The Wealth makers of the world. (Lincoln, Nebraska) 1894-1896, August 22, 1895, Page 3, Image 3
August 22, 1895. THE WEALTH MAKERS. 0 MONEY AND PRICES. Populist Matt Not Allow Themselves to Be Side-Tracked on the "Primary Money" Biding. 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 said: "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 ed for. 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 and Circuta 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 coast 25,000,000 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 ment 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 Totals (1,664,061,232.00 Deduct. 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 Total. .(806,000,00000 In circulation In excess ot legal reserves, 8a8,U01,i!3g.OU. Population, 68,677,700. Per capita, (12.49. Bank reserves figured upon same basis as Deiore. 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. (661,992,068 But the Statistical Abstract for 1891, under the head "Currency Circulation" and "Analysis of the Public Debt," gives: 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 Totatl (1,292,739,207 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: Tear. Currency. 1865 $l,ftil,28i,373 1866.... 1,803,702,726 1867.... 1,330,414,667 1868.... Kfl9.... 1870.... 1871.... 1872.... 1873.... 1874.... 1875.... 1878.... 1877.... 817,199,773 750,025,989 710,039,179 734,244,774 736,340,913 733,291,749 779,031,589 778,176,2m) 735.38,832 696,443,394 Population, 34,819,581 35,537,148 36,269,502 37,016,949 87,779.8J0 38,588,371 39,750,073 40,958,607 42,246.110 43,550,753 44,896,705 46,284,314 47,714,829 Per Cap. $47.42 60.76 3668 22.08 19.85 19.19 1847 17.97 17.48 17.89 17.33 15.89 ' 14.60 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 stores. 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 operative basis. 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 Keep Posted. 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 Monitor. 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. PRAISE, ONLY, ISOM ALL WHO TJSX AYER'S IXIair Vigor "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 PEKPABED BY OR. J. C. AVER & CO., LOWELL MASS. poooooooooooooooooooooooi JBHORT CAMPAIGN. Fob' 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 World. 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 dential campaign. 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 vote. ou. CLEVELAND PROTESTED. 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 lollowing telegram: ,, 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 she escaped. 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 Indians. 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 weeks. THB 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 ? 1895. 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, UOHT-RUNNINO Mccormick steel BINDERS and MOWERS. BEST IN THE ... VORLD 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 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 now 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 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., Lincoln, Neb. TINGLEY & BURKETT, Attoraeys-at-Law, 1026 O St., Lincoln, Neb. Collections mada aad money remitted aama da aa collected, Ash . . Box Elder and Black locust $1.25 Per 1,000. 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. Addreaa. Jansen Nursery. 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. "Among tiie Ozarks," 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, 2)