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About Tillamook headlight. (Tillamook, Or.) 1888-1934 | View Entire Issue (May 23, 1895)
SUPPLEMENT TO THE HEADLIGHT. TILLAMOOK, ORE. ¡,11018 at siltebites . towering the standard of value won’t raise wages._________ I INELASTICITY OF OUR NATIONAL An increased currency does net mean BANK CURRENCY. increased wealth.___________ The place for freak coinage is a mu- eeum of monstrosities. Hoiv Yankee Ingenuity Tided Our Business Industries Over the Cur rency Famine or 1803—Samples of Paner Substitutes for Money Vsed in August and September, 1893. tificates of deposits; bond certificates; grain purchase notes; credit and cor poration store orders ; teachers' war rants ; and shingle script were some of the forms of credit that were tempor arily utilized as currency when the premium on legal currency was so high that few business men could afford to pay it. Mr. Warner estimates that about $80,000,000 of this “Emergency Cur rency” was in circulation by Septem ber 1st, 1893, when tbe House having passed a bill repealing tho Sherman Silver Purchase net, and we having purchased $40,000,000 in gold abroad, the worst apprehension of creditors were quieted and the panic collapsed as 'suddenly as it had begun. The “Emergency Currency” gave no trouble ; not a single dollar of it was lost to anybody ; partly because it was illegal, and partly because it was no longer needed it was quickly redeemed and disappeared 60 promptly that be fore the end ot the year specimens became curiosities. In and near Large cities this “Emer gency Currency” usually took the form of clearing house certificates or certified checks. In manufacturing districts pay checks were the only cur rency available for weekly pay rolls, and cash purchased by wage-earners. In grain districts, grain purchased notes anil credit store orders were more common. In lumber districts shingle script was current. Below are given fac-similes ot the specimens of “Emergency Currency,” contained in ex Congressman Warner’s pamphlet: FREE COINAGE BENEFITS, How They Will Be Divided Between Mine Owners, Farmers and La borers. It is easy to understand why the owners of mines and other property in mining Statesand Territories advocate the free coinage of silver at 16 to 1, Like all of U9 they are selfish and greedy. If the Government will agree to take all of the silver they can pro duce at twice what silver is worth in the open markets of the world, busi ness will boom in the vicinity of silver mines. Mines and real estate of all kinds will more than double in value— that is providing our Government can stand the strain of buying all of the silver offered nt this high price. There are millions in this kind of free coinage for the mine owners. That this is true was openly admitted by the Salt Lake Tribune (mino own ers' organ) of April 30, 1891, when it said: “We believe that by the expendi ture of $40,000 or $50,000 the Boards of Trade of Chicago and New York, and even of old goldite Boston, could be made to pass resolutions asking Congress to give full recognition to silver. The Silver Committee, who are working for remonetization, think that with a small amount of money, used this year right away, they could bring such a pressure behind Con gress and the President next winter ad possibly labor) having also doubled, his money would purchase only half as much—and money is worthless un less it is to be spent. But the farmer would lose in oue way: the prices of wheat and cotton would continue to be fixed in Europe just as they are now. The prices at which we must sell our surplus millions of bushels of wheat and pounds of cotton will, in the main, fix the prices at which all wheat and cotton are sold. But prices in Europe are fixed in gold. Hence, the prices , there would be half what the ap|>arent 1 price would lie here. Now it costs i something to reduce prices from oue : currency to another and somebody must pay for this work, and who but our own farmers would foot the bills —just ns the Mexican farmer now pays for the cost of computing his sil ver prices into gold wheu he sells to Europeans. Besides the price of American silver dollars will fluctuate from week to week in foreign markets, just as now is tbe case with Mexican dollars. This adds uncertainty and risk and will tend to keep foreign buyers of wheat and cotton out of our markets and to drive them to purchase in Rus sia, Egypt, India or South America. Thia uncertainty and risk will also be charged to our farmers. No, the farmer will not get rich by menus of cheap money. He will, when he votes for the freo coinage of silver at 16 to 1, get a lot of costly ex perience which will pnt millions of dollars into tho pockets of miue own ers. He will have the experience; the mine owner the profits. I Trouble for Free Coinage Men. The New York Evening Tost ol April 26 says: “The advocates of the unlimited coinage of silver are already finding that there is an obstacle m their path which is insurmountable. Their whole contention is based upon the claim that the existing financial system ia ruining the country, nnd that tho con tinuance of this system involves gen eral misfortunes for the people. “Experience has shown that finan cial heresies thrive in hard times and collapse upou the return of prosperity. The movement for an inflation of tha currency which Bwept over the coun try in 1874; the demand for the re peal of the resumption act, which was raised during the next two years; the greenback agitation and the demand for free ooinage of silver, which fol lowed a little later, were all natural sequels of the terrible panic of 1873 and the long period of business de pression that ensued. When specie payments had been successfully re sumed and general prosperitv had re turned, there was a collapse of green- backism and all of the other wild schemes which had flourished during the hard times. “For nearly two years post tho con dition of business has been peculiarly favorable to the development of finan cial crazes. The panio of 1893 waa followed by a long period during which men were thrown out of work, had their wages reduced, found the pricos of their products falling until the margin of profit disappeared. What were the causes? Tha silver speculators deolared that they were all to be found in the demonetization of eilver by “the crime of 1873,” and as sured the people that a quick and cer tain cure wee ta be found in free coin age. Such demagogues were sure at least of a sympathetic hearing when a large number of men were out of work and a large number more were re ceiving insufficient returns for their work. A prolonged conttnnauoe of the same conditions would have in clined the uuthinkiug and the reckless to aocept auy nostrum that promised relief from what seemed intolerable. "But during tlm last few weeks a change has sot in which has already gone far onough to assure a complete revolution. Ever since the success ot the last bond sale convinced this country and the world that our Na tional credit was established upon a firm foundation, the signs of tho times have grown steadily more favorable. There is not a department of industry which has not felt the improvement, and the outlook only grows more promising month by month. “A busy and contented people have little patience with demagogues who»« stock iu trade is rant about ‘calamity’ and ‘ruin.’ They have no time to listen to new theories, nnd no desire to try them. When men are getting good wageB for their labor and good prices for their crops, they speedily lose their interest iu speculations as to improved financial systems. A stand ard which brings them prosperity ia a good enough standard. “The returuof prosperity will be a fatal obstacle to tho success of the silver propagandists. Good times will constitute au argument that they cannot meet. It ia only necessary now to push the advantage that the sotim money men thus enjoy, and tbe over throw ot the free-coinoge movemen may be made complete and final.” ( Calling » white ehip red doesn’t make it worth as much when you cash “Tbe Currency Famine of 1893” is in. _ _______ _________ Mexico has free silver. Would we the title of an interesting pamphlet exchange conditions with the Mexi by the Hon. John DeWitt Warner. It is No. 6 of “Sound Currency,” pub cans. _____ ______________ lished by the Reform Club, of New The only man who wonld be en riched by currency inflation is the land York. It contains besides a detailed sketch of this crisis, fac-similes of speculator. about fifty different kinds of paper Calling a gallon a peck would not substitutes for money that tided many increase the value of the farmer’s business industries over the panic and grain crop. kept thousands of mills running, and Advocates of a fifty-cent dollar say millions of men employed who would ther believe in sound money. So they otherwise have been idle. Compara- do—principally sound. tivelyfew persons, outside of banking The farmer, who wants cheap money and commercial circles, understood so that interest will be low, won’t rent the peculiar conditions as regards our his house or hire his horse for two currency, that accompanied the hard per cent, a year. times that began in 1893. Industrial panics occur about every The low price of silver means low cost of production. Cheap metal ten years. Hence, one was due in means cheap money. Cheap money 1893, and probably would have ar means cheap labor. rived before 1895, even if our cur The currency which serves as a med rency had been entirely sound. It ium ot exchange need not be the would, however, probably have been " ■ 1 ».................... . money which measures the values of delayed a year or two and have been less severe—as in Canada and England no. ___ *•. • •lO.OOQ», Taking Things tor Granted. the goods exchanged. —had our currency system been on a Ipai? Çommittee « *Bostoç Qeartjj Jfàjse /ìssòfjàtìoi?. Serious mistakes are often made by sound basis and permitted of greater Next to the protection of the right jumping at conclusions. The free- * »¿«KM,«------------- to property a stable standard of values elasticity. Our currency was bad silver-coiuage man sees tho prices of TW ••••••• . .......... .. is tbe most important factor in com enough iu 1890, when the passage of wheat and horses declining, and he the Sherman Silver Purchase act be mercial prosperity. at once concludes that tho decline is gan to make it worse. The coinage due to the demonetization of silver in Thomas Jefferson’s great principle of $4,500,0Ô0 of silver each month 1873. His unthinking neighbors come then began to still further dilute a —tha; that Government is best which I to the «amo conclusion. All have been currency already well watered by governs least—should be applied to reading the same Populist paper. They greenbacks and cheap silver dollars. the currency question. do not stop to think that there might ,••••• -Investors became more and more be other causes to account for the de “The country is suffering because timid ; gold began to be considered cline than tho appreciation of gold, if ••••••• we have not got enough money,” sav the only thoroughly sound money, gold has appreciated in value—an open > io 7 qqq \ the inflationists. How do they know ? and people began to lock it up and question amongst political economists. hoard it ; the gold clause began to be How much money is “enough?” They do not consider that there are inserted in new mortgages and old ----------------------------- g m, .Z........... ... ------------ --- ■ natural causes for the declino in price mortgages renewed ; credits of all Tampering with the standard of of wheat, such as the opening up iu M ount V e ^ nch ^ S hingle S cript values for the purpose of inflating kinds began to contract ; the shrink South America, Europe and Asia of No -3 7 — -rn, Ju. L», ’ the currency, is like removing the ing surplus in the Treasury added to new territory where wheat can be 9Sii f r pendulum to make the clock run the general alarm ; attempts to sell grown very cheaply. Cheaper harves a . < .VOI*.*.me..«.. «T Order stocks and other forms of credits faster. ters, binding twine and improved f Dollar», lo b» paid out of the proceed» of caused a shrinkage of values and in methods of farming also contribute to ■ 'tsÿ 1>X «ÓS •hirxneart of »hing!« Artificially stimulating business by creased the apprehension of creditors. the decline. New fields and compe being Cat containing injections of cheap money has the All of these processes, going on with tition are mainly responsible for tho Thooaaud ot Shwglea, ita «hipping bill of which same effect as giving a man alcohol. accelerating speed, reached a critical lower prices of wheat, cotton and hu been wsignwd to Nt .th the reaction comes weakness and point in 1893. The withdrawal of other farm products. ThUda Me a' ssartsa M u berate u(wa4s osW t* MM N failure. many kinds of credits which, in ordin In the cases of horses, still other ary times, perform the work of money, causes have contributed ty the de The professed friends of the farmer and the practical retirement of gold cline. Tho silverite who says that the want to make money abundant by de trotn our circulation caused an unusual average value of horses in this coun basing its standard of value. And demand for other forms of currency. try has declined from $69 in 1890, tt* then they want to make it scarce by When it came time to move the crops, to $36 in 1895, because of the demon taxing it! in July and August, 1893, our cur etization of silver, is not talking rency system proved to be entirely in through his thinking cap. If ha rends Scotland produces neither gold nor adequate. Suddenly everybody want newspapers, he knows that during silver. Yet the rate of interest on or ed currency and nobody wanted cred these years hundreds of “cable” nnd dinary business loans is lower than in its of any kind, no matter how “gilt- “trolley” roads have taken the places any other country. A good banking edged.” As Mr. Warner says: fy<-r<ur..uÎM-/<irJ idruro' faun Oo ¡.LA»» of “ horse” railways. Then, if he T AV (»DOLLARS . rw Au^/ enr^ system does it. “Currency was hoarded until it be thinks at all, ho will realize that the came so scarce that it had to be hundreds of thousands of displaced horses thrown upon the market must Curious, isn’t it, how tho free silver bought as merchandise at a premium have caused a great decline in prices. tdvocates who claim to oppose class of 1 per cent, to 3 per cent, in The same process of reading and think legislation will be satisfied if the sel checks payable through the clearing C oum T£*SIOKE9 ing will convince him that many moro fish interests of the silver producers house ; and to enable their families to meet petty bills at the summer resorts thousands of horses have been dis ire recognized. the merchants and professional men of placed by tho rapidly extending uso of bicycles, and that tho result on CftMfH No one denies that our present I the cities were forced to purchase and prices ot horses must be the sumo. "nancial system needs reform. But send by express packages of bills or He will not bo surprised that tho num The Greatest Labor Saving Mach:» that is no reason why we should de coin ; while savings banks hawked ber of horses has declined from stroy it altogether by adopting the their Government bond investments Money is a convenience—a lab 16,206,802 in 1893 to 15,893,318 iu lilver standard. I about the money centers in a vain saving machine. When several the effort to secure currency. 1895. sand persons, each making differ« If appreciation of gold were tho articles, wish to exchange with cs “No civilized Nation has ever ex The American wago earner’s inter causo of tho full of pricos, tho fall of other so that all will have a full si ests are nil on tbe Bido of a fixed stan perienced such a currency famine. :tM. ■ tn aoeo’<ianca «wirA tAe procatdtng» of_ prices of all kinds of commodities ply ot articles, it is much easier dard of value. He wants a dollar with None has ever found itself so fettered flirto • JUth.f upon awhl-ft tht» Cartljcntn t» i-tirrd m pngmant off balança» at Ibo Claanng Uqu»a would be uniform. Instead, tho them to do so by means ot money » purchasing power equal to that of by positive law in its efforts to rescue HAND IXILUAtó, /ram non y Mambar iff lb» CUarxng prices of some commodities hove common standard of value—thou itself. None ever so promptly arose wy dollar in the worlu. fallen while prices of others have try to barter with each other. to the emergency. Never was there Josh Billings never read “Coin’s so prompt a return to normal condi risen, The free silverite should think Imagine a man with n bag of p twice before be expresses his opinion. toes going around to exchange 20 Financial School,” but he was ac tions.” quainted with the arguments, sophis The only means of legally providing tatoes with one man for a gallo try and false statements of Greenback the increased currency demanded was »20,000. f Cheap Money ami Wages. oil, 15 with nnother for n yur ers when he said: “It is better to through additional issue« of National Wage earners who imagiDo that calico, 10 with another for a pout mow a few things that ara so than a bank notes. The result demonstrated more und cheaper money will benefit sugar, 60 with another for a stra jreat mauy things that are not so.” the worthlessness of our National them should study th« effect upon 2) with another for e paper of pi banking system. The National banks wages of the issuing of greenbacks so ou until ho lias spent a wholi “Under free coinage wages would were unable to give any relief until during war times. Wheu millions of exchanging his bag of potatoes the need of more currency was passed. be higher,” is the claim of the silver- dollars in paper money, with nothing few articles that he conld have b ites. Why? It is not the quantity The National banks were able to in but the promise of the Government at a country store in teu minute ef money in a country which regulates crease their outstanding notes only behind it, was put into circulation, the 82.00 for w hich he could lie wages, but the amount of wealth pro from $178,713,872 on July 1, 1893, to prices and wages at once began to ris® hi« potatoes. Money, is, perba duced. If tens of thousauds ot $183,755,147 on August 1, and to —apparently. By 1865 prices had greatest labor saving machine workers were engaged in mining sil $198,980,368 on September 1. This gone up on an average about 116 per vented. 9Wt VnXffTbti « iWh «OCT Wfrtl ver we do not need, instead of making increase, as Mr. Warner remarks, But it is only a labor sav cent, and wages about 43 per cent, WVtft'ïW.VtfA W « WDHWS .useful things we do need, would the “was far less than the amount by y from what they were in 1861). But chine. It will nut work itself < which the banks of a single city virtu If total wealth be divided liotweeu em the real value of wages is fixed by when left alone. It produces .Ml.lNEAPOLIBhvXORTHERWELKVATOR CO. c ally increased it by clearing house ploycis and employed be larger? what they will purchase. Real wages when left to itself. It will no certificates alone and whs in great part then were only two-thirds as great in its possessor rich unless it is u I» «•< accomplished only after tLe necessity ««Coin’s Financial Fool.” Ufa' 1865 as in 1860. Tlieee figures are labor saving machine , and wh : from tho report of the Finance Com is enough money in use to 1 Job had lots of trouble and plenty for it was over, millions of dollars of to secure the needed legislation. That A bank is merely an insurance com mittee ot tbe United Hlates Sen exchange, any more ia as unr of things to worry about. He was, the additional currency taken out be pany. It insures creditors instead of legitlatwn would mah to the mrn who ate and were compute! by Labor uud useless as are a dozen mo however, a wiso man, and knew wbat ing returned to the Treasury with the produer •il' rr in thin Territory a differ- 1 lives or bnildings. chines on a farm where on Commi'sioner Carroll D. Wright. be was talking about when he said: packages unbroken.” en®e o/$3,000,000 per ymr." Our currency system not being elas Commenting upon tins question needed. Tbe trouble with ' “Oh, that mino adversary would But what excuse is there for the like Canada's (which responds with 1 The world's production of gold is Edward Atkinson said in the April greenback men is that they t write a book. ” He knew that if be tic, in a few days to auy change in demand), steadily increasing. At the same time simple minded wheat, corn and cot IVrum : all that is needed to make could get his enemies to put their the extension ot banking facilities is ton grower who imagines that he is and there being no legal way to secure “During the Civil War even the is more money. Does a far charges against him down in black ’ constantly decreasing tbe amount of going to get rich by having his Gov withdrawal ot a seventh part of tbe any more hay because he hn the extra currency suddenly de and white he could answer and refute manded, did our business meu cease gold needed a» a basis for cur ernment adopt such a foolish policy ? men of arms-bearing are and the de mowers instead of one? A I Suppose that the Government should them. rency. _____________ ____ It is fortunate for the sound money operations and wait supinely until succeed in doing all that the free sil «tractive demand growing out of tti® thinking by a few million v our National bank laws could be men of this country that their adver ver men expect it to do. Suppose it consumption of war, did not advance settle the money queslio Farmers complain that overproduc abolished? No. In defiance of these sary has at last written a book — should declare that silver now worth wages as fast as prices rose ; the pur without going through tl tion of their products makes ia impos laws they set to work in different “Coin’s Financial School"—which is localities 50 cents should be one dollar. Where chasing power of a day’s work lost by pertinents with cheap mone sible to find a market for all they have to devise substitutes for being accepted as the bible of the free will the farmer and laborer come in ? one-third in that dark financial period. always resulted in failure. j to sell. What would be the result cf “Waeu once more th® evil influence coinage meu. This book is written in money. Their Yankee genius was ! increased prices, so that many con- Prices of everything would soon be ot a discredited currency, which was The pretence that gold i an interesting, chatty style, and has everywhere successful, and millions ■ snmers would have to buy leas than double what tbev now are. wheels were kept going that must The laborer woul l get left because Issued in a time of profound ¡wtco at of the East and silver that < some good cartoons in it, but it is ol otherwise have stopped and millions they do now ? while tbe prices of commodities would tbe dictation of tbe mining camps, has 00 foundation iu fact filled irom front to back with absurJ of stomachs were filled that other wile whose power in tlie Senate is in in and false statemenu about money and would have been empty. Mr. M arner Don't be fcoled by the plausible double at once the price of labor— verse proportion to their population, produces no. gold. Tiie Eastern States was got b) wages -would Dot double at once. 1 finance. The book itself (is a gigan talk about “ bi-metallism. ” What tbe : Wages would begin to advance ; strikes brought on tbe panic of 1893, a pa goods with tbe gold ml tic fraud in that no such school says free silverite» really want is silver “No civilized Nation has ever ex and no such dialogues as it de perienced such a currency famine. monametalbam, which we should cer- won.be numerous; but it would re ralysis of indu»try ensued ami great W,-si. The )>eople of the inaaars of people anffered for want of scribes ever took place. The whole None has ever found itaelf so fettered Uinly have if tbe United States opened quire at least one year for wages to tbe mtsui of Bubsistenee iu the midst goois which they could u thing is fully exposed by s pamphlet by positive law in ita efforts to reacne ' its mints to the coinage of all silver at advance as much aa go-ids of all kinds of an uuparallele I abun lance of food, I fore parted with their g ! »ant it back they can g< would advance at <mce. Meanwhile called “Coin's Financial Fool," just itaelf. None ever to promptly arose the ratio of 16 to 1. tbe laborer, whose wages depend upon fuel, fibre« end fabrics of every kiud." ducing things au 1 selliu published by the Reform Club M 52 to the emergency. Never was there East. William street. New York City. Auy so prompt a return to normal condi- Suppose that in some mysUrious bow much they will buy, would really •• We demand tbe dollar of our dad cue who reads “Coin's Financial manner all tbe money in th-i bans be working at reduced wages. ” WLy does Senator St Tbe farmers would get twice as dies. ’ Why don't tbe nice little sil Bchocl,” an ! who is incline! to Uke it tlODM. Hundreds of localities devise! dif- vaults of the country were to be many cents for each bushel of wheat ver boy« demand tbe stage coach, tal "gold clause'' m an agi seriously, should also read ibis little I doubled in a single night, how would --------- i ferent forms of what may be called turn him borrowed moi pamphlet, the price of which " > .,r_efn#e. Currenov.’’ Clearing ' tbe men who now have no money get or pound of cotton, but each cent low dip and flail of their daddies, in is good enough for tbe centa A magie number will^bciwever, I XrSeatee ; clearing hcuae due •uma of tbe lucre»*® except by raak would be worth onlr half aa much, for stead of tbe railway train, electric pie, isn't it good euoug the prices of everything else (except light and steam thresher T ba »ent free to anyonewho wr.te. tor , ^^,4 check. ; neg.tiabl» oer I ing something to exchange tor nt it, mentioning ton paper.
