31
. : i - - . -
ft
II II i!
VOL. XIV.
LINCOLN, NEBRASKA, AUGUST 14, 1902.
NO. 12.
THE UNIT OF MONEY
I)
Mr. Tan Vorhls Expltlm nil Understand
. ing of Del Mar's Contention That
. : the "Unit of Mency U
V : All Money'
Editor Independent: On the same
page of vpur issue of July 31, on which
appeared my article on "Bank Cred
its," was an article from Mr. De Hart
that In some degree illustrates what I
said about the use of the words "val
ue" and "money." I had intended to
follow my article by another on the
confusions that have crept into the
discussion of the subject, and it will
not be out of place if I use his article
as a text for what I desire to say.
I have never been quite sure that I
understand 7the exact sense in which
Mr. Del Mar, Senator John P. Jones
and others assert that "The unit of
money is all money." In the very na
ture of the subject the meaning of thi3
assertion" must be peculiar, and I can
not help thinking they have assumed
that their -meaning would be under
stood, and - have not reckoned on a
possible misunderstanding.
It may just as well, and just as cor
rectly, be said that the unit of water
is all water or the unit of distance is
all distance, or the unit of space is all
space or the unit of air is all air, etc.,
as to say the unit of money is all mon
ey. None of these things can be said
to divide themselves into units like
apples, potatoes or turnips. To say,
thereore, that the only unit of a par
ticular thing is all there is of it is
equivalent to saying that there is no
natural division of it into units.
Mr. Del Mar does not say this is
his meaning, but it is the only sensible
meaning that can be given to the as
sertion. Much of our difficulty grows
out of failure to realize the inaccur
acy of language. The attempt to de
fine with precise inclusiveness or ex
clusiveness the meaning with which
such words as exchange, value, unit,
standard, and other words in com
mon use, shall be used in economic lit
erature has been the very bane o?
economic discussion. The task that
constantly confronts us in the use of
language is, by the use of words and
phrases that are not precise, to ex
press our thoughts with precision.
Money and value are not words of pre
cise meaning. There is no unit of dis
tance or of space except an arbitrary
unit (foot or Inch). There is no unit
of money except an arbitrary unit
(dollar-or cent), and value being noth
ing but a relation in exchange can no
more Jiave a; unit, either natural or
arbitrary, than can sweetness or any
other quality of things."'-""'.. '-
When we. use the word money In a
general sense, what do we mean by
it? What does Mr. De Hart mean by
It? Does he mean the money thing, or
the functions performed by the thing?
The money thing and the functions
performed by it are often confused.
Unless this distinction is. preserved,
there is no meaning in the assertion
that all money is the unit of money.
The value of the idea is in the dis
tinction by which money Is used in a
wide and comprehensive sense as ap
plied to a function in the social struc
ture. In such sense there can be no
unit of money except the total of all
agencies that in any degree perform
the functionsl
According to Aristotle, "Society is
impossible without exchange, and ex
change impossible without money."
This embodies the idea that somehow
money is necessary to exchange; that
it facilitates it; is a medium of it.
In this sense every possible thing that
in any degree performs this function
is money. The function cannot be
limited by definitions. It is only in
this sense that it can be true that "the
total money of a nation determines the
level of prices." It is only in this
sense that the level of values is de
termined; for price is value expressed
in terms of money.
An arbitrary definition of money
can. pf course, be made by..which it is
limited to a particular thing, but the
function performed cannot be so lim
ited. No difference how money is de
fined,, the" functions it performs will
also be performed by numerous other
things not called money under the
definition. No difference whether a
thing is called money or not, if it per
forms any function in facilitating ex
change or stimulating commerce or
industry, it cannot be excluded when
we are considering the level of com
mercial values.
Value, as a word, is the subject of
no less confusion than money. In a
general sense, it is used with a mean
ing quite different from its accurate
use in economics. It would be better
understood if, in all economic, writ
ings. it was qualified by either the
word commercial or exchange.
Commercial value 'originates in ex
change. Value is a relation between
commodities in exchange. Remove
the possibility of exchange and you
remove commercial value. An article
outside of the'posslbilitles of exchange
is commercially worthless. This is the
value under consideration when we are
discussing the functions that are per
formed by money under any definition
of it; for money, or the money func
tion. 'has no relation to any kind of
value except commercial value. When
money, by. definition,-is limited in its
applications. .It has no function that
is peculiar to it except the legal ten
der quality given it by law to pay
debts .to an unwilling creditor. This
is the only possible function, natural
or artificial, that is peculiar to money
under any possible definition of it.
How Illogical, then, it must be to
conclude that the vast increase of bank
loans and discounts, commercial cred
its and other debts have nothing, to do
with the level, of commercial - values.
If by increasing or decreasing the vol
ume of circulating medium : that we
usually call money, values can be dis
turbed and creditors robbed, how can
it be reasonably concluded that the
increase or ? decrease of "credits can
have no influence of. a similar character?-
' ' V", ". i v
If money is a measure of value, it is
not the only measure of it. "
Is there any economic difference in
the transactions when money is ex
changed for a cominpdlty;.and when
one commodity Is exchanged for, an5
other? Does the -value of money in
commerce originate In , any different
way from that in which the value of
any commodity originates? If not,
why then do we so tiftenhave it con
sidered as if it 'were; governed by
economic laws peculiar to it alone?
FLAVIUS J. VAN VORHIS. ,
Indianapolis, Ind.
IN CALIFORNIA
The Railroad SI taation About the Same as
'.. ,
In Nebraska and Other . States South-
ern Pacific Controls State
Politics " ' ". '
The Independent haV several times
called attention to the, fact that the
political situation In Nebraska is about
the same as in other states.- Every-r
where the cry goes up that railroad
taxes are too lo and that railroad
officials are controlling the politics.
J Out in California Herrin ot the South-
V TV 1 A 1 - r .' V. ll.
sition that Baldwin -of. the Union Pa,
ciflc does in Nebraska politics. In
Nebraska, Baldwin and his confreres
named "our man Mickey" nine or ten
days before the republican convention,
and the convention ratified the selec
tion so made. In California, accord
ing to the Chronicle, "even the gov
ernor of the state himself, fwhose duty
it is to safeguard: the interests of the
people, is picked out, nominated, elect
ed and held in office by Southern Pa
cific money, passes and influence dis
bursed by the arcb-manjpulator, Her
rin. And if the "people continue to
endure - it they will haje only them
selves to blame." .
The San Francisco Chronicle says;
"It will come as an agreeable sur
prise to the people, of the state to
learn1 that the state board of equali
zation has raised the assessment of the
railroads of the state by $15,691,118.
That is to say, the Central Pacific rail
road,, which is bonded for $88,000 per
mile, and whose stock, subject to the
mortgage, of a par.yalue of $79,275,000,
is one of the most valuable assets of
the Southern Pacific company, was as
sessed at $17,408.63 (per mile. Farm
or city real estate yielding the same
revenue would be, taxed four or five
times as high. SouthernPacific of Call
fornia, bonded for $29,186 per mile, and
whose stock, ownej- by,thetjSqythern
Pacific company, has an uhknown-but
a very large valus in addition, was as
sessed at $15,000 mile. What sit is
worth is not known except to the Ex
perts in the office of the Southern Pa
cific company, but that it and. all other
properties of that company are worth
a great deal of mbney is shown by the
rise in the stock of that companyfrom
about $33 per share two or, three years
ago, t6 $68.50, at which it is now quot
ed in New York. This stock, substan
tially all water, represents the rake
off of the octopus, after paying all
obligations on th$ companies which it
swallowed. The octopus itself is; not
taxed at all. If the Southern Pacific
of California was assessed as farm and
city real estate is assessed, it would
probably pay on about $40,000 a mile.
"Now, this represents a , condition
and not a theory. While there has
been a small rise in the assessment of
Southern Pacific! company property,
some of it is accounted . for by in
creased mileage. The assessment does
not even approach what it should be
to compare properly with the assess
ment of other property. The amount
which the corporation should pay in
taxes but does not goes to increase the
value of the watered stock and the
people put their hands in their pock
ets and make up the deficit. Why do
not the people call these 'equalizers'
to account? Why does the public sit
still and submit to this outrage? The
reason Is very plain. All those men
who are in authority, in party "manage
ment; all those who are chosen to
draft, the platforms of, the political
parties; all those who sit in judgment
on the value of the property; even tiu
governor of the state himself, whose
duty it Is to safeguard the interests of
the people, are picked out, nominated,
elected and held In office by Southern
Pacific money, passes, and influence
disbursed by the arch-manipulator,
Herrin.' And if the people continue to
endure it they will have only them
selves to blame." .
BRYAN AND CARL SCHURZ
The Plutocratic Idea "
Mr. Bryan was never more interest
ing than he is this summer. His health
and spirits seem as good as ever, and
he brings abundant energy and "much
ability to the work ' of misleading the
democratic party, On the surface of
things he seems about the most mis
chievous man In the United States, for
the democratic party can hardly be of
much use in national affairs until it
gets rid of him, and he has evidently
no idea of letting go of the party as
long as he can bold on. His hold,
though undoubtedly loosened, contin
ues to be wonderfully strong. . ... -.
Mr. Bryan may easily weaken the dem
ocratic party so much - that it cannot
beat Roosevelt, but he can bardly crip
ple it to such an extent that the repub
licans .will venture to deny Roosevelt
a renewal , of his" Jease of the White
house. New York Life. '
Hereditary Snobs
Depend upon it, rcy snobbish friend. .
Your .family thread you can't' ascend
Without good reason to apprehend
You may find it waied at the further
end .... .. . '..' - , T v
By . some plebeian ; vocation! '
Or, worse than this, your boasted line
May end in a loop of stronger twine.
That ..plagued some worthy relation!
JOHN G. SAXEV
Mr. De Hart Reviews Bryan's Recent Trip
' and Comments of the Goldlte Press
Silver Question Cannot Die Till
the Gold Question Is Dead
Editor Independent: Mr. Bryan has
been east and delivered his message
to the reorganlzers.' He was invited
by the New England Democratic league
to speak at Nantasket beach near Bos
ton, Mass.. presumably for the pur
pose. This league has been recently
organized and perhaps for the purpose
of harmonizing the two wings of the
democratic party. This appears from
the fact that Mr. Edward M. Shepard
was there and was invited to make the
first speech. Mr. Shepard did not sup
port Mr. Bryan in 1896 when silver
was the paramount issue, but did sup
port him in 1900 when imperialism
was the paramount issue. He was de
feated last fall .as a candidate for
mayor of New York, defeated not on
account of his demirts, but on account
of the demerits of Tammany hall.
He was Tammany's candidate" and
went down with Tammany and Crok
er. In years gone by he had severely
criticised Richard Croker in his man
agement of New York city democratic
politics and yet he accepted his nom
ination. This prevented him from
commanding the confidence of the peo
ple as against Seth Low Tr any man
like him. If he had been elected, he
would certainly have been New York
state's candidate ' for president in the
democratic national convention in
1904; and even as it is now, it is not
at all improbable that he will be the
candidate of New England and the old
middle states before the next national
convention.'
But whether the New England
league was organized for bringing
about harmony , or not, it certainly
worked in - that direction on July 24
last, when it invited a statesman from
New York, of the calibre of Shepard,
with another distinguished statesman
from the south, and then giving Mr.
Bryan an opportunity to make the
third and last speech. And he had an
opportunity to make it to many demo
crats from all over New England; the
attendance, as the' New York World
says, being "very large." The New
York Herald says the speeches were
made in a tent, seating 4,000 people.
But whether those present were as
numerous as the sands of the sea
shore, the speech set all the newspa-
rpers here in the east to talking about
Bryan again, and criticising him not
so much for what he said as for what
he did not say, or what he . wanted to
say and did not say. We would Judge,
from the newspaper editorials, that he
talked all the time about silver or at
least that this was his chief topic,
whereas in fact the subject of his dis
course was harmony, and the currency
or money question was only alluded to
as incidental. Those who would real
ly like to know what he said, will have
to get a copy of The Commoner of July
25; from which it appears that he
handed the newspaper men an abstract
of his address in advance. The ab
stract occupied six columns of The
Commoner. And it would seem that if
the press had a condensation of : his
speech in advance, they might at least
have given that to the public.
The title of his speech was, "The
Basis of Harmony," which indicates
that he Intended to state very clearly
to Grover Cleveland & Co. the basis
upon which, the two wings of the dem
ocratic party could be harmonized.
This "basis" is found in the following
few words which did not appear in the
newspaper reports:
"The democratic p'arty must have a
controlling purpose, unchanged by vic
tory or defeat; it must stand Tor that
purpose at all times and everywhere,
unmoved by threats of disaster and un
influenced by promise of temporary
gain. It must have a character, for
character is as essential in a party as it
isN in an individual."
"Our party must have principles and
proclaim them; it must stand by them
and defend them, relying upon its faith
in the righteousness of those prin
ciples and upon its faith in the intelli
gence and patriotism of the people."
"To attempt to patch up an appar
ent harmony- between those who - are
not in sympathy with democratic pur
poses is not only a waste of time, but
would prove disastrous." . ,
"It is impossible to secure harmony
between people of opposite sym
pathies;" it requires a' political regen
eration to make a democrat out of an
aristocrat."
"We cannot tell what issues we may
have to meet; we can only determine
to meet them in a democratic spirit, to
apply to them democratic principles
and to take the people's side always."
This was notice to Cleveland & Co.
that the democratic party, so far as
depended upon Bryan, would not move
backward, but would go forward .and
meet , the issues as they come up and
decide them in the interest of the
common people always. Then the
democratic newspapers that have been
acvocating free coinage of gold and
denouncing free coinage of silver, set
up a great howl.
A few days afterwards (July . 31) .
Carl Schurz found it convenient to al
low himself to be interviewed by a re
porter of the- New York Herald at
hi3 summer home at Lake George, N.
Y. He - talked about the Philippines
and about Bryan. When asked if he
thought the democrats had a good
chance of carrying the next house of
representatives he said:
T think they have if they get rid
of the Bryan Incubus.
"I do not know Mr. Bryan personal
ly. He may be the honest, sincere
and brilliant man his friends believe
him to be, but, historically speaking,
he has proved the evil genius of ev
ery cause or party he embraced. '
; "In 1896 he might have made a
strong case against the republicans as"
the 'plutocratic' party, but he- staked
all he chances of the democrats upon
the weakest ground of their platform,
the absurd '16 to 1 humbug, which
was utterly untenable but served . to
alarm the whole conservative senti
ment of the country and naturally di
vided the democrats. r.- .
"After the Spanish war he became
an untl-imperialist, but, by that fatal
perversity -of judgment which seems
to be constitutional with him, he at
the decisive moment threw his power
tul Influence in favor of the ratiflca
tion of the Paris treaty, the source of
the mischief we are fighting against
"In 1900 the democratic : party, at
the Kansas; City convention, was in
clined to repair, at least In a measure,
the dreadful blunder i committed in
1896. But there he twas again forbid
ding it all, and although - anti-imperialism
was proclaimed to be the para
mount issue; and he himself had open
ed the campaign with a brilliant pre
sentation of it, his constitutional per
verseness r broke out I again ' and he
spoiled everything by, again talking his
old 16 to 1 nonsense all over the coun
try and frightening away the conser
vative sentiment as the had -.done four
years before.- . :c -;
"The result ;was defeat after defeat.
And now, when a promising effort is
made to unite the democracy and to
form it into -an effective opposition
party on the -basis of; livingprinciples
there he is again, preaching discord
and internal strife with - the whole
power of his eloquence. -.V
"No,"-' concluded Mr. Schurz, "Mr.
Bryan may be ever so . good a man,
buK he 'certainly; has beeii; - the evil
genius of 'his party, which must be
exorcised - if the country isl to have
again the benefit-of an effective oppo
sition." New- York Herald, Aug.: l.
I present' this, not for the purpose of
answering it,., but for showing the ir
repressible conflict between the two
wings of the democratic party. From
now on Cleveland & Co.-will represent
one wing and. Bryan, ;with',his friends,
the other. - This is. shown plainly by
the trend of recent, events;;; What Mr.
Schurz says so emphatically, all the
Clevelanditesx arei i saying among
themselves. The question : with them
is, How to get clear of Bryan. They
call him an "incubus" which" signifies
that he is a heavy weight. ' They call
him an "eviL genius," which means
that he ha&; more . genius .than they
have. They talk about tbe "absurd 16
to 1 humbug," which shows that thej
intend to carry the fight for gold
monometallism , into the nexti demo-:
era tic national convention. They talk
about his "constitutional perverse
ness' in l900, when he, as they say,
"spoiled everything by again talking
his old 1& to 1 nonsense all over the
country and frighteniiig the conserva
tive sentiment as hdhad done before."
"And not;," they say, "when -a promis
ing effort is made to unite the. democ
racy and to form 'it . into an? effective
opposition party on the basis of living
principles, there he is again-' preaching
discord and' internal' strife - with the
whole power of his eloquence."
From all of which.it appears .that
Mr. Bryan cannot say t a word in de
fense of himself or his wing- of the
party without being charged with stir
ring up strife and difecord.. This is
despotism, " the despotism of a gold
"standard." For, after all, the great
sin of Mr, Bryan in the eyes of these
people consists in not believing in gold
monometallism. Bryan believes in
making coinage of silver as free as that
of gold, and no freer. If one Is right,
the other must be right. On the other
hand,' if one is wrong, the other must
be wrong. It is strange, indeed, that
men believing in free coinage. of gold
should ..denounce free coinage of - sil
ver. It shows" that s the gold mono
metallists are incapable of reasoning,
and yet they are or have been regard
ed as statesmen and. looked up to as
leaders, and have occupied high places
of responsibility and trust in public
affairs.. ' ' '
, Who, for instance,' is Carl Schurz?
An old man. more than forty years ago
in public life, sent by Lincoln as min
ister to Spain in 1861, a general, if I
mistake not. in the civil war, a United
States, senator from Missouri, secre
tary of the interior under Hayes in
1877 to '81, an active mover in nomi
nating Horace Greeley in 1872, a re
publican under Lincoln, almost a dem
ocrat in the support of Greeley, a re
publican under Hayes, an orator, a
writer, a journalist, a lecturer and
public ; teacher, lately an active and
prominent member and, officer of the
American anti-imperialist league. Such
are the men who are fighting Bryan
in the interest of gold. It all goes to
show that the silver, question is not
dead. It cannot die, until the gold
question is dead.
JNO. S. DE HART.
Mi. Freedom, N. J.
Novel Campaigning I
Instead of "working" hi3 local paper
for a few free puffs,, Richard J. Mc
Callian, - candidate for clerk of Tip
ton county, Indiana, buys two Inches
of double column space in the Tipton
Dispatch . and has inserted a display
advertisement as follows:
"I - am ; seeking a f job of . clerking.
Your assistance is earnestly requested
and will be gratefully appreciated.
RICHARD J. McCALLIAN, ,
Candidate for
Clerk of Tipton County.
'.;......:;., : 7-- :'
William Lloyd Garrison ;
Editor Independent: It may not be
known to you that Wm. Lloyd Garri
son of Boston, Mass., son of the fam
ous abolitionist of the same name, is
an earnest and untiring advocate of
the philosophy known as the single
tax. He; is an exceptionally able and
interesting writer and I think that if
you were to inyite him to contribute
an article to The independent on so
cial , questions : or - political problems,
he might do so, -in which event his
contribution " would be a great ; card
for your paper. C. F. SHANDREW.
Philadelphia, Pa, . . ..
RISE IN LIVING EXPENSES
The Massachusetts Labor Bureau Issues
Some Reliable and Valuable
Statistics
Every thinking man in the whole
United States feels grateful to the
Massachusetts labor bureau for the
valuable and reliable statistics that it
issues from time to time. Just at
present the whole population is interested-in
the rise in the cost of living.
Everyman interested at all in public
affairs wants to know the exact fact3
in regard to it. The Washington per
manent census bureau has become so
partisan that" it is of no use at all.
Massachusetts fills the gap, for which
all men are grateful. .
The Massachusetts . report consists
of a comparison of retail prices for
1902 with similar returns collected by
the. bureau in 1897, 1881 and 1872.
There is also presented a collection of
family budgets of typical working
men for the past year, which are
brought "Into some comparison with
the results of a similar inquiry made
by the bureau back in 1875. Compari
son of -: prices is most conveniently
made in the form of what $1 would
buy in each of the several years, and
from a long list we select the follow
ing, confining the comparison to 1902
and' 1897:
What $1 would buy in
" ' ' ' ! ' 1897." 1902
Family, wheat flour, lbs... 34.48 43.48
Corn meal, - lbs .34.48 34.48
Codfish, lbs.... , 13.89 10.00
Rice, lbs 12.82 ' 12.66
Beansquarts 14.29 10.00
Tea, Oolong, lbs 2.16 1.85
Coffee, roasted, lbs. 3.57 3.72
Sugar, 'granulated, lbs. .. .17.86 18.87
Beef .roasting, lbs. ....... 6.85 5.71
Mutton, leg. lbs.... 8.55 '6.17
Pork, fresh, lbs. .... v 10.00 7.19
Lard,' lbs. .12.66 . 7:58
Butter, lbs... 4.13 3.30
Potatoes, ; bush ............ 0.99 0.87
Milk, quarts. . . . . . . . .. .17.86 15.87
Eggs, dozen. ....... . . . . '."V. 4.27 4.65
Coal, lbs. . . .333.33; 300.48
Shirting, 4-4 bleach,' yds.11.76 1L49
Sheeting. 9-8 bleach, yds. 10.31 6.21
Cotton flannel, yds. 10.00 9.35
Prints, yds... 18.87 17.24
Shoes, heavy, pair. ... $2.05 $1.99
6-room tenements, days. . 2.62 1.58
' These figures refer to retail prices
in Massachusetts only. Combining
the articles into dfstinct groups, the
per cent of increase of cost from 1897
to 1902 Js: Food, 11.16; , dry goods,
16.07; rent. 52.43, and fuel; 9.78. The
enormous increase in rent shows that
the landlords are making as much out
of the present situation as the trusts.
Jt should be remembered that the rise
in the great trust articles, , such - as
steel. Iron and tin do not enter into
these statistics. The comparison is
made with" only such articles. as the
wage-earners are most Interested in.
Much of the increase in rent is caused
by the enormous rise in the trust con
trolled building materials.
MORE MONEY
The Wealth and Prosperity That the Con-
" tinned Increase In the Output of
Gold Will Cause.'
Paul Leroy-Beaulieu, a French au
thority on questions of finance, joins
Director Roberts of the United States
mint in predicting a rapid Increase in
the, supply of gold, now that peace is
established in South Africa and that
modern methods ' of mining and ore
treatment are gradully obtaining, a
foothold in the primitive mineral sec
tions of Australia, China, Chili, Si
beria, India, Mexico, British Colum
bia, Alaska, Central and South Amer
ica. The French authority places the
gold output of 1906 at $400,000,000, of
which $150,000,000 will come from
South Africa alone. This means a
gain in that country of 50 per cent up
on the record output of 1899, which
was $100,000,000.
As to the effect of this remarkable
gain in the gold supply upon prices,
social' conditions, financial theories
and other topics of prime interest, the
leading authorities differ, only in de
gree.', There can be no general panic,
no general drop in prices, Bare the
cost of hiring money, while -this flow
of gold continues.- Setbacks due to
over-speculation will be limited in ef
fect. The dead will be borne from
the scene and the burial party will
march back to the marts of commerce
to the music of quick time.
The present stock of gold in the
world i3 estimated at $10,000,000,000.
An increase of $400,000,000 per annum,
with no practical destruction of the,
stock on hand," and less hiding away
as India and T China become civilized
from our standpoint, leaves margin for
a heavy increase in population and
commerce, and then some more for
higher prices of lands and labor and a
growth in luxuries, until the latter, as
In the case of the. Roman empire, shall
provide its own antidote by sapping
the vitality of the' possessors, leaving
them open' to be despoiled by the
Goths and Huns of their day, the latter
clothed in good health and inspired by
ted blood. . 1
A pleasant theory can be based on
all this: The first effect of the in
creased gold supply, as M. Leroy-Beaulieu
points out, is noted in the specula
tive markets, because. the banks and
the bourses are the first to capture the
gold. The chill of Alaska , is ." hardly
warmed from its glittering cubes be
fore it is weighed in Wall street for
shipment ; to Europe, to pay the cost
of luxuries Imported from abroad or
meet the interest upon securities held
in London, Paris, Amsterdam or, Ber
lin. When the banks and the bourses
suffer from - overfeeding then the in-,
terest on call loans will drop, the bull
element will have its day on all the
exchanges and shares will sell at
prices that will mean to the holder
about 1 per cent yearly if he remains
a holder, .
From this condition of affairs will
be derived high prices for lands, more
especially at the centers of population.
In the opinion of M. Leroy-Beaulieu
"it is only gradually and more siowly
that the effect of the new production
of gold will be felt outside of the cit
ies and on the ordinary products o!
life. Will the $400,000,000 of gold,
coming regularly every year into the
world, have, the effect of raising the
price of ordinary merchandise and the
shares of companies which produce
it? In a certain measure such a result
is not Impossible, but probably only
in a limited degree, for the output in
well-known markets usually expands
at such "a rate thatwhatever the de
mand, the supply is rapidly pressing
beyond it."
. An embarrassment of riches, after
cur experience with a destruction of
values wholesale and heartless , in
1893, is a pleasant topic to contemplate,
all the more so as the ' state which
was rejected in the program of 193
is the veritable head of the new gold
supply, which will impress itself upon
the world for many years to come, for
good or for evil, according to the light
and the disposition of the people who
dispense it. Denver News.
NO STRIKES OR TRUSTS
The Happy Land of Kew Zealand Where
the Laboring People Solve All
Economic Difficulties.
R. P. Prentys, writing In the Chica
go Tribune, gives the result of his in
vestigations into the social conditions
of New Zealand as follows:
As an interested observer of Ameri
can labor problems I venture to write
a few words from, I think, a position
peculiarly, fitted for an unbiased view
of such matters. I have lately arrived
in America from that extremely prog
ressive little country New Zealand
which, I believe, might with advantage
be copied in many respects by older
and more Important peoples.
The government is essentially "of
the people,, and,. moreover, despite its
wholehearted loyalty to the British
crown, is extremely democratic, so
there would be nothing incongruous in
the great republic accepting a lesson
from Maorilaftd. i presume it will be
granted that it is the duty of all true
Americans to strive after a correct
form of. legislation for the control of
trusts "and -similar monopolies, with
the elimination of the great labor
strikeswhich are so constantly threat
ening the commercial .activity of the
UniteStateS.'?:- ' ' : '
New Zealand has combined in a hap
py manner thorough respect for ' the
individual rights of. "the people a pa
ternal form of government. .This is
particularly evident in its labor, laws
relating to unions. These were passed
in 1894 and had for their object the
encouragement of unions both of em
ployes and employers.
By their authority any body , of
workmen not less than seven in num
ber may register themselves as an in
dustrial union, the effect of such registration-being,
to render the union sub
ject to the jurisdiction of the law.
In the same way employers from a
minimum number of flve or an incor
porated company may register them
selves as an industrial , association of
employers. i
The act requires the colony to be di
vided into a number of districts
varying in size, of course. In ratio to
the population and provides1 that the
industrial unions registered In such
districts should nominate a board of
conciliation composed of equal num
bers of employes and employers; the
board then elects some impartial resi
dent in the district to act as chairman.
1 As the name Implies, this body is
only for purposes of conciliation, and
its object is to effect a fair and amica
ble settlement of any industrial dis
pute which may be referred to it
either by employes or employers.
In the event of the board of concilia
tion failing to arrive at a settlement
it refers the dispute, together with all
evidence, etc., taken; to the. court of
arbitration.
.This body is in reality a supreme
court, and its decisions which are
considered as binding for a period of
two years are in every way treated
as those of a court of law. , Its mem
bers consist of three one appointed
upon recommendation of the majority
of the councils of the industrial unions
of workmen in the colony, the second
by the employers, while the third
member is a judge of the supreme
court.. 7".: '
It' has been found In practice that a
large number of disputes are disposed
of by the board of conciliation,, and
only a small minority are taken as
far as the court of arbitration. As a
proof of the effectiveness of the act,
it is notable that shice these laws
have been in force there has not been
one strike in New Zealand, while all
parts of Australia have at times been
considerably held back by labor trou
bles. I. would point out that had sim
ilar laws been in force the teamsters
and freight handlers' strike in Chica
go would have been avoidedwhile the
men who. ultimately accepted the pro
posals originally made would have
been in an equally good position, plus
the great monetary loss both to them
selves and the city. . 1
The New Zealand people, too, have
solved In a ; logical manner the pre
vention of undue development of large
combinations of capital whose object
is unnaturally to raise the prices of
various commodities. Action in this
case is taken by the colonial parlia
ment, which "conceives that, if a partic
ular industry is sufficiently developed
to be able artificially to raise prices
and impose its will on the people it is
no longer in a position to reaulre pro
tection, therefore custom duties on
this particular article are suspended
and secundem naturam prices regain
their normaf level. s
REORGANIZATION
Mr. Bride Devotes a Portion of His Vaca
tion Time to Paying His Bespects to
the Cleveland-.III11 Crowd
Nadd, County Cork, Ireland, July 29,
1902. (Special Correspondence.) The
impudent attempt of that insolent co
terie of New York bolters and politi
cal traitors to assume the right to
direct the course of the new democ
racy, if successful, would certainly be
a case of the tail wagging the dog.
In fact, this is hardly a parallel; the
tr.il is a useful appendage and might,
with propriety, aspire to the privilege
of occasionally wagging the dog. But
the Cleveland-Hill outfit is neither a
useful nor an ornamental appendage
of the new democracy. It has no con
nection with It in any shape, form or
manner.
The people elected Cleveland to the
presidency and Hill to the United
states senate on a platform that was
so clear and definite in its declaration
of principles and Its emphatic demand
for remedial legislation that there was
not the shadow of an excuse for their
base and brutal betrayal of the truf t
reposed in them and their treasonable
disregard of their party's obligations.
In less than two years they deliber
ately destroyed the party that had
elected them and spurned the only
opportunity of applying democratic
principles to our national government,
that - had been offered in thirty-five
years. March, 1893, found the demo
cratic party invested with plenary leg
islative and executive authority,, for
the first time since;1858. The popular
verdict in favor of free trade and free
silver, the paramount issues of that
important election could not be mis
taken. The tariff plank was especial
ly clear and strong. It denounced pro
tection as a fraud and a robbery and
pledged the democratic party to abol
ish it. The currency plank was not
so strong, probably, to those who were
in search of a pretext to betray the
people and serve the money power.
It pledged the party, however, to main
tain "the coinage of both gold and sil
ver, without discrimination against
either metal or charge for mintage."
Cleveland's tariff message of Decem
ber, 1887, had identified him in the
popular mind as an enemy of protec
tion and all special privileges. It was
the strength born of this belief that
elected him in a wild crescendo of
popular enthusiasm to the highest
office In the gift of the American peo
ple. It was confidently expected that
he would be eager to seize the first
opportunity in a generation to press
the equitable principles of Jefferson
against the monopolistic and destruc
tive principles of Hamilton. The coun
try naturally expected him to call con
gress together without a moment's
delay; to abolish industrial conditions
that he had so violently denounced as
an . Intolerable wrong to the American
people. In accepting the; nomination
he bound himself y every honorable
tie to erase from the statute book the
McKinley iniquity and the voters had
elected him on the faith of those pro
fessions. . j
The deplorable truth is that the
money power had purchased him and
he was henceforth its subservient tool,
ever ready and only too willing to
serve it in its nefarious endeavors to
despoil the people. If any one should
be found credulous enough to think
otherwise, let him consider the history
o. Cleveland's second administration
and see if he did not basely betray the
productive classes into the greed maws "
of the money sharks, trust barons and
princes of privilege. Elected to abol
ish protection forthwitn, he procrastU
nated till August and then called cor "
gress together, not for the purpose of
abolishing protection which he was
pledged to do, but to repeal the pur
chasing clause of the Sherman law, a
thing he was pledged not to do. It was
a flagrant violation of hl3 party's
pledge to maintain "the coinage of
both gold and silver without discrim
ination against either metal." By
postponing action on the tariff ques
tion time was given to the enemies of
tariff reform to take new courage and
make new efforts. By the time thr
Wilson bill came finally into the sen
ate they had made the most formida
ble organization as well as the most
Insiduous they ever had. They ridi
culed the idea of fulfilling their obli
gations and redeeming their promises
to the people.
Senator Brice cynically styled the
senate finance committee, which had
charge of the bill, "the free lunch
counter," where every special inter
est would be protected at tf expense
of the people. Thus was the demo
cratic party slaughtered In the hous
of Its professed friends. Moreover.
Cleveland's failure to call congress in
extra session immediately after his in
auguration, for the purpose of re
deeming the party's pledge to abolish
protection, created a feeling of, deep
anxiety and uncertainty among all
classes of people. Everyone knew that
there would be alterations In the tar
iff schedules, but when, or to what
extent, no one could conjecture. Con
sequently, the manufacturer of-tariff-protected
articles ceased to manufac
ture; the importer ceased to import,
for fear a cut In tariff rates would find
them, with a large stock of goods to be
disposed of at a loss. This feeling of
suspense and uncertainty increased la
intensity until it became apparent in
the industrial and commercial paraly
sis it was producing. The cessation
of production at some points of our
complex industrial system began to
show itself at other points In cessation
of effective demand, which, aeain.
checked production there and thus
the paralysis was communicated
through all branches of industry. Thf
privileged classes divined the tru
cause of the Industrial depression and
apprehension lest the people would
rise in a body and demand tariff legis
lation, which would be sure to deprive
them of their power to rob and op
rosa the people, they raised the cry