nmeiwnaKmnnuuu.il 1 1 um !. tewnraaosoa ib
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survival'of the fittest.
Then;Nebraska Advertiser
There is a Wrong Way
AND A RIGHT
Adapted form Nast's cartoon in "Robinson Crusoe's Money."
J
.WV?5.
' FRIDAY, MAY 27, 181)7.
j -s. . w.f .:'rJM"v '
"
1 1 I III III II n
BwwmwwtuMiiiiuiiiaiii
T ' &' 1
PER CAPITA MONEY.
Do Prlcoa Dopond Upon Amount
or Upon Kind of Mouoy?
FiicIn Wlileli Wilt Help (o DInihI Iio
"Mure limit''" Dclmiloii Homo
l'ONurn for tho Sllvrlli froIvnuttrH
Who Arc CdiMlnelliiK the ",t Mount
Klniiitoliil .Seliool" Wliy Are I'Mim-n
IIIkIi mill I't-r Cnt'llii .lloiif) l.otv In
.Silver Stmiiltiril Coiintrlt'Nf Shmiltl
IH'ponltN In llnnkN lie Inoltiileil In
IOhIIiiuiIIiiu'AiiioiiiiI f .Money Whloli
AIYocIh 1'ilcoHf
One of the numerous fallacies upon
Mhlcli the free silver dulimion Is found
ed Ih the assumption by ull sllverltes
niid cheap money advocates that prices
are regulated by the amount of money
in circulation and thai there Ih any nec
essary relation between prices and
amount of money. When driven from
one position the bimeUilllHtM take ref
uge in another just as inseeuie and il
logical, but perhaps a little more hid
den by sophistry, Themorceiillghtcned
among them do not now (insert, that to
double the amount of money is to
double prices. They generally admit
that the rapidity of circulation and the
use of credits uiFcot the clllcieney of
money and prevent an exact statement
of the relation between amount of mon
ey and goods, but that more money un
doubtedly means higher prices, aud vice
versa.
The per capita Idea of money so prev
alent with sllverltes is disproved In
many ways. Statistlefl of prices and
atnotinlw of money per capita in use in
different countries lit the same or at
different times fall to show any certain
relation between price and money.
Thus, while prices have declined In the
world and In tJiIs country very great
ly since JSOp or 18.12 or J87JJ, the
amount of money In use haH increased
enormously. From a per capita circu
lation of 51.00 in 1800, $14.03 in 1852 and
$18.10 in 1872 we, now have one of $23,
and this notwithstanding the- greater
rapidity of circulation of modern dol
lars and tho vastly improved and ex
tended use of credits. Will some "more
money" advocate please explain this
great fall of prices in connection with
the great increase in per capita
money.
Again, the per capita circulation of
the gold standard countries of the world
to about $18; that of the silver standard
countries only about $4.30. Will some
of the sllvcrite professors who are con
ducting "financial schools" in western
and southwestern states explain to
their classes why prices in Eilver stand
ard countries are about, twice as high
as in gold standard countries, although
the per capita circulation Is less than
one-third as great? Will they explain
that the value of the material from
which the money is made lias much
more to do with the prices than the
amount of money in ust? Will they tell
their classes that gold has always been
more valuable, weight for weight, than
silver, and that it lias recently become
33 times as valuable while most of he
coining ratios of the world were estab
lished when gold wna only 15 or 1G
times as valuable as sliver? Will they
then explain flint the value of both
gold and silver bullion is tlxed In tho
long run by the coat of production and
that therefore the Value of bullion docs
not depend upon the quantity of money
in circulation?
Will they try to make It clear that if
It takes five hours of labor to pro
duce a bushel of wheat and live
hours of labor to produce 23.22
grain of gold one produot will ex
change for the other that Is, the price
of wheat will fie $1 per bushel under our
present standard? Will they then add
that if it requires only 2ya hours' work
to produce enough allver (37 grains)
to make a dollar that the buHhel of
wihcat will not exchange for less than
twosilverdollars.aiid UtnMihls is the rea
son whypricesare higher in silver stand
ard countries? Will they explain the
original "American financial policy,"
which was to keep the coinage ratio as
close as possible to the market ratio?
"Will they ask the members of their
classes to vote to restore this "thor
oughly American financial policy?"
If the corps of sliver professors and
cheap money statesmen who are con
ducting the "national financial sciiool"
.fall to answer the preceding questions,
perhaps they ore willing to explain
what kinds of money are included In
making up the amount of money which
affect prices. Docs it include all kinds
of government or state paper money, us
well as gold, sliver and copper coins?
Does it Include bank notes, which form
n considerable proportion of our pres
ent circulating medium? If you Include
government and bank notes, why not
include bank credits? Are not more ex
changes and greater exchanges effected
bj' means of checks than by means of
cither paper money or coins? Is it not
ns easy for one who has "credit" (de
posits) jn a bank to buy and sell as 1
he had money In his pocket? Do theso
,ni.wiir. o.. .lunutts necessarily consist
S AV jCa" KVXl
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t Ja-vsi i.
A&J&mY m&
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.
Mtrl'WM
of money at all? ' If'a ihah lias that
amount of property, can he not have
$1,000,000 credit with his bank on which
to draw cheeks at any time? Cannot
such a man buy and sell on a large scale
without the use of ordinary money?
"Why, then, ehould bank deposits not lie
Included in making up the per capita
circulation of the country?
When the classes of the "national
financial school" can pass an examina
tion in these "per capita" questions, wc
will prepare a set of questions on other
subjects, as, for Instance, the cause of
high and low Interest rates, the advan
tages of high prices, the blessings of
cheap money, etc. Byron W. Holt.
Iinitorliiiit llimlnrna.
"Appoint your committees, Mr. Heed,
and let your house go to work," advises
the Chicago TImes-ircraJd (rep.).
"Two great subjects are now pressing
upon the house for consideration. One
is tho bankruptcy bill and the othor is
currency reform."
WHAT IS MONEY?
THE INTEREST BAROMETER.
.Intci-exl ItiilctArc l.oiverln liolil TIiiiii
In Silver Stiiiidiiril Conn trlcN.
It will pay sllverltes who want cheap
money that is, money ait low rales of
interest to sMldy the rates of interest
charged in gold and silver standard
countries and to compare the average
rates of interest on certain classes, of
loans in sound money Males, which
never favor repudiution. and in stales
which f u voir free coinage and which
sometimes favor repudiation of debts.
It is difficult to get exact figures or in
terest rates in d liferent states and coun
tries, but the statistics obtainable are
not favorable for the farmer who voles
for free silver with the expectation that
It would enable him to borrow money
at low rates of Interest.
According to the last census, the aver
age rate of interest on farm mortgages
In 1800 was 7.3fi per cent. The rate has
undoubtedly declined since then, ex
cept, perhaps, in certain states which
are voting and legislating against c4ip-
Clearly Kxplitlncil r College Pre, "nl. The rate is also higher than on
Ident at a Parmer' Convention. most other classes of securities. It. is
The following1 Is part of the synopsis probable that the average rate of inter
3?e
L PEOPEEF
11
KN
li'W.tNM tfJWX
3
way of treating Hie eyes, Some people
seem to think that if they only wear
(,'iasHt'B it will be all right with their
eyes. There would bo just aa much
Hetiae in prescribing the same medicine
for every disease. Unless you place
yourself in theatre of it SKillful oculist
or optician it would be better to give
no thought to your eyes at all. We
make a specialty of fitting classes.
S.H.AVEYiCO.
AUBURN, NEB.
Wanted An Idea
printed by the Milton (Wis.) Journulof
an excellent address by President Whit
ford, of Milton college, before the farm
ers' convention at a recent meeting at
Milton. It contains some very lUcld
statements of money nnd of the power
of governments to fix value:
First. Two separate and distinct val
ues are assigned to money, one being
the intrinsic or market value of the ur
tiole used; the other the legal or face
value, indicated by the stamp or device
pressed upon the article. In some well
known instances what is popularly
called money has only ouo of these
values.
Second. The common practice of
tribes and notions in selecting such ar
ticles or commodities for money is to
adopt two kinds or grades of them, one
having greater market value according
to its weight for use in the larger e.v
changes in trade; the other having less
er value, for 'the smaller exchanges.
'.This practice furnishes the first essen
tial condition for a.system of bimetal
lism'. Third. Only that money Is basic and
widely and permanently used which is
made of precious metals, very generally
gold and silver. Other and perishable
commodities are finally abandoned or
held redeemable in these metals.
Fourth. .The market value of theso
metals, not their faco value, constitutes
the original and continuous quality by
reason of which they are almost univer
sally accepted as basic or primary mon
ey. Government or custom can' add a
quality, not inherent, buv temporary,
to such metals and other articles usod
as a medium of exchange. But the real
measure thus declared to be effective
and lasting must be the one established
by the laws of trade, not by the edicts
of government.
Fifth. Government Itself cannot fix
or control the market vnlue or price of
any metal or other commodity, whether
Used as money or In tho practical arts.
So it cannot make flat money and com
pel the people to circulate It a great
length of time as money of any sort. "
Sixth. Any coins or other money
whose market value Is less than their
faee value always soon expel from cir
culation all coins or other money
whoso market value Is greater accord
ing to their weight, unlpss the fqrmcr
are redeemable in the latter. "Whenever
a coin shows even a slight inferiority of
its market value to Its face value, it
tends at once to crowd out of use even
a coin whose two values are equivalent.
Seventh. Gold has been adopted by
the principal civilized nations ns pri
mary money or the standard of values
because of its greater market value. Its
less weight for a given sum of money
and Its least fluctuation in market value
of any of the precious metals.
TCIght Coins like silver, whose
market value is less than their face val
ue, can bo kept circulating at the same
time with gold coins even in somewhat
large amounts only by being redeem
able In the same denominations with
the g-old, Tho same is true of paper
money, which lias no appreciable mar
ket value.
est in this country Is now considerable
less than six per cent. In England.
France, Germany and many other gold
standard countries It Is undoubtedly
less than five per cent. We have, how
ever, put the rate on the barometer at
six per cent.
In Mexico. Central and South Amer
ican countries and in most other coun
tries on n silver busls'tlie rates of inter
est will probably average more rather
than less than ten per cent. Statistics
on ordinnry loans on farm mortgages
are not available for comparison in
these countries. Perhaps the most
available are those prepared by Prof.
Irving Fisher and published in August,
1890, by the American Economic associ"
ation. These show only market or bank
rates of interest in London., Berlin,
zTa.
kllTA
r vv-"- ivr
If
Ssf u to
0nniuTnicp O
lUumiMio
15
fc Vs
COUNTRIES 6
14-
13
12
II
I0 fe
?-
7 O
6 h-
4 LU
3 M
14
13
l2- -J
II JS
lo 5;
I K
5 u
4 U
Paris, New York, Calcutta, Tokio and
Shanghai for a series of years, and of
course these are far below the average
rates. Prof. Fisher finds that the aver
age bank rote of interest from 1875 to
1870 was 3.8 per cent, in the four gold'
standard countries and 10.1 per cent,
in the three silver standard countries.
In silver standard countries the rate
had fallen but little, the average far
1870-4 being 10.7 per cent. In gold
standard countries the rate had fallen
over 25 per cent., or from 5.2 in 1870-4.
These facts tend to show that there is
some good reason why interest is
lower in gold standard countries. They
are confirmed by the further facts that
many large loans and some smnll ones
made in silver standard countries are
made payable in gold and at rates of in
terst far below those prevailing. One of
the alleged reasons why Japan has
changed from a sliver to a gold basis Is
to obtain lower rates of interest on
loans which she wished to negotiate.
Thore Is more In this subject of cheap
money than some silveritea dream of.
The best money is, in fact, the cheapest.
If the borrower tliiuks otherwise, lot
him have his cheap money and ay the
increased rates of interest charged for
it. Byron W. Ilolt.
Who can think
of somo elrapls
thlni? fi ruitpnty
Protect your ldenns thor mar brine you wealth.
Wrlto JOHN WEUDEKUUltN A CO., Patent Attor.
Dor. Washington, D. a.tfor their $i.BW) prlio offer
Jul lut ot two hundred Invention wonted.
Rlpans Tabules cure dyspepsia.
THE GREATEST 0FALI
FASHION MAGAZINES.
AWARDED DIPLOMA
AND SILVER MEDAL AT
EXPOSITION IN PARIS.
PRICE 25 CENTS,
YEARLY S(IBSCRIPTI?NS.$2?2
TOILETTES PUBLISHING CO.
126VEST23: SINEW YORK
Wanted-fln idea S
Protect your Ideas: ther mar bring you wealth.
Wrlto JOHN WKDDEltnUIW CO., Patent Attor
ney. Washington, I. C, fo their 91,801) priio oTcr
ud list of two hundred tnfeutlons wanted.
FARMERS AND STOCKMEN!
Keep posted on the Live Stock markets. It
inny sitvo you ,tfood monoy. : : : :
THE DAILY STOCKMAN
Gives full nnd accurate reports of tho South
Oninhu market, ulso Telegraphic briefs of
nil tho lending,' mnrlccts In tho country and
IS SHNT PREB
by commission men to thoso havlnit stock
to market. Samplo copies on request.
Clubbing rates secured and subscriptions
forwarded from this ofllco. : : : :
STOCKMAN PUBLISHING COMPANY,
South Omaha, Nebraska.
rSeputolieaii Jr 29348.
Standard and registered bay colt 3 years old.
1!5 hands hlh , weighs 1075 pound now. Sure Trotter; could show 2:40 palt
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wood, by MoMnlion, 2:21.
. Hppuplican .Jr. will make th seaion of '07 at home, Maple Ridge Stoc
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o insure.
k
$15
'
?"
T. H. JONES.
"Invincible, Unsurpassable,
Without a JPccr."
Writes a recnlar aubscriber, vho has
read it for mm y years, of the
Twice-n-woek Issue of the
St. Louis Globe-Democrat
and this is the unanimous verdict of
its mote than half a million reader...
it is beyond all comparison
,.. .-, -. l"o biggest, best and cheapest national
news and family Journal published
in America. It is strictly Re
publican in politics, but it is above
all a newspaper, id uives all
tha news promptly, accurately and
impartially. It is indispensab e
fe tho Farmer, Merchant or Profes
sional man who desires to keep thors
gly posted, but has not the time to
read a huge Daily paper, while its
great variety of well-selected reading
matter makes it an Invaluable
aom i and Family Paper.
One Dollar fnv On a Vnm
Sampl j Copies Free
&T. LOUIS, MO,
-V Jr. "V"
$5.
$5.
$5.'
00 bays Fins Violin
and Complete Outfit.
Hullf UtuuantMd.
00 buys a Mandoline,
Birdscyc Maple, Mahogany or Rose
wood Finish. Fully guaranteed.
00 buys An American Guitar,
guaranteed to stand. Steel
6tnngs, In Mahogany or Rose-
wooa nnish.
SEND FOIl CATALOGUE OF SHEET MUS.
$50 buys a $ioo Organ.
Kimball Pianos 1 Organs
ON EASY PAYMENTS.
Piano8,-litilo usod, for $50, $00, $80 in Sinn.
Wrlto for CaUlocuM and our term. FACTOItY I'llICEB.
A. HOSPE, JR., 1513 Douglas Street, 0HAHAy
JWmL
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tftaMUMMiiMMMIABBLjtkSKM feoW.
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