Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (June 14, 1907)
The Commoner. 5 JUNE 14, 1907. , figures aro very valuable data, from "which it la possible to deduce important and substantially reliable conclusions. Let us be more concrete. Between Jan uary 1, 1897, and November 1, 1906, the course of Dun's index figures has been as follows: Indox Date i - Number. January 1, 197... .... ..,.o- ...... 72.5 January 1, 1898.. 79.9 January 1, 1899....- ..-....,......'. 80.4 January 1, 1900 .y.. 95.3 January 1, 1901 95.7 January 1, 1902 . .. 101.6 January 1, 1903,... ..'. ..100.4 January 1. 1904 ; . 100,1 January 1, 1905 i 100.3 January 1, 1906 104.5 November 1, 1906 106.7 , Mr. Conant, of course, would probably ob ject to attaching much importance to these on the ground that a pronounced advance in some one or two commodities, as for example wheat or cotton, would bo sufficient to raise the index figures, even though the prices of the other com modities that entered into the index figures re mained unchanged. Admitting the validity of such an objection, however, the fact remains that prices have unquestionably advanced dur ing the past ten years, and we think it will bo admitted on all sides that the extent of the advance has not been exaggerated by the index figures printed above. Given, then, a material increase in prices over a period of ten years, to what extent has the gold output Increased during the same per iod? The question is best answered by the following table, which shows the world's output of gold from 1896 to 1905, together with the average annual output for the ten year period from 1886 to 1895 inclusive: Average 1886 to Ounces. Value 1895..... 6;591,469 $136,257,528 1896 , 9,820,075 202,998,626 1897 ; 11,483,712 237388,998 1898 '. .14,016,374 289,743,680 18991 . . . , . .,... . .16,220,263 314,630,233 1900 '. . .;.... .12,684,958 262,220,915 1901 .7. . . .12,894,856 266,559,884 1902 . . . .,... .., , . ,M 14,437,669 298,452,606 i9ti&.... ;...;. .v.'.-; 15,778,016 326,159,991 1904 16,739,448 346,034,521 1905 ,18,290,567 378,098,942 1906 (est) 19,372,887 400,472,445 The increase in the output of gold during the past ten years has simply been unparalleled in the history of the worltf The value of the product for the decade 1896-1905 was almost one billion, six hundred millions of dollars in excess of that for the decade 1886-1895; that is, the output increased more than 100 per cent. Assuming that the figures for 1906 are sub stantially correct, last year's output was scores of millions larger than that of the largest pre ceding year, and veritably hundreds of millions in excess of that of any year previous to 1896. "What is more natural, therefore, than to ascribe the advance in commodity prices since 1896 to the heavy gold inflation? Indeed, in what other way could the effects of such an inflation .manifest themselves, for surely such a tremendous addition to the world's stock of the yellow metal could not have been without some effect. To quibble over the question is idle. There are the facts, and It still remains for those who have no patience with the quanti tative theory even in its most qualified form, to explain them away. Equally ridiculous is it to contend that the gold inflation has had no effect on Interest rates. By pursuing a method similar to that employed in the case of prices it will be found that interest rates have also advanced. It is a matter of common knowledge. Indeed, that, the gilt edged railroad, municipal and industrial bonds are selling at the lowest price's In years, which, of course, means that they are yielding a much larger net income. But- how could it be otherwise? Rising prices multiply the op portunities for profitable investment. Heavy borrowing thus ensues, with the result that in terest rates advance, although it Is probable that the first effect of the gold inflation is a tempor ary decline in interest rates. Hardly anyone needs to be told how seriously the mercantile interests of the country have been hampered during the past year by the high interest rates.. We anticipate that the reply that might be madj to thfs is that the demand for money h,as beell so much larger than the supply that higher in- terest rates have been inevitable. , But what brought about the increased demand for money if it was not the steady advance in prices caused by the heavier production of gold? As gold de- predated in value it required a larger amount to complete a given transaction, which is tanta mount to saying that the demand for It increased. Letters From the People George H. Owen, Mcintosh, N. M. What the peoplo of the United States want is not gov ernment ownership of the now existing railroad lines, but more roads. What good will it do for the government to buy tho now existing lines when they aro not ablo to handle the freight business of the country as it is, Let the government build a four track exclusively freight and express road from Now York City to Kansas City and then two double track routes from there to San Francisco, Cal. One by way of Denver with a branch to Portland, Ore., and one by way of El Paso and Los Ange les, with a branch to Galveston. Then let all of tho cities north and south of tho government line build a double track road to connect with the government road and wo have the situation grabbed. Then in addition wo need the deep waterway from New York City by way of Chi cago to New Orleans. A high protective tariff always produces a boom, but when the boom busts and it is "about time then will bo tho opportune time to do these works. Tho rate of the government roads will become tho common rate of all of the roads of the country. Tho past history of the tariff shows a busted boom about every ten years. , Hiram A. Pettey, Stewartsvlllo, Minn. When President Roosevelt came into office It was said by a great many democrats that some thing would be doing, but I could not share in that belief. With all fairness to him, could any thing be expected of him? Ho was born of the privileged class, in the house of special privilege was he reared and educated, and ho owes to the money power all that he Is politi cally; naturally Mb. sympathies lie there; pluto cratic as Judge Parker was he was extremely democratic in comparison to Roosevelt, whom the trust magnates elected by pouring .millions into one great corruption fund, while Judge Parker who bid for their support got not even a cor poral's guard. And has he not been true to their bidding? He has been president five years and not a trust magnate lies in jail, al though they have robbed the producer right and eft In direct violation of the laws. He is just the man they want; he has fallen in line with them at every turn, but how the plain peo ple can want him again is more than I can under stand, unless it is like the fellow's frogs told about in The Commoner sometime ago they were fooled by his noise. William A. Garretson, Lebanon, Mo. That so many people in this country, Including most of those reputed for high intelligence, have hailed an excess in value of exports over Im ports as a state of trade to be desired, and unit ed in calling it a "Balance of trade in our favor," Is one of the most remarkable cases the world has produced of an absurdity being made respectable. The national republican conven tion that nominated-McKInley and Roosevelt, in the resolutions they adopted congratulated the people of the United States on the balance of trade being in our favor, because we had then for some years been sending out of the country more wealth than wo "had been receiving from other countries. And the fact that this absurd ity was hardly criticised at all during the cam paign may be fairly taken as proof that the people generally failed to perceive that it was - an '-absurdity. If all stocks and bonds, or other '' forms of indebtedness, were held in the coun , tries where they are payable; and all land titles were held by people residing in the countries where the lands are located, all countries would import, measured In terms of money, more than they would export. As a matter of fact, take the whole world's trade, and the aggregate of imports will be .found to exceed the aggregate of exports by about twelve per cent. This is necessarily the case, and must always continue to be; for trade can not continue unless it affords a profit to those engaged In it. And the profit is shown in the return for goods sold. Some countries import more than they export, awhile others export more than they import. But " in the grand aggregate imports exceed exports. And it would be so in the case of each country if " natural conditions prevailed. In tho case of England the Imports are over forty per cent larger than the exports. This Is becauso Eng lish Investors aro very largo owners of lands in othor countries, on which thoy recoivo ront; and also largo ownors of foreign stocks and bonds, on which thoy receive dividends and in terest. In tho case of the United States wo ex port much moro than wo import becauso mil lions of acres of lands in this country aro owned by foreigners, and hundreds of millions of dol lars in stocks and bonds, payablo by Americans, aro owned by foreigners. And to pay ronts, dividends and interest to these foroign Investors, moro wealth must bo sent out of tho country than can bo brought In. Tho creditor countries can, and do, import very largely moro than thoy export. Tho debtor countries must export to pay their debts, and if thoy owe very much abroad, as wo do, thoy must export largoly moro than thoy import. I notice Mr. G. F. McMurchy, of Vicksburg, Miss., asks In Tho Commoner of May 3, "What conslltutes a true 'balanco of trade?" That thoro is no such thing, Is tho only answer to that question. Seward Gwaltney, Somen illo, Ind. One of tho Important things for which all honest voters Bhould now strenuously contond Is "publicity of campaign contributions." It Is important be cause it Is ono of tho few ways by which cleaner elections can bo obtained. Mr. Bryan spoke of this in his Madison Squaro Garden speech and offered forcible argument in Its favor. Mr. Roosovolt In his message to congress also ox pressed himsolf as in favor of it. But thero publican congress, which represents tho posi tion of that party in general, has uttorly neglect ed to pass any legislation on tho subject. I think wo can all agree with tho New York World when it says "that tho failure of tho re publican majority in congress to provide for complete publicity of campaign funds and to prohibit corporations from contributing thereto. Is inexcusable." Nevertheless tills should not prevent democracy from doing Its duty. Tho fact that the republican party has failed to put forth any effort to secure publicity does not constitute any reason why the democratic party should be negligent. Tho peoplo aro entitled to know from what sources tho campaign funds of all political parties are derived. And whether or not the republican party make known its contributions, the democratic party should pub lish Its list. And this, as Tho Commonor has repeatedly emphasized should bo dono before tho election that tho people may bo guided in cast ing their ballot. Let democracy take tho initia tive and if the republican party does not follow the example It will throw upon them a suspicion -which, to say tho least, can not prove beneficial to their ticket. SPECIAL OFFER , Everyone who approves the work The Com moner is doing Is Invited to co-operate along tho lines of the special subscription offer. According to flie terras of tills offer cards each good for ono year's subscription to Tho Commoner will bo fur nished In lots of five at the rato of ?3 per lot TlilK places the yearly subscription rato at 60 cents. Any one ordering these cards may sell tlieni for $1 each, thus earning a commission of $2 on each lot sold, or he may sell them at the cost price' and find-compensation in the fact that he has con tributed to tho educational campaign. These cards may bo paid for when ordered, or they may be ordered and remittance made after they have been sold, A coupon Is printed below for the convenience of those who desire to par ticipate In this effort to Increase The Commoner' circulation: ' t The Cemntener's Special Offer . Application fer Subscription Cards Publisher Commonct: I am Inter sled la increa lnc Tmk Commonkb's circulates, and desire you to Bond mo a supply of subscription cards. 1 acreo to use iny utmost endeavor to sell Uie cards, and Kill remit for thein at tea rato of CO cents each, wlien sold. 51 10 15 20" 25 50 75 100 Box on. STBzrr No. P. O STATE. Indicate the number of cards wanted by, martini; X 1c opposite one of the numbers printed ou end of this uian If you believe tho paper ladolnr a work that merits encourage mint. All out the store coupon and mail it to The Commoner IjIncoIu,Nb. 1 n i ill I VI i MJtfdH&Ajfl-jdaffliW M -"-rV-feaJHWKH &