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.