the public works for the creation of
which it was issued. Out of such earn
ings we would have ii retired, thus max
ing place for The issue of more currency"
| But what object would be served by
retiring this money if the same or similar
money is to be issued to take the place of
that retired? And what is meant by the
''net earnings" of such work which is to
redeem and retire such issue in place of
using coin for the same purpose?
Such money once in circulation would
not complete its cycle so readily as its
champion of the plan seems to suppose
1t would go into other lines OF private
business aud refuse to he redeemed or
retired.
But let US try and imagine what would
take place as soon as the government
commenced paralleling railroads. All
the railroad companies in the. country
would offer their roads to the government,
and in place of issuing new money to
build parallel roads the government would
have I85, 900 miles of railroads offered to
1t at the cost of their plant plus their
watered stock
| The railroads are valued at about eleven
| billions of dollars. Or that is what they
represent in stock and bonds, but their
actual plant valne, or the amount of
money required to duplicate them. is
estimated to be about five billions of
dollars. The issue of FIVE billions of
money would close up the bankrupt sys-
tenn at fifty cents on the dollar and is the
business method of closing up all bank
rupt estates; selling the porperty for its
actual market value and dividing the
proceeds pro rata among the creditors.
AS that much new money suddenly put
into circulation would upset or demoraiize
all existing business, it is more probable
that two per cent bonds would be resorted
to i'll place illegal tenders.
| This would forestall the new work of
railroad building for the idle hands. The
Telegraph would be treated In the same
way The telegraph plant of the country
IS worth about twenty-five million dollars,
but the stock IS watered to over a hun
dered millions. 1t would make the Nor
gans, Goulds, Vanderbilts, ct. al. sweat
to receive twenty-five million two per
cent bonds for their lines. but there would
be no alternative. Either that or see
their lines duplicated and tariff for
service of one-fourth what is charged.
Twenty-Five cents on the dollar would
burn these millionaires worse than a fiy
blister, or about as bad as they have
been blistering the public for 10, these
many years!
All this time we have not been able TO
get any new government money into
circulation on the Coxey- Barker plan.
But there is vast field, in fact an i'm
mense territory, for the grandest system
of irrigation the world has ever dreamed
of much less ever constructed
This would afford work for great deal
of labor, such as grading and mechanical
work, and the rents from the irrigated
land would create large annual revenue, /
and keeping the works in order would
employ great many laborers constantly.
This appears to be the only field in which
the new system of finance proposed by
the Middle-of the Road Presidential can
dldate could be initiated, and it seems
altogether feasible.
But why abolish gold money and keep
silver from the minis? Ofthese metals
We produce, or would produce, ab0ut
5000, 600, 900 annually at coin value. The
nations of the world all use these metals
for money purposes, and there is no sign
that they will cease to..do so. The new de-
velopments taking place in the old East
make it certain that large accession of
money will be needed to conduct business
in the new fields opening to improve
ment, and there is no money so accept
able among the peoole of Asia as silver.
This Yankee nation wants all it can
make out of its products, and silver and
gold are among its most valuable pro-
ducts. We could do without either for
our money in use, as seventeen years use
of greenbacks abundantly proved, but we |
car never get full value for our silver
unless we reulonetize it, and use it as |
money till the world pays us its full legal
tender mint value, which they would have |
to do and that very soon, as the United |
States and Mexico hold natural corner |
on silver, producing about th.ee-fourths |
of the worlds annual supply.
But the Coxey- Barker plan OF govern
ment automatic currency has never been
tried and we are quite sure would not
work satisfactorily. By all plans that
have been suggested the banks are left in
full power to manipulate and corner the
money after it is out of the governments
hands and among the people. They.
with their interest aud credit system, are
left in complete control of the finances of
the country, and would remain master of
the situation. The government must
establish banks for the use of the people
or the bankers will.
The people would be only too glad to
have the government establish banks for
their accommodation, and discount and
loan at rate so low as to cover cost only.
This would break up the great interest
drag net which draws into the banking
or1 ~. /