THE WEALTH MAKERS.
November, 1894
LET liS BE COHKECT
The Mixing of Error With the Truth
Weaken Oar Appeals
THE FEB CAPITA OIBOULATIOH
Mr. Ward, Author of Government Banks,
or a A Better Financial System,
Argues Against Mr. Dun
fling's Figures.
Editor Wealth Makers:
Last spring upon receipt of a sample
copy of my book Mr. N. A. Dunning, as
editor of The National Watchman, gave
me the following kiudljr notice:
"Mr. George C. Ward has written a
book, aud right here we are reminded of
what a dispensation of Divine Providence
it wax that Mr. Ward was ever brought
into the world. Through it the people
have some one before whose analytical
Dowers all abstruse and dimcult ques
tions dissolve, and whose perfect willing
ness to map out a programme for the
world's future action, is only equaled by
bis persisting in doing so."
I bad an opportunity yesterday of
looking at a copy of Mr. Dunning's Peo
pie's Party Campaign Book of Reference,
aid to have been "compiled under direc
tion of the National Executive Com
mittee." I had the book but a few
miuutes, but utilised the opportunity to
read the first article, relating to the
volume of money, per capita, in circula
tion and was Both astonished and amus
ed at the peculiar methods by which Mr.
Dunning reaches the conclusion that
there was only S5.17 per capita in circu
lation on July 1,1893. If the figures
and conclusions in relation to thin ques
tion are a sample of the reliability and
accuracy of the work in general, the book
is, indeed, u valuable (?) compendium of
fact and a safe (?) book of reference.
Mr. Dunning is an expertarithmetician
and quite an adeptin figures, so much so
that, though I presume I should be
ashamed to own it, I must confess to an
nubility to comprehend the method of
computation whereby he arrives at the
amount of money supposed to be in
circulation, from which to make certain
requisite and reasonable reductions in
order to find the amount actually in
circulation. I prefer the simple and
direct mode of taking the treasurer's re
port, or statement of all money and cur
rency of all kinds, metallic and paper,
coined and issued, and not in the United
States treasury and, treating that as the
amount supposed to be in the hands of
the people, make the proper reductions
therefrom to ascertain the amount actu
ally in circulation. The conclusion arriv
ed at by the two methods is, however,
about the same, the treasury giving the
amount coined and issued and not in the
treasury, on July 1, 1893, as being f 1,
593,726,411; while Mr. Dunning, by
means of some intricate and perplexing
calculations, finds the sum of f 1,738,-
054,057: from which he deducts, as being
in the United States treasury the sum of
$142,107,22H leavingl ,.19(5,846,829 as
the sum coined and issued and not in the
treasury, which is 3,120,418 more than
the amount given by the treasurer; a
trifling difference.
But it is when Mr. Dunning treats of
the matter of bank reserves, or money in
the various banking institutions of the
country, that he displays to the best
advantage bis versatile genius in the
direction of manufacturing statistics.
Taking as a basis of computation some
statistics found in the comptroller's re
port for 1893, he figures that the various
banking institutions, on ot about the
date in question, had the enormous sum
of 1909,581,127 in cash money, which
they were holding as reserves. But turn
ing to page 240 of the report in question
for 1873, 1 clip therefrom the following
table:
9
It
tell 3 ?2SI1
$ii mint
83 S" E'g'g" 5S"
"5
i
.5
M
si is-
!!
!l?S
Igs"
st I I"
to 9
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o5
Xvia-oeeie : :
F- o 55 6- o i
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h 2
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e m
Po
o c
6
6
a
So
to,
o
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00
A e
I ! 1 1 1 1 ! 1
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I : c :
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: : :
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ow e
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if I i !
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:!
Sx g a 0
.- 3.3
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.X
-
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m
0C
From the above table it may be seen
that Mr. Dunninsc deducts, as bank re
serves. $393,593,387 more money than
was in the possession of all the banking
institutions inuking reports. It is true
that there were 187 incorporated banks
v-Tyck;;t4lu.10,,,r?P9tt, and, perhaps,
nearly as many private Sai'iks, "aft" "of
which must have had some cash on
band, but noting the average sura held
by the 5685 banks (otherthan national)
reporting, we shall err in the direction
oi laterality, if we allow $15,000,000 for
the banks not reporting. This would
leave $378,593,387 as the sum of which
Mr. Dunning arbitrarily adds to bank re
serves and deduct from per capita circu-
lation. Putting the population, at
the date named, nt 68,000,000 as he
does, this gives us $5.56 per capita to
add to his $5.17, making a ,total of
$10.73 per cupita on the date named.
statement of population, the treasury
department giving it as being 66,-863000.
Ro, then, usinir. Mr. Duuiiimr'x own
basis of computation aud reproducing
bis own flu-ores, except as to bank re
serves and populations, we nave- the fol
lowing result:
Amonnt held In V. B. trwMUry 1 H2.t7.?M
Cah la Butlonal bnk . 81u.it42.Mi
Canh la ttsU. prtvat and tIdm
banns, luaa nu u-uai. cuiumr,
te .
rh bold In baoka not reporting..
Amount dadocud lor loan on papor
money ,
Amonnt dwlnrtad lor loa In gold
and rold crtiBcata ..........
Amonnt dinctd lor loaa In ailver
15.U0U.000
7.lWO.00O
218.S00.000
61. 500.000
sod allrar oer tinea tea.
Total...... 1 1.010.094.WM
The total amount Mr. Dunnimr places
as outstanding is $1,738,954,057, from
which deduct $1,010,094,968 and we
have left the sum of $728,859,089. Di
vide by the population given by the
treasury department, 66.963,900, and it
gives $10.88 per capita.
How does it come that Mr. Dunning
falls into this palpable and grievous
error? Simply because he studied official
reports and statistics in a superficial
manner and with a bias born of a deter
mination to establish certain previously
asserted facts. If he bad read pages 18
and 19 of the identical report be quotes,
be would never have made the mistake
he did. Or, if be had studied the tables
on pages 182 and 183, he would, at
least, have paused to consider. The ta
bles, coudensed. are as follows:
is
a
I!
. to
3 t
: ;
i i
mi
95PII
M
85
1:5 1
S 00
i
Si'
M
05
00
o to ao
E25
CO
er
W
C
H
8
s
m
o
o.
WAN
g'86
OS
2
if i
: i
I
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1
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1
S3
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: a
; s o - s u
"3 "5 o o o
5 i
t .s 3 3 3 3 3
oego o o o o
- 59 h 6- t H
A very cursory examination of thefore-
going table reveals the distinctive differ
ence between "reserve required" and "re
serve held" and also between "cash re
pene required" and "cash reserve held."
Moreover it at once becomes clearly ap
parent that all the national banks held
on Oct. 3, 1893, only $346,433,212 in
cash money, while even that a mount was
$152,231,156 more than the "cash re
serve required" by the national banking
act. In the official report of the comp
troller of the currency, the term "cash
reserve required" does not include all the
money covered by the term "eash reserve
held". The two terms stand for two
distinct and different factors, or sums of
money. While the "cash reserve requir
ed" may not be encroached upon without
a violation oi tne law and an impair
ment of the soundness and the solvency
of the bank, all money in "cash reserve
held in excess of cash reserve required"
may be loaned out, or used in the ordi
nary commercial transactions of the bank
It would seem as if the term "cash re
serve held" was a misnomer, or wrong
classification, as all the money held in
banks, in excess of "cash reserve requir
ed", is a portion of the active cash bank
ing capital or per capita circulation and
is a factor in determining prices.
A moment b reflection will convince one
that the cash in the national and State
banks in excess of "cash reserve requir
ed", represents but a fraction (about one
fifth) of the active cash banking capital
of the people. '1 he money paid out week
ly and monthly, in actual cash, as wages
to labor, etc., is gradually paid out by
the recipients and day by day finds its
way, as deposits subject to check, into
banks. The cash the bank holds in ex
cess of reserves, bears the same relation
to the cash banking capital of the people
as do their actual reserves bear to the
gross deposits of the people.
We have seen tnat tne uationai Dan Kb
on July 12, 1893, held $152,331,156 in
excess of legal requirements, un or
about the same date, the state banks
held $30,966,806 more than 15 per cent,
of deposits which makes about $183,000-
000 of active, price afflxingmoney to add
to the per capita circulation, and would
bring the actual circulation of price de
termining money up to about $13.60
per capita. The savings banks, private
banks and loan and trust companies
had. on the date named, less than three
per cent of their deposits in cash, having
n their combined vaults only jpoa.OM,-
000 as reserve against deposits amount
ing to $2,353,595,000.
With these facts before us, it is easily
seen just where and how Mr. Dunning
makes his mistake by reading the follow-
ipg statement of his mode of procedure
clipKd from his owii oookv lie nays: 1
The law declares thatacertain percent
of all deposits in national bunks shall be
held as reserves. It provides that 15
per cent shall be so held in small towns,
and 25 per cent in large towns. The
amount actually held as reserve and
thereby kept from circulation given in
the comptroller's report for 1893, page
29, as ranging from 26 42-100 to 27 24
100 per cent. One amount of deposits in
national banks for July 12, 1893, was
$1,556,761,230. (Compt. Kept, page 4)
Making the computation at 26 percent
of reserve, (rives $42,541,725. The
4PAcntildm-W.eiyes.iii state, private
and savings banks and loan and trust
companies are not regulated by law, but
from the best information obtainable it
tnjimKutiiiiiiiiiiiiiiiiniiiniiiiMiiiiinMiiMiiiHiiniiiiMtimuiuiiiiniPiiiiiMiifimrw
IWe Want You!. I
'TO COME TO
Great Clearance Sale
NOW IN
Money's Worth
or
Money Backl
3tf
1200 Suits!
900 Ulsters!
Out to within
Most Men
Like to be dressed well; they know that "Clothes do not make the
man," but they know also that the World's estimate oi what a man
really is, is often baaed on the kind of clothes he wears, quality, fit, S
etc. This may not be right but it is a fact just the same. .
Our fit is perfect our quality the beat. g
Buy an overcoat, ulster or suit of clothes of ua and you will always s
Look Well. I
BROWNING,
S Zisrrsst maaufactuxsrs of
S Clothinf la h World.
1
m mmn i inmi n tmii ira Mini 1 1 1 1 n i n 1 1 1 n
is not less than 15 per cent of deposits.
There was held as deposits in the 5,685
banks loan audtrustcompanies, outside
of national banks, which reported, -$3,-070,462,680.
(Compt. Rept., page 240.)
Estimated as 15 percent the reserve held
by these institutions amounted to $460,
569.402. It is estimated that 3,647
banks made no report. If we estimate
the reserve held in these banks at $10,000
each, w hich is very moderate, it gives
$26,470,000 more. The reserve held in
the aggregate would stand as follows:
In national banks $412,641,725
In Htato, pi-irate, and oavinicn
banks, loan and trnat eoinpauiea 460,609,402
In banka Dot reported 56,470,000
Total 1809,681.127
The error relative to the reserves of
banks other than national is apparent
"upon the face of the returns." If he had
rend pages 18 and 19 of the same compt
roller's report from which he obtained
nis data, he would have discovered that
in the fund denominated "reserve requir
ed" of $316,681,977 is included in ' cash
reserve required" $194,202,056 and
"Due from reserve agents" $158,499,
644. Let us seek the truth. It is the
truth which makes men free.
Geo. C. Ward.
Excursion for Homeaeekers.
On December 4th and December 18th.
The Burlington will sell round trip tick
ets to points in Texas, Oklahoma and
Indian territory, to points in New Mexico
on the Pascas Valley railroad; to Dent
ing, N. M.; to points in Arkansas; to
points on the St. Louis, Iron Mountain
& Southern, and Kansas City, Watkins
& Gulf railway in Louisiana; to points
on the K C, F. S. & M. railway in Mis
souri, south of Springfield. To points iu
Nebraska, Kansas, Colorado and Utah,
west bound only. One fare for the round
trip, plus $2.00, provided such fares are
not less than $7. Apply at B. & M.
depot or city office, corner Tenth aud 0
streets, for full information.
25t3 G. W. BONKKLL, V. V . & T. A.
Notice our cheap clubbing rates with
"The Prairie Farmer" and "The Picture
Magazine." Send in your subscriptions.
You will want good reading matter for
the family during the long winter even
ings.
COST
Clothing, Gent's
Caps, Gloves and Mitts.
OWING to shortage in the crops and the scarcity of money, we find that we have
bought too much stock and have determined to reduce it and for the next 80
days will sell it at actual cost. The stock is composed of all new and fresh
goods of the latest styles. For prices see
SUITS
$20.00 Suits for.,
18.00 " .,
15.00 " "
12.00 " ..
$15.00
13.00
11.00
8.00
OVERCOATS
$25.00 Overcoat for..
23.00
20.00 " "..
18.00 " " ..
15.00 "
12.00 " "..
10.00
,...$20.00
.... 17.50
15.00
.... 13.00
.... 11.00
.... 8.00
.... 7.00
BOY'S SUITS
$7.00 Boy's Suits for $5.00
6.00 " " " 4.50
5.00 " " " 3.75
4.00 " " " 3.00
aud boy's overcoats at same reduction.
We also carry a full line of Trunks and Valises which we will sell the same way.
Remember this sale will last but 80 days and will be STRICTLY CASH.
BAKER'S CLOTHING HOUSE,
3-Coms early If yo want barf alas. 1039 O St., Lincoln, Neb.
OIR
PROGRESS. S
We are financially able to back this guarantee, -
and any Isw.ver will tell you it fs a legal one. We S
understand the English language and do not wish jjj
to shirk the responsibility of our words. ' p
50c. of Cost.
KING & CO,
1013 0 St., LINCOLN, NEB.
m 1 1 1 1 n 1 1 1 1 m 1 1 11 tttimrjinimrmmmi 1 111 iitf
Emancipation's Woes.
First Clubwoman (a lew years hence)
Men are enough to drive a woman
crazy.
Second Clubwoman Indeed, they
are.
First Clubwoman Only think. For
five nights last week I remained at the
club terribly late, and yet, when I
went home, I didn't once find my hus
band waiting at the top of the stairs to
upbraid me for neglect. The heartless
brute was in bed, sleeping like a top,
and actually smiling in his dreams.
A Quick Wedding:.
Hyski (Pennsylvania coal re ions)
And so your daughterski is marriedski?
Mrs. Lowski Yes, and it was a very
quiet weddingski. De guests used
knives instead of pistols. New York
Weekly.
Love's Young; Dream.
Jones A penny for your thoughts,
my dear.
Bride Please . don't dist. rb me,
darling. 1 am working at such a
problem. It makes my head ache
"At least tell me what it is about."
"I was wondering how we could
spell our name if we got rich."
A New Amusement.
Little Girl Mamma says
I must
study grammar this term.
Little Boy Wot's that for?
Little Girl That's so I can laugh
w en folks make mistakes. Uood
News.
Bather Discouraging.
Country Boy I'm disgusted.
School Mate What at?
"I saw a city feller with a gun this
morning, an' you know its against the
law to kill game till next Monday."
"Yep."
"Well, I just said I'd toiler him and
git the reward."
"Yep."
"Well.I follered him 'bout forty miles
to-day, an' he missed everything he
shot at." Good News.
SALE!
Furnishings, Hats,
below: .
UNDERWEAR
$5.00 per Suit for. $4.00
4.00 " " " 3.00
3.00 " " " 2.25
2.00 ' " " 1.'25
PLUSH CAPS
$2.50 Caps for $1.75
2.00 " " 1.50
1.50 " " 1.25
1.00 " " .75
PANTS
$6.00 Pants for $4.50
5.00 " " 3.75
4.00 " " 3.00
3.00 " 2.00
GLOVES & MITTS
$2.00 Gloves aud Mitts ......... $1.25
1.50 " " " 1.00
1.00 " " " .75
METAL
WHEELS
C 13
1 mi
for your
WAGONS.
Anr size joo want, SO
to M in high. Tins I
to 8 w.wida hafaa to
nt aajr ul. Have
Coat maoj times in
a aauon to hare eat
of low whaela to fit
fonr wan for hanlina
CTmm, fodder, Buurare,
bona, ftc. No resetting of
Urea, Oatl'c free. Addreai
KSfPIRK MFG. CO.
Vainer, IU.
WINGER'S S
FEED GRINDER
"A MONEY MAKER
AND SAVER."
A doable Grinder with three
burrs. Center draft. Can be
attached to any make ot pump
ing wind mill. E.B. WINGER,
532 Kenwood Terrace, Chicago, IIU
GiYci) HvJwi
If more good points caa not be shown la It
than any other hay press made.
Martin & Morris sey H'fg Co.,
OrnaTia, nba
Your Butter. Em
Poultrr.Veal.Beana,
Potatoe. Hidea,
Pelts, Wool, Hay.
Grain. Green ' and
Dried Fmitn. or ANYTHING YOU MAY
HAVE to us. Quick sales at the big-heat
market price and prompt returns made.
Write for prices or any Information you may want.
SUMMERS, MORRISON & CO., SK'?
174 South Water St., Chicago, 111.
BarsBKMCB-MetropoUtan National Bank, Chicago,
'.HEAD J MAS
Israed Deo. 18 next. Elegant Illustration! of the creat
eat harness horses. Masnlnosnt supplements for fram
ing. Special articles, stories, poetry and statistics by
best talent, inclosed in aa elegant, unique, handsome
doable eoTer, lithographed la 12 oolot. Price 10 eta.
Agents wanted special terms. Regular weeklreditloB
incladingXmas No , t2 a year. Send for free sample
copy. THE HOBBH KEVIEW CO., Chicago, 111.
COL F. II. WOODS, Auctioneer.
3
-THE-
Farmers'
Waverly, Neb.
BUYS errrtt
SELLS
GRAIN '
Seed. Grain
References: Every man within Fire
solicited.
GET A HOME IN LINCOLN!
A CHOICE RESIDENCE throe mile from postofflce for sale. It is just outaid
the city limit of Liucoln, in the Hhndow of two colleges, between them and
the city; two blocks from street car line, and in uplendid neighborhood which
enjoys all the luxuries of a city without its taxes, noise and dust. It is a good gar
den farm, new house, barn, windmill, best well of wa ter, with water connections ia
bath room and kitchen. A complete system of irrigation. Fifty cherry, twenty
five apple and other fruit trees, hIbo 10,000 strawberry plants, planted in 1894,
enough native firewood for cooking stove. Here is the prettiest and most valuable
holding in real estate about the Capitol If you desire to invest where large re
turns cannot fail to come your way, investigate this offer.
The colleges afford an excellent market for garden, poultry or dairy products.
The owner want to sell and change occupation. No mortgages. If yon want this
offer address,.
J. II. IOIJSO,
1120 M St., Lincoln, Xeb.
Irrigated Farms-$1,000!
1 - aBSna LliMssw ft I gat I liallialash anaae
OUT of a thousand farms in 80TJTHWE8T KANSAS, of 100 acres each, we are
selling a limited number equipped with an independent and permanent irriga
tion plant sufficient for at least ten acres on each farm. The price at which
these 160 acre farms are gelling is merely about what the ten acres and irrigation
plant are worth.
Before buying a farm investigate this. Special terme mad) for Colonies, Call
on ns or write for particulars.
THE SYNDICATE LANDS & IRRIGATING CORPORATION,
Boom 412 Sew England Life Building, 9th k Wyandotte 8t., KANSAS OUT, M0-
EXTRAORDINARY
OFFER. 100.000
Testimonials Received
NO MONEY
REQUIRED IN
aUVANUt.
CUT
I. stem
I
Steei Wlwlg Set.
HlMs'ar
Veals Sim.
TT.
WESTERN UNION MFG.
" o q"
CO. 281
fcltHTclFFT
Stir
fori
lT Vsa 2x 1
f
u nAV iTiraiLwftew.! e.jst,. ., , ..i . 1
JSjt rsVr UL.sHII r"lmJTt
i World's
THE KEYSTONE
Dehorning Clipper,
Thft supet humans, rapid ea4 durtbi.
kwtaaiaue. faiiy roranua
: Fair .
Highest
:. Award A
CIRCULARS SEWT MSI.
CLTlinfffcniiSiav-On"i
STABLE BLANKET U Ilka s taitor-madef
coat. s your uwiwr . "
Write far bandsoma illuatnttd csuUaraa tent tree,
BURLINGTON BLANKET C0.,Burllngton,Wll. '
Furnas County Herd.
PL
L. E- Berkshire! WhlJ
M pica sired by tlx flirt
Tj.t 3.rrLl.. class raalea, and from aowi
rolanQ-UnlnM. M KOOd. Uerkghlres: al-
lleg, Duchess, and o there.
Poland-Chinas : C o r w 1 a,
Holgtain Cattle- Tecumeh and Wllxga.
floiiiein um,u- NoMbeMer ah .took at
half price, (on account of
t V the d ronth),and guaranteed
gg represented. Hentloa
TMg WKALTH MaBgftg.
K. 8. WHXIAMSON,
BsMTtr City, Neb
Elkhorn Valley Herd
of POLAND CHINA 8 WINE.
'Or,.
"to-a-sr eVNM'MisWW
1 har all ha Uadinf atrmlng Including Frag
Tradee, Wilkgg and Black U. 8. families. Tha
'.JLSf Etol'Wrilis. tired by Paddyg
Chip lttW, pg Wanamaker J6829, rol. U. i.
JOW. My gowg are mostly Fkm Trade and
W llkag itraing.
L. H. 8TJTEB, Velish, Neb.
BIBKSBrBS, Chstter Whits,
J me J Bed and Poland China
IPIG8. Jersey, Oeenusy and
Bslsteis Cattle. Thoroughbred
ghasp. Faas; Fealur. BanUeg
and Heeas Dogs. Catalofne.
ITHlS.HaSSSIl VMraaaei
'V
Tw?sfsarSa3Cia
PUBLIC SALE of POLAND CHINAS
Crete, Neb., Friday, Dec. 7,1894.
On the abore date I will sell 70 head conslstlnor of 15 mature sows which
a-e all flrst-elars Brood Bows, and will be bred prior to day of sale to
three flrst-class herd bears. Balance sarins; pigs which are a top lot,
and In perfect state ot health, bead postal card for catalogue to
B. HOGUEt Crete, Neb.
Exchange.
H BUSHEL or
CAR LOTS
a. SToeoia,lty.
Milea of Waverly. Correspondence
SAM REITZ;
THIS OUT and seod ft to as with your name intiddna. c
aa 1 U M faaTsV v H a gl ga Vsasl BfB .mm .agsW . sbsbsbssssbssss W-:..M
jnorwy required in advancol and w. will Knd you by einrem. ixneday
VriuT, yj ' r' '"" bot """'"In Wef parCflnbraledlol.
imi;.! pcnuine rmn niuaKL nATCH
wlndr and wtter. enanMl dial-nil immmI k i.ui-
sprinit. finely finlahed train. Jeweled balancdunt proof.flnely Doli.h'
edcape. a inlendid timekeener. i wri,,.. ....... " y.KL":
ont with every watrb. You eiamine the (rood, at the einreu ev.
"a .," ""ri7i','''M."',r"';.,,r'V'3-7i "" char;
i j , . r, " " "alea.areyoari. As tbti
".7"'" . .t"1 f"" lulator. orderinu In larm onantitie.
- ""nee our teenies Hie I Inrs, to nnu.i,..
.J " " "y per.ri Write toi,,.
Wabash Avenue. CHICAGO, ILL.
.ft, PLOWA
ivfflv (uUrtnie art in
wbat ii aid by fbosc
U)o b&ve vaad Mjenj.
Manufactured
Q) ONLY BY TMB
ui'o
UinnTiurt
iiuvii i Mr A
LV
aT I
yV. rWii ioi.Af1D.ILL.