Year: 1875

| large. can raise the price Of farmers pro-
| duets farthing. The paper currency
| of the country in 1860 was 2O7 millions.
! in 1875 over 700 millions. The price of
| farm products are about the same But
| Of all other commodities the general
prices increase with the quantity of cur
rency. as every farmer finds Whatever he
buys. The rag money inllationists, there
fore. ask the G,O00, 600 farmers of the
United States to pay more for all they
buy while getting no more for all they
sell This is the Ohio rag-bahy plan to
restore national prosperity by bankrupt
ing half the actual laboreIs, half the real
th-producers of the land.


Why imitation does nor raise the prices
of the farmers products while raising the
prices of everything he buys, may be
learned from the letter to Illinois farm
ers, of Amasa Walker, the foremost liv-
ing political economist:


AMASA WALKER ON THE CAUSES OF DE-


PRESTON IN AGRICULTURE.


IE,H w. C. FEggg, P-ceileHt Illinois Erm-


cIS' dissertations:


DEAR SnR-Your letter of the 5th of
November is at hand, requesting me to
furnish paper to he read at the APP
preaching annual Convention OF the Ill
inois State Farmers Association, "UpOn
our currency in relation TO the interests
of the industrial CLASSES"


The other cause, in nowise inferior in
its injurious influence upon agriculture,
is the false and disgraceful condition OF
our monetary system.


In calling your attention to this sub
ject would first ask you to notice the
striking fact that the prices of your
great staples are not higher on an aver
age now than before the war, while all
other e commodities have advanced from
% to 80 and even in many cases to as
per cent. Farmers should direct their
minds especially to this consideration.
They should enquire why it is that their
products do not rise when all other COM
modities do. If they examine into the
matter carefully they will discover that
their great staples do not rise equally in
price because the country produces II
surplus of these that must be sent abroad
for IA market, and consequently must be
sold Mt what they are worth in gold to
send to Liverpool or other foreign ports.
Flour, wheat, corn, pork, beef, lard,
etc, are sent as remittance instead of
gold since that is the universal standard
of value in the commerce of the world.


Farmers products, then, are sold at
gold prices, plus what little gold premi-
um there may be, while all the farmer
CONSUMES must be purchased at currency
prices, from % TO 75 per cent. higher, in
consequences of the excessive volume of
our paper money.


If farmers will look at these facts, they
can not fail TO see that they are Obliged
to sell at low, and buy at high prices,
and that this Is one of the chief causes
of the depression of their branch of in
dustry. When they do perceive this. of
course they will demand r"turn to
specie payments, for they will see that
since there can not be- two prices for
their products-one for home consump-
tion, and the other for export-what-
ever they are worth to send abroad must
determine the price Of the whole crop.


This being so, no class suffers so much
from defective currency as the agricul
tural. The manufacturer makes his
goods under II deprecated currency and
they cost him fifty per cent. more; but
he sells them under the same currency
and gets 80 per cent. higher prices. to-
gether with his customary rate Of profit.
So OF all glasses, except those who pro-
duce commodities the surplus of which
must he sent TO a foreign market.


Under such state of thing the farm
er can not hope for as great prosperity
as is found in other industries. and
should therefore insist upon the restrie-
ton Of tho currency to par with gold;
and as that is utterly impossible, except
by withdrawing n part of the present
superabundant circulation, hs mrst in
sist upon contraction. There is no es-
cape from this alternative. All attempts
to evade or avoid it will be found utterly
H.. cif
make bad matter worse, and prolong
the suffering of the agricultural interest.


To this opinion, so oonfidsntiy assert
ed, methinks hear some farmer reply,
"Ah, but | am in debt. My farm is
mort gagged. Were that paid off might
listen tO contraction. but until then |
object" But, my friend you are, allow
me 10 say, greatly mistaken. You owe
money. How van you ever pay itl
Certainly only I,y the profits you can
make by farming. Then the more the
expenses or conducting your farm and
supporting your family are reduced, the
greater surplus you will have for dis
charging yonr mortgage IF your grain,
heef, pork, etc., bring as much as they
do now, while your expenditures are
greatly lessened, would you not have n
larger amount of profits wherewith to
pay your debts2 Now, then, it is GER
tain that were the natural volume of
currency restored, your crops would
bring the same prices as at present,
while your expenses being reduced, you
would have n greater margin of net in
come.


Suppose, for Illustration, yonr whole
income now 20 be y. 001, and that your
expenditure, after paying taxes, repairs,
interest upon yourmortgage, etc, leaves
you nothing wherewith to reduce the
principal, then, if your products bring
as much as now, while your expenses are
90 per cent. less land they would bem more
than that, you would be able 10 pay an
annual installment Of Si00, which would
clear OF the mortgage In five years. And
vet to do this you need not deprive
yourself or family of anything yOu now
enjoy. So the sooner the currency is
restored the sooner you will he able to
discharge your mortgage.


If, in addition TO this, you are able to
secure the protection Of the national