July 25, 1895.
THE WEALTH MAKERS.
THE ORESHAM LAW.
If th World Would Acre Upon a Common
Katlo, Thar Would Be Mo "Dearer" or
Cheaper" MetaL
In the co nrM of an article in the
Jane Nineteenth Century, Mr. Henry
Dunning MacLeod uses this language:
The great fundamental law of the coinage,
first demonstrated by Oreame. in France, by
Copernicus in Poland,' and by Ores nam in En
gland, that Inferior coins and superior eolna
cannot, in the nature of things, circulate to
gether in unlimited quantities at a fixed legal
ratio which differs from the market ratio of
the metals in bullion, which has been found to
be true in all ages and countries, anfF which
lias been recognized as true by all sound econ
omists, is not confined to single and separate
states, any more than the law of gravitation or
the law of optics are. These, when once de
monstrated in any one country, are found too
true throughout the world. So this fundament
al law of the ooinage is true through however
large an area which has a single system of
ooinage. And it is no more possible to fix a
legal ratio between gold and silver by an inter
national agreement among several states than
It Is for single states separately, or to tie the
planets together by packthread, or to sup
press volcanoes, earthquakes, or tornadoes, or
typhoons, or to compel the waters of the
Oranges to now back from the Sonderbunds to
the Himalayas, or to compel the sun to rise in
the west.
But in a reeent issue the Boston Her
ald says:
We do not believe that an international
agreement for the adoption of a common ratio
for the coinage of silver and gold is attainable.
But we willingly recognize that if such an
agreement could be reached tbe main objec
tion to the free coinage of silver would be re
moved. When a man says that he advocates
the opening of the United States mint to the
-white metal, provided the leading European
nations will open their mints at the same ratio,
he cannot be regarded in any degree an advo
cate of dishonest money. We are no lover of
the silver dollar, but we must admit that the
stigma of dishonesty would fall from it if it
were coined at a ratio that would be recognized
and accepted by the principal countries of the
world. For, when thus recognized, it would
become exportable monev, and could be sent
abroad at a fixed value, In settlement of for
ign balances, just as gold is at present.
Now here are two diametrically op
posite views expressed upon the same
v i 4. j i. : i : . l
auujeui, uuo jl which musb, iu tuo na
ture of tbing-s, be erroneous.
The first fact that will become ap
parent to a close reasoner is that Mr.
MacLeod utterly fails to make allow
ance for the fact that there is no com
parison between the relative positions
occupied by the two metals. It is fool
ish to expect a common ratio, or parity
of values, so long as there is no parity
in opportunities and privileges. The
coin we call a gold dollar is at least
three-fourths of it pure fiat, or law, so
far as its exchange value is concerned.
It costs to produce the amount of gold
contained in a dollar, or a pound ster
ling, not more than one-fourth of the
value expressed by the monetary de
nominations of these coins, and, at
that cost, twice as much is produced
annually as is demanded for use in the
arts. Under natural conditions, with
no legal prop to maintain it and an
annual production twice as large as
demanded, the price of gold would
surely and rapidly decline to a point
far below even the present low cost of
production. But natural conditions
are not in control, because England, in
her bank charter, and other nations,
in their coinage laws, afford to every
ounce of gold not required for use in
the arts, an unlimited demand, or mar
ket, at a certain, fixed price, so that
every gain of it at all times commands
its legal, monetary or fiat value, even
for use in the arts, although such fiat
value is four times as great as the cost
of production. So, then, Mr. MacLeod
rrs when he speaks of the "market
value" of gold. That metal has no
market value, the only exchange value
it possesses being its monetary, or
money value. I will once again formu
late the governing rule, as follows:
"When unrestricted coinage privi
leges are accorded to a metal and a
certain monetary value is given by law
to a given quantity of such metal, if
the annual product is greater than
is required for use in the arts, the
commercial value is merged into the
monetary value and the total output
of such metal acquires and commands
the monetary value into which it may
freely be converted by taking it to the
mint"
And there can be no change wrought
in the "purchasing power" feature of
this monetary value by anything con
nected with the gold itself. All other
things remaining the same, the value
of a dollar is fixed and uniform. But
such value may be changed by varia
tions in the cost of production, or sup
ply or demand of commodities, goods
and wares, which causes the "price"
M 1- .1 " A ? i .
oi sucn eoiumouiues mj vary in lerms,
as expressed in monetary denomina
tions Tint, the crnd itself is alwnvs
the same immutable value, or "dollar,"
if you please.
Now I assert, without any fear of
successful contradiction, that if silver
were rehabilitated and unrestricted
coinage privileges accorded to it the
world over, at a ratio of 10 to 1, every
ounce of silver would at once become
worth $1.29, because, as is the case
with gold, it would become the meas
ure of its own value.
In such case there would be no
"cheaper" metal to drive out the
"dearer" metal. How could there be?
In all nations the metals would pos
sess precisely the same monetary value,
expressed in terms of themselves, so
that, from a monetary standpoint,
there would be no "cheaper" or "dear
er" metal.
The trouble which existed prior to
1834, when gold was 'said to be the
"dearer" metal, and from 1834 to 1837,
when silver became the "dearer" metal,
was caused from the disparity or dif
ference existing between the legal
ratio in the United States and that
established in France and other
European nations. Mr. Tuck, a di
rector of the Chase national bank,
seems to have advanced these same
ideas, because, in the article under
consideration, Mr. MacLeod says:
But Mr. Tuck and other bimetalllsts plaint
ively ask: If all. nations were to agree to a
common ratio, where, in that case, would the
gold go to, and to what use would Its owners
nply It? The answer is very simple. The
cold would go either Into the stocking or the
melting pot. In the hasty and imperfect way
in which the bimetalllsts have got up their
"-..case, they suppose that if a different ratio ex
ists between different countries the export of
the metal Is the sole method of disappearance
of one of the metals from circulation, but,
Instead of there being only one method
of disappearance from circulation, there
are three methods of disappearance.
Kvery one of Lord Macaulay's intelli
gent schoolboys knows perfectly well that If
either coin goes at a premium, as It la called,
it is either (1) hoarded away, or (I) It ia sent
to the melting pot. If S shillings of standard
gold has only tbe same effect In paying debts
as 10 shillings of standard silver, it is sent to
the melting pot, as anyone may' see in the
standard treatises on the coinage or In any
newspaper. Thus, although, no doubt one of
the methods of tbe disappearance of the under
rated coin is removed, the other two remain,
and equally produce its disappearance. So
that If it were attempted to restore by inter
national agreement tha ratio of gold to silver
at 1 to 15 while the market ratio was 1 toft,
the Infallible result would be the most tre
mendous convulsion the world ever saw: it
would simply be universal bankruptcy, every
debtor would pay off his debts at 10 shillings on
the pound, gold would entirely disappear from
circulation and silver would become the only
metallic currency in the world.
Mr. MacLeod is unjust to his own
reputation, when he formulates so
weak and puerile an argument. He
concedes that if the nations were to
adopt a common ratio between gold
and silver that there would be no in
ducement to export either metal, ex
cept in the usual course of interna
tional commerce, and yet he pretends
not to see that such concession non
suits him and throws his case out of
court Why should anyone wish to
melt gold money, so long as it had a
uniform international value, measured
in silver money, and the annual pro-,
duction of gold was twice as large as
the annual demand for use in the arts,
and its legal, monetary value, four
times as great as its money cost of pro
duction? The weakness of Mr. MacLeod's ar
gument inheres in the fact that it is
based upon a fallacy couched in the
words "while the market ratio was 1
to 85." There is no such factor as a
natural ratio at this time, because gold
and silver occupy an unnatural rela
tionship to each other, the one enjoy
ing the privilege of unlimited coinage
into money, while the other must de
pend upon the market for a value.
But were both metals freely coined at
an international common ratio, there
would yet be no natural or "market
ratio," unless the demand for use in
the arts absorbed the entire product
and the demand for money use and for use
in the arts become competitive. So long as
there is produced a surplus above the
amount required for use in the arts,
and such surplus enjoys coinage privi
leges, the commercial value becomes
merged into the money value, and
there is no such thing as a "market"
ratio.
International bimetallism, at a com
mon ratio, would simply place silver
upon the same legal footing as gold.
What does the law now do for gold?
There is annually produced of that
metal twice as much as is required for
use in the arts and the law gives to the
entire mass a monetary value about
four times as great as the cost of pro
duction. What law can do for gold, it
oan do for silver.
The result of international bimetal
lism would be cheaper money, i. e.
higher prices. Not, however, that
money would be cheapened because of
the fact that all silver had given to it
a money value two or three times its
money cost of production. Gold now
enjoys such privilege as that and yet
gold is dear, not cheap money, and is
constantly becoming dearer. But
money would become cheaper because
there would be a supply of metal, avail
able for coinage into money, twice or
mora than twice, as large as is avail
able under the present system of gold
monometallism. Money would become
cheaper, simply because it would be
more plentif uL The value of money,
expressed in terms of monetary units,
does not depend upon the cost of pro
duction of the material upon which it
is stamped. If it did, there would be
but one-fourth as many gold dollars as
there are at present, unless we reduced
the quantity of gold constituting one
dollar to 5.8 grains. Tiffany on Con
stitutional Law, a standard authority,
Chapter XII. (power of congress to coin
money), section 400, page 221, says:
"There is legally no such thing as
gold or silver money, or paper money.
Money is the sovereign authority im
pressed on that which is capable of
taking and retaining the impression.
That upon which the stamp is placed
is called coin; the coin may be metal,
parchment or paper. The value is in
the stamp and not in the metal or ma
terial" The exchange value, or purchasing
power of money depends upon the num
ber of units in circulation, and the
cost of production, supply and demand
of commodities and wares to be ex
changed through the medium of such
units. And, in this way, international
bimetallism would cheapen money
(raise prices) because it would make
money more plentiful. Cernuchi says:
"Money is a value created by law;
its basis is legal and not material. It
is, perhaps, not easy to convince any
one that the value of metallic money
is created by law. It is, however, the
fact It makes no difference of what
material money is composed, whether
it is costly or otherwise; the law of
legal tender gives value to money, and
that value increases or diminishes in
proportion as the volume is greater or
less."
So much for metallism, "mono" and
"bi." But why engage in an endless
controversy about "parity," and
"ratio," and international agreements,
when there is a strictly scientific mode
of regulating the volume of units in
circulation and determining just how
valuable money shall be. Fullerton
(Regulation of Currencies) says:
"That, as far as concerns our do
mestic exchange, all the monetary
functions which are usually performed
by gold and silver coins, may be per
formed as effectively by a circulation
of inconvertible notes having no value
but that factitious and conventional
value they derive from law, is a fact
which admits, I conceive, of no doubt
Value of this description may be, made
to answer all the purposes of intrinsic
value, and supersede even the neces
sity of a standard, provided only the
quantity of issues be kept under due
limitation."
But the Omaha platform demands
the coinage of both gold and silver at
the ratio of 16 to L Certainly it does.
And it also demands a full legal tender
paper currency, "safe, Bound and flex
ible." Hon. Amasa Walker ays in hit
"Money Problem," page 6:
"Every paper dollar, unless a pcla
dollar is held deposited for its redemp
tion, displaces gold and silver coin,
and in so far diminishes the demand
for the precious metals, and in so far
reduces their value. A mixed curren
cy, wherever it exists, forms the stand
ard of value as truly as does a coin
currency where it alone exists."
Let us not falter, but stand firm.
The Omaha platform is fitly denom
inated "the new declaration of inde
pendence." Rally round the flag, boys, and close
up the ranks. George C. Ward.
KENTUCKY POPULISTS.
They Formulate Sound Platform of
Principle and Nominate Fall Ticket.
The people's party of Kentucky, in
convention assembled, on July 4 and 5,
nominated a full state ticket on the
following platform:
PREAMBLE.
The Omaha platform Is broad protest
against the monopolies and other evils which
have sprung up and been fostered under the
rule of the democratic and republican partlos.
They have deserted the principles of Jefferson
and Lincoln: the people's party stands for
those principles of Industrial progress and hu
man liberty. None of their betrayals of trust
has resulted in so much disaster to every
branch of our varied industries and in as much
wrong and misery to our people as their delib
erate and persistent legislation on the finan
cial question. There is a right and a wrong
principle under this great question the two
principles are as different as light and dark
ness. On one side of this question to-day the
democratic and republican parties stand to
gether, side by side, baokedby the Rothschilds,
the bankers, the oontraotlonlsts and the gold
trust; on the other side stands the people's
party, single-handed, but baoked by every pa
triot who has realized the real danger that con
fronts us, and that is the paramount issue upen
the correct solution of which depends, not only
all other Industrial reforms, but the civiliza
tion and Christianity of a great nation.
We fully realize that not all the social, po
litical and industrial ills that affeot the people
can be ourcd by a proper financial system, but
the magnitude of the contest on this Issue is
so portentlous and the enemy is so firmly en
trenched behind the legislative, judicial and
executive departments of our government that
we invite the assistance of all those who favor
"more money and less misery," whether they
fully agree with us on other issues or not
Therefore, we, the people's party of the state
of Kentcky, in convention assembled, though
we believe in and reaffirm tbe three great car
dinal principles of the Omaha platform
finance, land and transportation ask for the
suffrage and co-operation of every voter in the
state, and welcome to our ranks all who be
lieve with us in the following demands:
PLATFORM NATIONAL.
First We demand the free and unlimited
coinage of silver on equal terms with gold at
the present legal ratio of 16 to 1, without ask
ing the permission of Great Britain or any
other foreign nation.
Second In order to secure and maintain a
safe, sound and flexible currency, we demand
that the national banking system and all banks
of Issue be abolished, and In addition to the
free and unlimited ooinage of silver and gold
at the present legal ratio of 18 to 1, that the
national government proceed to issue national
treasury notes, all of which shall be a full legal
tender for all debts, both public and private,
and in quantity sufficient to restore the gen
eral range of prices and prosperity that ex
isted before the demonetization of silver in
1873, and to increase in quantity year after
year with tbe inorease in population and busi
ness so as to maintain equity between debtor
and creditor: to facilitate the development of
our great national resources, and to contribute
to the general prosperity of our people.
Third We are unalterably opposed to. in
creasing our already great burden of national
debt by the unnecessary Issue of Interest-bearing
bonds in times of peace: and we deplore
and condemn the recent action of the demo
cratic administration at Washington, not only
for selling our national ere Jit at a price below
Its market value, but especially for surrender
ing to the Rothschilds and other bankers our
financial independence for six months by a se
cret contract, the infamy of which is without
parallel in our history.
Fourth The nationat government has the
right and should exercise it to use its option
as to the kind of legal tender money with
which it will pay any debt or obligation.
Fifth We demand that congress make it un
lawful for any note, bond, mortgage or other
obligation to stipulate for payment In gold
only, or in any other particular kind of legal
tender money of the United States.
Sixth Ours is the only political party that
has ever had the honesty and patriotism to
demand in its national platform for a gradu
ated income tax. The supreme court of the
United States, in its recent decision, has de
clared that our constitution does not allow
this just and equitable tax. In the language
of Justice Harlan: "The practical, if not the
direct, effect of the decision to-day is to give
to certain kinds of property a position of fa
voritism and advantage that is inconsistent
with the fundamental principles of our social
organization, and to Invest them with power
and influence that is perilous to that portion of
the people upon whom rests the larger part of
the burdens of the government, and who ought
net to be subjected to the dominion of aggre
gated wealth any more than the property of
the country should be at the mercy of the law
less." Therefore, we demand an amendment
to the United States constitution to provide
for a graduated income tax.
STATE.
First We view with alarm the recent de
cision of the court of appeals of this state in
the bank tax case, and believe it to be sub
versive of the spirit and letter of the consti
tution itself, which requires that "all prop
erty shall be taxed alike the property of a
corporation just like an individual." The
effect of this decision is to exempt property of
the banks from all local taxation, and thereby
throws the whole burden of municipal govern
ment upon the other classes in our cities and
towns. We sincerely trust that the court will
yet sustain the sovereign will of the people by
a reversal of their decision.
Second We denounce a system that prac
tically gives a monopoly to the American book
trust of our common-school books, and insist
that the largest competition should be given In
the purchase of all books for the benefit of the
children of our state.
Third We deplore the action of the general
assembly in Increasing the salaries of. judges
of the court of appeals and other officials in
our state at a time when all values are de
creasing and distress is manifest in every
household, and demand economy and retrench
ment In every department of government, and
promise our best endeavors to decrease the
burden of taxation as far as may be consistent
with good government. .
Fourtn We favor a constitutional amend
ment for a system of direct legislation, by
which 20 per cent, of the legal voters of tbe
state on state matters, or the same per cent, in
any legal sub-division on local matters in such
sub-division, may, by petition, have submitted
to all the people of the state, or to the people
of such sub-division, to test their sovereign
will, any act of legislation.
Free coinage of silver would en
courage silver mining and greatly in
crease the production of the white
metal. That is what is wanted. The
present production of silver would give
very little relief, even if all of it was
coined. In 1851 this country coined at
its mints nearly three dollars per cap
ita of gold. , In ten years, 1849 to 1858,
it coined about S20 dollars per capita
of gold. If we could stan 1 that much
coinage then, we can certainly stand
that much now. It would take the
whole silver product of the world for
seven years to coin 820 per capita for
the United States. Missouri World.
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ft.9.9.S.8l9.!?.S.T?.P-P?r?9gg-9ggglg?iSf
"The Lam Walk." '
Lincoln, Neb., July 16. Complaint
was filed yesterday in Justice Spen
cer's court, this city, against "Dante,
alias Prosser, first name unknown,"
who has been advertising to make
"the lame walk, "the blind see," etc
The constable never got to serve the
warrant, however,' for the wonder
working healer found it convenient to
depart between two days, together
with his assistant, Dr. Jones. Mrs.
"Dante" tarried until yesterday, and
would not give the location to which
her husband had fled.
'Nebraska Wheat Harvest,
Omaha, Neb., July 16. Wheat har
vest is in full blast throughout the
state. The yield is fully up to expec
tations. ' The crop will average two
thirds of a full crop. The corn crop is
estimated at 188,000,000 bushels, and
its condition was never better. The
cats yield is not as heavy as estimated,
being less than two-thirds of a crop.
Ra'd tha Hostler.
Burnt, Neb., July 10. A report hat
reached here that a band of vigilantes
from Keya I'aha county, numbering
twenty-five, has chased cattle rustlers
from Keya Faha county and located
them on the Ft. Randall military res
ervation in possession of nicety head
of cattle. At last reports the com
mittee had captured only four of the
the supposed rustlers.
Congressman Remann Dead.
Vandalia, I1L, July 16. Frederick
Remann, representative for the
Eighteenth Illinois congressional dis
trict, died yesterday at his residence
in this city. Mr. Remann was elected
last fall as a Republican, defeating
Lane, Democrat. He was an active
member of the G. A. R. , and had for
years been prominent in politics in his
district.
Gasoline Causes Fire.
Norfolk, Neb., July 16. The house
of M. Yount in this city suffered dam
age to tbe extent of a couple hundred
dollars' worth yesterday, all because
Mrs. Yount thought the fire in the
burner was out and attempted to fill
the reservoir.
NEURALGIA cured by lir- Miles' FA
Dm. "nnamnt aiinu." At all aruffKiata.
AMERICANS CAUGHT.
A United State Senator, a Representa
tive and Other Arrested In London.
London, July 23. It has developed
that a police raid was made upon the
Palace club on Thursday. A number
of prominent Americans were caught
in the raid. The club is one of several
fashionable night clubs in London
where the demi monde resort. It
opens at midnight and closes at 6 a. m.
Lately the Palace has been very riot
ous. The club is elegantly appointed,
having twenty-five men servants and a
band playing nightly. A hundred men
and women, all in evening dress, were
captured. Among them were a United
States senator, a congressman, a prom
inent law official of an Eastern state
and an American police official. All
save the proprietor and servants of the
club were released. They were re-
m an At A
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a price which would still be high, but prefer to sell the high-valm MoCormiol
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G. W. PETERSON, Eagle,
Any of whom will be only too glad to show you the merits of the machines whether
yon intend to purchase or not.
The Baltimore Plan,
now practically endorsed by President Cleveland, is attracting
universal attention because it is based on the evident fact that
the currency and banking systems of the country must be re
formed. ;
But is the Baltimore plan a reform? It gives the associated
banks the power to expand the currency and relieve the country.
It also gives them the power to contract it at will and create
universal distress for their own private gain.
It puts the credit of the government behind every bank note.
It donates all but half of one per cent of the profit on the note
issue to the banks, and it leaves plenty of opportunities for a
Napoleon of Finance to wreck a bank and leave the government
to pay the notes.
It leaves the banks free to demand the highest interest that
the several states will allow, and affords no relief to farmers and .
business men of moderate capital.
Contrast with this
The Hill Banking System.
In "Money Found," an exceedingly valuable and instructive
book published by Charles H. Kerr & Company of Chicago, and
for sale at the office of this paper at 25 cents, Hon. Thos. E.
Hill proposes that the government open its own bank in every
large town or county seat in the United States, pay 3 per cent
on long time deposits, receive deposits subject to check without
interest, and loan money at the uniform rate of 4 per cent to
every one offering security worth double the amount of the loan.
This plan is not an expense to the government,but a source of
large revenue.
It secures the government amply, which the Baltimore plan
does not.
It relieves the distress of the common people, which the Bal
timore plan does not. .
It protects not only note-holders but depositors, who are un
secured no at and under the Baltimore plan would be still
worse off.
In a word, the Baltimore plan is in the interest of the bankers,
the Hill Banking System is in the interest of the people.
Consider them both, and ask your congressman to vote for the
ttie you believe in. ,
And send us 25c. immediately for the book. "Money Found
has no equal in its line. Address,
Wealth Makers Pub. Co.,
Lincoln, Neh.
TINGLEY & BURKETT,
Attorney s-at- Law,
1026 O St., Lincoln, Neb.
Collection! mad and money remitted itai day
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100 A& $3.50
All th landing Varieties,
100 Choice Concord Grapevine
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DE LAVAL CREAM SEPARATORS
Address, for catalogue and particulars.
Or ' Thk Dc Laval ScmnATon Co..
Blow. Iij. 7 Cortlandt Street, New Yorfc.
Broke the Record
No Cultivator ever bad men a rem ark
able run tha first aeaaon. Bale Marly
20,000 in 1894
and this year will be arreatlr mcr4.
Ike O. H. D. is simply th awl WtTfclaf Cw
eight
mmmw mnw mm in mmm mm nwiam, n ww-M as
t For Ul kt on seller la tewa, iaal
roakuy Write iter MmUnM Hmtu.
Deere & Co.'f3
1895.
that you can be tun that you are read)
the World-Beating,
LIGHT-RUNNING
Mccormick
steel
BINDERS an
MOWERS.
"Among
tueOzarks"
The Land of Ills; Bed Apples, It an attractive
and Interesting boon, nanusouw
"; o.ii Mii.,nri mvnerv. InclndlDK
the famous Olden Fruit Farm of 8.MK I acre In
Howell countv. It pertain 10 ii-uii -that
RrVat irult belt of America, the southern
slope of the Oiarss. and will prove of Kreat value.
not only to rruit growers. u.
andhomeseekerlooklngforatarm and a home.
Mailed ire. Address,
J. E. L0CKW00D,
Kant ai City, Ho.
THIS CUT
represents on
t Of
onr paivaa-
kited Steel
I Tanks, a tank
5 tbat will last
J for a lifetime.
..S.i':,': -0' "it not. wh
J-r.j ill l l
not?" Writ E. B. WINGER, th Wind Mill Mam,
Chicago, tot cots, sites and price.