The Wealth makers of the world. (Lincoln, Nebraska) 1894-1896, July 25, 1895, Page 3, Image 3
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. WHY 8TTFFXS WITH Sick and Nervous HEADACHEP Sou may be easily and quickly oured by taking Ayer's Pills "I have been a victim of terri ble headaches, and have never found anything to relieve them so quickly aa Ayer's Pills, Since I began taking this medicine, the attacks! have become less and less frequent, until, at present, months have passed since 1 have had one." C. F. Newman, Dug Spur, Va, 'Having used Ayer's Pills with great success for dyspepsia, from which I suffered for years, I re solved never to be without them in my household. They are in deed effective." Mrs. Sallie Morris, 125 Willow St., Phila delphia, Pa. "I always use Ayer's Pills, and think them excellent." Mrs. G. P. Watrous, Jackson, Fla. Ayer's Pills Received Highest Awards AT THE WORLD'S FAIR 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 Walter Baker & Co. Limited. Th LtriMt Htnufkctunn of PURE. HIGH CRADE Cocoas and Chocolates On tblt Continent, hr rwtd HIGHEST AWARDS from tht (rut Industrial and Food EXPOSITIONS IN EUROPE AND AMERICA. i aUllOn , nmJ Imitation! of n lt na wrmpptn on m Rnodi, coniummthould m.Mror t our plr of nwmifceture, nundT, Dorrteitcr. jaetea. U prtaM oa Mcb pack(. SOLD BY GROCERS EVERYWHERE. WALTER BAKER A CO. LTD. DORCHESTER, MASS. 111 L -1 mm THB Are You Ready For the Harvest ? There's only one way to get ready bo -and we are ready to get you ready with BEST IN THE. WORLD Most Durably Built. Lightest In Draft, Greatest In Capacity, Simplest In Construction. All Competition Staid Away from the McCormick in the World's Fair Tests n We might to-day be selling a line of so-called "cheap" machines si a price which would still be high, but prefer to sell the high-valm MoCormiol t a price which experience will most assuredly prove is law. Glad to show jur friends these machines at any time. Come ia and see them. wfll pleaM eall o R. BlNFOItD, Lincoln, LEI8VELD & TROMPEN, ElcknuUn, J. P. PRATT, Bennett, METER Jk 8EVERIN, HftlUun, WELLEK POLK & CO., Raymond. 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 ai collected. Ash . . Box Elder and Black Locust $1.25 Per 1,000. 100 A& $3.50 All th landing Varieties, 100 Choice Concord Grapevine f 2; 1,000 Ran. Mulberry, $1.15. Shade and Ornamentals. A complete 1'rlce-i.ist free. Add res, Jatisen Nursery, Jefferson Co. Jansen, Neb. 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.