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About The independent. (Lincoln, Neb.) 1902-1907 | View Entire Issue (Dec. 25, 1902)
DECEMBER 25, 1902.
FOINT IN POLITICAL ECONOMY
What Would bo f lie Effect of Contracting;
tli Currency $600,000.00 by Elimi
nating Mirer Dollar?
Editor Independent: Upon nearly
all economic questions, so ably dis
cussed by you in The Independent,
you and I are in agreement. Hut in
your last issue in an editorial entitled
"The Fall of Silver" you repeated a
statement on the money question that
was often reiterated in the campaign
cf 1896, that need3 a careful re-examination
by aii populists). You baid:
"The $000,000,000 of silver dollars in
circulation reduces the value of the
gold dollars by one-half. If they were
blotted out of existence every gold
dollar would buy twice as much as it
would now, or, in other words, prices
would fall one-half."
The fault in this is that internation
al commerce and the influence upon
our prices of the gold in circulation in
foreign countries are ignored and left
out of the calculation. If we were"
isolated entirely from other nations,
so that foreign prices of commodities
did not affect our prices and so that
a stringent money volume here '.-oii-Id
not be relieved somewhat by a full
supply of foreign countries, then the j
proposition that to cut our supply o
money in two would cut prices in
halves, might be true. But under ex
isting conditions it is impossible'. In
order to cut prices in two by reduc
ing the money supply, it would be nec
essary to blot out of existence one-half
of the legal tender money of all the
nations whose commercial relations
are close and who freely exchange gold
and silver. Our $600,000,000 of legal
tender silver constitute less than 10
per" cent of the legal tender money in
the great commercial nations now sus
taining close trade and financial rela
tions. Hence upon the quantity theory,
if our $600,000,000 of silver were blot
ted out, the legitimate effect upon
prices would be to red'-e them about
10 per cent.
I say the legitimate effect. But I
am not forgetting that the secondary
effect, following the. tremendous panic
and financial collapse that would en
sue, would for a time reduce prices
much more than 10 per cent. But
this would be the result of the panic;
and after the recovery, and without a
restoration of the $COO,000,000 of "sil
ver, prices would legitimately rule no
more than 10 per cent lower than be
fore the silver money was taken out
of the world's circulation.
I know, Mr. Editor, that you can
quote plenty of political economists
to the effect that, other things being
equal, and barring other extraordinary
influences, prices of all commodities
in a country dependent upon the vol
ume of money in circulation in that
Authority is good only when it rests
upon reason. The reason for the
above rule has largely disappeared.
Prior to forty years ago, when those
political economists declared the quan
tity theory as above, international
commerce was a tiny dwarf, whereas
now it has grown to be a giant Then,
prices upon the continent of Euiope.
or in Great Britain, .even, had little
influence upon prices in the United
States. Not so now. Commerce flows
between the nations with almost the
same mobility as between the states
of our union. Every influence af
fecting prices of staple commodities
in one of these great alliod commercial
nations is felt in them all. Every
important change in the money sup
ply in one of them is immediately felt
in all, and almost to the same ex
tent. Hence, the quantity theory of money,
as written out by the old political
economists, can no longer be followed.
It needs to be modified to suit mod
ern, existing conditions. .
The closing of our mints to silver
in 1873 did not cut prices in two in the
United States, nor anywhere. The
legitimate, primary effect upon our
prices was never greater than a 30
per cent reduction; and I doubt if it
was so much as that
In the same editorial you grant it. as
true that "the market value of the sil
ver as bullion held in the United
States treasury has declined about
$100,000,000." How can this be un
less we have about $800,000,000 of sil
ver certificates in circulation? The
recent fall in silver has been only
about 12i per cent. If you go back
to 1873 you will find a fall in silver
of about 63 per cent; in which case
you would be right, but not if you have
reference to any recent fall in silver.
Is there any considerable amount of
silver held in the treasury except to
redeem silver certificates, amounting
I do not raise these questions for
the purpose of criticism, but only ii
order that we may all get right on
these important questions.
(The eastern dailies are again us
ing the term "intrinsic value," and
against that doctrine the item criti
tised wao written. The elimination of
$000,000,000 of silver would add one
half to the value of gold. A value that
could be so increased or diminished
could not be 'intrinsic." The criti
cism that. Mr. Hand makes occurred
to the editor's mind when the article
was written, and ?.lr. Hand himself ex
plains why prices would fall one-half.
He divide" t:io effect of the elimination
of silver into "legitimate" and "indi
rect" effect. Whether he classes it
legitimate' or indirect, the fall in
prices would be as seated in the arti
cle criticL-od. The "standard money"
of tho United Stales consists at the
present time of gold and silver. If
one-half of it were eliminated, there
would be a convulsion to which the
affair of '93 would be insignificant.
American securities of all sorts, except
bonds secured by the power of lax,
would decline enormously! That would
reduce the power to buy of many mil
lions to almost zero. The power to
buy being gone, the manufactories
which, supply the present demand
would close. That would reduce the
power to buy of many hundred thou
sand of workingmcn and where the
end would be no man could tell. The
fail might be more than one-half.
When prices got down to the right
point to suit the British, Germans and
French, they would send gold in nere
to buy our property. When enough of
it had come, prices would begin to rise
again, t'.en they would gather in their
profits and take them over the ocean.
That is what has been going on for
the last hundred years under the
British management of American fi
nances, and probably will occur once
more. The old economists on this
question of the quantity theory of
money were right. They always say
"Other things being equal," that
prices will rise or fall as the volume
of money is increased or diminished.
Remember "the other things." Loss
of confidence, a psychological impulse
created by falling prices, everybody
calling for payment at the same time,
these were the things the editor had
in mind as well as the contraction of
the currency one-half.
The amount of silver doing duty in
this country as money is estimated by
all the authorities at about $594,000
000. That of course includes what is
held in the treasury and represented
by certificates and what is in the
hands of the people outside of the
treasury. The estimate of the decrease
in the bullion value of silver money
was made by one of the most careful
and competent writers in New York
city, where he had every mean? at
hand of arriving at a just estimate. Of
course he included all the silver,
whether held by the government or
by the people at large. Ed. Ind.)
1 VMUL111 11
ii r -i rlitu in ii
iwjmww "i u mm
NATIONAL CORNSTALK REMEDY
The Greatest Oisccvsry of the Age, :
Prevents stcck from dying of Cornstalk Disease. The rem"
edy is a real preventive. We have such absolute confidence
in it that we require no mo ley from buyers until they have
fed and tested the remedy.
If it is net as represented you pay nothing. We want
every farmer to try our remedy. It never fails when fed with
salt as directed. Order today. $10 00 will protect Go head
for the sea on.
RAMGE OUILDING, OMAHA, NEB.
Clay county receives a large rai!oad
tax, because of large mileage in the
county and no very big towns. Her
people were frightened over the de
mand for any change in railroad tax
ation, fearing that they might some
how come out losers. So they whooped
it up for the republican state ticket.
But they come out losers anyway.
They receive $3,534.60 of school'mon
ey this apportionment, as against $4,
767.92, the smallest December appor
tionment ever made by the fusionists.
Of course, $1,233.32 isn't much but
it's something, and that's what it cost
them to give "our man Mickey" 231
plurality over such a man as Billy
What Wall Street Wants
Wall street has announced, through
resolutions of the chamber of com
merce,' what it wants and what it ex
pects congress to do. These demands
may be summarized as follows:
That the national banks be per
mitted to retire circulation at will.
That new bank circulation should
rest on the commercial and industrial
credits of the banks.
That the silver dollar be made re
deemable in gold.
That provision be made for the de
posit with the banks of any public
moneys in the treasury, including re
ceipts of customs.
Gage county has always been a
great refuge for mullet heads. Twelve
hundred is about the republican ma
jority. The smallest warrant for
school money ever sent her by a fu
sion state auditor was for $8,221.27
(in December, 1S99). This December
she gets $6,550.36 or $1,167.11 less,
about a dollar apiece for the excess of
mullet heads, and they're dear enough
WHAT IS YOUR REMEDY FOR THE TRUSTS?
The Indkpknijent, during the next six months, desires to receive and print the views of 'on
thousand teople regarding the cruse and cur. fi r ti e trust evil. Hate votir idens pointedly. Tell
the whoh story in in t more than two hundred word-:. Write j lain, "what causes tiUhts trr IT
ircight di.-cr miiiations, or what? V) at is the remedy free trade, tariff for revenue protection'
Kovuxineut ownership, pc pul sin, socialism, single ;ax, or JefFersonian democracj? Give your dea'
13 WEEKS' LDUCATICNAL SUBSCRIPTION, i0 CENTS.
Enclose a silver dime with ycur manuscript, get The Independent on trial n weeks an4
study this subject.
BOX2431. THE INDEPENDENT. Lincoln, Nebraska.
Once upon a time the wolves and
the sheep assembled in mass conven
tion and among other things brought
up for discussion was the question of
the most nutritious and desirable ar
ticle of food for the entire animal
kingdom. The wolves being non-producers
professed to possess about all
the scientific wisdom of the . animal
creation; and especially did they loud
ly profess a hungering and undying
love and friendship for the sheep.
And because of their loud professions
of wisdom and honesty many of the
sheep believed them. The leader of
the wolf gang then offered the follow
ing preamble and resolution:
"Whereas; long ages of experience
have finally demonstrated to our.satis
faction that the double standard of
meat and grass cannot be safely: main
tained at a parity as articles of food
unless properly so recognized by in
ternational agreement; and,
"Whereas, we. sincerely desire the
double standard of meat and grass;
therefore, be, it,
"Resolved, That we favor both meat
and grass, at the proper ratio, as ar
ticles of food whenever the same is
assented to by an international agree
ment of sheep, wolves, lions, jackals,
asses and hyenas; and that until there
is such an agreement nothing but meat
shall be recognized as the proper
standard of fod.".
All of the wolves howled in support
of the resolution, and frantically de
clared that the continued use of grass
would drive all of the meat out of the
kingdom. Many of the sheep, to ap
pear smart, and being dazed and
frightened by the loud professions of
honesty and courage, voted with the
wolves so that the resolution pre
vailed. Thereafter the wolves lived
bn mutton and the sheep eked out a
miserable existence on thistles.
The wolves declined to arrange for
an international convention to change
existing conditions so that the single
standard mutton became so com
pletely established that any sheep
manifesting a desire for grass was
charged with moral treason and
marked . for slaughter.
Moral: Those that couldn't become
wolves hung up the fiddle and waited
for the clouds to roll by.
Upper Sandusky, O.
D. F. Morehouse, of Fremont, had
three cars of wethers on last Thurs
day's market, that had been on feed
only about six weeks and brought
the handsome price of $4.35 and a big
profit on his investment. Mr. Mor3
house expresses himself as especially
well pleased with the work of the
salesman, Mr. Martin Cullerton, who is
v h the well-known firm of Nye &
Perhaps it is to discipline Douglas
county for giving Billy Thompson and
G. M. Hitchcock such handsome ma
jorities that the recent republican
school v apportionment is $7,013.49
smaller than the smallest December
apportionment ever made by the fu
sionists. $33,252.82 in 1899; $26,239.3?
Dr. Mitchell's Lumpy Jaw Cure
Dr. Mitchell's Lumpy Jaw Cure is
guaranteed to cure or money refunded.
One application is enough. One bottle
is sufficient for 4 head or more. You
can buy it at your druggists or he
can get it from his jobber If he won'c,
write us direct and we will send you a
bottle for $1.25 delivered. Marshall
Oil Company, sole sale agents for the
United States, . MarshaUtowp, la.
Chicago end New Orleans Lim-
'.' ; ited. . .
Exclusively a Pullman Train from Chicagd
Effective December 7, the Chicago and Netf
Orleans Limited fa t urihni tr-; .;n v i;
out of Chicago, running trom Chicago to Mem
phis as a Pulrman car iraiii only Train Nxj. V
me limited, carrying only Pullman i sleeping
cars, dining car and buffet-library car will leave
Chicago daily at 7:00 p. m. for Meiriph s, Hot
Spnngs, Nashville, Atlanta, Jacksonville, and
arriving at Ntw Orleans at 7:40 p. m; the next
day. jso coach passengers will be taken on i,,
they being carried to the at ove points' oh new
train No. 25 having coaches only and leavng
Chicago at 5:25 p. m. daily and arriving at New
Orleans at 7:40 p. 111. the next dav. This coaca
train will also carry tvery Wednesday out of
Chicago the San Francisco Excursion bleeping
Car runn'ng via New Orleans.
In addition, the New Orleans Special, fast dav
train, with through slpenitior otirl V,i,fT.-i;K..
cars, and serving al meals in dining enr, wiil
nave tnicago aauy at io:ooa. m. and arrive at
New Orleans at 10:55 nt morning, connecting
with the Sunset Lim ted of the Southei n Pacific
for Houston, San Antonio and San Francisco,
the Sunset Limited leaving New Orleans daily at
11:55 a.m. Tickets and further information of
railroad ticket agents.
A. A. HANSON.
Gen'l Pass'r Agent.
Kal! Rates For The Holidays
Via the Missouri Pacific. On n.
cember 24, 25, 31, and January 1 the
Missouri Pacific will sell tfrkets r
one fare for the round trip to all points
witnip 2uo miles, good to return until
Two passenger trains leave Lincoln
daily at 9:15 a. m. and 10:05 d. m. for
Nebraska City, Falls City, Auburn,
Atchison, Kansas City and other
p 'T.ts with ebair cars, sleepers, etc.
Full information at city ticket office,
1039 O street, or depot, 9th and S.
D. CORNELL, P. & T. A.
Anyone sending a sketch and description may
quickly ascertnin our opinion free whether an
invention is probably patentable.. Communiro
tionsstrictlyeonndeiitinl. HANDBOOK on Patents
sent free. Oldest nizency for securing patents.
Patents taken through Munn & Co. receive
special notice, without charge, In the
A handsomely illustrated weekly. Iireest cir
culation of any scientific journal. Terms, $3 a
year; four months, U Sold by all newsdealers.
MUNN & Co.361Broada Hew York
Braucb Office. 625 F 8U Washington, D, t
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