Year: 1878

1874, Sac; in 1873, 98c; in 1876, S2lc; In
1877, 94!c; in 1873, S84c.


From this table it will be seen that
even in currency the farmer received
but little more for his grain in the pros
porous years of 1869-70-71-72 and 1873
than he realizes in 1878. 1t is true that
in 1867 and 1868 the price in currency
was about $l.40; but gold was then at
40 per cent. premium. The farmer re-
ceiycd only about 81 in coin for his
wheat; whereas last year, when gold
was nearly at par, he received 94!c.


Now while it is true that this chief
product sold by the farmer has huctu-
ated IN price only few cents per bush
ell from 1869 down to 1878, every article
that the farmer is compelled to use or
purchase for the comfort of himself
and family, has been largely reduced in
price. | have taken pains to ascertain
the relative prices of a few leading arti
cles OF consumption, consisting OF
hardware, groceries and staple dry
goods.


From this it will be seen that the
amount of wheat that was required to
buy keg of nails in 1873 will buy near
ly three kegs now. And so in regard to
nearly every other article. What is
true Of hardware is also true, to nearly
the same extent, of many leading arti
cles Of necessary consumption OF the
kind usually called groceries, so that if
you compare the price from 1870 to 1878,
you will find that given quantity OF
wheat will buy one and half times as
much sugar and coffee, and twice as
much tea, and many other articles, as
could have been purchased for the
same quantity of wheat in 1873. But
the greatest fall in the price of articles
consumed by the farmer is found in
the case of staple dry goods.


Now, having nearly reached a specie
basis, one dollar will buy seventeen
times as much cotton, and ten times as
many yards of sheeting and prints, as
the inflated currency Immediately fol-
basis as before-a given number of
bushels Of the farmers wheat will to-
day purchase eight times as many yards
Of sheeting and prints as would the
same number of bushels of wheat in the
year Immediately following the war.


What is true of the farmer is equally
true of the laboring class, or those who
work for wages. Universal experience
teaches that when wages are once fixed
nothing is so slow to advance or so
quick to reccde This was notably true
during the war, and following the war
Under an irredeemable currency, when
it is expanding in volume, the laborer
will find the prices Of articles consumed
by him advancing because of the de-
probation of money, while his wages re-
main the same The value of the wages
received for days work does not de-
pend 50 much upon the amount of mon
cy received as upon the purchasing
power Of that money when invested in
those things essential to subsistence
and comfort


But you may say that you are in debt.
Should such be the case and you are
farmer, it will take no more wheat to
pay the debt when prices are reduced to
specie basis than it did during any
year from 1869 to 1871; and but little
more than it did in 1863 Your way out
Of debt is to increase production. Your
farm is your capital. You do not want
to sell it, because to do so would be to
destroy your power OF production
Your farm IS also one Of the implements
or tools you must use in production
The return you receive depends not up
ON legislation, but upon the sagacity
with which you select your crops, the
diligence with which you attend them,
and the hand of Providence in sending
you favorable or unfavorable seasons of
seed time, growth and harvest. Losses
sustained by the blight in the wheat crop
cannot be made up by acts of Congress.
But if you are in debt, whether farmer,
artisan or laborer, you now can save up
more for the purpose of getting your
self out Of debt, by reason of the reduc-
ton of prices of the articles which you
necessarily consume, than you could un-
der the era Of high prices from 1868 to
1873 If these things be true, and |
think they cannot be successfully con-
troverted, the interests of Iowa and the
west are to be subserved by returning
to specie payments means stable
values. And what is true of Iowa and
the west is equally true of the entire
country, to which permanent prosperity
can only come by having circulating
medium convertible at the will of the
holder into the most stable measure of
value known to the civilized nations
gold and silver And the nation and
people which adheres most rigidly to
this measure will be most continuously
prosperous; while every departure from
it must inevitably be at the expense of
the laboring and producing classes. We
have been compelled to make many sac
rifces to reach a specie basis; but now
they haye all been made, and it is our
duty to adhere with fidelity to this pur-
pose; and | am sure when it shall be ac-
complished we wilf enter upon a new
career of growth and prosperity.


NATIONAL BANKS.


1t is argued with great earnestness
and some force, that the circulation of
national banks should be destroyed, and
legal tender notes substituted there
for. The first objection to this scheme
is its unconstitutionality Even care
less reading of the decisions of the Su-
preme Court in the legal tender cases.
must lead to the conclusion that this
would be the unanimous judgment OF
the Supreme Court SO strong was
this impression that the Democratic
majority of the Banking and Currency
committee, in their report at the last
session, proposing to substitute Treas
ury notes for national bank notes, did
not insert in their projected bill the
legal tender clause, but provided only
for Treasury notes without the quality
of legal tender


Such notes have been, and of course
could be again, issued by the govern
ment; but if issued in large quantities
it would require in the Treasury cor
responding quantity of specie to keep
them at par. Should 1924, 100000 of
them be issued, it would require at
least half of that amount of coin in the
Treasury to make them convertible.
We have already provided for perma-
nent circulation of $347 100000 of legal
tender notes Just how the redemption
and reissue of this volume is to be man
aged by the Treasury is still an expert
ment. The probability is that this will
require an average amount of coin near
ly equal to that now in the Treasury.
TO add to this immense hoard $175 ,OOO,-
600 more of coin would be difficult, and
world furnish strong temptation for
it's diversion to other purposes in time
of stringency.


Another serious objection to this
nronositiOn is tho raSultinU want of