The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-11-30
Predicts a Panic

Pasadena, CAL Nov 10.--To the Editor OF
The Independent There will come in all proba-
bility, depression next year, and that Will be
followed by a large and extensive liquidation.
That means a payment of debts in property. And
that means change of ownership from the peo
pie that earned it to people that have loan or
claim against it drawing interest. The depres
sion is coming although it Is not seen. The
causes are at work. There is an undercurrent
of contraction that is greater than the surface
expansion. The interest on debts is drawing in
and together faster than the increase of actual
money is putting it out into free circulation.
AS long as the money is loaned out over
again. the debt is increasing and the interest is
increasing, and there is necessary limit to the
debt and growth of debt when 1t must be cut
back It gets top heavy and has to be cut
back It is cut back by liquidation, that Is by
taking property. This is done by stopping fur
Their loans till the liquidation is There
money Is secure and the debtor cannot pay and
must liquidate by losing the property. They
will deny that money is contracted They will
say there is plenty OF money in the eastern
banks but there is no collateral to bring it. Well
then 1t is just contracted into the eastern
banks. It might as well be in Gehenna. It is
consolation to starving to death that
there is plenty of food where he cannot get it.
1t is just as good to him though it was out
OF existence. Well, this evil is at work day and
night interest never stops. 1t draws all the time
and the drawing is just the same as contrac-
ton or just the same going out of existence
when the time comes to cut back the debt that
has grown out OF proportion to the peoples col
lateral Some say it is all in the family. But
that is just near enough the truth to be plaus-
bic excuse just tie same the other that there
is no contraction. The people are deceived by
wicked deception But what would you do?
And how would you help it? When Jehovah
took a hand in the civil law in ancient Israel it
was unlawful for Israelite to take interest
from another Israete. And that was all in the
family too. But here and there are bank
mortgages and other interest bearing debts till
periodical liquidation must come, and that
means a periodical depression. And the condi-
tons are now looking to periodical depression
to begin next year. And the longer the present
condition continues the harder it will strike
back, and it has to let go sometime. depres
sion and liquidation is coming soon and sure
1t is being held off now.
An expansion of bank credit may help to hold
on longer but it makes the evil worse and the
collapse wrose when it comes. 1t is false and
vicious remedy. Free silver is odious because
1t is calculated to ruin the banking business by
giving other people chance to virtually and
practically dig their money out of the ground
The law against free silver is to force the peo-
pie to use bank credit. That the present pros
perity is owing to the gold standard is false.
That it is owing to high tariff protection is false.
to make : perpetual is false A disaster is COM
ing Present conditions and forces are bringing
1t. 1t will and must come No amount of de-
ceptiOn prevent it,
p r. DAl .lOFF.