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About The Wealth makers of the world. (Lincoln, Nebraska) 1894-1896 | View Entire Issue (Aug. 22, 1895)
August 22, 1895.
THE WEALTH MAKERS.
MONEY AND PRICES.
Populist Matt Not Allow Themselves to
Be Side-Tracked on the "Primary Money"
During the Horr-IIarvey debate, In
the course of his efforts to prove the
correctness of his peculiar theory that
prices are governed and regulated by
"primary money" only, Mr. Harvey
"I was discussing primary money as
a measure of value. We have as much
silver relatively with gold in onr mon
etary system now as at any time in
forty years, but it is not performing
the functions of primary or redemp
tion money; it is token money, resting
on gold, and silver bullion is measured
in gold. When we say price, we mean
gold. Silver is not exerting an influ
ence as a measure of values. The act
of 1S73 made by express words the unit
of value of gold, and left gold without
any concurrent coinage of another
metal to add to its quantity. Hencefit
left gold the sole measure of values,
and such it is.
"In determining whether primary
money or primary and credit money
combined are the measure of values, I
want you to think of this: That in 1867
I read from the Statistical Abstract
of 1894, page 878 in 1867 all the money
in circulation was per capita $18.28.
At that time all money was primary
money; the measure of values was pa
per money itself. In 1873 the per
capita, all money in circulation, was
918.19, and all of it was primary money.
'We were pricing everything in paper
money, and bought gold and silver
when we wanted it Now, come to
the time when we have the redemption
.money system in vogue. We find that
in 1494 we had a per capita circulation
of primary and credit money combined
of $34.23 more money per capita in
1894 than in 1867 or 1872. Now, you
will all say that the quantity of money
in circulation affects prices. You have
more money, primary and credit corn
Dined, in circulation in 1894, per capita,
than you had in the two years named
previous to 1873, and yet prices were
higher then than now. Why? Be
cause there was more primary money
per capita in circulation at the two
first named years than there is the last
named year, 1894. Of the $24 per capita
in circulation of all money in 1894, only
about $6 is primary money, while in
1867 and 1873 there was $18 primary
money in circulation per capita."
Mr. Harvey's statement that at the
present time prices are affixed and
regulated solely by the gold money in
circulation, is equivalent to an asser
tion that money in circulation is not
an essential to price, from the fact
that there is almost no r,'old money
whatever in circulation. All the gold
money of which we have any knowl
edge is either in the United States
treasury and not treated as in circula
tion, or else held as reserves by the
several banking institutions in the
United States. If there is any other
gold money m the country, it cannot
be located and is buried or hoarded in
some other secret andmysterious man
ner. Indeed, the director of the United
States mint, in his report for 1888, con
ceded that of the amount of gold
treated in official tables as being in cir
culation, $270,000,000 had mysteriously
disappeared and could not be account
But the fall in prices can be account
ed for, in harmony and conformity
with the quantitive theory of "money,
without taking the untenable position
that none but primary money has any
effect or influence upon prices.
In quoting the volume of money in
circulation in 1867 at $18.23 per capita,
and in 1872 at $18.19 per capita, Mr.
Harvey simply uses the official figures
published by the treasury department.
The treasury department figures are:
July 1, 1867. Population, 36,213,000;
per capita, $18.28.
Coined In In
Issued. Treasury. tion.
State b'knotes,8 4.484,112 (. $ 4.484,113
Frao. currenoy, 28,307,524 8,001,230 26,306,294
US. notes 371,783,597 52,345,895 319,437,702
Nat'lb'k notes, 293,625,379 11,861,418 286,763,961
(703,200,612 (66,208,543 (636,993,069
Add specie in circulation on Pacific
being the case, I have prepared a table,
giving the money in circulation, and
have deducted the legal reserves there
from and then have given the per cap
ita amount of tbe actual cash circula
tion in conformity with this theory.
In preparing this table I have used the
official figures for national bank "cash
reserve required," and have estimated
fifteen per cent of their deposits aa
the cash reserve of the state banks.
The trifling amounts of cash held by
the savings and private banks and loan
and trust companies, I have treated as
and included in reserves.
I have used the Inter Ocean's table
of population and money in circula
tion, so as. to leave no gap in the argu
1871 1873 1873 1874
Per capita 18.47 17.97 17.48 17.89
Deduct reserve.... 4.30 4.46 4 54 4.63
THE PRICE OF GOLD.
Net per capita.... .14. 17 13.51 12.94 13.26
Average tor (our years, (13.47.
.We will deduct the odd 47 cents per
capita for loss in paper money and
snaxi men nave as trie average per
capita circulation for the four years
1871-4 the sum of $13.00. We are now
ready to see what the per capita circa
lation was July 1894. The official
statement giving the amount in circu
lation July 1, 1894, is as follows:
Gold coin. 497,873,990.00
Standard silver dollars. 51.191,377.00
Subsidiary silver 68,233,344.00
Gold certificates 66,344,409.00
Silver certificates 827,094,381.00
Treasury notes, act July 14. 1890. 134,862,009.00
United States notes 268,772,371.00
Currency cert'f 'g, act June 8, 1872. 58,935,000. 00
National bank notes...., 200.754,351.00
Loss In gold coin (275,000,000.00
Loss in silver coin 20,000,000.00
Loss In paper currency 50,000,000.00
Legal reserve in banks 461,000,000.00
In circulation In excess ot legal reserves,
Population, 68,677,700. Per capita, (12.49.
Bank reserves figured upon same basis as
xnis is not, However, a lair compar
ison, because on July 1, 1894, the
money volume in circulation was con'
siderably inflated as a result of the
frantic efforts of the government and
the national banks to turn the tide of
panic and from the fact that because
of the panic, bank deposits, and hence
bank reserves, were reduced to a low
ebb. On ' July 1, 1895, the volume of
money in circulation was only $22.96
while bank reserves were larger than
in 1894, so that the circulation of active
rJrice affixing money was only about
$10.50 per capita, or $3.50 less than in
1872. And besides all this, there are
many other factors operating to reduce
prices, aside from the contraction
which has taken place in the volume
of the circulating medium.
Geoboe C. Wabd.
THE COAL MINERS WIN.
But the Statistical Abstract for 1891,
under the head "Currency Circulation"
and "Analysis of the Public Debt,"
7-30's ( 488,344,486
Demand Notes 208,432
One and two year notes of 1863 1,123,630
Compound interest notes 122,394,480
Gold certificates 18,678,110
Per capita, (35.70.
As it is claimed, on the one hand and
denied on the other, that the 7-30's and
compound interest notes were in circu
lation and used as money, July 1, 1867,
is a bad date to vefer to, because of
conflicting opinions concerning the
matter in question. The Inter Ocean
always has claimed that the 7-30's and
compound interest notes entered into
the circ illation as money, and in 1878
published a 'tabulated statement of
money in circulation to illustrate an
argument it was making to show the
contraction that had taken place. The
following is the Inter Ocean's table:
Organised Labor Wins One of the Hardest
Fought Battles of the Decade.
The biggest victory ever made by or
ganized labor was won August 2 in
Pittsburgh by the miners. Almost
every demand was granted, and the
operators gave a written guarantee for
their fulfillment of the contract The
papers have been signed which increase
the wages of 100,000 miners in Penn
sylvania, Ohio, Indiana and Illinois.
The terms of the agreement are that
the present rate of wages shall con
tinue in force untij. October 1, when
very operator in the Pittsburgh dis
trict will pay the 69-cent rate, with a
differential of 5 cents in favor of oper
ators who do not have company stores.
The agreement further provides for
another advance January 1. It is un
derstood that the rate will then be
made 79 cents. Above all W. P. Dear
mitt, who has whipped the miners at
every turn heretofore, has been
brought over and will pay the 64-cent
rate, as he does not have the company
The effect of this settlement is to ad
vance the mining rate in Ohio and In
diana from 51 cents to 60 cents. It
also helps the rate in Illinois and
brings the strike there to an end. It
also changes the end of the scale year
from April 30 to January L
This is the first time a differential
has ever been granted against com
pany stores, and it is expected it will
result in having all of them abolished.
An evidence'of this came recently when
W. P. Rend, of Chicago, offered to
abolish his company store at Reisig,
Pa., and agreed to loan the miners
money enough to operate it on a co
As another result of the compromise
the operators propose to form a new
association op different lines from the
old one, and every operator in the dis
trict will be included in its member
ship. Practically all the credit for the vic
tory is being given to Secretary-Treasurer
Pat McBryde, who mapped out
the entire campaign. Press Dispatch.
The Old Man of the Sea.
"Affected by gold exports." That
was the first headline of the market
reports last Saturday, and then fol
lowed an account of the fall in the
price of wheat, corn and other staple
products. Isn't it a shame that a great
industrial nation must depend for its
prices upon the whims of the gold own
ers? This is made possible only by the
gold standard. So long as that is
forced upon us every movement of gold
will disturb our markets. Had we
complete money of gold, silver and na
ional paper our markets would not be
affected by the gold movements. But
Great Britain and the republican and
democratic bosses won't let us have
that kind of money. Mount Vernon
(111.) Progressive Farmer.
It will be noted that the Inter Ocean
gives $17.97 as the per capita circula
tion in 1872, while Mr. Harvey gives
the official figures $18.19. From this
amount must be deducted the legal
"cash reserve required" of the national
banks and of all other banking institu
tions. The theory very generally (and, I
believe properly) held and entertained,
Jis that all money in the banks above
the legal cash reserve required to be
held, should be considered as actual,
active, cash banking capital, and
Bhould be counted as a part of the
money in circulation which is a factor
In aflixing and regulating prices. This
When the masses get to understand
that professional politicians are liars,
devoid of honor; that they will pervert
facts, manufacture false statistics, and
do all manner of things for pay, just as
a lawyer will do to win a case for a
client when his fee depends upon suc
cess, they will probably begin to take
a deep interest in public affairs, and
quit scoffing at the "old hayseed" who
keeps posted and expresses opinions as
to what ought to be done, independent
of what the so-called leaders tell him
is orthodox and the only true plan of
governmental salvation. Thornton's
It It Regulated by the Law (Governing the
Bauk of England.
I have seen it stated that Jhere has
been a law in England in force for
many -years making it obligatory on
the Bank of England to buy all the
gold bullion offered it at a stipulated
price, and it is said that this statute
has kept gold up to this point of value
ever since the law was pas.ied. Is this
correct? A. C. M.
It is correct The law of 1844. under
which the last charter of the Bank of
England was granted, provided that
notes may be demanded of the bank
for gold bullion at the rate of 3 17s.
9d. per ounce of standard gold. The
meaning of the law is, of course, that
the bank is empowered to issue notes
for all gold brought to it. This obli
gation is a great convenience to the
public, and, of course, is of no injury
to the bank. If the person who brings
the bullion wants coin instead of notes,
he is obliged to pay more for it to save
himself the trouble of waiting until it
is coined. Chicago Inter Ocean.
While there is no doubt but that the
price of gold is regulated by the pro
visions of the law governing the Bank
of England, it is apparently true that
the bank has the power, or right, to
vary the price paid from time to time
and within certain limitations. Thus,
for instance, on July 26 the bank of
England announced a reduction in the
purchasing price of French and Rus
sian gold coin to 70s. 3Jd. per ounce.
This was done to check gold shipments
from France to London. The price of
American gold is reported to have been
reduced to the same price from 76s. 3d.
From this it appears that the price
paid in notes, by the Bank of England
for gold coin of the United States,
xtussia ana ranee is 3 16s. 3tfd. per
ounce, or la 3jfd. less than the price
named in the Peel act or law of 1844.
Commenting upon this state of affairs,
the Kansas City Star says:
A cable from London announces that
the Bank of England has reduced the
price wnicn it pays lor gold, tne pur
pose being to check the tendency of
foreign gold to come to its vaults.
There has been an almost uninter
rupted stream of money (the Star
should have said "gold") flowinar to
ward London for several years. The
disposition of the thrifty Englishman
has been to call his chickens home and
count them. Instead of being an in
vestor everywhere, he has been hold
ing his earning at home and calling in
the capital he has had in other coun
tries. This process has gone on until
mi tne oanKs oi tne Kingdom are
glutted with idle money and funds are
being loaned for a fraction of 1 per
cent, a year. The latest flood of gold
which threatens to flow to the great
financial capital of the world is from
France. The Chinese loan, floated in
Paris under the patronage of Russia,
will result in a great transfer of capi
tal from Paris to london. The Japan
ese, to whom the money obtained
through the loan is to be paid, propose
to spend a considerable part of it for
new warships and for supplies of vari
uus sorts, ana r.ngiana will lurnisn a
large part of these supplies. The
Japanese want their funds in London
banks to make these payments and to
take up outstanding bonds of their
own. 1 he London bankers, of course.
do not object to holdinsr these funds.
nor to seeing the money spent in En
gland. But they are perfectly willing
that the transfer should be in the form
of bills of exchange or investment se
curities instead of gold, and that is the
reason why the Bank of England has
lowered its price of gold.
' Undoubtedly English bankers would
much prefer to see securities and bills
of exchange coming to them from the
United States to having gold shipped
to them. They have more gold now
than they know what to do with, and
they would welcome, more gladly than
anyone else, a reversal in the currents
of trade which would carry cold from
England instead of to England. The
Englishman is no worshiper of gold.
A thousand dollar bond or a block of
good stock is held in very much higher
esteem by him than bags of gold or
bank notes. No Englishman is enough
of a believer in the appreciation of gold
to hide bags of it away and watch it
grow more valuable. He wants it
where it will be in activo use, produc
ing new wealth for himself and those
who employ it When the risine tide
of business the world over reaches that
point where it will float the gold of
England off to other shores to Amer
ica and Argentine and Aurtralasia and
other progressive countries no on
will be better pleased to see it go than
John Bull himself."
All of which goes to show how ut
terly useless and worthless gold is. un
less it fan be loaned out at interest, as
money, "producing new wealth," as
the star says.
The gold-bugs say: "There is a 'great
deal of foreign capital (money?) that
would like to come here. Do they
mean mat ioreign nations are anxious
to send over here, as a loan, their la
borers, and their land, iron, coal, wood.
wool, etc.? Ah! no they mean gold,
when they say 'capital. But gold is
not capital, being unproductive and
almost utterly useless as a factor in
producing more wealth, its utility in
that direction being limited to the nar
row sphere of a few useful arts. What,
then, do they mean? They mean that
we should borrow of foreign nations
gold upon which to coin, or write our
orders for, or title deeds to real capital.
and henceforth, forever, annually pay
millions of tribute in actual wealth
whsat, cotton, corn, etc. for the use
of gold upon which to stamp our token
credit, when paper would answer the
purpose fully as well and would cost
as little as the title deed to a tract of
land. 'What fools we mortals be.' "
George C. Wabd.
ISOM ALL WHO TJSX
"Ayer's preparations are too
well known to need any commen
dation from me ; but I feel com
pelled to state, for the benefit of
others, that six years ago, I lost
nearly half of my hair, and what
was left turned gray. After
using Ayer's Hair Vigor several
months, my hair began to grow
again, and with the natural color
restored. I recommend it to all
my friends." Mrs. E. Fbank
hatjser, box 805, Station C, Los
Angeles, Cal. . .
Ayer's Hair Vigor
OR. J. C. AVER & CO., LOWELL MASS.
There ought to be a people's party
club or legion formed in every school
district in the country before the snow
flies. The people's party can score an
enormous gain during the coming fall
and winter if a determined effort is
made. Individual action is necessary
and the iron is hot Let the workers
strike all along the line. Missouri
National Committeeman of the Two Far
ties In Favor of a Brief Contest,
Chicago, Aug. 20. Concerning the
view of national committeemen on the
question of a long or short campaign,
the Times-Herald says:
Thirty-eight national committemen,
twenty Democratic and eighteen Re
publican, have responded to questions
concerning the policy of holding a
short presidential campaign.
The Republican national enmtnlt faA
will declare in favor of a short presi
The Democratic national
will decide in favor of a nhnrt
dential campaign, unless the free silver
element predominates in the councils
oi tne committee. The vrt. (a
lows: Republican national committee,
1U1 ouort campaign, 14; against
snort campaign, 3; non-committal, 1.
iUUU VUMJ, 10,
.democratic national oommitt.. tnr
a short campaign, 10; against a short
campaign, o; non-committal, 4. Total
Bat It Made Little Difference tn
Usher John B. McLean.
jnkw yore, Aug. 20. A Sunday
newspaper advertised last week that
it would print a description of th
home and summer life of the president
ana his iamlly. Learning of this Mr.
uieveiana sent John E. McLean the
,, ihhc, Aug. it. taut reporter
has neither Men ma or anyone connected with
J "O"."0''1, Th publication of any Inter.
, UBOVIB CLBVILAKD.
ine messacre is printed as an in
duction to the article, which is pub
lished with illustrations. Mr. McLean
claims that the article violates none of
the proprieties, and has sent a reply
to Mr. Cleveland statins; that ha had
not advertised any interview and that
the president had evidently been in'
posed upon by rival newspapers.
JENNIE METCALFE AGAIN.
Tho Oklahoma Girl Outlaw Escapes From
Officers in Daring Style.
Pkbrt, Ok.. Aug. 20. The notoriona
Jennie Metcalfe, nee Stevens, was ar
rested yesterday by Sheriff Lake near
Pawnee and taken to Pawnee. There
she was taken to a restaurant to eat
supper. A guard was placed at the
door. When Jennie finished her meal
she darted through the back door of
the restaurant and quickly tearing off
her dress, seized a horse, and mount
ing it, rode off. Several officers went
in pursuit, but darkness came on and
The girl, who is not over 17 years
old, was under arrest for stealing a
horse from a deputy marshal who had
arrested her for selling whisky to
RIOT AT A CHURCH.
A Faction Opposed to the Priest Attack
Worshippers Several Injured.
8t. Joseph, Mo., Aug. 20. At St
Peter and St Paul Catholic church on
Messanle street yesterday a faction
opposed to the priest attempted to
break up the services. A riot followed
in which Charles Weircyorak and
Tony Fordyce were badly injured and
four others were hurt. Several nrresta
have been made, but the ringleaders
sncceeded in getting away.
Tha nnlina 1 - . . .
jvvc, iccki iuk a i cue wax jk luo
hostilities, guarded the church nrorj-
erty last night The trouble in the
church had been brewing for soma
Broke the Record
No Cultivator ever had such a remark,
able run the first season. Sale noarly
20,000 in 1894
And this year will be greatly IncrtmmCL
Tae O. H. D. is simp), the lest Walkies i&mMW
w atte aa. at yet hat ae imitators. H sets it
Mrerwjkay. Mfrite a Is Uiastralsa dioetar.
Deere & Co."?!13
Are You Ready
For the Harvest ?
There's only one way to get ready so that you can be me that you are read;
-and we are ready to get you ready with the World-Beating,
BEST IN THE ...
Most Durably Built!
Lightest In Draft, ,
Greatest In Capacity,
Simplest In Construction.
All Competition Staid Away from
' the McCormickinthe i
World's Fair Tests
We might to-day be selling a line of so-called "cheap" machines al
i price which would still be high, but prefer to sell the higtiwh McConnica
at a price which experience will most assuredly prove Is low. Glad to ihon
rar friends these machines at any time. Come in and see them.
Farmers will please call on .
R. BINFORD. Lincoln.
L.EISVELD& TBOMPEN. Hickman,
J. P. PRATT, Bennett, !
MEYER & SEVERIN, Hallam.
WELLER POLK & CO., Raymond, , k
O. V. PETERSON, Eagle,
Any of whom will be only too glad to show you the merits of the machine whether
yon intend to purchase or not
Knight Templar's Excursion to
Boston Half Kates, .
The Kniirht Temnlar'a official tmtt.
having on board Grand Commander
I inch and escort will leave Omaha via
the Burlington at 4.45 n.m. ThuraHaw
August 22d, going through to Boston
without change, rnakinsr a short trn nt
several hours at Majors' Falls. Sleeping
car reservations should be made at once
at B. & M. depot or citv off) nr i nth
& 0 St Q. W. Bo.vnell,
I0t2 CP. AT. A
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 federal 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
It secures the government amply, which the Baltimore plan
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 now and under the Baltimore plan would be still
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
one you believe in.
And send us 25c. immediately for the book. "Money Found"
has no equal in its line. Address,
Wealth Makers Pub. Co.,
TINGLEY & BURKETT,
1026 O St., Lincoln, Neb.
Collections mada aad money remitted aama da
Ash . .
100 A,ffis $3.50
A 11 the Leading Varieties.
100 Choice Concord Grapevines
$2; 1.000 Rue. Mulberry, 91.15.
Shade and Ornamentals. A
complete l'rlce-LUt free.
Jefferson Co, Jansen. Neb
DE LML CREAM SEPARATORS
Address, for oatakwae and partlcuUrs,
Or Thc Of Lavai, Simnsto) Co..
Emm, III. 74 Cortlaadt street, Kaw York.
GRAY HAIR08 whiskers?
It aatnral eolor vr M"
VAN'S MEXICAN HAIB BEHTOBATlVlfi
It removes ah dandraB; steps hair troll faUiai
at u4 suras all diseases of the scalp. It Is mi
Dye, aad la warranted absolutely harm leaf.
Money refunded U It dees net da srerythlai
claimed tar H. Seat to any address OS receipt at
prlos. $1.M per bottle. Fall lalormatloa tree.
Agents wanted. AT LKN CO., Ill Inter Oeeaa
Balidloc. CMeaae, HI.
The Land of Bis; Red Apples, Is an attractive
and 'Interesting book, handsomely illustrated
with views ef South Missouri scenery. Including
the famous Olden Fruit Farm of 8,000 acres In
Howell county. It pertains to fruit raising In
that great trait belt of America, the southern
slope of ths Oiarks, and will prove of great value,
not only to fruit growers, bat to every fanner
and homeeeeker looking for a farm and a horns.
Mailed irse. Address.
J. R L0CKW00D,
Kuuh City, K o,
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