The Wealth makers of the world. (Lincoln, Nebraska) 1894-1896, November 29, 1894, Page 8, Image 8
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 si o5 Xvia-oeeie : : F- o 55 6- o i - D a) O SEA M i . h 2 ! e m Po o c 6 6 a So to, o A 00 A e I ! 1 1 1 1 ! 1 : t 1 Mil I : c : ! ! I : i v : : : : I!! I i'o ow e a 1 if I i ! : o J ! m v : e) O t . :! Sx g a 0 .- 3.3 C - B ti C . . e b ft. o .X - o H 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 : i 1 ! : r - 1 S3 I & : 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.