Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1904-04-11
WATERED STOCK
ORlGINA LILY A CATTLE TRICK OF
DANIEL DREW
The elastic" Currency Scheme Based Upon
Stocks and Bonds Capable Of Being
Watered Would Result In the Widest Sort
Of Fiat Money.

w. II. OF liver, Of New Bern, S. g., has
issued little pamphlet giving the origin
of the phrase "watered stock:
1t was published that at one time Mr..
Daniel Drew was engaged in the cattle
business. That he would go through the
country and buy stock and drive it to
New York and sell. 1t was said that the
day before the stock was to be weighed
he would feed as much salt 70 them as
possible, and the next day before they
were weighed he would give them all the
water they would drink, and thereby
added to their weight. The phrase
"watered stock" became a by word
among the cattle men.
Within few years past a vast number
of corporations have been organized, and
conservative banking house in New
York estimates that the unprecedented
amount Of three thousand million 49,
000, 900 ,O00) of this watered stock has
been placed on the markets in the shape
of bonds, preferred stock and common
stock. Taking the prices at which these
bonds and stocks sold for in August and
September 1902 and at which they sold
for in August and September, 1908, the
difference as estimated is decline Of
over one thousand million ISL 900 ,O00,-
000) of dollars. This fearful decline has
caused many suicides, many defaications,
many cases of insanity, many cases OF
sorrow and sadness among vast num-
Der of families in almost every commu-
nifty in this country.
/ asked our United States senator
what WIS an elastic currency; he replied
he did not know. / asked the same
question of our member OF congress; he
gave the same reply.
1t is said by those who are advocating
it that it is intended and that it is neces-
sary for the purpose of moving our crops
of cottoa and grain. This statement is
fallacious as cotton and grain can move
themselves. The facts are it i proposed
to allow the national banks to issue Cir
culating notes based upon stocks and
bonds of the various corporations. There
is no question of it being an elastic cur
rency; that it soon ould be cut and in
the hands of farmers for the purchase of
their cotton and grain. Now for redemp-
ton OF these notes the basis on which
they are issued is to be paper stocks and
bonds.
Within the last 60 days we have seen
stocks and bonds decline from the price
at which they were selling at year ago,
10, 20, 40, 80 and even as much as IS per
cent. Ii this bill which is now proposed
at the approaching meeting OF congress
had been in force and these notes had
been in circulation a similar result to
the failure of the old United States Bank
would have taken place.
1t is singular that the advocates OF the
bill Only few years ago denounced state
banks as wild cats, that their notes and
silver dollars were fiat money, yet they
forgot to tell the people that the people
OF North Carlonia had in twenty years
through the failure OF national banks lost
more money than they did fifty years
prior to 1860 by failure Of state banks.
They were told to place the country on a
gold basis which would restore confidence
that there was an abundance OF money
in the country to do the business and nc
more was needed. Now they propose t.
enter into a most gigantic system o
"wild cat" banking.
What is now nee led is an Andrew
Jackson who would say. "By the Eter
nal," this business shall stop. When Ii,
spoke the people knew he meant what
he said.
1t will be gross injustice to buy from
the farmers their cotton and grair
(Which will be shipped to Europe ant
sold for gold) and pay for it in pape
; notes based on paper railroad and othe
bonds and OH stocks OF various corpora
tons.