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About The farmers' alliance. (Lincoln, Nebraska) 1889-1892 | View Entire Issue (Feb. 4, 1892)
THE FARMERS' ALLIANCE, LINCOLN, NEB., THURSDAY. FEB. 4, 1892
Ofce 2axmx' Alliance,
pBbujbe Krerr MUtraar ny
Th Auxisat PrBLisiireo Co.
Cm. IKsi m4 M 6-. Luwoln, Kb
M.Ta0ro BuiImm Mauer
la tbe beaoty of the lillies
Christ wu bora across the tea,
With a glory la boom
That transfigure you and me.
Aa be strove to make men holy
Let na atrire to make them free,
- Since God ia marching on."
Julia Ward Bon
TAnrel crowna cleave to deserts.
And power to him who power exerts."
A roddy drop of manly blood
Tbe surging aea outweighs."
Qi who cannot reason is a fool.
Ha who will not reason is a coward.
He who dare not reason U a slave.
N. K. P. A.
um ail fetMlaeM eonuiiunieations to
rr. .... k l i .i. i
IUMrm matter tor publloaUon to Editor
ArtoM wrltuw on both sides of the paper
aaarulu oanoot mum.
rcnusniD wxiaxr at
COSHER 11TH AND M STREETS,
J. BURROWS. Editor.
J. II. THOMPSON. Basinets Ma'gr.
Tha trial Alliance Weekly and Ihs Lssolng
laaapssdent Paper si Ida State.
CZVEN COLUMN QUARTO.
It wlH always be feund on the side of the
ale and wholly aerated te the advocacy of
i principles ia state and nation .
IT It YOUR PAPER.
CC-PUTE II EVERY DEPARTMENT.
abseription, 11.00 per annum, Invariably
la adraaee. Firs annual subscriptions $4.00.
; . OUR I0OK LIST.
The best reform literature obtainable ean
ks had by ordering any of these books,
. The Banwar Probltm (new) BUokner....t 60
r Backward, Bellamy SO
. flurast, (new) Donnelly M
I Comma, " DO
A Kentucky Oolencl, Seed to
Mvea from Sea to aea, Post, SO
A Tramp la Society, Oowdrey 10
tabard's Crewn, Weaver..... W
Heal Bed Craron, Woolfolk KJ
. Brtce's Financial Oatechism, Brioe SO
Honey Monopoly, Baker St
Labor and Capital, Kellogg K
Plaarro and John Sherman, Mrs, Todd ... U
area Flnaneial Conspiracies. . , . 10c ts,
The Hasaard Ciroular, Heath.... 18" r
Babies aad Bread, Homer 10" J
Our Republican Monarohy, Voldo (5
The Oomlnf Climax a tfce Destinies of
America by Lester C Hubbard SO
AiUanee and Labor Songster loo, per dos 1 10
stew Mualsedl'n, paper coyer loo, M ton
board " Ho. ' t DO
TnlaaMBBS' AuuAMoa year and any
Dot. book on our list for 11 .
fame and any Mot. book oa oar list for tl.to.
Addrses all orders and make all remitt
amass payable to
TBI AIX1AKCB rCBLIBBIMQ CO.
THE TWO FUSDS.
We Invite attention to our proposi
tions for raising an Alliance library
fund and as Independent campaign
land,, published on tho inside of this
issue. We are offering one fifth of every
subscription sent for that purpose, to
one of those funds. We desire this
effer to bo appreciated, and want
hearty response to it. We have a right
to expect that much. If the offer is not
responded to heartily We shall withdraw
it, though we don't expect to do so.
But systematic work should be started
' in each precinct to swell these funds.
A JUDICIAL CURIOSITY.
Are There Any More of the Same Sort?
We have received tho following let
from our esteemed friend Hon. E. I).
Kretslnger, of Beatrice. We honor the
man who takes the stand on, the pass
question tbat Judge Babcock docs. We
have published the names of some oQi
ciala who have passes. We take pleas
turn in publishing the name of this
judge whe does not accept them; and
"wo shall be very glad Indued to enlarge
the list. The day will come when it
will be a disgrace to accept free trans
yartation from railroad corporations.
Here is the letter; '
Beatrice Neb.. Jan. 26. 1603.
How. J. Burrows, DxxJt Sir: If
won wish to commend a Judge of the
district court in Nebraska who refuses to
Accept passes from the railroads, Judge
A. II. Babcock, of this city is the man.
He deems it highly iraproperfor a judge
to pleace himself under obligations to
Um railroads by accepting their passes
lie is the only judge I know of in Ne
braaka that takes such an honest view
of tbe matter I assure you that I con
aider it refreshir in this corporate
cursed state to know one judge who
will not accept favors from one elass of
wealthy litigants. .
1 am Blncerelv yours,
K. O. Krkhsinukr.
Tbe new Lincoln daily, the Evening
Sun. has made a bad break at tbe start
ia refusing to hire union printers. The
unions have of necessity condomned it
and placed it under a boycott which
will array the whole laboring class
against it. It cannot hope to rival the
Journal inservlrgthe capitalist class,
and if it so early antagonizes the work
' ing class it will stand a good chance to
get ground to pewder between the two
HON. J. H. BB0ADY.
Judge Broady, late of Beatrice,
removed to Lincoln, when be has on
gaged in tbe practice of the law. Judge
Broady is one of the ablest and best
known jurists of the west. That a large
practice will fall to his share goes with
out saving.. His office is in the Burr
We find ia tbe Chicago Trade BuUetiu
of Jan. 21st the protest of the Minneap
olis Chamber of Commerce against the
Washburn Bill for preventing option
dealing. The protest is so full of on
troths that it aeems strange that respec
table merchants could be found who
would consent to pat their names to It.
It states that the selling cf futures is
necessary to preserve the dealer's credit
and financial security. It seems peculiar
that the selling of products one does
net own, and never expects to, which
have no actual existence, should be a
safer basis of credit and financial secur
ity than selling products which the sel
ler actually owns.
It also states that except for the sales
of futures there would be "great diffi
culty in getting money" with which to
buy tbe grain. That ia to say, wind
grain, which tbe seller doesn't own and
which has no ex stence except in imagi
nation, ia better security on which to
borrow money than the actual stuff in
Thifl protest wmnlalna tbat the
Washburn bill would limit buyers and
destroy competition would drive out
of the business all but two classes, viz:
Millers and exporters; and it claims that
tbe carrying expenses and losses are
paid by speculators, and do not lessen
the price obtained by larmers.
What the bill aims at is to have act
ual produce behind every sale. If per
sons wish to speculate ingrain the bill
would not prevent them. Every pur
chaser could sell again. That the bill
would limit the number of persons who
were striving to break tbe market is
probably true. Therein would lie one
of its chief benefits.
The protest denies that the future
selling of grain tends to lowor prices.
it it is grain that is sold mis is correct.
But if shorts are sold it does tend to
lower prices. They think the short side
is too dangerous a one to be taken delib
erately, but there has been plenty of
brave traders found willing to take that
side and take it with big amount too.
Why don't they tako the bull side! Uh
tbat is too bard work breaking the
market is easier.
It is all stuff ttcir savins tbat "the
short seller can never sell a bushel
more futures than be buys, for all con
tracts utuHt be complete at maturity by
delivery of the property." It requires a
great deal of gall for a respectable mer
chant to make such a statement.
Continuing they say, "that the prac
tice of future selling for speculation
Eure and slniplo tends rather to en
anca values than depreciate thwm,"
that la. the mora vou oner for sale of a
thing the higher tbe price you get for it.
Any friend of the Washburn Kill can
see that it will not restrict buyers, and
furmors would be only too glad to pay a
wider margin 11 necessary to those buy
ing the actual grain if thoy could be re
lieved of the bauef ul competition of sales
by uon owners.
lbey claim tiio niarKois nro mucn
steadier than formerly. Steadiordown-
ward would be more like the irum.
The statement that it is dosirablo to
substitute speculation and uncertainty
for legitimate business aad certainty
caps the climax in that wonderful docu
ment from the Minneapolis so-called
Chamber of Commerce. Stop this werse
than horse stoaung.
The Great Industrial Oonfereuso.
Official information for tho great In
dustrial Conference to bo held in St.
Louis, February 83, 1892. Tho follow
ing rates of transportation have been
States of Kansas and Nebraska. One
lowest first class fare for round trip to
St. Louis. Dates of sale February 20th
to 22d inclusive, with return limit March
10th. From points in Kansas on the M.
K. & T. and K. C. F. 8, & M. R. R s,
tickets will also be on sale February
Hotel accommodations have been ar
ranged for at from 00 cents to one dol
lar per day for room, no board; and in
hotels and select boarding houses, con
veulcnt to the exposition building
where the meetings of the convention
will be held, at from si. 25 to fS.OO por
day for room rnd board.
If you desire your accommodation so
cured in advance, ploaso state the price
you desire to pay for room, or room
and board, and whother you desire
committeo rooms at your hotels or not
Any request will receive prompt atten
tion and no charge for services render
ed. It is recommended that delegates
have their quarters secured in advance.
For hotel accommodations address
all communications to
M. F. Dor d,
Chairman Merchants' Ilotol and Board
ing Bureau, CO Mitchell Building.
For further particulars as to trans
portation of delegates, headquarters for
the different labor organizations and
othor matters pertaining to the confer
" S. II. Snider,
Chairman committee on arrangements,
Hotel Richelieu, St. Louis, Mo.
The Reform Tress association will
meet in St. Louis on tbe 19th of Febru
ary, 1892. Editors of reform papers
will please look after transportation on
local lines that do not ran into St.
Louis. Headquarters for the Press as
sociation will be at the Hotel Richelieu.
For information regarding meeting of
Press association, address
W. S. Morgan,
Sec'y-Treas., St. Louis, Mo.
One by One the Esses Fall.
S. H. Sornberger, of Wahoo, who was
active in the independent campaign
last fall, and who had the presumption
to aspire to a nomination for district
judge on the independent ticket, has re
ceived the g. b. from the Elkborn road.
He was acting as its attorney In Saun
ders county. This is well. Tho road
dont tolerate independents in its
Mr. S. hss formed a law partnership
wilh Gee, W, Simpson of Wahoo., It
will bo a strong firm.
We have received a Bketch of Mr.
Powdorly's life, which we will publish
next week, from Mr. O. P. Waltman, of
Rodiogton, Neb. Mr. W. states that
Mr. Powdorly was born at Carbondale,
Pa.. January 22, 184t, and that his pa
rents came from Ireland. If this is so of
course Mr. Powdorly Is eligible for
Let Us Have No More Monkeyis.
Jas. E. Boyd has been declared a cit
izen of the United States by tbe highest
judicial authority in tbe land, and is,
therefore, eligible to the office of Gov
ernor, to which he was declared elected
by tbe Legislature In joint convention.
Tbe decision of tbe U. S. Supreme
Court was withheld, by railroad influence,
nn'il just before the court adjourned
for six weeka.
So, in tha regular official course, it
will be two montas or more before Mr.
Boyd can be given the place he is by
law entitled to.
But there Is another course which
may be pursued. Uor. Thayer can vol
untarily relinquish possession of the
office to which he has now no legal
Railroad influence is being brought
to bear to Indnce Gov. Thayer to con
test possession inch by inch, and to
hold the cilice to the last moment.
This is done because G W. Holdrege
etal fear tbat Gov. Boyd will call an
extra session of the legislature to dis
trict tho state and reduce railroad
Now we have just this to say: If
Gov. Tbayr wUbes to cover his name
with Infamy, and sacrifice the lost par
ticle of respect tho people of this state
have for him, be will do as the railroads
wish. It be wishes to place himself in
an honorable position bofore the peo
ple of Nebraska he will see Gov. Boyd
installed in his office with tbe least pos
We say this, occupying an absolutely
neutral position between these two men.
Gov. Thayer has this morning refus
ed to inform us what he rill do.
MB. BBYAU'S BILLS.
We have received from Hon. W. P.
Bryan printed copies of his bills to
place on the free list barbed wire and
iron rods for fencing, salt, binding
twine and lcmbar. These are four sep
arate bills. Of course each will have to
be acted upnn on its merits. We havo
also received a copy of his joint resolu
tion proposing an amendment to the
constitution providing for the election
of United Status senators by direct vote
of the people of tbe several states when
ever they shall make provision for
same by statute or constitution.
This resolution is ia direct line with
the Alliance demand, and should pass.
THE ALLIANCE LOSING GROUND.
O. O. Outcalt, clerk of the district
court of Coffee Co., Kansas, writes us:
' The Alliance is losing ground here
so say the republican papers. It is
truo ia a sense. I have just issued
twelve orders of sale mortgage fore
closures, involving 3,005 acres of land
and nlno town lots. Tho judgments
aggregate 944,583 70. Looks like losing
ground with a vengeance, dosn't itf
NATIONAL PABMEES' ALLIANCE. ;
The meeting of the National Farmers'
Alliance in Chicago last week was well
attended, and was called to order
promptly by President Towers. Major
McClaughry, ckief of pol'.ce of Chicago
welcomed the delegates in a hearty
graceful speech, which was responded
to by Mr. Powers in his best vein.
Illinois, Ohio, Pennsylvania, Iowa, Ne
braska and Washington were repre
The committeo on resolutions consis
ted of Allen Root, of Nebraska, Joshua
Crawford of Ohio, J. 11. Saunders of
Iowa, Wm Kruesh of Iudlaua, Gso. D.
Brown of Pennsylvania, D. F. Raven si
Washington and Milton George of
1). F. Raven of Washington (state) was
elected President. The Vice-Presidents
choson wore. A. K Bronson of Illinois,
J. J. Furlong of Minnesota, W. A. Kel
sey of Indiana, G. W. Moore of Penn
sylvania, O. Hull of Nebraska, J. 11.
Saunders of Iowa, 1). E. Hedges of
Washington, and W. K. Llckens of
Ohio. Prof. Adolph d'Allemand of Ne
braska was elected Secretary-Treasurer.
(i. K. Lawrence of Ohio was elected
Nation-) 1 Lecturer and U. M. Brown ef
Pennsylvania Assistant Lecturer.
The committeo of Education choson
was. Mrs. J. A. Pratt of Nebraska. H
II. Donlon of Iowa, Joshua Crawford of
Ohio, Milton George of Illinois, and J.
C. Van Patton of Washington.
Tho matter of sending delegates to tho
M. i.ouis coniorenco which meets tea.
22 was loft to the individual states. Ne
braska with a much larger delegation
than the other states was solidly in fa
vor, the other states voted not to bo rep
resented thote, except a section of Iowa,
which fends threo delegates.
President Powers tn his annual ad
dress stated that the impression that the
Alliance attempts to oppose other legiti
mate interests is wrong. He spoke at
length and ably upon the reforms need
ed Tn the nation.
Hon. Ignatius Donnelly spoke of the
effort that was being mado by leading
members of tho prohibition, national re
form and people's party to bring these
forces together in one party. He favored
the plan proposed by Mr, Washburn of
the people's party for tho nationalization
of the liquor tralllo eliminating tho ele
ment of profit and explained fully the
details of the plan. His speech was well
State Assembly E. of L.
State Assembly K. o L., has just
closed its seventh annual session at
Omaha, and the meeting was one of much
interest. Nearly eyery assembly in the
stato was represented and business of
much interest to therorganlzation trans
acted. The local assemblies of Omaha
did much to make the visit of the dole-
gates to their city a pleasant one and
the entertainment given by the working
girls at exposition hall on .Monday
evening was thoroughly enjoyed by all.
ine local committees succeeded in
raising by subscription and other means
over r:w to assist the state assembly in
defraying the expenses ofthe assembly.
and proper resolutions were adopted
thanking the local commlltoes, tho
members and the people of Omaha.wha
so generously contributed to this fund
i ne reports ot the otneers showed a
steady growth throughout the year and
bright prospects for future work and
ufefulness. An increase in member-
snip of 'm per cent over last year was
noted, 'increase of locals paving tax
43 per cent over last year and iucrease
in receipts over that of last year nearly
!w per cent.
ine treasurer's report showed a
healthy financial condition and report
ed a considerable balance en hand.
Shall We Have Free and Un
imited Silver Coinage.
JOIST DISCUSSION BY EDWAED
E0SEWATEB AND J. BUBEOWS.
MB. BOSEWATEB'S ABGUMENT.
1. I fully agree with Mr. Burrows
that the vital point at issue tbe pres
ent discussion is tbe expediency of fne
and unlimited coinage of silver as it
affects tho welfare of our people.
cheerfully concede that we ought to
have free and unlimited coinage if
thereby tbe welfare of our people could
be promoted. If a mere increase in the
volume of money, regardless of its ex
change value or purchasing power,
would insure general prosperity, it
would be manifestly the duty of -every
government to bend all its energies
toward increasing toe volume of its
stock of money. If. as Mr Burrows in
sists, the intrinsic or commercial value
of metallic money cuts no figure, every
nation could at pleasure enormously
increase its volume of money by re
ducing tbe weight and quality of its
2. What Mr. Burrows means by y-
ing that the volume of money "involves
the question of prices or the relative
purchasing power of products or labor,
and money" is not very ' clear. If he
had said that the volume of money reg
ulates to a certain extent its purchasing
power of products and labor I would
concur, but the form in which he states
bis preposition is as misleading as is
the declaration that "ia this issue the
interests of the money-lender, or the
fixed income class, or the creditor class,
are at varienco with the interests of tbe
reducers, the merchants, the mechan
cs, the debtor class."
8. The advocates of free coinage
assert tbat unlimited and free coinage
will t-normously increase the volume of
money and tbat an increase in our stock
of money would make money cheaper.
In other words, they assume that money
is governed by tho same law that gov
erns all o.lier commodities, which fall
in price when abundant and rise in
prico when scarce. But this ia not true
as regards the price or "rate of inter
est" which money commands in the loan
market. A large volume of money
always begets increasod speculation.
When money is plenty men are willing
to venture upon enterprises that prom
ise large returns, and the money-lender
finds no difficulty in raising his interest
rates. During the inflation period fol
lowing the wur the money-lending and
income class were in high clover.
Cheap money loaned on choice city
property and farm mortgage securities
at from 10 to 12 per cent a year, while
wnat is termed dear money at the pres
ent time can be had in abundance on
the same class of securities at from G to
7 per cent per annum. Every intelli
gent person knows that the money
loaned by bankers is chiefly other peo
ple s money. When there is a monev
stringency or prospect of a panic every
prudent banker hauls in bis sails by
cutting down his line of loans or refus
ing to loan at any price for fear that
the depositors may make a run on his
bank. When business is dull and
money scarce, deposits run low and le
gitimate banking yields much smaller
profits than lu flush times, when loans
aro made freely and mercantilo failures
4. 1 ho hue and cry that tho opposi
tion to free coinage is in the interest of
the Income class Is also unfounded. The
fixed income clas, if that means the
bondholders, wore much better off
when gold was at a high premium and
Saper money was superabundant,
loney was cheaper then. Ten per
cent state, city and county bonds sold
at a discount and Uncle Sam paid 5 aad
per cent on gilt-edged, nontaxable
bonds. Today, with what is called dear
money, state, county and city bonds
drawing '6i to 5 per cent command a
promtum and national bonds soil readily
at 2 per cent. The bloated bondhold-
holders have sutlered a greater shrink
age of their fixed income during the
past twenty years than would have
paid the principnl of our entire war
debt. The enly bond holders that have
made largo profits aro those who have
bought their bonds nt a discount. There
is one class of fixed income people who
would suffer by the unlimited coinage
of 7;$-cent dollars, and that Is the veter
ans of tho late war and their widows
and orphans on tho national pen
sion roll. It is to their in
terest to have a sound curreney
that will enable them to buy tne
largest amount of things with the money
thoy get from Uncle Sara. Conceding
that free coinage means the raising of
tho prico of commodities it becomes self
evident that the soldiers, and sailors'
widows on tho pension roll would suffer
a shrinkage of their incomes, unless they
could induce the government to raise
thoir pensions' in proportion, which of
course would bo improbable. Assuming
however that the government might in
crease these pensions, it would simply
mean a forced increase of the pension
roll by from ten to twenty millions a year
and a corresponding increase of taxes
The advocates o! unliuited coinage ne
ver tire ef holding up the men and wo
men who rely for their llvlihood upon
fixed incomes as a dangerous class. They
forget that hundreds of thousands of
these persons are widows and orphans
whoso patrimony and heritage has been
invested in securities by admistrators
5. And who are the debtor class and
who will profit by the proposed unlimi
ted coinage of silverf The Union and
Central Pacific railroads owe the govern
ment over 100.WjU,wju, whicb begins to
fall due in 1W.S, and must all be paid
within the next seven yeara unless tho
debt is exteaded. Will it promote the
welfare of our people te allow J. Gould
and Leland Stanford to pay tne dcot in
depreciated silver dollars instead of
money that passes current in all parts
of the world.
6. The Union and Central Pacific are
not tho only corporations that belong to
the debtor class. The lowest estimate of
the debt of the railroads of the United
States exceeds $8,000,000,000. What
benotit will the people derive from
scaling that colossal debt, unless Indeed
they by up the railroads entirely with
an irredeemable paper currency Every
large corporation, the Standard oil mo
nopoly, the Whiskey trust, the Brewery
trust, tne isugar trust, me Meei Keam
trust and all the big and little trnsts
that have been built up by combination
of capital have plastered their posses
sions with mortgages to the tune ef
millions upon millions, and therefore
they rightfully belong to the debtor
7. And then there are the coal barons,
the iron and copper mine speculators.
and the silver millionaires and gold
quartz millionaires, tvery productive
mine in America is bonded for all or
more thau it can produce. Their owsers
are among the most grasping ef our cap
italists. VV 111 it promote the public wel
fare to give this imperious class of dent
ors the right to scalo their honest obli
gations? Last, but not least, why should
the silver mine bnllionaire be given the
privilege of selling tne products of his
mines at 30 per cent above its conimer
dial value and paying his debt in money
worth 80 per cent less than its face
8 Mr. Burrows' conception about the
runcuoa of mints it, to use a mild term.
ueciueaiy cruae. me aim of an gov
ern menu has been to issue coins cf
weight and fineness corresponding as
uri fwMiuio in ineir value lo tne
commercial value of tbe metal contained
therein. Very slight fluctuations have
been unavoidable, but whenever tbe
variation of standard coins is material
they are recoined. Subsidary coin is
usuauy oeiow standard and intended
only for local circulation in limited
quantities. Even these are recoined
periodically when reduced below stand
ard weight by wear and tear.
9. At the risk of being branded as very
reckless and superficial, I take ifsue
with Mr. Burrows when he declares
tbat a coin cannot be said to be debased
unless it contains less metal than the
law requires. The doctrine that the king
can do no wrong has long siuce teen ex
plodea. It is a matter of history that
kings and parliaments have by decree.
uu arouraruy raised the face value
of coins above the commercial rating of
the metal they contained. Such coins
aid not contain less metal than the law
required, but they were denominated all
the world over as debased coiu, the same
as if they had been fraudulently alloyed
or reduced in weight by the sweating
10. Mr. Barrows lets the fiat cat out
of the bag when he asks:
11. "Suptose the silver and gold e.iins
of this country should be dimintahnrf
just one-half, what would result? Prices
in this country, measured by our coin,
would be doubled, but it would have no
effect whatever upon our foreign trade.
Gold and silver would Dav balnncoH nn
exactly the same basis as before, viz:
luu cumimmiiy value. .
12. Well, what would be the result?
Would it be anything else than national
repudiaiion by a debased currency?
13 If we can Increase the volume of
money by a simple fiat that will convert
every fifty-cent piece into a dollar, why
not go a step further aad decree that a
dime shall be a legal tender for a dol
lar? That would increase the price of all
commodities tenfold and make debt-
paying so much easier. But what would
become of the poor man who has noth
ing to sell except his labor and has
everything to buy? Wages are always
tee last thing to advance and the first
to go down.
14. What wonld become of the waze-
workett who have by hard labor and
thrift, saved no the surolus of their
scanty earnings and placed it in savings
uauas whu a new to ouying a nome or
meeting want and distress in a rainy
15. It is passing strange that no cham
pion of free silver has yet discovered the
fact that several millions of workingmen
and working women belong to the in
come class. The indobteduess of the sav
ings banks and trust companies to a
great multitude of wage workers is com
puted at over 3,oou,uuo,ooo. How wonld
these industrious toilers fare if they
were paid back in depreciated money
the hard-earned savings which rcorj-
sent labor paid for at gold standard
wages? Would it not be downright rob
bery to pay back these working people
in dollars that would buy only 50 cents
worth of commodities? I boldly assert
that any party or individual thai would
advocate a law that would give the
savings banks the privilege of paying
back honest savings in depreciated cur
rency is simply advocating legalized
1C Mr. Burrows denies that the
government stamp docs not add to value
and ho cites tho fact that 87 1 i grains of
pure silver when stamped (coined) as$l
will pay a dollar of debt while 871
grains of unstamped pure silver will
only be taken by your creditor at its
commodity price 73 cents. What is the
difference exclaims Mr. Burrows. "One
bears the evidence that the law has said
it shall pass current (or a dollar. The
other does not. Consequently coining
has added value." Now what is the
difference? Would not a piece of tin
or a piece of leather with a dollar stamp
pay a debt fr $1 if made alegal tender?
Would not a paper dollar perform the
same function, although 100 paper dol
lars reduced to pulp would not pass
current for a farthing?
17. Why then doos the 73 cent silver
dollar and the valueless paper dollar
pay ono dollar of debt? Simply because
these dollars are redeemable for 100
cents in gold at the national treasury,
and therefore they are as valaablo as
the gold dollar for which they can be
exchanged. Why is our government
able to exchange the depreciated silver
dollars at their full value in gold?
Simply and only because the coinage
of silver is limited. If it were free to
all owners of bullion the treasury vaults
would be drained of gold in less than
twelve months and the country would
be on a silver basis like Mexico, China,
Japan and India.
18. Mr. St. John, president of a .New
York bank that is reputed to be largely
interested with the bullionaires in boom
ing mining stocks, points triumphantly
to France, is cited by Mr. B. as saying:
1. After 270 years of widely varyimr averauro
relative prices of gold and stiver, under mod
crate variations ol relative produot.on barely
averaging 3 per cent, the mints of France
aiono tor a perioa oi nxty-two years, to isti.r,
under variations of relative production ex
ceeding 19 tor cent, maintained a vracticailv
unvarying average relative price in market
for (fold and sliver In spite of divergent coin
M. Under equally free oelnage for gold and
silver, owners of either bullion sought the
mlns of France at a valuo nxcii f or therr,
price paid for them in purchasing power de
creed by law. In consequence in tbo period
1W1U1H40, 4,uut,OJor the world s abun
dant sliver was welcomed into the legal ten
der silver ooln of France.
What are the historic facts?
31. In 1726 the ratio of gold to silver
was placed at 1.14 5-8. An ounce of
gold was worth more than 14 5 8 ounces
of silver, and consequently gold soon
disappeared from circulation. Adam
Smith, having visited France in 1764,
said: "It is there difficult to get more
gold than what is necessary to carry in
your pocket." '
22. Ia 1785, Louis XVI., in an edict,
calls attention to the fact that the legal
ratio of gold to silver differing from the
commercial ratio, had as to the gold
coins "originated the speculation of
selling them to the foreigner, and offers
the temptation of a great profit to those
who may allow themselves to melt them
down." He then ordains that "every
gold mark of 24 carats fine shall be
worth 15 marks of silver 12 deniers
fine." This established the French
ratio of 15 :t still existing. In 17'JO the
revolutionists had control of France.
They had confiscated lands of the clergy
the year before. They wanted money.
So they conceived the ingenious idea
of using paper money, which they
called assignata, basing their value on
these confiscated lands. In April they
issued 400,000,000 francs as assignaU.
In September 800,COO,00 more. This
they declared would be the last. The
assigcats worked beautifully. Every
body received and exchanged them at
full value. Then someone said, just as
the greenback Inflationists said in the
seventies and just as silver men sny
now: "If this franc is as gaol as any
other franc, how can we have too many
of them? The law makes the value of
money." So the presses were set to
work and within a few years they had
issued over forty-five billions of those
paper francs. The government seemed
surprised that any one should make a
differer.ee between a coin franc and a
ypr franc and a law was passed that
any one making auch a difference in
trade should le imprisoned for six
years. They could jail individuals, but
they con'dn't jail natural laws. No
one would exchange one coin f rane for
less than nearly 800 paper francs.
Then in 17'JO these political economists
tried another experiment. They cat up
the confiscated lands into exact parcels,
exchanged the assignats at about three
per cent of their face value for what
they called mandate, and proclaimed
that the holder of mandats could select
any parcel of this land and pay in man
dats Within a few months the man
dats were worth one-seventh of their
face value,' and they were soon wiped
23. In 1H03 the ratio ef 151:1 was re
enacted Mr. Chevalier, the eminent
French economic authority, writes:
24. In the year 180', when the ratio of 1:1514
between the metals waa established, this ratio
actu ly existed In tbe commercial world; but
little b little It changed, aod soon gold came
to be worth ordinarily a little more than l&H
times aa much aa silver. Tbla discrepancy
sufficed to retire gold from circulation. A
few yean afttr the passage of tbe law of
ltsus. gold beotme so scarce that peopls had
to buy it of the money changers when they
wanted to carry that kind of cash on their
Journeys. In fact, tbe circulation of the two
metal? aide by sine bad ceased to ex 1st shortly
alter tbe year IMi, and t went? live years after
that date the circulation cousiattd of silver
25. Sir G. B. Airy, the royal astrono
mer of England, wrote:
In tbe year 1R28 I spent some time in
France. The gold coin was a little too rich,
and no gold olon could be gt. The better
class of farmers weut to market followed by
their servants, who carried huge tags of Ave
iranc pieces in 1KM 1 again passed through
France: 1 wished for gold, aad obtained it by
paying-a heavy prime.
20. In 1848 came the increased nro-
duction of gold in Russia, in 1849 in
California, in 1851 in Australia. Silver
soon rose to a value higher than 15:1
ana, consequently, silver rushed out of
France at such a rate that a commission
even reported tho advisability of placing
an export duty on silver.
27. Early in the '60s Gresbam's law
had pushed out from France even the
fractional silver coins to such an ex
tent that it became a great public in
convenience. Investigation showed
that Belgium and Switzerland were
similarly troubled, the result was the
organization ef the Latin Monetary
union in 18C5, comprising France, Bel
gium, Switzerland and Italy. Later,
Greece became a member also. All
these countries use the franc system of
money. They agreed on a basis of
silver coinage, reducing the metallic
value of the subsidiary coins. After
1859, silver had again taken the down
ward course which has characterized its
value through the centuries In 1867,
at the international D.onetary confer
ence held at Paris under the presi
dency of Prince Napolean, it was de
cided, without a dissenting vote, that
gold should be the sole money standard.
ihe spirit ot silver demonetization was
abroad. Silver had been ent ef circu
lation so long in the United States that
Mr. Ruggles, the American delegate, in
reply to a question of Prince Napoleon,
said: "Though the double standard
still exists legislatively in the United
States, it is virtually abolished in prac
tice, and hence the United States has
the gold standard alone." In 1871, after
the t ranco-German war, Germany de
cided to place itself on the gold stand
ard, and to demonetize silver. Between
1873 and 1879 Germany sold $140,000.-
000 dollars of her silver. The neighbor
ing countries which up to that time,
had always maintained tbe free and un
limited coinage of gold and silver, be
came alarmed at the threatened influx
of silver and expulsion of gold. So in.
18,4 the L,atin union met, and from
that year on there has been no free and
unlimited coinage of silver is France,
Belgium, Switzerland and Italy.. In
1878 they stopped the coinage of legal
tender silver in toto, so tbat for thirteen
vears our much aimlauded bimettsiic
France has not coined a single legal
tender silver coin.
Mr. Burrows takes me to task for
quoting historical statements in what he
is pleased to call " the most appalling
and reckless manner." He ventures to
impeach the correctness of the figures I
have citetf. touching the coinage of
standard silver dollars. I can only ex
cuse his fearful misstatements in regard
to silver coinage by supposing that ho
has never studied coinage statistics and
made his computations from the wrong
columns of his financial abstract.
Myfigmes were taken from the effici-
cial report of Elward O. Leech, direa-
torofthe United States mint for 1890,
bound volume, pages 201 and 203, also
the report of director Leech tor tho fis
cal year 18!) 1, bound volume page 213
According to Mr. Barrows, the total
coinage of silver dollars in 1850 was $1,
HC.0,100 and of the minor coins $44,467.
50. According to Mr. Leech, the eoin
ago of 1850 consisted of silver dollars,
$47,500; half dollars, $1,341,500; quarter
dollars iou,7U0; dimes, $i44,150; half
Mr. Burrows asserts that during 1851
there were coined, silver dollars, $774,
397; minor silver coin, $99,635 43. In
1852, silver dollars, $99,410; minor toins
The director of the mint oflicielly re
parts in 1851 only 1,300 silver dollars
coined; coinage in half dollars, 301
375; quarters, $62,000; in dimes $142,740;
in half dimes $82,059; in 8-cent pieces.
S1K5.022. In 1852 the coinage of silver
dollars was but $1,100; half dollars,
$110,565; quarters, $68,265; dimes $196,
550; half dimes, $63,025; 3-cent pieces,
Mr. Burrows pxclaims "Isn't it
strange that it sfiting ''ie gold coinage
for thessme yen" Mr. 1! isewater should
be correct?" Why is n strange as re
gards gold when I am also correct as re
gards silver coinage?
Mr. Burrows flatly contradicts my
statement that from 1805 to 1835, dur
ing a period of 80 years, not a single
standard silver dollar, or any other sil
ver dollar, was coined in the Unitod
States, and Mr. Burrows makes the
reckless assertion that during tbat peri
od there was coined $41,372 .807 in silver
dollars, besides several million in mi
nor silver coins, whieh he had not
taken the trouble to compute.
This is decidedly rich. I take it that
the director of the mint ought to know
as muck about the coinage as Mr. Bur
rows, and the director's official report
shows that not a single silver dollar
was coined between the ."ears 1805 and
1835, but that during tho'so thirty years
there wero. coined in half dollars $38,
.452,398; in quarters, $729 337.74; in
in dimes, $922,460.40; in half dimes $514,
385. Mr. B. Says that in 1838 3,606,100
standard silver dollars were coined.
Director Leech reports only 1,000
standard silver dollars coined in 1830.
To recapitulate all of tho fictitious
figures voached for by Mr. Burrows as
exact tacts would exceed my alloted
space. Suffice it to say that he has
massed all his little tornadoes inte one
grand cyclone of inexactness when ho
asserts that the total coinage of silver
dollars from 1792 to 1873 was $147,599.
897. According to the unimpeachable
authority of Director Leech of the
United States mint, and several of his
predecessors the coinage of silver dol
lars for the eighty years was only a frac
tion over .otx,ooo or m round num
bers $183,000,000 below Mr. B's cyclonic
I am not up to Mr. Burrows in hocus
poctn omnibus Latin, but in plain Anglo-Saxon
I repeat back false in one,
false in ail!
Tbe whole fabric of false deductions,
on which Mr. Barrows bases his argu
ments relating to silver coinage, which
prove not to be facts, fails to the ground
with his facts.
I am amazed that a man of Mr. Bar
rows' penetration should be led into
such inexcusable blunders. The figures
I have cited have been time and again
quoted in both houses of congress and
no free coinage advocate has ever be
fore dared to call their accuracy in
Inasmuch as this is a friendly discus
sion of an important economic issue I
entertain no doubt but tha, Mr. Bur
rows will do me justice by a manly and
frank admission tbat my historic state
ment concerning the coinage of stand
ard silver dollars is correct.
MB. BUBBOWS BEPLY.
The question of the volume of money
(see Mr. R.s first paragraph) is the
vital question at issue. But not "re
gardless of its exchange value or pur
chasing power." lis volume determines
its exchange value. If this were not so
Shylock would never have conspired to
demonetize silver, and thereby halve its
volume and double its purchasing
power. My supposition as to making
our dollars of half their present weight
was a mere illustration. Mr. R. has
choson to reply to it as an argument.
At I used tbe illustration it is correct.
In paragraph second Mr. R. attacks
the interest problem, and shows an en
tire misunderstanding of the principles
which control it. He says "a large
volume of money always begets increas
ed speculation." This is one of those
common assertions that will not bear
investigation. A largo volume of money
increases all legitimate business enter
prises. There are always a certain pro
portion of men who prefer speculation.
In prosperous times this proportion is
fairly maintained. But in times of de
pression, like the present, the propor
tion of speculators is much greater than
in times of prosperity. In stringent
times legitimate business languishes,
money accumulates at financial centers,
and seoks speculative enterprises where,
rewards may be large, and time of in
vestment short, in such times, also,
interest on long time loans is nominally
low, while on short time loans it is ab
normally high. That is exactly the sit
uation at the present time, and for some
time past. . The past ten years has been
peculiarly a speculative decade. I sup
pose there has never before been a
decade when there was so much specu
lation in proportion te legitimate trade.
Nor has there ever been a decade when
the burden of Interest was so great. In
terest, as well as all debts, is paid in
products. The price of products deter
mines the burden of mteret. With
wheat at 50 cents a bushel it takes just
twice as much to pay a given sum of
interest as it does at a dollar a bushel,
though the nominal rate of interest in
each case is the same. As a matter f
fact the 10 and 12 per cent interest in
Mr. R 's first period was lower, and less
of a burden, than the 6 and 7 per cent
at the present time. One has only to
consult the prices current in the two
terms to. be convinced of this fact. The
men wfeo were borrowers then, and are
now, well know this to be true.
Mr R. says tha fixed income class,
"if this means tbe bondholders, were
much better off when gold was at a high
premium and paper money was super
abundant." If that is true they did not
know when they were well off, and
made some gross mistakes. The bond
holders hastened by the credit strength
ening act, to change the terms of pay
ment ot 8i,ouu,uuu,uuu ot united states
bonds from lawful money to coin they
hastened to destroy the lawful money
and come to a specie basis they hasten
ed for the very purpose of diminishing
the volume of money, to demonetise
silver at a time when the bonded debt
of the world was the greatest at any
period of its history. They showed that
they preferred to doable the purchasing
power of money and diminish the nom
inal rate of interest one-half. And if
Mr. R. will recall his forgotten Dabold
he will discover that they were very
right. In doubling the purchasing
power of money they doubled the value
of their principal, while it the rate of
interest was onlv half what it was
before its purchasing power was not
lessened. If this is true Mr. R.'s asser
tion that "the bondholders havo suffer
ed a greater shrinkage of their incomes
during the past twenty years than
would have paid the national debt," is
simply absurd. And facts prove that it
is as absurd practically as it is in theory.
The enormous concentration of wealth
in the past twenty years is well-known.
Who has got it? All the figures lately
compiled snow that the fixed income
class has got it. Thev have got it be
cause tbe peoples' debts remained pay
able lu dollars, unsealed, while the pur
chasing power of dollars, and the accu
mulative power of interest, wore
doubled. The facts are so plain that I
deem argument superfluous.
But when Mr. R. attempts tn define
the debtor class he caps tho climax of
absurdity, and thows a beclouded men
tal condition that is amazing. (See
paragraphs 3 and 4 ) He has strangely
omitted the national bankers from his
list of poor debtors. The creditor or
fixed income class is that class which
derives its income from rents and inter
est in their different forni3, in money.
That this class may owe bonds makes
no difference. In the case of the rail
roads those bonds are never intended to
be paid. This interest is an expense
account, of the same nature as oper
ating or repair accounts. These cor
porations have "beplastered their pos
sessions with mortgages" so that they
can more conveniently and secretly
bring to bear against the people the
ever-working, all-absorbing, silent,
omuipiotem power of interest. They
have plastered them with mortgages
representing fictitious investments to
conceal the enormous returns they re
ceive on capital actually invested. If
the debt of the Pacific road is ever paid
it will be paid in money earn
ed by the people. And is it
not better that they should obtain
that money in fair prices for their pro
ducts, such as they weuld receive under
the double standard, rather than in
production at starvation prices, as at
The cheekiest thing connected with
this silver controversy is found in the
accusation that the free coinage men
wish to scale their obligations and pay
their debt in depresiated dollars. Every
man at all posted on the question
knows that the money power of this
country and the world performed on
two occasions the most gigantic job of
scaling the world has ever seen first
when it changed the standard of pay
ment ef fifteen hundred millions of
bonds, second when it demonetized
silver. It douWcd the value of every
dollar, and doubled the burden of every
debt, by those acts. We never had a
depreciated eilvej dollar ur.til congress,
at tho biddingof that power, demone
tized silver, we would have a depre
eiated gold dollar to-day if the same
means were used to depreciate it, and
we will havo no more depreciated silver
dollars w soon as silver is restored to
free and unlimited coinage.
In connection with his sympathy with
the railroads, whiskey trusts, etc.,
whom Mr. Rescwater fears will be
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