1
!
a.
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VOL. V,
LET US EXOHAHQE VIEWS.
Itn the tliiw lnuirveslng between now end
ihedate of tha i'eoplea Independent Hiaia
Convention thl and MUftccndliiK column will
e iimu to the Popultat of tha State to pro.
pom candidates fur Chi ticket of MM, Mid for
ViiUmiI htntoN senator, and to nhow raaaou fr
Individual reference. We nball not have
upane for anything more than uum two brief
reamm for the choice made, became we wlh
l Iwar from a fcreat many. LOT no mam iik
iibkk vnovimmi rva orrioa whom en AiuorieH
AM WMM. AM IMTKIXlWTOAr. QOAMftUATIoKN
Till WBtTBH WIT.I. WOT paKNOMAM.Y VOItiJtl
eon, If any candidate tenm to be lead In
whom onr reader cannot conwbmtlouNiy np
port, by Mi wean let us know why thuy ar
ntntnouuMly objected to, Jlutletus repwtii
another' Yiew, avoid anything Urudtuu to
disharmony If it b poealbla without aacritlce
of principle, nd Iwar wlllliiKly thoae who dif
fer wltb uh. "in a multitude of Rouuw?lor
there b afty." Hul with many to bear from
oath limit be brief. ttrtltor Wsamh Marsh.)
George A. Abbots for Governs , '
Thomaa Leachman of Falls City adds
to a business communication the words:
"For governor, (leorge A. Abbott of
Itlcbardson county.
Poyntor and Molloynolde,
Loetto, Nob., April 12, 1494.
Kditor WEALTH MAKKK8!
To the peoplo of Nebraska: How does
W. A. Poyntor of Boone county, for
governor, and Logan Mclteynold of
Clay county, for Lloutenant governor,
ound? B, 3. B.
J, N. Otfllo for Lieutenant Governor.
Gubhham, Neb., April 10, 1894,
Kdltor Wealth Makers:
Enclosed you will find one dollar to
Irene w my subscription to Tub Wealth
Maeemi. Whack it to "em," Brother
(ilbson. llew to the line, let the chips
fall where they will. Let the kickers
kick, for, remember, It is the bird that
is bit that flutters. I have not got my
ticket made out yet, but my man for
lloutenant governor is Hon. J, N.GarBn,
No fusion in mint If you pleast.
Fraternally,
. N. 8. MICHENER.
Hon. O. JInll for Governor.
Btockville, Neb., April 11, 1894.
Editor Wealth Makers:
O There ! a gentlemen la this state
whose name I have net een mentioned,
tmt who must not be lost light of at
available for the nomination for gover
nor this fall, a man of upright charac
ter, Irreproachable reputation, splendid
ability, broad acquaintance rod one who
haaboea identified prominently with
the reform movement In thli atate ever
elnce ita inception, and whoso heart
beau in warm aympatby with the great
heart of humanity aa ltiwella 'ncath 1U
burden of aocuuiulated wronga, one
whom the Fopullat party of Nebraska
ehould delight to honor and reward,
Hon. 0. Hull of Harlan county.
Henpoctfully youri,
II. B. Flbhahty.
Why Mbould Weir In Nominated?
SCHUYLKB, Neb,, April 16, 1894.
ICditor Weai.tu Makkrs:
I notice among othora the name of
Mayor Weir mentlonud for governor on
the Independent tloket. Why ibould
Mr. Weir be placed at tho head of the
Independent ticket?
l'leao let those answer who can of
tholr own knowledge give good roanoni
Ivby they want him.
The ropullsta have a right to know
why they are asked to onnslder the
name of a mn who i n strangur to thorn
politically. Sincerely Voura,
John K. Mepkero.
What Objections to Weir?
r.illtor Wealth Makers;
The proposition made by you to open
be columns of your valuable paper to
the cltlsen voters of the state to dtsouss
the available candidate for state oRl
vers I timely, and should be acted upon
by the people a vhainplous of the state.
Ntbranka Topullsta hive a long list
yf available nandldates for all the tint
yi. In fact, eery Oitutty In the state
' rnua who would graoo any tlckot
ami (vrve the pvopl with honor to
Ihumaelvu and satUfacttoa to the state.
Hut wt inuit ilat!i mo a In the fore
ranks who are known tu be roliaMs,
jhonett, rompeU'itt and aggressive
v' wuistn; lof-o tut have stood aW
v froin pwv lealouales and dispute In
1 .1 1.4 ilii lln.wi .. L... .t.lll.
and courage. It Is nut itsy InU utU o In
fthts WVvt to jt who are the pinper
mn Vti plaoe w the ticket l.i load thu
I IVpulUte victory la Jhui, hut we
would like tn s-k the ra.lrs f Till
W'KAtTU Makir what obJwUou tbor
4 have to Mr. Vlr, mayor of the city of
yr Uno!a for e terms for fexernor?
V. believe he Is the propr ntan to
I lead the IVpull.t ticket neit fall, and
if careful selection Is made of the bal
ance of the tlckot. Nebraska will be
placed squarely in the ranks as the
leading l'opullst state In the Union.
Lot us .bear from the brethren
through The Wealth Makers, and
et us discuss our available men and
choose from among the best and
strongest., ' ; T :
Always ready to continue the battle
for liberty, justice and progi I am
, K-nlisted for tho war,
Warner Stark.
Hdltor 'News," Allen, Neb.
April M4. ' ' ; '
Powers, Deaver and MoKelgban,
HOLDREQE, Neb., April 18, 1494.
Editor Wealth Makers;
In response to your editorial, "Let
us exchange yiaws," allow me to express
mine.
I most joyfully endorse tho sentiments j
st 1t4tida VAMman a"1- tar 4 1 vt tt Vtal rt ft In '
Vf Wl VUVi AVf IMBU VUWU1I V WVIU
favor of placing honest Job a Powers in.
nomination again, ills reputation for
steadfastness, sincerity and fairness, is
beyond reproach. With him as our
candidate for governor, Clem Deaver
for lieutenant governor and our Wm.
A. McKelgban for the fifth district
congressman, we would be about sure
to win. Let us fight It out single
handed. There Is no such thing as de
feat for our cause. We may be repulsed,
but defeated, never, We will march on
ward in spite of all old party scheming
Those who are honest, will come into
our ranks as soon as they get to see the
rottenness and violation of platforms in
their respective parties. -
No fusion for me. For those that are
so blind as not to see how their most
sacred rights are being trampled on and
every platform flatly cast to the winds
by Democrats and Republicans both,
are not the class of people to fuse wltb.
We are better off with out them.
Yours fraternally,
Jobn N. Stauot.
Jobn A. Oberg'e Choice.
Thayer, Neb., April 10, 1894.
Edltqr Wealth Makers:
In answer to your Invitation for an
'Exchange of Views" In regard to the
candidates to be placed on our state
ticket this fajl, permit me to suggest a
few names, not saying anything against
those already mentioned. They are all
good, I bellove. We surely do not lack
material for a winning ticket, if we will
only ''keep In the middle of the road."
Let us have: For governor, J. V. Wolfe
of Lancaster county; for lieutenant
governor, lion. J. N. Gattln, Saunders
county; secretary of state, W. A. I'oyn
ter, Boone county; state treasurer, J.
H. Towers, Hitchcock county; attorney J
ireneral. Joseph W. Edgerton, Hall!
oounty; state auditor, W. F. Porter,
Merrick oounty; commissioner of pub
Ho lands and buildings, E. Soderman,
Phelps county; superintendent public
Instruction, W. J. Russell, York
couuty; member of congress fourth
district, Judge Stark, Hamilton couuty;
United States senator, George Howard
Gibson. Yours for success,
John A. oberu.
I appreciate greatly the compliment
which Mr. Oberg has paid me In plsc
Ing my name In his list above, but wish
it understood that I am not and never
shall be a oandldate for any orlloe. An
editor can ado more good, can gain
greater lntluv. uoa, can much hotter serve
the party and retain the confidence of
all elements, avoiding Individual
Jealousies, selfish strife and party
schisms, by rofualng to be a caadldat
for oHloo, I hope all will see this and
that my name will not agala be man
tloned. KuiTOR Wbalth Maker.
Irt, W, A. .lottM fui' V, H. Hanator.
l.iwir, Neb , AprllO, Jm,
Kdltor WtULYU MAKKUft:
I have bee veiy rauih Interested In
the names ru.MiUil I r "caiullJaU n
for iirnW to X flllv.l this fall, Tha
tetter of 11. J, Johnston, strikes the key
not to the situation. What we nod
at present 1 msa of swtllag Integrity
of principle, wa have the welfare of
tlu whole peeple at her. who are able
to lU fvittd their j'rlo(.i)'!e.al any and at)
tlon. Men wh will malatla the
iirlnulplet a well when la ntlte an whi n
advocated on the slurttp.
I whl only nu.e one candidate at
pmiK'nt, fcr W 8. i"!or, I ,of. W. A.
Jones.
There will be in In the convenUoe,
probably, wko will adyocal futon.
(HltB"a4 aa 4tS i
LINCOLN, NEB., THURSDAY, APRIL 19, 1894
OLD ERROR UNVEILED
What Prevents Kegularity of Work aud
Oommercial Certainties,
WHY SUPPLIES EXCEED DEMANDS.
Intquitable Obligations Which Regularly
Causs Failure, Liquidation and
Cessation of Work.
The Cause of Financial Panics.
Warsprlntbe'ow, fromThft Arsna, part of
tba wont valuabla art. do whMi baa appeared
for ynari In any of tba niaftay.lnaN, an article
entitled, "Tba Oauaa of Fluancial t'anlca," by
Mr. J. R. Hannntt of St Louli. Wa Khali Klva
ourrnadara mnra of It In iucouhIIuk Unuhi
of Tna WBAtTH Makkhs. Yrotinv the
paptra coatalninti that wa print of It aud Klva
tbtim wlSawt clrvulatlnn poiutlble. Tbe -teouud
and third InittalmentH will get down to tha bate
of the evil, and will contain nw argumeut
and truth.-KmroB Wsaivih Maki as
The world is today confronted with a
stiange phenomenon. The freest and
richest country on the earth it experi
encing a business depression, one of the
most severe in Its history. Banks have
collapsed, commercial houses closed,
factories ceased to operate; railroad
equipments are lying Idle in the yards:
steamships are plying empty. Thous
ands of men are stalking the streets of
our cities searching, in vain, for em
ployment, and starvation stares their
wives and children In the face. Police
olliccrs are busy suppressing free speech
and free action lest they should lead to
anarchy. Tbe usual tax on tbe com
merce of the country docs not produce
sufficient revenue' to keep In action tile
wheels of government
Nobody seems to know the cause. The
reasons given for the staange situation
are as numeroas aa tha sources from
whence tbey come. Ask tbe politician,
and be will say, perhaps, "Tbe use of
silver as a money metal is the cause of
hard times." Tbe man at his elbow,
who came from another section, will
respond, "The threatened demonetiza
tion of silver Is the element of mis
cbiof." "Good enough," says a third,
"but tbe main cause of distress is tbe
tariff." "Not so," says a listener, "the
fear that the tariff will be meddled with
U ruining tbe business of tbe country."
"Want of confidence, that is the
trouble," wisely remarks a philosopher.
Confidence in what? But the broad
generalization will not admit of specific
statement. Another set of "thlnkars"
does not kuow; such panics are neces
sary. Tbe country experienced a like panic
in 187,'t, and the causes to which It was
attributed were quite as vague or varied
Tbe panlo of 1857 was as marked, its
osHsca quite as indefinite. The panic of
1837 was caused by Jack on and the banks
or almost anything else one might men
tion. Tbe intermediate panics of '24,
'48, '04, '84, etc., were fully as occult.
We may search the history of all na
tions having financial systems similar
to ours, and we shall find that in times
of peace financial crises oocur with
more or less regular periodicity. With
such perslsteat similarity of effeot we
are justified In looking for similar
cause. Where such similar orlses are
brought about under so grsat a variety
of olroumstances, we are justified In
picking out the circumstance present
in all. as bearing the relation of caue.
We find crises under both monarchical
and republican forms of government;
wb-"re there Is at Idle nobility, and
where there Is no nobility at all; whore
free trade exists, and where tariff Is
oollected. What was the one condition i
precedent to all of thea crlo? In a
nutshell; the laborers anl business men
of the country became extensive debt
ors to the oapttallstlo olass; credit was
greatly extended. All at onoe credit
or recalled their loans or the loans
matured, butlueaa was unable to pay, It
failed, and a panto ensued.
Why were not the active ledutrleof
the country able to pay their iKilt.'
Crops wrre as good at ever; tbure ware
the lot of prtovs for allot thenes
arlo of life, ll was atd that thete
ws "overproduction ' The industry
of tse poople was as active a ever be
fore each of thret ptnle t;iouh. The
skill of tbe Inventor w aa k rent lu a
country l.erw then waa overprod ic
lion there lurTofln fur hrveJ a i l
clothing. Hat It all tf thvee vrltri
money was scarce; that Is, it we In tbe
ban-U of HopU wh were Hot aotlvtly
enggd In any buvinr. There ww
not enough to pay eblUatloat; It aat
a premium, or enld not be bad at all.
Ta supplies of the country seemed
be in the wrong hands. Tbe obliga
tions of active industries seemed too
large, and oould not be met. Tbe
capitalists of tbe country held claims
that there was no wealth to satisfy.
They Boomed to have the wealth, the
money, and the claims which these
alone could satisfy.
It seems like a platitude to say that
active industries failed to meet their
obligations because these obligations
were too large, yet this is strictly the
fact. ' Tbe borrowed capital of the
country claims more in remuneration
than tbe country can produce. Every
dollar representing debts unpaid claims
a like remuneration. This must all be
paid out of the production of each year,
and from each year's product aen must
be fed and clothed and , sheltered.
The wealth of the world must be kept
up. Buildings, machinery everything
must be kept in repair; and improve
ments for use in the future must be
taken from the stock of tbe present.
There is not wealth enough to meet all
these obligations; and the business of
tbe world must go into tbe hands of a
receiver every now and then, so that a
new start in business may be made.
The country with all Its allied indus
tries is analogous to a mammoth busi
es concern. When it contracts
greater liabilities than it can meet it
falls, and we have a financial panic.
This state of bankruptcy is chronic.
Counting everything, the liabilities of
tbe country are always greater than its
assets. Tbe industrial world is always
In a state of potential bankruptcy, but
credit tends to keep it out of the bands
of a receiver. Then the same persons
are in part debtors and creditors, and
this,, w'th our frequent liquidations,
aids in keeping us from oontlnual finan
cial panto. Any disturbing of credit
precipitates a crisis.
An odd proposition, but one capable
of mathematical demonstration, is that
tbe very foundation principles of our
Industrial system lead us to recognize
obligations which we can never pay.
A simple, speclflo statement of what
they are, compels us to admit that they
at e too large to meet.
The present wealth of the United
States maybe placed in round numbers
at $72,000,000,000. That fully eighty
per cent of this sum pays interest, may
be verified by any person who cares to
give the subject thought. If any of
the money Invented in business bears
Interest, all money invested in business
must likewise bear Interest, otherwise
nobody would assume business risks.
But we may arrive at the same conclu
sion by a process quite different.
Something like eighty per cent of the
wealth of this country is la the hands of
about 250,000 persons, or atout a two-hundred-fortieth
of the population. This
excludes the wraith of well-to-do farm
ers and merchants; and it goes without
saying that nine-tenths of this wealth
held by the Immensely rloh Is interest
bearing. Nearly all of it Is lent, or if
not lent out It Is invested in some busi
ness where Interest on the money in
vested is added to the return or profits
of tbe undertakers.
The wealth In the hands of farmers
and merchants Is paying Interest on all
that Is not used for the personal wants
of themselves and their families; and
even many of tha homesteads of the
country ara paying lnteret At least
oui halt of such wealth Is Interest-bearing.
An examination of the mortgage
lists of the several states will more than
bear out this estimate. Wo are, then,
paying fixed charges, as the railroads
put It, on about riA.OOO.OOO.OOO of the
oauntry's wealth. The net rate will
average five per vent; nnd taking Into
consideration commUnlon and other
therms, six per cent Is a low estimate
ol the itroas rate. The Intereat on lA
tKK3,OiO.W)0 at lx per cont IsU.JtiO.OttV
ooo per year. To get the average taver
ttt charges for the lat dotade, we
iuut take the average of Interest-paying
capital, which Is axut VtO.OOO.Oui,
Ooo, We havtt, then, an average yearly
UttM-et of ll.OitO.fJtaJ.om a Suut which
more than abaorbs tbe eutlrv yearly In
IturUg lbi Imt Resale tho wiHh ol
lU cocitry hat liu rd about
h.ju.0, llailn tho ame portod
tra In threat charges were I .iu.Coo.txM,.
iW, .udlng btit the allele Item of In
tarsal el iroial b';etru- ohll,ttUt
to tho (landing debt of the poop e, the
m v of 'be country's cUWsns will, la
Yuitvu,wrlo4of tea years, fall H,
1" uwae..uuw
000,000,000 below their liabilities. The
principal falls due In that time, and the
business of the country, if fixed in the
same bands, would bankrupt In that
time. It does actually feel the -shock.
But the fact that many persons are
creditors as well as debtors, and that
debtors and creditors change places;
puts off the final accounting. The ten
dency of tbe enormous fixed charges
on business is to amass the wealth of
the country in the hands of large prop
erty holders who are almost exclu
sively creditors. The mightier the for
tune, the more interest it draws aud the
more exempt it Is from the dangers of
speculation. ' ' '
. Fortunes goes on piling up under the
law of Interest, and after all checks and
counter tendencies are allowed for, the
country has a panlo becomes bank
rupt every twenty years. There is a
well-defined financial flurry of more or
less violence every decade, or even
of tener . The fact is that whenever the
creditor class demands ita money there
1b a panic, far there is not cash enough
in the country to satisfy the demands,
and all property must be turned over to
meet liabilities. Indeed, the cash in
the country is principally in the hands
of the creditor class, having piled up
there under the laws of interest. Dur
ing times of confidence, business is kept
moving: by a shif tins: of liabilities, but
in times of doubt and unoertalnty, from
whatever cause brought about, the
business of the country finds it impos
slble to meet its obligations and is
obliged te file Into bankruptcy. The
cleverest of fpeculators cannot long
keep up their business by borrowing
from one to pay another, unless debts
are very small as compared with the
capital invested. 'Just so with tbe busi
ness of the country taken as a whole
the piling up of debts always ends in
collapse. It is nonsense to say that
want of confidence is the cause. Unless
the ground principles of business pro
duce instability, want of confidence can
have no effect. Men realize that the
business oi the world cannot pay its
debts, nnd therefore lose confidence.
, But Interest and rent charges are not
the only liabilities of the business Qf the
oountry. The government must be sup
ported; the national debt and tbe inter
est thereon must be met; debts, state,
municipal, and school, must be provid
ed for; local government must be main
tained. The Interest on the public
debt of the United Slates amounts to
$40,410,000 anaually. The interest on
municipal, school, county and township
debts in the United States is $56,750,000
per year. The expenses of the United
States, exclusive of Interest and tbe
paying off of the standing indebtedness,
are now about 1330,000,000 yearly and
the cost of state, county and municipal
government is $450,000,000 per year. At
the very lowest estimate, $897,000,000
must be charged yearly to government
In the United States, not Including the
payment of the principal of the public
debt. This, representing money spent
outside of regular business, amounts to
$8,970,000,000 in a decade. Adding it
to the former sum, the exoess of inter
est on private obligations over the in
crease of wealth, we have ltt,(i7Q.no,
COO as the sum which the assets of the
citizens of the United Statu fall behind
their Indebtodoens every ten years. In
view of such figures as these, It is not
difficult to see why we have periods of
business depression every ten years and
terrible financial panics every twenty
years.
The tendency under such conditions
li to have all the wealth which Is not
used to fet and shelter and clothe the
race pass into the hands of the money
lender. There Is a comparatively
trifling exception to the rule. About
five per cnt of all who start In bualneas
!avoltwtth more than they began
with, and but a portion of their gain
can be raarged to interest. The more
ttabit and the largest houtoa of bul
net, however, realize large returns
from tetorest taking.
What wonter Is It, then, that tbe
hulnc of the country has to go
pt rp. illcully Into the hands of a receiver
In order to ttulghtan out lu account
an 1 Wgin anew? Thl Is tho only way
la which the great bulk of buaint-aa
iota can tot a new start. Croditor are
obliged to take part of their claims, an
there Is uot enough to pay the whole
ieou are oaacetiea ana a eea? start u
made. The wealth Is lent out again;
Interest Is paid agala until the burden
NO. 44
(rets too large and another crash comes.
At each crash some of the men who
were creditors at the last accounting
are found among the debtor class, and
thus property is prevented from mass
ing in a decade or two in the hauds of
a permanent creditor caste. Yet the
circle Is forever growing narrower.' '
When a firm is doing a paying busi
ness, the gross profits of its transactions
must exceed expenses. When the
business of the nation la paying, like
conditions must prevail. The increase
in wealth is the gross profit of the
country's business; If that will not meet
Interest charges, the business of tbe
country is not paying.
It makos little difference, from a
theoretical standpoint, where the later
est goes greatest: from a practical
standpoint; it is of the greatest import
ance. When the interest goes to small
property owners, it does not hasten the
division of the country into rloh and
poor. When millionaires collect the
Interest, it takes them but a short time
to absorb the bulk of the wealth of the
world and leave the rest of mankind
poverty stricken. Speculation and the
collection of compound interest in
crease the charges oa honest produc
tion and hasten the day of panio and '
final accounting. They help to pile up
wealth steadily in the hands of the few
and to make each panlo worse than the
previous one. - ,1
It is therefore plain that, under our
present financial system, the business
of the country oannot meet its obliga
tions. It is also plain that the creditor
class must go on absorbing more and
more of tbe wealth of the country, un
til finally the more wealthy, those who
are not obliged to take any chances,
will have the lion's share of this world's
goods. We see nothing adequate to
account for this condition of affairs ex
cept interest taking aud the paymentof
rents. These fully acoonnt for it. In a
nutshell, borrowing on , Interest and paying
land rente are tAe cause of alt our financial
difflcult'ut.
These are the basis of our financial
system, yet something in our financial
system is radically wrong. Least in
themselves can certainly do no harm.
If one has more wealth than he can use
and turns it over to one who has use for
it, there is certainly no barm done. If,
as a condition of the transfer, he re
quires that he shall be fully secured in
his loan, and that the amount which be
has lent be returned to him at the end
of a specified time, nobody has the
right to cavil. It would be no hard
ship on the borrower, for the very act
of using the wealth for his own benefit
would produce enough to pay the lend
er. Except in individual cases of bad
management, tbe business man who
works under these conditions, even
with borrowed capital, would have no
trouble n paying back what he owed.
But the creditor wanta more in return
than he has lent There is added to
this amount a charge called interest.
If he lend the money for fourteen years
at five per cent, the creditor wants back
twice the amount lent If the rate Is
higher, he wants even more; and as the
time oi tbe loan runs on the amount
which the debtor has to pay for the loan
multiplies. Aa we have seen, the
creditor demands too much; wealth as
a whole is not productive enougt to pay
Interest charges. After keeping up
the capital stock of the werld, and
feeding, sheltering, and clothing the
i, toore is not enougb leit to satiety
demands of the money lender. If
one agrees to return every ten, twelve,
or evn twenty years, aa amount equal
to that wturb be bas borrowed, in In
terest, be la undertaking an Impossibil
ity, xsature nas so mucn productive
power If it cannot be done in this
omntry of virgin resources and un
paralleled conditions tor tbe production
of wealth, It can tie done nowhere. We
are, then, confronted by a foundation
principle of our financial system which
nvceMarlly results In bualnet panlo. It
It necesiMtry that thl principle of our
system be critically examined if we
would find where our trouble ilea.
Arguing from other premises w
reach tbe tame conolulona. N'aver bo-
fore In the history ol the world have to
many Ian fur the relief of humanity
been brought forS"d aa In the last d.
cade. Tri eooromltt tea in profit
tearing tao full mcanuro of human fell
city; 'h remedy of that one I the full
control by the ttato of tha objeot of
roono;oti one rU that the organ
tatlon of labor i tbe panacea tor all
social V another swe salvation in the
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they always will b.
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