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 THE ROAD TO 
 
 Prosperity 
 
 By T. W. WOOD 
 
 ^"'cago, as Second-class Matter 
 
 -, p rePaM , tor $1 ,i or Ki?i5J«r^--^ 
 
 CHARLES H. KERR & ^ ^.^ 
 
 56 FIFfH AVENUE, CHICAGO 
 
With the Author's Compliments 
 
 FOR EDITORIAL NOTICE 
 
THE ROAD TO PROSPERITY 
 
 A Treatise on Political Economy, Written Upon Various 
 Subjects, with a View of Aiding in Creating 
 Permanent Prosperity and the Con- 
 tentment of the People 
 
 BV 
 
 T. W. WOOD 
 
 of T. W. Wood & Sons, Seedsmen 
 
 and President of the Richmond Agricultural Implement Co, 
 
 Richmond, Virginia 
 
 CHICAGO 
 
 PUBLISHED FOR THE AUTHOR BY 
 
 CHARLES H. KERR & COMPANY 
 
 1898 
 
54948 
 
INTRODUCTION. 
 
 At the present time hundreds of thousands of families are 
 suffering greatly through the want of employment, which would 
 not be the case if prosperity existed. Many apparently intelligent 
 persons seem to think that if we write and talk prosperity, it is sure 
 to follow. The writer is persuaded that it requires cause to pro- 
 duce effect, and believing the present depression is occasioned by 
 removable causes, undertakes to point out remedies which would 
 bring about the return of prosperous times and permanently 
 establish them. 
 
 The various subjects will be considered under their respective 
 headings. 
 
 This book is not copyrighted, hence it is at the disposal of 
 editors and others to use as they think fit, hoping they will improve 
 upon the suggestions or adopt the opinions expressed, having as 
 their object "permanent prosperity and the contentment of the 
 people." 
 
The above picture is illustrative of the prosperous times which re- 
 sulted from the enlarged supplies of money at 
 
 The Period of the Emperor Augustus, 
 
 The Waterloo Period, 
 
 After gold was found in increased quantities in 1848, 
 
 When the amount of money in circulation was expanded during the 
 Civil War, and 
 
 After it began to be augmented through the Bland and Sherman Acts.. 
 
THE ROAD TO PROSPERITY. 
 
 Money, Considered from Every Phase. 
 
 What Constitutes Money. — As money is the foundation upon 
 which the superstructure of real prosperity is erected, it should 
 come under our consideration first, and being very important, we 
 should lay aside all prejudices and consider it carefully. In ap- 
 proaching this subject, it is best to have a correct idea of what 
 money is, and, upon reflection, it will be found that the best defini • 
 tion is that anything which is legally employed and mutually ac- 
 ceptable in buying and selling is money, and as gold, silver and 
 paper have been the mediums legally employed and mutually, 
 accepted in this country, it is best to retain them. 
 
 Paper, stamped as money and issued by the Government, is 
 most used and desired by the people in general, as' it goes into the 
 least compass, is light, easily counted and portable. This, in limited 
 quantities, is, in conjunction with gold and silver, by far the most 
 economical and the best currency that can be used. 
 
 Intrinsic Value. — There is very little real intrinsic value in 
 gold or silver, except such as they receive from the opinions of 
 men, who place a value upon them. There is much more intrinsic 
 value in iron or steel, as they can be put to so many more useful 
 purposes than either gold or silver. In the air we breathe there is 
 great intrinsic value because we could not live without it, but gold 
 and silver are by no means indispensable. Many people in the 
 Klondyke region will probably starve to death this winter, though 
 surrounded by gold. Civilized nations have put a value upon, 
 gold and silver, and for centuries they have gone hand in hand, 
 and have been regarded as precious metals. Their union is com- 
 menced in their cradle, as there is no gold mine which does not 
 contain silver, and no silver mine which does not contain gold, 
 
 5 
 
6 THE ROAD TO PROSPERITY. 
 
 and trying to dissolve their bond of union in furnishing the people 
 with money, has caused much trouble in the world. 
 
 Their varying value is subject to the changing opinions of 
 men, and so long as free coinage is given to gold the bullion will 
 remain at parity with coin. If free coinage of gold were stopped 
 by nations, the bullion would fluctuate in price according to the 
 supply and demand and differing opinions as to its value. 
 
 Money Used in Internal Trade of Coutitries. — For the in- 
 ternal trade of countries, each nation adopts its own currency. 
 England has adopted gold, silver, copper and paper, composed of 
 pounds, shillings, and pence, but has limited the amount of legal 
 tender silver to two pounds (ten dollars). France uses francs and 
 the subdivisions are made of gold, silver and paper, but silver is 
 principally used and gold hoarded. Germany uses marks made 
 of gold, silver and paper, but gold is used very little except for 
 hoarding. The United States uses dollars and cents, composed 
 of gold, silver, nickel, copper and paper. 
 
 The internal arrangements of countries in regard to the cur- 
 rency or what it is made of is a matter with which no other coun- 
 try has to do, any more than they have to do with the language 
 which shall be used. These are purely domestic arrangements. 
 It may be remarked that we are so closely allied with other nations 
 in commercial affairs, that we must adopt the currency of the 
 world. This is erroneous, excepting so far as trade between mer- 
 chants of different nations. I might ask, why should we not all 
 use the same language, as that is in more constant use than 
 money? "When in Rome, we must do as Rome does>." When we 
 go to England, we use English money, and when we go to France 
 we use French money. When in France you find people who 
 speak English; when in Germany you find people who speak En- 
 glish, but these circumstances do not alter the fact that French- 
 men speak French and use French money, and Germans speak 
 German and use German money, and the people of the United 
 States speak English and use United States money. 
 
 Governments Should Provide Proper Currency. — The duty 
 of a government is to provide proper currency so that the people 
 can have the best facilities for the exchange of products, etc. This 
 
THE ROAD TO PROSPERITY. 7 
 
 Is done in this country by the United States Government stamp- 
 ing gold, silver and paper so that merchants can trade among 
 themselves, or they can buy goods in Europe and arrange to pay 
 for them in gold, or they can sell in Europe and arrange to re- 
 ceive payment in gold, which is the metal employed because it 
 can be recoined into money free in the country to which it is 
 taken. If silver had free coinage, as it used to have, it would 
 often be preferred in settlement, as it is needed in Europe as well 
 as in Asia. Merchants could then go to India, China, or any other 
 silver-using country, buy goods and arrange to pay for them in 
 silver, as all that a merchant desires is a metal that can be recoined 
 free into money in the country to which it is taken. The matter 
 of payment, both as to coin and time, is arranged between mer- 
 chants of different countries the same as it is arranged between 
 merchants in this country, when the terms of credit are agreed 
 upon, as to whether the goods shall be paid for in cash or notes. 
 
 Trading with Other Nations Is a Merchant's Affair. — It 
 must be remembered that all transactions between merchants or 
 financiers of different countries are private affairs, with which* 
 the government has nothing to do. The governments them- 
 selves do not have commercial transactions with each other; buy- 
 ing and selling are strictly private and personal affairs. If one 
 goes abroad and purchases goods for gold, he individually has to 
 provide the gold ; and if he has not got it in hand he must go to 
 some one who has, and arrange with him to exchange his paper, 
 silver or commodities for it. We may be assured that whatever our 
 currency is, there will always be plenty of exchangers of money 
 who will be supplied with all the gold necessary, as is the case now 
 in this and other countries, whether those countries are- on a gold, 
 silver or bimetallic basis; and the rate of exchange will be pub- 
 lished just as it is to-day. At the present time a European mer- 
 chant's draft on a merchant in this country is presented to him 
 payable in pounds sterling, francs or marks, and when he pays 
 it the current rate of exchange, which varies, is ascertained, and 
 he pays currency to his bank for the draft, and the bank remits 
 currency to New York, where the exchange is made. So will it 
 be when the free coinage of silver is established. It should be re- 
 
8 THE ROAD TO PROSPERITY. 
 
 membered that gold is not remitted to Europe for these drafts, 
 but bankers in the exchange business in New York receive drafts 
 from Europe for collection, and send drafts there for collection, 
 and it is only the difference in the total amount which is remitted. 
 When the balance of trade is with this country, as it is largely 
 now and likely to be for some time to come, gold is due this coun- 
 try, and when the balance is against us, gold has to be paid to 
 settle the difference. 
 
 Great Confusion Has Arisetz in Regard to Money. — Through 
 the action of capitalists, there has arisen great confusion of ideas 
 in regard to money, which confusion did not exist a few years 
 ago. A new set of people called '^gold standard men" or "mono- 
 metallipts" has sprung up, who, instead of desiring the money that 
 has been used for generations, wish to reduce it to one metallic 
 money (gold); and notwithstanding the fact that the constantly 
 enlarging trade of the world requires far greater capital than it 
 ever did before, they wish to contract it by destroying half the 
 money. 
 
 Historic Teachings. — History teaches that a contraction of 
 capital invariably produces adverse and distressing times, while an 
 abundance of money creates prosperity. I have not long to dwell 
 upon this, but think it advisable to give a hasty review in confir- 
 mation. 
 
 Ancient Rome. — Through the victories of her generals, 
 Ancient Rome received vast wealth, which is estimated to have 
 amounted to about $1,750,000,000 at the time of the death of the 
 Emperor Augustus. This large amount of money was circulated, 
 and caused prices of all commodities to advance throughout the 
 Empire, and especially in Italy and the countries nearest the cap- 
 ital. This period, about the time of the birth of Christ, has always 
 been known as the "Augustan period," and distinguished for its 
 splendid attainments in art and literature. As the operations of 
 the mines, for reasons I cannot linger to explain, were discon- 
 tinued, the stock of money gradually wore away during the next 
 eight hundred years, until the amount in the then Western world 
 was reduced to about $160,000,000, or about one-eleventh part 
 of the amount. This resulted in distressing; conditions, which 
 
THE ROAD TO PROSPERITY. 9 
 
 stagnated and reduced prosperity to the lowest ebb. This period 
 is termed the "Dark Ages." 
 
 Fifteenth Century. — At the commencement of the fifteenth- 
 century, Mexico was conquered, and the silver mines began to 
 pour forth their wealth, as was also the case with other American 
 mines. The immense annual yields of the combined mines were 
 imported into Spain and Portugal, and speedily circulated as 
 money into other European countries, causing a general advance 
 in prices, especially near towns, for a period of about 120 years. 
 This set the wheels of commerce revolving and enlarged the areas- 
 of trade, but after the time stated the constant annual increase of 
 money was counterbalanced by its general diffusion over large 
 districts. 
 
 Waterloo Period. — Coming nearer our own times, we find 
 that about one hundred years ago great devastating wars pre- 
 vailed in Europe, which caused such apprehension that the people 
 were led to hoard large amounts of gold and silver. This resulted 
 in the English Parliament ordering the Bank of England to sus- 
 pend specie payments in 1797. Notes were not then legal tender,, 
 but through the action of the government in receiving them for all 
 dues, they attained such favor that for three years after that time 
 not only did notes remain at par with gold, but they actually bore 
 a small premium. Large issues of bank paper continued, which 
 increase caused great prosperity throughout England. 
 
 It was during this period of specie suspension, and after Na- 
 poleon was caged at St. Helena, that silver was demonetized in 
 1816, paper and specie being then nearly on a par. This was not 
 done from any desire of the public or merchants. They were get- 
 ting into such comfortable circumstances that they did not notice 
 or apprehend the consequences; neither did they suspect that the 
 desire of the capitalists in accomplishing the demonetization of 
 silver was for the purpose of curtailing and controlling money. 
 It was not until 182 1, five years later, that specie payment was 
 resumed, but curtailment soon had the effect that the capitalists 
 desired, for in 1822 interest rose from 4 per cent., at which rate it 
 had stood for many years, to 5 per cent., and trade afterward be- 
 came so bad and the people unemployed, that bread riots resulted. 
 
io THE ROAD TO PROSPERITY. 
 
 Why Silver Was Demonetized in 1816. — We may rightly 
 ask why silver was demonetized and money curtailed, when the 
 avenues of trade were opening after the close of the disastrous 
 wars which had afflicted Europe and the United States, and reply 
 that it was not merchants who desired it, but capitalists, that they 
 might the more readily control money and make the rate of in- 
 terest higher. 
 
 Great Dread of the Large Yield of Gold by the California 
 and Australian Mines After 1848. — It would appear that for a 
 long time prior to 1848, there had been a dearth of money, which 
 resulted in much suffering and discontent both in the United 
 States and Europe. In that year the California gold mines were 
 discovered, and three years later those in Australia. These, com- 
 bined, poured out such wealth that in about ten years the stock 
 of gold in the world was doubled, which flood of yellow metal 
 greatly alarmed Europe. M. Chevalier, one of the most noted of 
 French economists, in his work on "The Probable Fall of Gold," 
 wrote that the production of gold as compared to silver had in- 
 creased five-fold since 1851. A veritable gold panic set in, and it 
 seemed impossible for any nation except France, which was on 
 a bimetallic basis, to stem the flood, and save commercial and 
 financial values, which were expected to depreciate to such an ex- 
 tent that they would destroy individual credit. Very few per- 
 sons dared to hope that the French bimetallic barrier could be 
 sustained against the fluctuations in the value of the two metals, 
 which barrier, if it gave way, might cause gold to fall in a suc- 
 cession of plunges down to a level which would mean nothing but 
 universal bankruptcy. Estimates were freely made that gold, 
 from being worth 15^ to 1 of silver, would soon be worth 12 to 1, 
 10 to 1, or even 8 to 1. Prof. Francis A. Walker says: "In June, 
 1850, Holland demonetized the gold 10-florin piece and the guil- 
 laume. Portugal prohibited gold from having current value, with 
 the exception of English sovereigns. Belgium demonetized its 
 gold circulation; Russia prohibited the export of silver, the metal 
 likely to become the very stay and staff of the national existence; 
 Austria, which was then on a basis of inconvertible paper, thought 
 that the cheapening of gold offered a favorable opportunity to 
 
THE ROAD TO PROSPERITY. n 
 
 come to a metallic basis, and called the German states to meet in. 
 a monetary conference at Vienna. The other states feared the de- 
 preciating of gold, and insisted on the single silver standard." 
 Chevalier wrote: "Even in England some persons have put forth 
 the advice that the standard should be altered, and that silver 
 should be substituted for gold." Jas. McLaren, author of the 
 "History of the Currency," put forth the proposal that life insur- 
 ance companies should be established on a silver basis. Ameri- 
 can corporations (one of which, I believe, was the Essex and 
 Holyoke Water Power Co.) sought to safeguard themselves by a 
 similar arrangement, and in consequence, up to the present day, 
 leceive every month some ounces of silver. 
 
 I think we can justly claim that between 1850 and i860 there 
 was far greater alarm and fear among governments and capital- 
 ists, that the large influx of gold would cause more trouble by 
 upsetting prices and commercial enterprises, than any fear that 
 really exists now at the prospect of the free coinage of silver by 
 the United States alone. 
 
 The Effect Caused Great Prosperity. — As we have noted 
 the apprehension and excitement, let us see what the results really 
 were. Mr. William Newmarch, joint author with Mr. Thos. 
 Locke, in their great work on the "History of Prices," written in 
 1853, said: "We are justified in describing the effects of the new 
 go 1 d as almost wholly beneficial. It has already elevated the con- 
 dition of the working and poorer classes; it has quickened and ex- 
 tended trade, and exerted an influence which is thus, far beneficial 
 wherever it is felt." David Hume wrote: "It is certain that since 
 the discovery of the mines in America, industry has. increased in 
 all the nations of Europe, and this may be justly ascribed, among 
 other reasons, to the increase in gold and silver. Accordingly 
 we find that in every kingdom in which money begins to flow in 
 greater abundance than formerly, everything take& a new face; 
 labor and industry gain life, the merchant becomes 1 more enter- 
 prising, the manufacturer more diligent and skillful, and even the 
 farmer follows his plow with greater alacrity and attention." 
 
 All historians as well as persons living now bear testimony 
 to the fact that property and products advanced in price, com- 
 
12 THE ROAD TO PROSPERITY. 
 
 merce greatly enlarged, manufacturing enterprises were stimu- 
 lated, and industries of all kinds were actively engaged, spreading 
 in consequence the seeds of contentment through the increased 
 amount of money in circulation. 
 
 The Civil War and the Period Following. — When the civil 
 war broke out in the United States, the Government issued "de- 
 mand notes," which were received for all dues. These remained at 
 par with gold. This did not suit capitalists, so they caused an act 
 to be passed, providing for the substitution of United States notes 
 or greenbacks, which should be legal tender, but not receivable by 
 the Government for dues. This created a demand for gold, which 
 was what capitalists desired, and the opportunity made, caused 
 them to obtain great wealth. It was not necessary for the Govern- 
 ment to receive gold for dues, as, if that was desired, they could, 
 
 The above is illustrative of a meeting of members of the "Gold Stand- 
 ard Defense League," when they arranged to make their attack on silver 
 with a determination of controlling money by contracting it, so that th:y 
 could keep the interest rate high. 
 
THE ROAD TO PROSPERITY. 13 
 
 and did obtain vastly more than was really required from the sale 
 of bonds. Gold was not needed by the Government to buy muni- 
 tions of war, as contractors gladly sold those for greenbacks, 
 which notes were likewise good enough to pay the soldiers who 
 fought the battles, but they were not good enough for capitalists. 
 The greenbacks and notes circulated had the splendid effect of 
 creating in this country great prosperity, which continued for 
 several years after the war, but when paper money was greatly 
 curtailed, by being called in and canceled, a ruinous panic re- 
 sulted in 1873, the very year that silver was demonetized. Why 
 was silver demonetized? The people certainly did not desire it or 
 appear to know or consider anything about it. All mills were 
 running on full time; merchants were extending their trade; labor 
 and all people were profitably employed; the commercial life 
 was full of vigor because it was full of money; a prosperous people 
 would soon have been independent of capitalists, and so the cur- 
 tailment of currency and coin was attempted and effected, in order 
 that the gold might be cornered and excessive high rates of inter- 
 est maintained. Was it not then a crime to cause the suffering and 
 ruin which resulted from these actions? 
 
 Conferences and combinations of capitalists have been 
 formed with the determination to control money, one of which, 
 "The Gold Standard Defense League," is a most influential and 
 powerful organization which has unlimited means at its disposal. 
 A very effective way of curtailing money was considered to be 
 the destruction of silver as a legal tender money, and the issuing 
 of circulating notes by bankers. Hence the determined efforts 
 which have been made in that direction, and silver will only be 
 saved to bless the world by the continued earnest effort of the 
 friends of mankind, who are opposed to the selfish ways of men 
 who "love money, which is the root of all evil." How much better 
 it would be to adopt the motto of "Live and let live." 
 
 The Bland Act 0/1878 and the Sherman of i8go. — After the 
 Bland Act, restoring silver dollars to legal tender, was passed, 
 the currency of the country began to be enlarged, and this re- 
 sulted in gradually increasing prosperity, causing factories and 
 people to be employed. Further enlargement of the currency 
 
i 4 THE ROAD TO PROSPERITY. 
 
 took place in 1890 by the passage of the Sherman Act, which 
 further aided flourishing conditions; but the loss, of the control of 
 money, which might occur through more money, incensed capi- 
 talists to such a degree that they made a determined attack on 
 silver. Congress had expected silver to be coined and the Sher- 
 man notes to be redeemed in silver, but the Harrison administra- 
 tion, apparently influenced by capitalists, decided that these notes 
 should be paid in gold. These, with the greenbacks, made about 
 $500,000,000 of notes payable in gold. The banks had, up to this 
 time, paid nearly all import duties in gold, but in August, 1890, 
 the first Sherman notes were issued, and in the same month the 
 banks gathered up $454,541, and paid them into the Custom 
 House for duties. At the end of the next month, $1,734,404 had 
 been paid into the Custom House. Gold payments declined 
 monthly, and Sherman notes increased, until, in June, 1893, they 
 amounted to thirty-five per cent, of the receipts and gold receipts 
 ceased. 
 
 77ic Cause of the Panic of 1893. — The purchase of silver 
 was assailed by capitalists, who aroused and scared the country 
 and brought on the panic of 1893, which the Harrison administra- 
 tion had prepared for by depleting the Treasury of money to their 
 utmost, besides leaving a large amount of unpaid bills. They 
 then, with the aid of periodicals and newspapers, assailed the pur- 
 chase of silver by the Government, stating that the country was 
 being flooded with silver, which was creating distrust in Europe, 
 causing the withdrawal of gold from this country. 
 
 We were further informed that if the purchase of silver was 
 stopped, prosperity would return immediately. These state- 
 ments proved to be utterly untrue; there was not a particle of 
 foundation for them, yet, though false, they were effective and 
 the purchase of silver was stopped. 
 
 Silver Certificates Did Not Cause Distrust. — There was 
 in three years and three months $155,931,002 of Sherman notes 
 issued, and if the full complement of notes authorized had been 
 issued to the people of this country it would have taken twenty- 
 seven years to have issued as much paper as- was issued in one 
 year, through the refunding act of 1870 and 1871, which, remem- 
 
THE ROAD TO PROSPERITY. 
 
 15 
 
 ber, was several years after the termination of the war, and at a 
 period when we only had paper currency. There was, as a result 
 of these acts, $1,400,000,000 of bonds issued at less than an aver- 
 age of 4! per cent, interest, and this at a time when the country 
 was comparatively poor, and, if the Government had desired, 
 capitalists, would have subscribed for many millions more. These 
 bonds were only a promise to pay, and had no coin at their back ; 
 whereas, the Sherman notes had both gold and silver at the back 
 of them and were issued to cur people, who had unbounded faith 
 in their Government, while the bonds were issued to millionaires 
 
 Banker — John, take the load of gold down the street as though it was 
 going to be sent to Europe, but instead of putting it on board ship bring it 
 round the back way and put it into the safety deposit vaults. 
 
 and foreigners. A few months after this, $262,315,400 in bonds 
 were issued, which had only the credit of the Government at their 
 back, but they were eagerly taken up by these same scared people, 
 who subscribed five times as much money for bonds as the annual 
 purchase of silver, for which Sherman notes were issued, which 
 notes had both silver and the credit of the Government at their 
 back. Therefore how false it was to say that Europeans were 
 
i6 THE ROAD TO PROSPERITY. 
 
 scared at the currency we were issuing- among ourselves. The 
 difference was that millionaires got interest out of the bonds, and 
 none out of the notes; hence this onslaught and determination to 
 stop silver purchases, for which circulating notes were issued. 
 Capitalists adopted desperate measures, and allured many well- 
 meaning men to their aid. In addition to their other methods, 
 from May 4th to July 12th, 1893, bankers called in $136,00 :>,co:> 
 in sixty-nine days, which greatly aided in crippling business. 
 These attacks on silver, and the curtailment of money, caused the 
 panic of 1893, which has stagnated trade and all enterprise, and 
 has caused failures, losses innumerable, and widespread suffering. 
 
 Greenbacks Assailed. — Capitalists, emboldened by then 
 success against silver, tried to complete the work they had in 
 hand of getting money under control, so next directed their at- 
 tention to the greenbacks, with the view of destroying them, as 
 they desired banks to issue the circulating notes of this country, 
 and regulate the circulation to make it elastic, so that the interest 
 derived therefrom' shall remain high. To bring them into disre- 
 pute, they created an endless chain to withdraw gold from the 
 treasury, and they adopted methods which made the country 
 believe that it was Europe who was withdrawing the gold from 
 the Treasury, through want of confidence in the Government, 
 and they clamored for bond issues in which they were successful. 
 We will look into this matter. 
 
 Bond Issues. — In February, 1894, the month in which the 
 first bonds were issued, $19,193,354 in gold was withdrawn from 
 the Treasury, apparently for export. Of this only $1,068335 
 were exported; the other $18,000,000 went into the vaults of bank- 
 ers and millionaires. In November, 1894, the month of the second 
 bond issue, they drew out $7,799,740, all of which was kept in 
 this country, and, in addition, $1,507,388 in gold was imported. 
 Their success with these bond issues whetted their appetites, and 
 in the next two months they drew out of the Treasury $77,024,959, 
 which gold they had just paid in for bonds. Of this $34,122,928 
 was sent to Europe, and they kept $43,000,000 in their vaults. In 
 addition to these adverse circumstances for business and confi- 
 dence, the per capita of circulation of money in the United States 
 
THE ROAD TO PROSPERITY. 17 
 
 was reduced from $24.28 in 1894 to $21.10 in 1896, which caused 
 a curtailment of $222,000,000. Further, from January, 1893, to 
 July 23d, 1897, the capital of banks has been reduced $62,995,623. 
 
 No Wotider Trade Is Bad. — Is there any wonder, then, 
 that confidence has been shaken, and trade remained bad, with 
 such curtailments of money and such adverse attacks on silver, 
 when it is clearly demonstrated that at every period of tire world's 
 history, when money was plentiful, prosperity reigned, and when 
 it was contracted, stagnation, low prices, idle factories, reduction 
 of wages, and unemployed labor abounded. 
 
 It is best to have a charitable opinion of those professing 
 Christians and business people who willingly lend aid to capital- 
 ists in their effort of getting control of money by curtailing it, and 
 business enterprises by trusts, so that capital will yield large re- 
 turns. The process is ruinous, though some argued that capitalists 
 have great interests at stake which suffer, but their losses are only 
 temporary, and are endured with the knowledge that if they can 
 get a stronger grip on the tribute to be extracted from the public, 
 it will be a permanent source of profit. They all united in apply- 
 ing vile epithets last fall to those who sympathized with suffering 
 humanity and made efforts to relieve their distresses by creating 
 prosperous times through increasing the volume of money, but 
 we can bear their slanders without retaliation. 
 
 Is Free Coinage of Silver and Universal Bimetallism 
 Desirable? — For more than two thousand years, metallic 
 money, consisting of several metals, has been used by the people 
 of the world, which habit has naturally dwarfed the intellect of 
 many people, so that they regard metallic money as the only real 
 money, and some nations, who are not far advanced in civilization, 
 use at this time only metallic money. Other nations, who have 
 greater commercial relations, use paper money largely, especially 
 for internal trade. This they have been constrained to do through 
 the scarcity and cumberso-meness of metallic money. 
 
 Metallic Money Is Needed. — For external trade, to pay the 
 balance due between nations, metallic money is necessary, because 
 it can be reconverted into the money of the nation to which it is 
 taken. Paper money is inconvertible, and could only be used 
 
IS 
 
 THE ROAD TO PROSPERITY. 
 
 A picture that is too common, indicating the suffering caused through 
 reducing the amount of money in circulation at the following periods: 
 When Napoleon was in exile at St. Helena; 
 
 When currency was withdrawn and silver demonetized in 1873, and 
 Since the onslaught on silver and greenbacks in 1893. 
 
 extensively by international agreement. Asiatic countries use 
 silver almost exclusively, though Japan has recently decided to 
 go on to a gold basis. India has always had a fanatical love for 
 silver, which she has readily absorbed for centuries, and which her 
 people hoard and worship, even though they are starving for the 
 necessaries of life. European nations use large quantities of silver 
 as well as gold. There metallic money is forced out among the 
 people by only issuing notes of large denomination. This is for 
 the purpose of forming a reserve fund, to be drawn upon if needed 
 through the exigencies of war, during which time paper money 
 could be substituted for internal trade, and the coin drawn -in for 
 government use. It was by this process that the large indemnity 
 imposed upon France by Germany was paid so quickly after the 
 
THE ROAD TO PROSPERITY. 19 
 
 Franco-German war in 1870. The smallest of these notes is about 
 $24, so that it is absolutely necessary to use coin in every day trans- 
 actions. Wlhen prosperity prevails, it will cause a largely in- 
 creased demand for coin, which can only be supplied by the two 
 metallic moneys without the denomination of notes is reduced. 
 
 Ao/ Gold Enough to Properly Conduct Business. — Capi- 
 talists may succeed in prejudicing the people against silver, there- 
 by appreciating gold to a much greater extent, but even then it 
 will be impossible to supply sufficient gold for use as money, as 
 there is not, and not likely to be, nearly enough for trade require- 
 ments. Twenty-five years since there were less than 50,000,000 
 people on a gold basis, and there was then scarcely enough gold 
 for them to use as money. Now, the number, according to the 
 Secretary of the Treasury in 1896, has been increased to 163,- 
 000,000 persons, with the number increasing yearly, so that con- 
 sidering the insatiable increasing demands for hoarding, there is 
 not one-'half enough gold mined to do the business of the world. 
 The present large yields of the mines, according to the latest esti- 
 mates of the director of the mint, in August, 1897, after deduct- 
 ing the amount required for the arts, is 4 per cent, per annum in- 
 crease in gold coin to the stock of the world, which is not nearly 
 equal to the increase in population, the extension of trade, and 
 abrasion, nor as much as Russia, Austria and Japan desire to put 
 away and hoard. 
 
 Gold and Silver in European Banks. — It will be inter- 
 esting to some to know the amount of coin held by the European 
 banks this year and the corresponding date of last year, so I insert 
 the following statistics: 
 
 August 26. 1897. August 27, 1896. 
 
 Gold. Silver. Total. Gold. Silver. Total 
 
 Bank of £ £ £ £ £ £ 
 
 England 36,224,839 36,224,839 46,372,048 46,372,048 
 
 France 81,405,712 49,001,244 130,406,956 82,720,502 50,215,090 132,935,592 
 
 Germany* 29,373,000 15,131,000 44,504,000 30,721,000 15,552,000 46,273,000 
 
 Aust.-Hung'y- 37,955,000 12,581,000 50,536,000 28,552,000 12,864,000 41,416,000 
 
 Spain 9,028,000 10,890,000 19,918,000 8,456,000 10,710,000 19,166,000 
 
 Netherlands ... 2,632,000 6,900,000 9,532,000 2,634,000 6,888,000 9,522,000 
 
 Nat. Belgium*. 2,830,667 1,415,333 4,246,000 2,6S4,667 1,342,333 4,027,000 
 
 Total 199,449,218 95,918.577 295,367.795 202,140.217 97,571,423 299.711,640 
 
20 THE ROAD TO PROSPERITY. 
 
 ♦The division (between gold and silver) given in the table of coin and bullion 
 in the Bank of Germany and the Bank of Belgium is made from the best estimate 
 we are able to obtain; in neither case is it claimed to be accurate, as those banks 
 make no distinction in their weekly returns, merely reporting the total gold and 
 silver, but we believe the divsion made is a close approximation. 
 
 It will be noted that there is in the Bank of England about 
 ten million pounds less gold ($50,000,000) this year than at the 
 corresponding time of last year, part of which amount is held as 
 a reserve to secure outstanding Bank of England notes. It will 
 likewise be observed that the total amount of gold held by all the 
 principal European banks is $2,660,000 less than it was last year, 
 which suggests the question, What has become of the $200,- 
 000,000 of gold which the mines have yielded during the past 
 year? I answer, a premium was paid for it at the mines, and it is 
 locked up and hoarded, and not available for commerce. 
 
 Hoarding by the Bank of France. — To give an example of 
 the hoarding propensity, I will cite the Bank of France, which is 
 a private institution, but has a much larger quantity of gold and 
 silver than any other financial institution of the world. It is con- 
 trolled by the government, who appoints the governor and two- 
 deputy governors, who are removable at the will of the Minister 
 of Finance. That bank holds gold very tenaciously, and will not 
 discount notes for gold or part with it, unless special reasons are 
 given. One instance I will quote: The Hon. J. H. Walker, Re- 
 publican member from Massachusetts, Chairman of the Commit- 
 tee on Banking and Currency in the House of Representatives, 
 stated publicly in conversation that when he was in Paris, he 
 sent to the bank to draw an amount of money on his letter of 
 credit, and was supplied with silver or currency, to which he ob- 
 jected, but was met with the intelligence that the bank refused to 
 pay gold. To this he replied that there must be some mistake, 
 so went himself to the bank, where they asked him what he wanted 
 the gold for. He told them he wanted it for current expenses, to 
 which they replied that "silver was good enough for that," and 
 refused him the gold. In regard to notes, it is customary to dis- 
 count them for silver in France. The reason why they and other 
 European countries hoard gold is prospective military require- 
 ments, as war may break out at any time, and they believe gold is 
 
THE ROAD TO PROSPERITY. 21 
 
 necessary to success, though history teaches the contrary, as it is 
 experienced that gold is a coward and rushes for hiding when it 
 is most needed. 
 
 Hon. Jos. H. Walker, M. C. — Will you please pay me some gold on 
 my letter of credit? 
 
 Official of Bank of France — No, sir; silver is good enough. 
 
 Propositions Stated. — I will now make some propositions: 
 First, that good profit-paying prices for agricultural products 
 must prevail if prosperity is to be permanent; second, prosperity 
 will shrink as prices decline; third, the higher prices are the 
 greater the amount of money in circulation is necessary; fourth, 
 a scarcity of money causes low prices. I will briefly support the 
 first proposition by saying that one-half the inhabitants of the 
 world are dependent directly upon agriculture for a living, and 
 the remainder indirectly, and in proportion to their profit or loss, 
 so will prosperity be. All persons are naturally sympathetic, 
 whether they desire to be so or not. If people are in adverse cir- 
 cumstances they will be a drag upon society. If they are in afflu- 
 ence, they will successfully advance all classes of society. There- 
 fore, as the profits of agriculturists dwindle, all other interests 
 will suffer. 
 
 The Policy of English Buyers Is to Depress Prices of 
 Products. — It has long been the policy of England, who is a 
 
22 THE ROAD TO PROSPERITY. 
 
 large buyer, to depress the prices of food products, with the idea 
 that if she can, as a nation, feed her people cheaply, her manufac- 
 turers can more easily compete with the manufacturers of other 
 nations. I think this is a wrong policy, as in making the pro- 
 ducers of the world poor through depressing prices, the manu- 
 facturers must ultimately have poor customers, who can buy 
 little, and England would have already felt the effect bitterly, if 
 she had not been such a large creditor nation, to whom the people 
 of other nations have been getting deeper and deeper into debt and 
 paying her tribute. 
 
 Agriculturists Can Exist if Prices Arc Very Low, but 
 Prosperity Will L.epart. — If the price of wheat should come 
 down to ten cents per bushel, or farm products become as low as 
 they were 500 years ago, farmers can live, but manufactories will 
 have to close, and commerce almost cease. The low prices which 
 have prevailed, caused by the stringency of money, are the rea- 
 sons for the present stagnation of trade. It may be argued that 
 wheat has advanced, to which I would say that this is only tem- 
 porary, and is caused by the failure of crops in India, the Argen- 
 tine Republic, Australia and Europe, and if advanced prices are 
 to be permanent, the strings of the money bags must be relaxed, 
 and a greater supply furnished. 
 
 Third and Fourth Propositions. — The third and fourth 
 propositions, that higher prices require more money, and they 
 will decline as money contracts, are proven by examples: If 
 wheat is 75 cents per bushel, and there are 1,000 bushels for sale, 
 a buyer will only require $750 to pay for it, but if it advances to 
 $1 per bushel, he will require $1,000 to pay for it, and if the buyer 
 has only $500 he can only buy one-half the quantity, or the price 
 will have to decline one-half if he is to obtain the 1,000 bushels. 
 Further, a small amount of money in circulation restricts busi- 
 ness, and has a tendency to lower prices, which fact the following 
 illustration will make clear. Suppose there are merchants com- 
 peting in buying produce, and using and requiring a large amount 
 of capital composed of gold and silver. If, by any means, one- 
 half their capital (silver) is destroyed, it is very evident that they 
 can only do one-half the business they could before. Competition 
 
THE ROAD TO PROSPERITY. 23 
 
 ceases to that extent, and prices must decline as a consequence, 
 I think, then, that if prosperous times are to prevail and be perma- 
 nent, not wheat alone, but all products/ must sell at good paying 
 prices, which prices can only be supported by plenty of metallic 
 money in circulation in the world, and this can only be obtained 
 by rehabilitating silver by free coinage. 
 
 World's Stock of Gold and Silver, if Half Destroyed, 
 Universal Bankruptcy Will Exist. — We will not consider the 
 present condition of affairs. There is in the world a stock of gold 
 coin amounting to about $4,000,000,000, and a stock of silver coin 
 amounting to about the same sum ; say, a total supply of metallic 
 money of $8,000,000,000. 
 
 The present plan of the capitalists is to destroy the silver half 
 of the money and make it and paper money redeemable in gold, 
 with which plan they are making progress. Germany, who en- 
 deavored to adopt a gold basis, has during the last twenty-five 
 years sold $250,000,000 of silver coin as bullion. Austria is going 
 on to a gold basis, Russia is preparing for it, and now it is pub- 
 lished that Japan is accumulating gold, and has decided to call in ' 
 and sell her silver coin at half prices. If, then, a universal gold basis 
 is established, so much of the world's money will be destroyed 
 that universal bankruptcy and poverty will prevail, as it is very 
 evident that one-half the business of the world will have to cease. 
 Merchants know that if they have only one-half their capital, they 
 can do only one-half the amount of business, and this fact should 
 be plain to other rational people. Probably gold standard people 
 will say they do not intend to destroy silver, to which I reply that 
 their purpose is to greatly curtail the quantity, as it is not only 
 stated, but partly accomplished in Germany; is in progress in 
 Japan, and threatened in the United States, if they can accom- 
 plish it. 
 
 Threefoiu-ths of the Gold Hoarded in Europe. — We have 
 noted that the world's stock of gold is about $4,000,000,000, of 
 which there is at present $3,068,000,000 in Europe. This three- 
 fcurths stock of the world is locked up principally in five nations, 
 and is not available for commercial use. One instance of this 
 (France) I have already noted. Gold is scarce and advancing in 
 
24 THE ROAD TO PROSPERITY. 
 
 London, premiums having been recently been paid for it, and there 
 is now anxiety among financiers in that city as to what can best 
 be done to supply the demand that exists to pay for the wheat, 
 cotton and other products supplied by the United States. It can 
 at present be overcome by the capitalists of this country loaning 
 gold to Europe, a9 we, not being yet on a gold basis, but in a tran- 
 sition state, can spare it, or if they have any securities t'hey desire 
 to sell at tempting prices, they can be sent here instead of the gold. 
 
 There are some other methods which they could adopt to 
 liberate gold for external trade. One of these is the keeping part 
 of the metallic stock of the Bank of England in silver as a reserve 
 against outstanding Bank of England notes. Or, the denomina- 
 tion of bank notes could be reduced to one-pound notes instead 
 of five. This would admit o'f a large quantity of gold being col- 
 lected from the rural districts. Whatever is done, one fact remains 
 at present, which is that available gold is very scarce, and it looks 
 as though some relief measures will have to be adopted if the 
 Bank of England is to continue paying specie. 
 
 Total Money of the United States. — We will further 
 examine this subject: As we have stated, three-fourths of the 
 existing stock of gold is in Europe; this leaves only about $1,000,- 
 ooopoo for the United States and the rest of the world. In this 
 country we have a total money stock of all sorts of $2,245,631,328. 
 Now, if Congress passes laws establishing a gold basis, making 
 this mass redeemable in gold, which is what capitalists desire, we 
 shall require more than the $1,000,000,000 of gold, which is at 
 present outside of Europe, and especially so if the Government 
 ceases to guarantee the circulating notes, as confidence in them 
 will be greatly shaken whenever the Government's responsibility 
 ceases. It matters not what safeguard may be thrown around 
 the nctes issued by banks, as all the banks combined are not half 
 as strong as the Government. If bank notes were issued, gold 
 would have to be held by banks as a reserve, so as to redeem 
 them when presented; this would necessitate, with other require- 
 ments, more than $1,000,000,000. Even if we could get on with 
 the $1,000,000,000 it would leave the rest of the world outside of 
 Europe and the United States without any, and I should like to 
 
THE ROAD TO PROSPERITY. 25 
 
 inquire how nations can be on a gold basis if they have no gold to 
 use, and where is there room for expansion of business, either in. 
 this country or the world, if cramped conditions 'exist, urgently 
 needing capital. 
 
 The United States Trying to Procure £1,000,000,000 in 
 Gold. — It would be an interesting as well as a serious spectacle, 
 to see this country, under the present financial idea of holders of 
 gold, trying to get possession of even the amount mentioned. 
 Last fall there was a comparatively small demand for gold for 
 hoarding in the United States, but as it was sufficient to cause a pre- 
 mium to be paid for it, how large a premium would holders require 
 if the $600,000,000 in this country was demanded for circulation, 
 and how would the remainder be obtained? The Bank of En- 
 gland has, as I have shown, a comparatively small stock of gold, 
 part of which represents its outstanding notes that are used 
 in the transaction of business. By law, as gold goes out of the 
 bank, notes have to be withdrawn from circulation, so that if it 
 were attempted to get much from that source, they would be 
 bound to protect it to keep their notes in use. Of course, they" 
 could and do spare some surplus for commerce. 
 
 I have already shown that France protects her gold, and 
 Germany, who has not got so much, does the same. Russia will 
 not part with any, being anxious to increase her holdings, and 
 the same is the case with Austria. Whence, then, are needed 
 supplies to be obtained? It is a well-known fact that outside of 
 the gold hoarded, the amount is comparatively small, and barely 
 sufficient for the present needs of commerce. Therefore, with 
 the exception of paying the balance of trade, it should not be re- 
 lied upon, and only such as is free for use should be depended 
 upon for internal trade. 
 
 No Gold Standard Country Yet Except England. — Trying 
 to force nations to a gold standard has not yet succeeded, nor is 
 it likely to succeed, though the effort has disturbed trade and 
 prices, forcing down the value of all kinds of products, both of 
 the farm and factory, and thereby ruining millions of persons in 
 all parts of the world. Monometallists have destroyed confidence 
 and stagnated business, and yet have not succeeded in establish- 
 
20 THE ROAD TO PROSPERITY. 
 
 ing a gold standard in a single country except England, where, 
 after much suffering, it was accomplished many years ago, and 
 then only because France and other countries remained on a bi- 
 metallic basis. Let us look at' the evidence given by Mr. Elijah 
 Helm, Secretary of the Manchester (England) Chamber of Com- 
 merce. He recently wrote in the National Review as follows: 
 "Not one of the great states which has attempted to adopt the 
 gold standard has yet accomplished it; not even Germany. A 
 large amount of the old silver thalers, estimated at about 23,- 
 000,000 pounds, possessing the attributes of legal tender without 
 limit at the full nominal value of three marks per thaler, is still in 
 existence. It is true that a law passed in 1876 gave power to the 
 Federal Council to declare the thaler legal tender to the extent of 
 only twenty marks, thus converting it into subsidiary coin, but this 
 permissive authority has not yet been exercised. Italy was 
 obliged to abandon the task almost as soon as it was well begun, 
 and Austria, after some years of preparation, is still struggling 
 on with the preliminary work. Japan has undertaken to solve 
 the problem of passing from silver to gold by coining a half- 
 dollar in gold, and making it. legal tender for a dollar. But even 
 this short path she has not yet begun to traverse, her government 
 having postponed to some undetermined date the demonetizing 
 of the present silver currency, although, with the aid of the Chi- 
 nese indemnity money, a considerable amount of gold is being 
 accumulated for the purpose. India set out upon the path toward 
 a gold standard four years ago, the coining of rupees having been 
 stopped on June 26th, 1893. Adopting the plan since followed by 
 Japan, the government of India hoped 1 to secure its object by 
 fixing the gold value of its money unit at very much less than its 
 gold par, fifteen rupees to the pound sterling, instead of ten rupees, 
 making the English equivalent is. 46. per rupee. But notwith- 
 standing that no more rupees have been coined, even this desider- 
 atum has not been attained, and the rupee is worth to-day only 
 is. 2 11-16 d. The attempt to establish a gold standard in India 
 has thus been a failure, and the abundant warnings that this would 
 be the result, which were given at the time by both monometal- 
 lists and bimetallists, have been amply justified." 
 
THE ROAD TO PROSPERITY. 27 
 
 If Attempt Were Made to Obtain Gold for India, It 
 Would Distui'b the Trade of the Whole World. — Mr. Lloyd, 
 editor of the London Statist, who is described as "one of the most 
 influential monometallists in the city of London," gives his opinion 
 as follows: "The interest of India would be best served by get- 
 ting rid of the present state of things. In the Chancellor of the 
 Exchequer's speech last year, already twice referred to, Sir 
 Michael Hicks-Beach very properly observed that India has now 
 an inconvertible and appreciated currency which cannot be re- 
 garded as either satisfactory or permanent. And every man who 
 understands the subject thoroughly agrees with the Chancellor 
 of the Exchequer. Every one is of accord that the present is only 
 a provisional state of things, and that India must either go back 
 to the silver standard as of old, or must follow the example of the 
 European countries and adopt a single gold standard. I will not 
 enter into an elaborate discussion to show that India is too poor 
 to adopt a gold standard, and that the attempt to acquire the 
 metal would disturb the trade of the whole world and add for- 
 midably to the difficulties of India. It is enough to say that if a 
 binding arrangement can be entered into between the United 
 States, France and India, it is at least possible, if not reasonably 
 probable, that a fixed par of exchange may be established. And 
 if a fixed par of exchange can be established, that is all that is 
 required for the prosperity of India. The advocators of the closing 
 of the mints argue with much force that India acting alone cannot 
 keep up the price of silver. But if the United States and France 
 were to also open their mints to the coinage of silver, the demand 
 for the metal would be so increased that we might reasonably 
 look for some material recovery in the price, and ultimately for a 
 steady range of value." 
 
 A Strong Monometallist Advocates Free Coinage of Silver. 
 — Mr. Lloyd says further: "If an arrangement could be made 
 between France and the United States on the condition that the 
 Indian mints should be reopened, I am sure we would adopt the 
 right course in the interest of India, and that in the long run the 
 Indian government would benefit from what would be an advan- 
 tage to its subjects." To create more metallic money, he says, 
 
THE ROAD TO PROSPERITY. 
 
 "As a monometallist, I see no objection to the Bank of England 
 undertaking to keep one-fifth of its metallic reserve in silver." 
 
 Canadian Notes Dependent Upon the Gold Reserve in the 
 United States. — Mr. F. J. Faraday, writing in the same Review, 
 on that model gold standard country of Canada, says: ''Indeed, 
 as a matter of fact, no one who inquires into the working of the 
 Canadian exchanges can fail to see that the Canadian monetary 
 system is really dependent on the gold reserve of the United 
 States Treasury, and that any rupture of American parity, or a 
 balance of trade or financial indebtedness seriously adverse to 
 Canada, would reduce it to a system of inconvertible and depre- 
 ciated paper." 
 
 Business A/en Should Favor Bimetallism. — Holders of 
 money may desire to double their money, and capitalists wish to 
 contract money to keep it dear, but business men and other people 
 who wish happiness and prosperity should strenuously oppose 
 their schemes. Do not let it be understood that I regard all those 
 in favor of the gold standard as wilful enemies of the people, as 
 T well know that many of them are as desirous of beneficial legis- 
 lation as I am, but most of them have not studied the question, 
 and others have beqpme mystified by the unjust epithets which 
 gold standard leaders have used, and by units, standards of values, 
 intrinsic value, etc., and they fail to comprehend what they are 
 doing, or what is best to do. 
 
 Considering the foregoing facts, it will be conceded that 
 bimetallism is absolutely necessary to supply sufficient metallic 
 money for the world, if it is to progress. 
 
 Report Upon the Agricultural Depression in England. — 
 The depression of agriculture in England has been so great that 
 a royal commission was appointed to inquire into the matter and 
 report the cause. They have just made their report, part of which 
 says: "We have no hesitancy in expressing our entire concur- 
 rence in the opinion that the present crisis in agriculture is due 
 primarily to the fall in prices." Why did they not add, which fall 
 in prices is due to the contraction of money. Their report says 
 further: "With reference to agriculture, it has been held by 
 several expert witnesses, who have appeared- before us, that the 
 
THE ROAD TO PROSPERITY. 23 
 
 export of agricultural products has been greatly stimulated by 
 the depreciation of the Argentine paper currency (based upon 
 silver), and that a similar cause has operated in favor of the pro- 
 ducers in Russia. It has also been maintained that the decline 
 in gold value of the rupee (which is silver) enabled the production 
 of wheat for export to be continued in India in spite of the fall in 
 the gold price of that cereal." Here the report makes a strong 
 argument in favor of bimetallism without the authors apparently 
 knowing it. If the price of silver advanced, wheat could not be 
 grown in India, Russia, and Argentine at so low a price as the 
 silver money paid for it would be increased in value. 
 
 Raise Silver Price and Wheat Will Advance and Aid 
 Manufacturers . — Merchants in Europe have been in the habit 
 of purchasing silver at the depressed price with gold, and taking 
 it to India and other silver using countries and obtaining with 
 it an excessive quantity of wheat and other products, which they 
 could not have done if the price of silver bullion had been main- 
 tained. Tins wheat, bought so cheaply, has competed with Amer- 
 ican and other wheat and brought down the price, and it is only 
 the famine hi India and short crops in other countries that has 
 given a respite to low prices. Another advantage of enhanced 
 prices 1 of silver would be that the value of the money they re- 
 ceived for produce being greater, those countries receiving it 
 would have twice its value to exchange again in the purchase of 
 manufactured goods. This would react splendidly upon Euro- 
 pean and United States manufacturers and merchants, as well as 
 upon producers of wheat. Raise up the price of silver by bimetal- 
 lism' and the price of products will be advanced; then agriculturists 
 all over the world will have money to spend, and this will cause 
 the wheels of commerce and manufactures to revolve briskly, and 
 labor to be universally and profitably employed. This will react 
 again and cause a greater demand for both silver and gold than 
 the mines of the world can supply. 
 
 No Over-Production of Factory or Farm. — With pros- 
 perity which bimetallism will create, it will be found that there 
 will be no over-production of factory or farm. Men now employed 
 on the farms will be recalled to the mines and to other works, as 
 
3 o THE ROAD TO PROSPERITY. 
 
 shown further on, to be consumers instead of producers. This 
 will tend to create an equilibrium of production. The agricultur- 
 ists, the miners and others will receive more money, which will be 
 expended in manufactured goods of all kinds. 
 
 Much of the increased money received will be returned to 
 the operatives of factories, and these revived industries would 
 affect others beneficially and prosperity would advance the wages 
 of all. These improved conditions will have a tendency to shorten 
 the hours of labor where excessive, which man will claim when 
 he can afford it. Through these processes, the gorged condition 
 of all industries will be relieved, and on account of the increased 
 incomes, women, children and the aged will be in position to be 
 exempted from arduous labor, which will react in making less 
 producers and more consumers, to the advantage of the capitalist, 
 the banker, the property holder, the railroads and all the people. 
 
 Foreign Trade Requires Less ]\Ioney than Internal Trade. 
 — As I have stated, notwithstanding the large yield of the 
 mines, available gold remains scarce. Some one may re- 
 mark that England does an enormous amount of trade all over 
 the world, and does not find much difficulty in procuring sufficient 
 gold for her requirements, to which I reply that foreign trade 
 takes comparatively a small amount of money compared to the 
 bulk of business, or compared with the amount needed for the 
 internal trade of countries. For example, if English merchants 
 sell to Egyptian merchants $5,000,000 worth of goods, and buy 
 $5,000,000 of products, no money is needed to pass between the na- 
 tions, because of exchange banks, who exchange drafts, and no 
 money is needed to settle the account. And again, if United States 
 merchants buy in South America $10,000,000 worth of coffee, hides 
 or other products, and sell $10,000,000 worth of wheat, corn and 
 other products to merchants in England, and the English mer- 
 chants sell $10,000,000 worth of manufactured goods to South 
 America, the drafts to settle the account can be exchanged in 
 London, and no money is needed. If there is a small difference 
 in the amount, exchange banks in the different countries carry 
 it, but when the balance is large, gold is shipped to liquidate the 
 indebtedness, so that by the explanation given it is very evident 
 
THE ROAD TO PROSPERITY. 31 
 
 that a large foreign trade can be done on the comparative small 
 amount of gold that is available. 
 
 Result on Foreign Trade if the United States Adopts 
 Free Coinage. — Now let us consider what the result will be if 
 the United States adopts free coinage of silver. It will enable our 
 manufacturers to go to India and sell their goods and accept in 
 payment any silver bullion they may have to spare, because 
 when brought here it can be coined into money, and when India 
 reopens her mint to silver, merchants can take silver bullion there 
 to pay any trade balances; this will enable them to undersell the 
 English, and secure a market which is now supplied by them and 
 other European countries, as there will be no need to purchase 
 gold to pay any balance due. The same would occur in Japan if 
 she desires to part with her silver bullion in exchange for goods. 
 Of course our merchants would not accept their silver except in 
 exchange for goods. The same would be done with Mexico and 
 the South American countries ; silver bullion would be exchanged 
 for our manufactured goods, thereby opening to us the immense 
 markets of the world, and what prosperity this would cause in this 
 country! The balance of trade would then be settled with these 
 South American countries instead of being settled in the present 
 triangular manner, as explained. 
 
 Our Products Would Be Sold to Europe for Gold, Which 
 Would Drain Her and Force Free Coinage of Silver. — In the 
 matter of our selling our products to Europe, that would go on 
 just the same as it does now. Europe cannot do without our 
 wheat, corn, cotton, oil, meat and other products, unless her peo- 
 ple are to starve and the mills to atop. These products will be 
 sold for gold, as buying and selling between the United States 
 and Europe would be on a gold basis. This would cause the 
 balance of trade, which is now largely in our favor, to be greatly 
 increased, which would cause the United States to speedily drain 
 Europe of the surplus gold she has, and would endanger specie 
 payment at the Bank of England, where the available gold is 
 comparatively small. This may be considered Utopian, but there 
 will be found much wisdom in it. 
 
 The balance of trade for July and August was $66,000,000 
 
32 THE ROAD TO PROSPERITY, 
 
 in our favor, which is now due, and September is greatly in our 
 favor. If we then adopt free coinage of silver, it will, under tri2 
 present entertained gold sentiments, cause gold to be much more 
 tightly held and hoarded both in Europe and in this country, 
 which would be another trouble for Europe and especially En- 
 gland, which country is more on a gold basis than any other, 
 and where gold is more get-at-able. The increased scarcity cf 
 gold caused by this drainage, and the extra amount they would 
 have to pay us for the silver bullion, which they would have to 
 purchase, would make such an increased demand for gold that 
 it would hasten the free coinage of silver, if it did not immediately 
 force it in Europe. Likewise, the trade which Europe has been 
 enjoying with South America and the East would be disturbed 
 by the free coinage of silver in the United States, and would im- 
 mediately cause Europe to consider the desirability of establishing 
 bimetallism and using more silver. This France is anxious for, 
 and it is probable she would open her mints to silver, as soon as 
 such a strong ally as the United States took the lead in this cru- 
 sade against the gold craze, which was started twenty-five years 
 ago. If free coinage caused gold to be held more tightly for a 
 time in this country and Europe, it need not affect business in 
 this country at all, as gold is very little used here except to hoard, 
 and to hold in financial institutions as a reserve fund. 
 
 The Bankers' Convention and the Unit. — At the Bankers' 
 convention, held during the third week in August of this year, 
 at Detroit, Mich., a well-known banker read a paper in which he 
 said: "What is the value of our unit? Permanent prosperity 
 cannot be ours while the value of our unit is open to doubt. It is 
 essential that we should define once for all the meaning of the 
 word dollar. Is it a gold dollar, a silver dollar, a treasury note, a 
 greenback, or a national bank note? This question must be an- 
 swered. Each of the three dollars has a different intrinsic value; 
 credit to-day keeps them at par." As these are the usual senti- 
 ments of bankers, and as there did not seem to be a response, I 
 will answer the question and say that the United States "unit" is 
 "one" dollar, made according to a formula agreed to a hundred 
 years ago, and composed of either gold, silver or paper; they 
 
THE ROAD TO PROSPERITY. 3.3 
 
 have the same intrinsic value when made up into dollars, which 
 value they retain while they remain in the dollars. If the stamp 
 on them is destroyed, then the material of which they are com- 
 posed receives another value, just as the metal does if you disin- 
 tegrate it, but if the silver or gold is remelted and restamped, it 
 becomes dollars again. The United States fiat has made them 
 par, notwithstanding the material of which they are made, and it 
 keeps them at par wherever the Government has authority, and 
 even where the government has no authority; say, in England, 
 banks are ready to exchange any of them for English money at 
 a. small exchange charge. What, then, has the intrinsic value of 
 the material of which they are composed got to do with their cir- 
 culating value? What business men and the people desire is 
 plenty of 'them in circulation, and then "permanent prosperity" 
 will not wait to criticise the material of their construction. 
 
 With Free Coinage Will the Quantity of Silver Affect the 
 Composition of the Dollar? — Some persons may remark that if 
 we give free coinage to silver, there will be such a large amount 
 coined that the matter of composition would then enter into ac- 
 count. This I deny, unless the government went back on its own 
 money as it did when it refused to receive the greenbacks and 
 trade dollars for duties. In these instances it depreciated its own 
 currency. As the balance of trade is in our favor, i. e., other 
 countries are owing the United States year by year more than 
 the United States owes them, the balance will be paid us in gold, 
 and as the balance is likely to continue in our favor for some 
 years at least, and ought to be in our favor constantly, and will 
 be so if wise leaders prevail who adopt free coinage of silver, how 
 can our currency depreciate, no matter what it is made of? Re- 
 member we are now speaking of internal trade. We have pre- 
 viously disposed of trade with other nations. 
 
 If Silver Is Coined Free, Will Gold Go to a Premium ? — 
 It may be asked, if we have free coinage of silver in this country, 
 would not gold go to a premium at once? I reply that a premium 
 would likely be paid for gold by some people who desired to hoard 
 it, but it could not go to a premium in general trade. It might re- 
 main out of use for a time for internal trade in the United States, as 
 
34 
 
 THE ROAD TO PROSPERITY. 
 
 it is practically now, and until the holders desired to put it into use 
 or obtain interest for it; then, whenever much came out of hiding, 
 the hoarders would find that it would only buy the same amount 
 of goods that silver or paper would buy. Monometalhsts say 
 that if free silver is adopted in this country Europe will drain us 
 of our gold, but they fail to tell us how that feat is going to be 
 performed. How can they get the $600,000,000 of gold which is 
 in safety vaults and banks in this country, until the owners desire 
 to part with it? If Europe sends securities here and desired to sell 
 «hem at a low price, some of the gold may be exchanged for 
 them, which would be a blessing, as it would circulate gold and 
 save interest to this country. 
 
 France, which is on a bimetallic basis, and pays silver when- 
 ever the Bank of France desires it, is a standing rebuke to those 
 who affirm that the United States currency will go to a discount 
 if free coinage of silver is adopted. The Government having 
 created gold, silver and paper at par, they would remain so not- 
 withstanding that some people might prefer to save gold dollars, 
 but that would not alter their value. They would remain 100- 
 cent dollars, and not 53- 5° or 45 cent dollars, which is impossible, 
 and they would remain at par. 
 
 Dishonest W/^.-Those persons who talk about dishonest 
 dollars from the evidence I have furnished prove themselves de- 
 ceivers, and are either ignorant or wilfully wicked. Some of those 
 same persons use the term "sound money," so I would recom- 
 mend them to advocate that dollars be made of bell metal, as 
 that has more "sound" in it than either of the metals now used 
 
 " ^wlySuZ "Dollars and Currency in Mexico an* Argentina 
 Has Depreciated.-^ will naturally be inquired why the silver 
 ' dollars of Mexico and South America are not worth as much as 
 the gold dollars, and why their currency is depreciated, lne 
 reasons are that the countries mentioned are poor; they have not 
 the rich agricultural products and mining products that we have, 
 hence manufacturing is comparatively small. Their imports have 
 been of greater value than their exports, which exports have con- 
 sisted of agricultural products and silver, all of which have been 
 
THE ROAD TO PROSPERITY. 35 
 
 much reduced in price. These countries have gone heavily into 
 debt and borrowed money to build railroads, equip them, and 
 make many other internal improvements. The interest on their 
 debt has to be paid in gold, which is scarce with them, and they 
 have become like those persons referred to in the old adage, "The 
 borrower is a slave to the lender," and the lenders are in position 
 to dictate severe terms. 
 
 The Argentine Republic an Example Compared with the 
 United States. — Let us look at the instance of Argentina, a 
 country which has shipped more agricultural products than 
 others, yet whose currency is of the least value. The Argentine 
 Republic has a sparse white population of about 4,000,000, mostly 
 of the lowest class of Europeans, who have borrowed more than 
 $128,000,000 of money, besides other large amounts borrowed by 
 the city of Buenos Ayres and other cities. Railroad material of 
 every description has had to be imported, as> well as the fuel used. 
 A good portion of the money borrowed was stolen by political 
 parties, who came into power by successful revolution. The inter- 
 est of these debts has to be paid in gold, a metal they do not 
 possess. There is no iron ore, coal or any other fuel within the 
 reach of civilization, and of course there cannot be manufactories 
 of any kind except such as are run at great expense by coal im- 
 ported principally from England. As there are no forests, the fuel 
 used in cooking is principally the dung of animals. The people 
 being very poor, all the exports and imports have to be handled 
 by capitalists, whose tender mercies seem heartless. Needy bor- 
 rowers of money are often charged 100 per cent., or more. Is 
 there any wonder, then, considering the circumstances, that their 
 money is at a discount? How very different is it with the people 
 of the United States, who own the richest country on the face 
 of the globe. They have great wealth in agricultural products, 
 inexhaustible mines, yielding gold, silver, coal, iron, copper and 
 all kinds of metals; manufactories working up all kinds of mate- 
 rial, and more than seventy millions of the most intelligent and 
 industrious people on earth. Are these people, who have such 
 stores of wealth, to become cringing sycophants to a few capital- 
 ists, asking them how much silver they may use for internal trade, 
 
36 THE ROAD TO PROSPERITY. 
 
 and whether they may keep it at a parity with gold; or, are they 
 to become noble descendants of the men of Revolutionary fame, 
 and say to the world that we will have a currency of our own 
 without any dictation from England or from Europe. Are these 
 people to lead other nations, or are they to submit to being led 
 and to be compared to the poor countries just described? 
 
 If the Free Coinage of Silver Is Established in the Utzited 
 States, Will More Silver Be Sent Here than Can Be Success- 
 fully Used? — To this question I answer emphatically, no; all 
 sent here can be absorbed in circulation, and this will create pros- 
 perity. The United States mints are now busily engaged in coin- ' 
 ing the silver bullion bought five years ago into silver dollars, as 
 the supply of them is exhausted, and there is not nearly enough 
 money in circulation or in the agricultural districts to do the busi- 
 ness of the country in a proper manner, which shortage is crip- 
 pling business. Well-known authorities assert that there is not 
 one dollar per capita in circulation in some Southern States. 
 Money in some sections is so scarce that barter has to be resorted 
 to. The New York Journal of Commerce, a gold standard paper, 
 commenting on the subject, remarked as follows: "Mr. Reed 
 said that we needed more capital in this country, as to which we 
 had supposed there would be no controversy in view of the vast 
 extent of our still undeveloped resources." A proof of the scar- 
 city of money is the high price which is charged for it in most 
 parts of the country. In many cities and towns 7, 8 and 10 per 
 cent, is the usual charge for merchants' discount, while most agri- 
 culturists cannot obtain it at any price, though they have reason- 
 able securities. A large number of merchants and manufacturers 
 have much greater difficulty in obtaining loans and discounts 
 now than they had two years ago, notwithstanding the assertion 
 that in New York and the East, money is so abundant and cheap 
 that often only about 1 per cent, can be obtained for it, but it looks 
 like policy on the part of capitalists to quote these low prices,, 
 which can only be obtained by themselves on stock securities; 
 loans on the same class of securities in other cities can only be 
 gotten at rates of interest ranging from 5 to 8 per cent. 
 
THE ROAD TO PROSPERITY. 37 
 
 A Leading- Banker Acknowledges the Scarcity and the 
 Exorbitant Interest Rate. — Mr. J no. P. Branch, president of the 
 Merchants' Bank of Richmond, Va., in a paper read before the 
 Bankers' convention this year at Detroit, said: "The farmer de- 
 mands currency to make and market his crops ; the solvent farmer 
 justly complains that the credit he obtains is often at an exorbi- 
 tant rate, and that frequently he canot obtain currency at any 
 price." 
 
 Mr. Branch might have enlarged the number and included 
 many other people who are entitled to fair credit, but who can only 
 obtain it at exorbitant rates, and often not at all. How bankers 
 and capitalists can expect prosperity under such circumstances is 
 more than I can comprehend. 
 
 A Leading Republican Statesman's Opinion. 
 
 The Hon. Joseph H. Walker, member of Congress from 
 Massachusetts, chairman of the Banking and Currency Com- 
 mittee of the House of Representatives, who is a strong mono- 
 metallist wrote recently to the editor of the Boston Herald about 
 the National Bank Act, as follows: 
 
 "That the losses to our people in normal business conditions 
 under the law aggregate much over $50,000,000, and nearer $75,- 
 000,000 per annum, is as susceptible of proof as that the night 
 follows the day. 
 
 "It can be proven that the purchasing value of the wages or 
 income of every man in this country is reduced by nearly 1 per 
 centum per annum by our faulty banking currency and treasury 
 system. 
 
 "That this law is crushing the very life out of enterprises and 
 normal success in many agricultural and higher-interest localities, 
 in excessive interest rates, is susceptible of incontestable mathe- 
 matical demonstration. 
 
 "That the demand for a reform of the inequalities, the hard- 
 ship and the oppression of this law in the Northeastern States is 
 now no bigger than a man's hand is also true. 
 
 "That before or in 1900 this cloud will be developed into a 
 storm that will sweep the party that dallies with, instead of cor- 
 
38 THE ROAD TO PROSPERITY. 
 
 recting, the evils complained of with the besom of destruction, is 
 believed by those deeply studying the signs of the times." 
 
 It is to be hoped that a peaceable revolution will take place 
 and improved methods be soon inaugurated, which will create a 
 greater circulation of money, confidence and prosperity. 
 
 Restoration of Confidence Depends on the Removal of the 
 Cause of Want of Confidence. — From the many promises of the 
 gold standard people, which have not been fulfilled, it would be 
 proper to imagine that restoration of confidence depended upon 
 some minor event taking place, instead of knowing that confi- 
 dence is based upon well-known facts. If good-principled per- 
 sons are in affluent circumstances or making money, there is 
 basis for confidence, for credit or loans, and this can be obtained, 
 though the rate may be high through scarcity; but if it is believed 
 that those same persons are losing money by their businesses or 
 enterprises, confidence will be shaken and hard conditions, will 
 result. Events have transpired since 1893 which have caused 
 manufacturers and merchants to lose money, competition to be 
 severe, profits to be reduced, and business to be in a languid 
 state; hence confidence in thousands of firms and men is shaken, 
 which cannot be restored until their circumstances are improved 
 by the removal of the causes. The adverse results were in re- 
 sponse to the serious curtailment of money and attacks on silver 
 and Government notes, which must change before confidence 
 can be restored. 
 
 If Prosperous Times Are to Come and Remain, $30 Per 
 Capita Must Be Circulated. — A permanently enlarged circula- 
 tion of money, to maintain a fair interest rate and a reasonable 
 supply for merchants, manufacturers, miners and agriculturists, 
 requires a circulation of $30 per capita. We had in 1896 a circu- 
 lation of about $21.10 per capita. Nearly a third part of this is in 
 gold and is practically locked up, and a great part of the remainder 
 is in New York and New England cities, so that amount by no 
 'means represents the circulating medium of the country. In 
 1892 the circulation was $24.44 P er capita; in 1894 it was $24.28; 
 in 1896 it was reduced to $21.10. What is urgently needed is an 
 enlarged circulation to $30 per capita, which should be main- 
 
THE ROAD TO PROSPERITY. 
 
 39 
 
 tained at that ratio, and made permanent, if necessary, by a con- 
 stitutional amendment. 
 
 The Per Capita of Circulation of Other Nations. — France 
 in 1896 had a circulation of $35.77 per capita; Belgium, $27.82; 
 Australia, with her sparse population, $25.96, and we certainly, 
 with our manufacturing, commercial and farming needs, could use 
 successfully $30 per capita, which amount would set in motion 
 and maintain at fair speed the industrial wheels of the nation. 
 These favorable conditions would keep interest charges at a rea- 
 sonable rate, and aid in developing trade and our resources. 
 
 Frenchman— We have a circulation of $3577 per capita, which keeps 
 us in a fair state of prosperity, all classes being employed. 
 
 Belgian — Our circulation of $27.82 is barely sufficient, yet on the 
 whole it suffices to maintain manufacturers in active employment. 
 
 Australian — With our sparse population and small manufac:ures we 
 managed to get along with $25.96 per capita. 
 
 Uncle Sam— I confess that our reduced per capita to $21.10 has stag- 
 nated all enterprises, which cannot improve until much more money is 
 circulated. 
 
 Distribute the Increased Circulation in the Rural Districts. 
 — This increase of $9 per capita would put into circulation an ad- 
 ditional $630,000,000, part of which, say, $500,000,000, should be 
 distributed in the rural districts on much needed public works, 
 where it would do the greatest amount of good. The mode of 
 
40 THE ROAD TO PROSPERITY. 
 
 distribution is explained under the heading, "Make good roads 
 and create general prosperity." The remainder could be used 
 to pay off some of our bonds and save interest charges. 
 
 The Production of the Silver Alines and Source of Supply. 
 — To obtain the $630,000,000, it would be necessary for the Gov- 
 ernment to issue about $500,000,000 more greenbacks for present 
 use. These could be gradually retired, as free silver was coined to 
 take their place, so as to keep the circulation at $30 per capita. 
 The amount of production of the silver mines of the world for the 
 years 1892, 1893 and 1894 was an average of $209,883,996 of 
 coinage value, since which time the yield has been reduced, par- 
 ticulars of which I have not got. The United States produced in 
 coinage value $74,558,960, or more than one-third of the whole; 
 Mexico, $56,417,300; Bolivia, $19,974,366; other South Ameri- 
 can states, $12,788,167; Canada, $621,366; Europe, $21,320,244; 
 Australia, $22,416,800; Japan, $2,404,966. According to these 
 reports, North and South America produced nearly eight-tenths 
 of the silver of the world, and the much dreaded Europe, which 
 it was said was going to flood us with silver, produced only one- 
 tenth. 
 
 The Money Stock of Gold and Silver in the World. — The 
 stock of money in the world in July, 1896, was: Gold, $4,068,- 
 000,000, and silver, $4,070,500,000, only a difference of $2,500,000 
 between them. Nearly one-half of the $4,070,500,000 silver 
 money is in India, China and the East. France, who is on a bi- 
 metallic basis, has $487,900,000 in silver coin, and the rest of 
 Europe, including Russia, which embraces so much of Asia, has 
 $885,900,000. Now remember that this is their stock of silver 
 coin money with which they are doing business, and which is 
 worth from 15 to 15^ to 1 of gold all over Europe and Asia, so 
 that silver coin is dearer there than it is here. Is it likely, then, 
 that the nations using that silver money are going to close up 
 business in order to send it to the United States to get it coined 
 at a loss into United States money? 
 
 Indian Famine. — I have previously mentioned .that India 
 and Japan might exchange silver for goods. India could only 
 spare silver because of the devastating famine that has prevailed 
 
THE ROAD TO PROSPERITY. 41 
 
 over a district the size of almost half the area of the United States 
 which lamentable affliction has caused several millions of deaths. 
 It is partly on account of secret adverse influences which have 
 been at work and the Indian famine that the demand for silver 
 bullion was reduced, which caused the decline in price. The 
 starving people of India, through sheer necessity, may part with 
 some of their much loved silver, but as soon as their present 
 troubles are over, they will demand immense quantities of silver 
 for their shrines, idols, ornaments and to hoard. 
 
 The Silver Coinage of Nations. — We have to deal with an 
 annual production of the mines of the world of about $210,000,000 
 worth of silver. The coinage of nations on an average for the 
 last twenty-two years has been of silver $125,291,955 per annum. 
 The last report that I have is for 1894, at which time the Indian 
 and United States mints were closed to silver, yet during that 
 year there was coined by the nations of the world $113,095,788 
 worth of silver. Manufactures and the arts require more per 
 annum than $50,000,000, so that if the mines yielded an additional 
 $20,000,000 per year, more than they have done, which is not 
 likely, we would only have about $60,000,000 worth of silver coin 
 to absorb each year, which this nation could easily and advan- 
 tageously do. 
 
 It Would Take Ten Tears to Supply Our Increased Needs. 
 — More than ten years would elapse before the demands for the 
 per capita circulation were supplied, even if other nations did not 
 desire or were not forced to adopt free coinage of silver, through 
 protection to themselves and to counteract the inroads made into 
 their trade by the United States in silver using countries. In 
 this calculation, no allowance is made for increase in population 
 and the extra demands of other nations. 
 
 No Difficulty Would Have Arisen if the Sherman Act Had 
 Established Free Coinage. — When the Sherman Act was passed, 
 it was thought that the purchase of about $50,000,000 worth of 
 bullion per annum would absorb the surplus silver and keep it at 
 par, which it certainly would have done if a different course had 
 been adopted. The act authorized the Government to purchase 
 silver instead of merely to coin it, the latter being all that a govern- 
 
42 THE ROAD TO PROSPERITY. 
 
 ment should do. The Secretary of the Treasury- was not in favor 
 of silver, and as he was the largest buyer, he had the power to 
 depress the price, which power he exercised. The act stated that 
 he was to buy 4,500,000 ounces per month, which he did not 
 always do unless he could get the price down to suit his own 
 ideas. He was constantly a bear, and his method of advertising 
 for offers would naturally cause those who had silver to sell to 
 offer it under the market price, especially if there was a little 
 more than 4,500,000 ounces on the market per month; whereas 
 free coinage would have absorbed it all and have kept up the 
 price. 
 
 The Quantity Did Not Go Into Circulation. — It may be 
 remarked that the quantity purchased by the Government did not 
 go into circulation. This could hardly be expected, as sellers of 
 silver bullion received silver certificates in exchange, and as they 
 were more desirable and as valuable as coin, holders did not care 
 to be at the trouble of exchanging them for silver dollars. When 
 free coinage of silver is adopted, the only duty of the Government 
 will be to coin it; the distribution of the dollars will be with the 
 mine owners and others who send the bullion to the mint. 
 
 How Silver Will Be Circulated. — The distribution of silver 
 dollars will be accomplished by purchasing goods, paying wages, 
 etc. If mine owners of other countries send their silver to the 
 Government of this country to have it coined, it will devolve on 
 them to circulate the dollars, and not on the Government. This 
 the owners can do by making purchases of manufactured goods, 
 and this would help to make prosperous times in the United 
 States. 
 
 Simultaneous Free Coinage Desirable. — If free coinage 
 could be adopted in this country, Europe and India simultane- 
 ously, it would be more desirable than by this country alone. 
 Capitalists may try to appease the people and try to defeat free 
 coinage by allowing the Government to send representatives of 
 this Government to confer with European governments about the 
 matter of free coinage, but an agreement will hardly be reached 
 unless the scarcity of gold forces them into it. The expansion 
 of money is entirely too serious for capitalists to contemplate, 
 
THE ROAD TO PROSPERITY. 43 
 
 and the idea of European governments being willing to pay 
 double the price for silver bullion, which they are compelled to 
 buy for coinage purposes, if they can evade it. Are they likely to 
 desire to lose this large revenue? Are the English, European 
 and Indian governments ready to lose the large income derived 
 from buying silver bullion at a low price, minting it into money 
 and issuing it at double the price unless other reasons make it 
 desirable? 
 
 If 7"oo Much Silver Is Dreaded, Send Representatives ot 
 the Mine Owners. — The policy of this Government should be, 
 if it dreads an over-abundance of silver money among the people 
 (which, however, there is no reason for fear), is to send representa- 
 tives to the mine owners of the United States, Mexico and South 
 America, and endeavor to restrict silver mining for a time, so as 
 to bring the price of silver bullion up to a par with gold. Then 
 European bimetallists might more easily overcome the objections 
 of their governments and capitalists. The Republican policy of 
 protection has not yet been extended to the large industry of silver 
 mining, lest the abundance of money should cause capitalists to 
 lose their grip on the large tribute which they are able to exact 
 from the people. But if the price of silver were advanced, through 
 free coinage or temporary curtailment of the supply, the enlarged 
 amount of gold received from Europe for silver bullion would be 
 very great, and aid prosperity materially in various ways. 
 
 Gold Is Not Necessary to Pay the Government Obligations. 
 — Perhaps some readers may assert that it is necessary that the 
 Government should receive gold to pay the bonds off, and to 
 keep up a parity between the metals. To the first of these I an- 
 swer that all the bond obligations of the Government are made 
 payable in coin, at the option of the Secretary of the Treasury. 
 When the last $100,000,000 worth of bonds was issued, Presi- 
 dent Cleveland and Mr. Carlisle entered into an arrangement 
 with Mr. Belmont, representing N. Rothschild & Co., of Europe, 
 and J. P. Morgan & Co., of New York, for gold in exchange. 
 
 The arrangement was that if Mr. Cleveland could induce 
 Congress to alter the word "Coin" and insert the word "Gold," 
 they would reduce the interest from 4 per cent, to 3 per cent., 
 
44 THE ROAD TO PROSPERITY. 
 
 which would save this country $16,000,000. The President urged 
 Congress to do this in a special message, which Congress, after 
 deliberation, refused to do, and reaffirmed that our obligations of 
 bonds are payable in either gold or silver, at the option of the 
 Secretary of the Treasury. Notwithstanding the reaffirmation, 
 the gold policy has been pursued, and it is this that has brought 
 on the present stagnation in business. 
 
 The Credit of the Government Must Be Sustained. — As 
 the gold standard people say it would injure the credit of the 
 country to pay silver, we will consider a case: If a merchant 
 took a note to a bank to be discounted, and the bank said, If you 
 will make this note payable in gold we will charge you 6 per cent., 
 but if you make it payable in coin or currency we will charge 
 you 8 per cent. If the merchant said he would make it payable in 
 coin or currency and paid the 8 per cent., would it injure his 
 credit if, when it became due, he paid it in coin or in currency? 
 Honest men say it would not, as he had paid extra for the privi- 
 lege of paying in currency, and every fair-minded man will be 
 satisfied that we are acting honorably if we pay some silver for 
 our obligations, notwithstanding what capitalists and their tools 
 say. 
 
 The Exchanging of Money Is A r ot the Government Busi- 
 ness. — To the second objection I remark that it is no business 
 of the Government to exchange money with a view of keeping up 
 a parity. The exchange of money is a banker's business, and the 
 Government should go out of the banker's business. The stamp- 
 ing and issuing of money, whether it is gold, silver or paper, is 
 the business of the Government, and bankers should go out of 
 the Government's business, and then there will be n j clash. 
 
 Parity. — The coins themselves will keep parity without any 
 difficulty unless the Government interferes and discredits its own 
 issues, as it did when it refused to accept greenbacks and trade 
 dollars which it had issued. I illustrate this by inserting the fol- 
 lowing comparison, slightly altered, which I used last fall: Two 
 reservoirs were filled by two different streams, which had their 
 origin in different parts of the country. One of these streams 
 was called the gold stream, and the other the silver stream. The 
 
THE ROAD TO PROSPERITY. 
 
 45 
 
 reservoirs which these streams filled were kept to supply the 
 wheels of commerce. To keep up a parity and constant supply, 
 a pipe was fixed which communicated with both reservoirs, so 
 that if one stream ran low, which was sometimes the case, the 
 other stream supplied the deficiency, and the reservoir remained 
 at the same level, or on a par. This arrangement worked well for 
 hundreds of years, and there was a uniform power, but after a 
 
 Illustrative of the full employment and busy times which will prevai 
 when the reservoirs are again fully connected by the repair of the bi-metal- 
 lic free silver pipe, which will furnish sufficient power to run all the activi- 
 ties of the nation. 
 
 time this connecting pipe was partly cut, and the supply to the 
 wheels of commerce began to be fitful and deficient, and the 
 people employed were often out of work, because as one reservoir 
 was partly out of use, and the supply from the other was choked, 
 there was not sufficient power to turn the wheels except very slow- 
 ly. For this reason the people demanded that the connecting pipe 
 be repaired, and that both reservoirs be used to supply fully the 
 wheels of commerce that there might be constant employment. 
 The streams at present are both running heavily and the reser- 
 
46 THE ROAD TO PROSPERITY. 
 
 voirs are well filled, but as those in power will only let out a small 
 quantity, the wheels of commerce are nearly at a standstill, but 
 after the free coinage bimetallic pipe is repaired, a full supply will 
 be turned on, and this will cause plenty of employment for all the 
 people, and they will rejoice in prosperity. 
 
 Gold Standard People Rejoice that a Great American In- 
 dustry Is Depressed. — A good many gold standard newspapers 
 and persons have seemed to rejoice that silver has declined and 
 that wheat has advanced. Are such papers and persons wise and 
 consistent? Silver mining is a great American industry, in which 
 hundreds of thousands of people are employed in its various rami- 
 fications; should it not then be the duty of true patriots to aid in 
 advancing the interests of this country, one of which is silver 
 mining? Growing wheat is another great interest, and we are 
 right in rejoicing at its advance in price, as it is justly looked 
 upon as one of the great levers that is to aid in the cause of pros- 
 perity, and if one product can do such an amount of good, how 
 much good would be done if all the products were advanced in 
 price? To use a common expression, would we not then be in 
 clover? These increased prices would require more money in 
 circulation, and when we get it, prices will advance whether 
 foreign harvests fail or not, and the millions of suffering persons 
 will then be able to get enough to eat and wear through obtain- 
 ing plenty of employment at good wages. 
 
 Universal Demonetization of Silver Dangerous. — At the 
 Monetary Conference held in Paris in 1878, the members there 
 assembled considered the silver question, and agreed and affirmed 
 the universal demonetization of silver by nations to be dan- 
 gerous and against the interest of all, and yet our gold standard 
 men of the present day desire to force it rashly through without 
 considering the consequences, and without even waiting for a 
 single nation to perfect the gold standard plan, which in practice 
 is found impossible. Are such inconsiderate men suitable for 
 leaders? 
 
 Reasons Why the Price of Silver Has Declined. — There 
 appears to have been for several years a conspiracy of capitalists 
 who have determined to destroy silver as legal tender money. I 
 
THE ROAD TO PROSPERITY. 4 7 
 
 have already proved this by exposing several attacks which have 
 been made. I will further evidence it by the Encyclopedia Britan- 
 nica, a work which cannot be considered as favoring the free coin- 
 age of silver. It says: "The result of close investigation, to 
 which all aspects of the question were subjected, was to show 
 that the increased production of silver was only a minor element 
 in causing its depreciation." Referring to the late reduction in 
 price. President Diaz, of Mexico, in opening Congress, said: 
 "The magnitude and sudden character of the present perturbation 
 in silver certainly does not correspond to the known causes which 
 have produced it, and therefore there are well-founded motives 
 for expecting that the factors, more or less artificial, which may 
 have had. an influence in the decline of silver, will be of short dura- 
 tion, and may even soon bring about a favorable reaction." 
 
 The widespread famine in India afforded an opportunity of 
 late for a basis of attack upon the price of silver, as it lessened the 
 demand to a large extent; likewise, the announcement that Japan 
 had yielded to the pressure brought to bear upon her, and had 
 decided in favor of a gold basis. 
 
 A Leading- Monometallist Furnishes Strong Reasons In 
 JFavor of Bimetallism. — The London "Statist," a leading Euro- 
 pean financial paper, the editor, though a stalwart gold mono- 
 metallist, unwittingly furnishes fine arguments in favor of bi- 
 metallism and the free coinage of silver. Speaking about the 
 drain of gold from London, he says in his issue of August 14th, 
 1897, "The United States are buying large quantities of their se- 
 curities in Europe, and these purchases will help to pay for the 
 expected large shipments of produce. Money in New York is 
 now extremely plentiful and cheap, and there is no inducement 
 in the way of interest to attract gold to the other side. Last year, 
 it will be remembered that money was exceedingly dear and 
 scarce, and gold was sent to relieve the stringency, and to place 
 financial houses in a strong position against eventualities. Al- 
 though it is probable, as we last week showed in our wheat article, 
 that Europe this year may require to purchase an unprecedented 
 quantity of wheat from the United States, yet it may be found 
 that not much gold will be taken in payment. At the same time 
 
48 THE ROAD TO PROSPERITY. 
 
 it is necessary for bankers to take precautionary measures, for 
 were money to remain a drug, or interest rates low, in London, 
 there will be a greater inducement to take gold than if the value 
 of money here is as high or higher than in New York. The action 
 of the Bank of England directors this week in taking over a mil- 
 lion pounds in gold off the market by realizing on some of its se- 
 curities is therefore to be commended, as by raising the value of 
 money, at the moment, it may diminish the gold drain. At the 
 present moment, the reserve in the Bank of England stands at 
 £24,000,000 ($117,120,000), exclusive of the amount reserved to 
 guarantee Bank of England notes. Were we to lose even three 
 or four millions of gold, it would have a most marked effect upon 
 the credit of this country (England), which has so increased dur- 
 ing the last few years of easy money conditions. 
 
 "It is, however, possible that some gold may be sent to 
 Japan, which, as we have recently shown, has the power to draw 
 on London to the extent of at least £4,500,000 ($21,600,000). 
 Further, Russia and Austria continue their policy of accumulat- 
 ing gold, and are buying all arrivals from the mines, which might 
 overwise be utilized to meet the demands for the United States. 
 Indeed, this week a small sum has been taken from the Bank of 
 England. Consequently, it is of the utmost importance that pre- 
 caution should be taken in time to avert the gold drain, which 
 might occur with abnormally cheap money in London. 
 
 "The Bank of England, during the week ended Wednesday, 
 disposed of £1,144,000, of its "other" securities. The reserve now 
 stands at £24,411,000, which contrasts with £36,462,000 at this 
 time last year." So the Bank of England holds $58,000,000 less 
 gold than it did last year, notwithstanding the large yield of the 
 gold mines. Gold is scarce in London, and New York has the 
 power to become the leading financial city. The foregoing coin- 
 cided with the opinions I have previously expressed, that gold 
 is scarce, and that fact is causing anxious thought in England and 
 elsewhere, which leads me to say that if our capitalists were wise 
 they could, by a coup de maitre, make New York the leading 
 financial city of the world, i. e., if they would collect gold from 
 Europe which is due this country, and establish free coinage of 
 
THE ROAD TO PROSPERITY. 49 
 
 silver, they would be able to set free the gold of this country to 
 loan in other parts of the world, which, if loaned, would bring 
 interest here. The balance of trade in July and August, 1897, was 
 in favor of the United States to the extent of $66,000,000, of 
 which only about $8,000,000 has been received, in the shape of 
 securities which were bought in Europe. Therefore, gold for 
 this amount can be collected from European banks when de- 
 sired. Silver, in sufficient supply, with plenty of paper currency, 
 is good enough for the internal trade of this country. Will our 
 capitalists be equal to the occasion, or will they let the oppor- 
 tunity slip? 
 
 Announcement is made that the Bank of England directors 
 propose to hold one-fifth of their metallic reserve in silver. Ex- 
 cuses and subterfuges may be made, but to my mind it is a clear 
 acknowledgment that the directors of the bank feel the pressure 
 which is caused by more nations using gold, and they see the 
 need of an enlarged use of silver. One-fifth reserve of silver would 
 release the same amount of gold in the bank, which would be a 
 great help and enable them to keep their full quota of notes in 
 circulation. 
 
 I think I have now met every objection and phase of the free 
 coinage of silver issue, and placed them in a fair and proper light; 
 and I believe that the verdict of unprejudiced people will be, that 
 a clear case is made out and that the people of the United States 
 need fear no unfavorable conditions will come from adopting the 
 free coinage of silver again, but, on the other hand, very benefi- 
 cial results will be experienced by all classes of people by open- 
 ing the mints of the United States to silver. The capitalist will 
 find stable investments for his funds, instead of doubtful ones, as 
 at present; the banker will be kept busy with profitable business; 
 the merchant will find remunerative customers; the farmer will 
 have good markets ; labor will be employed at satisfactory wages ; 
 property will yield just returns, and the favorable conditions 
 started by the United States will spread to the world at large. But 
 if gold monometallism is persevered with, it will only lead to 
 further withering- and disastrous results. 
 
SO THE ROAD TO PROSPERITY. 
 
 CIRCULATING NOTES. 
 
 The subject of circulating- notes is one upon which there has 
 been a great deal of controversy. It appears to me to be one of 
 easy solution, if only bankers and capitalists would relax their 
 grip, and be content with a reasonable rate of interest and the 
 pursuit of a banking business. If they would do this, it would 
 result in the advancement of their own interests and the public 
 good. 
 
 Eztropean Governments Are Responsible for All Legal 
 Tender JVotes. — Whatever may be said to the contrary, I must 
 maintain that in European nations, the governments are respon- 
 sible for the circulating notes, which they declare to be legal ten- 
 der. It seems to be nonsense for a government to say to the peo- 
 ple, "This is a legal tender note, and you are compelled to re- 
 ceive it in exchange for your products or merchandise," if they 
 do not guarantee it to be good. It has never been doubted in 
 Europe but that the government undertakes to see that the legal 
 tender notes do not fail of their face value. 
 
 The Bank of England Notes. — The Bank of England notes, 
 which are as good as gold all over the world, are issued nominally 
 by an independent bank, but the bank is in reality closely bound 
 up with the government. Adam Smith says, "She acts not only as 
 an ordinary bank, but as a great engine of state." She is the 
 financial agent of the government, and acts as the treasury of the 
 United Kingdom. The bank was first established to loan its 
 funds to the government, and it has now a standing issue of un- 
 covered circulating notes of $75,000,000 to cover advances made 
 to the state many years ago. It has a much larger circulation of 
 notes than this, but the remainder are issued against gold in the 
 Treasury, and they have to be withdrawn from circulation when 
 the gold goes out of the bank. 
 
 Another proof of the connection of the bank with the gov- 
 ernment is furnished by the governor of the bank first advising 
 and conferring with the Chancellor of the Exchequer about the 
 decision of the directors to keep part of their reserves in silver; 
 and, further, on some occasions the government has authorized 
 the bank to issue notes irrespective of the gold reserve. 
 
THE ROAD TO PROSPERITY. 51 
 
 The Notes of the Bank oj Trance. — The Bank of France, 
 which holds more than twice as much of both gold and silver as 
 any other bank in the world, is controlled by the state, as I have 
 before stated, to the extent of the government appointing the gov- 
 ernor and two deputy governors, who are removable at the will 
 of the Minister of Finance. Can there be any doubt, then, 
 about the government being responsible for its management and 
 circulating notes? In regard to protecting its metallic resources, 
 Chas. A. Conant says, "The policy was adopted and has been 
 steadily adhered to of redeeming in gold or silver, at the discre- 
 tion of the bank, and charging a premium for gold. It is impossi- 
 ble to obtain gold from the bank in the quantity desired for ex- 
 portation, and it has to be taken from domestic circulation, and 
 to prevent large quantities from being exported, its present prac- 
 tice is to discount paper in silver." 
 
 The Note Issue of the Imperial Bank of Germany. — The 
 Imperial Bank of Germany is controlled by the government. That 
 it is a branch of the government is implied by the name. The 
 Chancellor of the Empire is president. M. Octave Noel says, "In 
 fact, the establishment is closely bound to the state, and it is only 
 able to move, think or act when the state manifests in some man- 
 ner its presence and affirms its control." Requests for coin in 
 exchange for notes can only be demanded at the Imperial Bank 
 in Berlin, and is refused at the branches when the funds on hand 
 do not justify it. 
 
 The Russian Bank. — This is an organ of State, and issues 
 irredeemable paper, which it was intended to redeem in silver. Its 
 custom duties are collected in gold, of which it has accumulated 
 a large stock, which is held in the Imperial vaults. 
 
 I think the above examples are sufficient proof that Euro- 
 peans have proper reasons to base their belief that the govern- 
 ment will see to it that the circulating notes are equal to the coin 
 which they stamp as money. The only reason that I can see why 
 they should have such a roundabout way of guaranteeing the cir- 
 culating notes is because capitalists control the government and 
 •demand the tribute of interest which can be obtained out of the 
 note issues. There are other bank notes issued in Europe which 
 
52 THE ROAD TO PROSPERITY. 
 
 are not legal tender. These, of course, the governments do not 
 guarantee, and losses through them have been considerable, but 
 not so with the legal tender notes. 
 
 The Assignats. — Some people may ask what about the 
 "assignats." As these paper notes were issued during the pro- 
 gress of the French Revolution, and when the state was threat- 
 ened with imminent bankruptcy, it is hardly fair to take cogni- 
 zance of them under this heading, but I may say that the issuing 
 of them brought immediate relief, and it is said of them that they 
 saved the Revolution. If I were anxious to go into their consid- 
 eration I should argue them against state or national bank issues, 
 for they were based upon the security of the lands of the Church, 
 and of nobles, which had been appropriated. It is, however, un- 
 fair, as I have said, to consider them, issued as they were when 
 France was in the throes of revolution, and I should not have 
 mentioned them, but that they have been referred to by oppo- 
 nents of my opinions. 
 
 Comment on Retiring the Greenbacks. — The New York 
 Journal of Commerce, editorially commenting on the last Bank- 
 ers' Convention, says: "Mr. Branch is quite right in putting first 
 the definition of the monetary unit; it is the first thing logically, 
 but we do not say that in view of all the political exigencies it is 
 the first thing that ought to be attempted; its accomplishment at 
 present would probably be impossible, and the great end aimed 
 at may be achieved by beginning at the thin instead of the thick 
 end of the wedge. Logically, the next thing to do is to retire the 
 legal tender notes. But the question of how this is to be done 
 presents serious political difficulties, even if financial sentiments 
 were a unit in favor of some one method. The spectre of con- 
 traction not only scares the ghost-ridden population of the cheap- 
 money States, but stalks through banks and exchanges and 
 offices of the commercial cities of the country, even those that 
 are within easy access of the Atlantic Ocean. Two attempts to 
 retire the legal tender notes have been made by Congress with- 
 out knowing what it was doing, and repealed the moment it dis- 
 covered it, although in one of these instances, the retirement of 
 legal tenders was to be slower than the expansion of bank notes.. 
 
THE ROAD TO PROSPERITY. S3 
 
 so that an increase of currency was provided for. The sentiment 
 of the country, perhaps that of even the commercial part of it, 
 will not stand the bald retirement of the legal tenders." 
 
 This stalwart monometallistic editor is quite right; the coun- 
 try will not stand more contraction. It has gone much too far 
 already, and is now keeping business paralyzed; bankers, after 
 searching the country over and racking their brains about it, can- 
 not find any notes nearly equal to the "legal tenders," or that 
 can be substituted for them; then why not make a grace of it, ac- 
 knowledge their superiority, and let the government attend to 
 the business that belongs to it — of issuing circulating notes? 
 
 The Government Notes Are by Far the Best. — The green- 
 backs issued by the government, there is no doubt about. They 
 have not to be examined as State or other bank notes would have 
 to be to see if the bank is solvent, and no discount is required on 
 them. They are the best circulating notes that have been issued 
 and have saved the government $500,000,000 in interest since the 
 war. The national bank notes, which are not legal tender, are 
 equally as good for circulation, for the only reason that the gov- 
 ernment guarantees them, and they have the government's prom- 
 ise to pay (bonds) at the back of them. If the government's guar- 
 antee was removed, the national bank notes would immediately 
 go to a discount, and business would be delayed, as every note 
 would have to be scrutinized, its value ascertained, and often a 
 discount charged. Now, it is not cared whether the bank is sol- 
 vent or not. The notes pass just the same, without discrimina- 
 tion. If, then, the government has to guarantee the notes to 
 make them circulate freely in all parts of the country, why should 
 it not issue them and save the interest for the people. In fairness, 
 what right has the banks to issue circulating notes any more than 
 other institutions? The issuing of notes by private banks, or other 
 private institutions, has ever been a source of trouble, and they 
 have created panics both in Europe and the United States. Notes 
 issued by banks cause constant anxiety, especially in squally 
 times, and they occasion the locking up of coin to redeem them 
 when presented. Therefore, I fully accord with that eminent 
 statesman, Thomas Jefferson, who wrote: "Bank paper must be 
 
54 THE ROAD TO PROSPERITY. 
 
 suppressed, and the circulating medium must be restored to the 
 nation, to whom it belongs. It is the only fund' on which we 
 can rely for loans; it is the only resource which can never fail 
 them, and it is an abundant one for every necessary purpose. 
 Treasury bills, bottomed on taxes, bearing or not bearing inter- 
 est, as may be found necessary, thrown into circulation, will take 
 the place of so much gold or silver, which last, when crowded, will 
 find an efflux into other countries, and thus keep the quantum of 
 medium at its statuary level. Let the banks continue, if they please, 
 but let them discount for cash alone or for treasury notes." It 
 would appear that the banks in the days of Thomas Jefferson 
 were causing trouble as they are to-day. 
 
 The United States Ought to Have the Best Currency In the 
 World. — This country needs the surest and most invulnerable 
 currency in the world to sustain our industries at all times, and 
 cause no anxiety. Without doubt this can best be supplied by 
 gold, silver and paper, issued by the government of the United 
 States. Free coinage of silver must be adopted, all outstanding 
 notes called in, and exchanged for uniform treasury notes of suit- 
 able denominations, which should be issued to keep sufficient in 
 circulation to provide at all times $30 per capita in money for 
 use in this country; then, satisfactory business conditions will be 
 continuous. 
 
 No Surplus Required to Be Kept in the Treasury. — 
 When this currency plan is in operation, it will not be necessary 
 to keep a surplus of either gold, silver or notes in the United 
 States Treasury; all that will be required is that there be suffi- 
 cient money on hand to pay the current expenses of the govern- 
 ment as they are wanted. This will release a large sum of mone}'-, 
 now idle, for use. We need not hoard for prospective military re- 
 quirements, for it is certain that no nation will attack us unless 
 we interfere with their interests, which we have no right to do. 
 Let us mind our own business, develop our resources, which are 
 so great, and not add to our difficulties by adding to our territory. 
 
 Currency Elasticity. — If it is desirable that some elasticity 
 be provided, so that relief could be had if a financial panic pre- 
 vailed through some unforeseen circumstances, for such a pur- 
 
THE ROAD TO PROSPERITY. 55 
 
 pose I would suggest that an increase of currency, to the extent 
 of $5 per capita, be issued by the government, when necessary, as 
 follows: The President, Vice President, Secretary of the Treas- 
 ury, the Senate's presiding officer, elected by the Senate, and the 
 Speaker of the House of Representatives, be a committee, a ma- 
 jority of whom shall determine when there is an urgent need to 
 issue this extra amount, or any part of it, which amount should 
 be distributed to each State in proportion to its population, as 
 follows: The banks and financial institutions of the States should 
 make application to the Secretary of the Treasury for any amount 
 they desired, and furnish satisfactory security, when treasury 
 notes or greenbacks should be loaned to them on the conditions 
 that they should commence to return the amount within, or at the 
 expiration of, six months, in sums of at least 10 per cent, per 
 month, until all is returned, and interest at the rate of 5 per cent, 
 per annum should be charged on the amount borrowed, these 
 treasury notes to be destroyed as received back by the govern- 
 ment. 
 
 No Curtailment of Capital Below $30 Per Capita 
 Should Ever Take Place. — I am aware that bankers keep harp- 
 ing upon an elastic currency, with the apparent idea of withdraw- 
 ing notes from circulation whenever the demand for money re- 
 laxes, because by keeping money scarce they can keep the interest 
 rate high. It is not wise to m<ake provision for this, as an occa- 
 sional plethora of capital will always be a means of developing 
 resources. People will invariably enlarge their activities when- 
 ever money can be obtained at reasonable rates. 
 
MAKE GOOD ROADS AND CREATE GENERAL 
 PROSPERITY. 
 
 This country has considered it right to appropriate millions 
 of dollars within the last few years to make proper facilities for 
 commerce by improving the rivers and harbors. Good country 
 roads are as necessary to develop internal trade as the former, so 
 that traveling may be made easy in getting from one section of 
 the country to another. These highways should have the assist- 
 ing hand of the Government, as agriculture has as much claim 
 upon her resources as commerce has, besides it will assist com- 
 merce. Two objects will be accomplished by improving the 
 roads, one furnishing facilities of intercourse, the other increasing 
 the circulation of money and distributing it where most needed in 
 the rural districts. If good roads were built and kept in order, 
 life would be made happier for those who live in the country, and 
 the value of property would be enhanced by enabling the farmer, 
 the poultry raiser, the fruit grower and the trucker to get their 
 products to market much more cheaply and in better condition 
 than at present. The improvement of roads is a matter with 
 which all who travel have to do, whether it be for pleasure in ve- 
 hicles, or bicycles, or to those in pursuit of business. 
 
 More Money Needed in the Rural Districts. — It is generally 
 known that a large majority of the inhabitants of this country 
 live in the country and till the soil for a living, and it will be ad- 
 mitted that of late their products have been very unremunerative, 
 which has caused them to have very little money to spend with 
 the merchants. This has affected the manufacturer, the railroads, 
 and the general public. The rural districts have been drained of 
 money by processes, which I need not dwell upon, to such an 
 
 56 
 
THE ROAD TO PROSPERITY. 
 
 57 
 
 extent that there is a dearth of money in most country districts, 
 and if general prosperity is desired, money must be distributed 
 where it is scarcest and most needed. This can be done without 
 making more paupers, as the scandalously large pension roll has 
 done. This roll should have remained a roll of honor, instead of 
 being, as at present, thirty-two years after the close of the war, 
 rapidly enlarging, until it now contains nearly a million names, 
 with a prospect of this enormous number being greatly increased, 
 
 Pork Packer — Why, Mike, where did you get all that gold? 
 
 Mike — That is my pension money. 
 
 Pork Packer — Why, Mike, you were not wounded in the war, and 
 there is nothing the matter with you. 
 
 Mike — When they examined me they found something amiss with my 
 eyes. 
 
 many thousands of whom suffered no loss through the war, and 
 they are now paupers of the Government. I will give two true ex- 
 amples : A big strapping Irishman went into the office of a pork 
 packer for whom he worked and who paid him $16 per week, and 
 
58 THE ROAD TO PROSPERITY, 
 
 you" Mike replied that when they examined him they found 
 
 h"pi^^ 
 
 upo „m> Hairing whether he was wounded, said no, but a ^pen- 
 ,L agent said he ™a^ a Pens.cn. * rephed 
 that he was not injured, lhe pension * 
 
 The Good European iW^-Europe is noted tor us g 
 ro ads Iny o. whicn have been hud, by the gov-naen and 
 
 larg er circulation ofmoney P-^-^ <£» £ ^ 
 
 exists, whieh eaptta lP^* in ^ CQ P untry in 
 
 $,00,000 per year, for two years me y , ini large 
 
 improving the roads, except in those count 
 
 cities and sotne other counties ^f «£ddS for labor, 
 
 needed to be spent. Tins money paid out in rural d 
 
 material, hauhng etc woubdgc .,„ othehandso ^ ^ ^ 
 
 ers, and would be ^changea i ^^ find ]ts 
 
 ments of those employed. Much _oi t * merchants 
 
 way into country ^^^^ manufactured 
 
 S^S; would set in -«*£^^£t£ 
 r ailroads, whieh would create eniplo yment o th 
 
 the means of purchasing them. 
 
THE ROAD TO PROSPERITY. 5-> 
 
 We would then hear no more about over-production, which 
 is a great delusion and which we heard little about five years ago, 
 when there was double the amount of machinery at work that 
 there is to-day. 
 
 Amount of Increased Money. — There are 2,842 counties in 
 the United States, from which should be deducted those counties 
 which contain large cities and the counties in which the money 
 could not be spent advantageously. This would probably reduce 
 the number of 2,500 counties, in which, if $100,000 each per an- 
 num was expended for a period of two years, it would require 
 $500,000,000. This amount of money circulated, as it were, at 
 the extremities of commerce, would, as some of it found its way 
 up to the centers, set all the industries of the nation in motion. 
 
CAPITALISTS. 
 
 Great Riches Are Not Desirable. — I boldly assert that 
 scores of millions of dollars owned by and in the control of indi- 
 viduals is against the interests of the people of this country, as 
 well as the individuals themselves. Only a small portion of this 
 immense wealth can be enjoyed by the owners. The possession 
 of so much is a burden, and is usually the cause of ungentlemanly 
 and unchristian acts. It is a temptation to use the power it gives 
 in scheming against and oppressing others, which is often yielded 
 to, causing widespread trouble. The spending of a small portion 
 of these excessively large incomes frequently leads families into 
 vicious habits of living, and unfits their sons for the development 
 of robust manliness. 
 
 Very Rich People Have Generally Been Oppressors. — All 
 ages testify to the fact that very rich people have generally been 
 oppressors. Great riches seem to breed the "love of money, 
 which is the root of all evil." Man has not been ennobled thereby, 
 but usually made tyrannical. History gives many examples of 
 cruelty as a result of riches. Even Solomon, with his great wis- 
 dom and religious surroundings, had his heart turned aside, and 
 he oppressed the people so greivously that after his death his sub- 
 jects requested his son to lighten their heavy yoke, and because 
 he refused they revolted, and Israel became two kingdoms. And 
 as we come down to more modern times, innumerable instances 
 could be named. The wealthier Spain became, the more cruel 
 acts she committed. The rich French monarchs of the last cen- 
 tury imprisoned in the Bastile and became so oppressive in vari- 
 ous ways that the people were driven to revolution,, and we find 
 that the same spirit exists to-day. 
 
 It may be asserted that man has a right to control as much 
 60 
 
THE ROAD TO PROSPERITY. 61 
 
 money as he can get possession of. I reply that God's commands, 
 and civilization, have always considered it right 'to pass laws to 
 restrain the liberty of people from doing that which is an injury 
 to society, and as immense capital in the hands of individuals is 
 an injury to the state as well as to themselves, it is necessary to 
 interpose some restriction so that the amount may be kept within 
 bounds. It is further desirable that a healthy sentiment in regard 
 to the proper use of riches should be fostered. 
 
 Graduate Income and Inheritance Taxes Are Best. — The 
 most effective and just laws that could be passed in the interest 
 of curtailing vast capital in the hands of individuals would be 
 progressive income and inheritance taxes. This will not inter- 
 fere with man's free activity in developing that which he desires, 
 but the law will say to him that his wealth enables him to support 
 good government liberally without his being inconvenienced in 
 the least, or deprived of any luxury, and because of his liberality 
 some poor families, who are heavily oppressed, will have their 
 burden of taxation lightened. 
 
 The Present System of Taxation Is Not Satisfactory. — The 
 present system of taxation is the opposite of what it should be. 
 Merchants, property, and the poor pay the bulk of taxation, while 
 the rich pay comparatively few taxes. I will cite some Virginia ex- 
 amples, where merchants are taxed thrice on the same capital. A li- 
 cense tax is imposed on every thousand dollars worth of goods pur- 
 chased; a tax is paid on everythousand dollars investedinbusiness, 
 and an income tax is levied on every $600 of his annual earn- 
 ings. I will also give other examples: Two neighbors saved, say, 
 $50,000 each. One decided to build houses and take the risk of 
 renting them ; he thereby taxed his money $18 per $1,000 property 
 tax. The other neighbor invested his $50,000 in city and state 
 bonds, upon which no taxes are paid. They both enjoyed the 
 same city privileges, which one assisted in paying for, while the 
 other enjoyed them free. Another instance: A poor man buys 
 a one-horse dray or wagon to hire and haul with, through which 
 to make a living. For this he has to pay $7 city tax per annum, 
 which must be made visible to the police that it is paid. A richer 
 man buys a buggy or carriage, which is free of taxes excepting a 
 
62 
 
 THE ROAD TO PROSPERITY. 
 
 trifling property tax, if even that is paid. I think it will be ad- 
 mitted that those taxes are unequal. 
 
 The English Method. — It would be well if we improved on 
 the above methods and followed the English system of taxation, 
 which aims at taxing the luxuries and letting the necessities of 
 life go free. In England, no trade vehicle is taxed, but carriages 
 of all sorts, as well as liveried servants, are taxed. There trade is 
 as free as the air they breathe, excepting liquors, etc., until an 
 income is made; then an income tax is charged, which is virtually 
 progressive in the first two stages, as there is allowed a rebate of 
 at least 60 per cent. 
 
 In this country a stringent graduated income tax should be 
 levied by the Government on the incomes of individuals and cor- 
 porations. It may be said that income taxes are unconstitutional. 
 I admit that they are now, though from the foundation of this 
 nation up to two years ago the Supreme Court decided they were 
 
 The income tax jockey, after clearing the Speaker, the House of Rep- 
 resentatives, the Senate, the President's veto, the Supreme Court, at last 
 came to grief because one judge changed his mind. 
 
 constitutional. The people's representatives in the last Congress 
 passed a law, the President: approved it, the Supreme Court de- 
 clared it constitutional, but when it came up again in the same 
 court a few days later, one unstable judge changed his mind, for 
 some reason, probably a weighty one. But I ask is it a reasonable 
 arrangement to allow one man to thwart the wishes of the people 
 expressed through their representatives? 
 
 An Equitable Adjustment. — To arrive at a proper adjust- 
 ment, I suggest that a law be passed embracing the following 
 
THE ROAD TO PROSPERITY. 63 
 
 propositions: One per cent, should be collected annually by the 
 Government on every income of $1,000 up to $10,000. The 
 amount collected under this head should be returned to the state 
 or city from which it is collected, and be in lieu of any other income 
 tax imposed by such state or city. Every annual income amount- 
 ing to $10,000 up to $50,000 should pay 2 per cent. . This and the 
 following amounts received should go into the United States 
 Treasury. All incomes of $50,000 up to $200,000 should be 
 charged 3 per cent. ; all incomes of $200,000 up to $500,000 should 
 be charged 4 per cent.; all incomes of $500,000 up to $1,000,000 
 should pay 5 per cent., and all over $1,000,000 should pay 8 per 
 cent, per annum. 
 
 I think the graduated income tax much fairer than the simple 
 income tax, as it will readily be admitted that a man with an in- 
 come of $1,000 will find it a hardship to pay a tax out of that in- 
 come, while a man or a company with an income of $50,000 
 would find no inconvenience in paying even the little larger per 
 cent, on the income, and the larger the income, the less will the 
 tax be felt by the payer. 
 
 Inheritance Taxes. — These should be graduated and col- 
 lected in the same way as suggested for the income tax. The gradu- 
 ated inheritance tax collected in England is increased to as much 
 as 18 per cent. In this country I suggest that personal or real 
 estate bequeathed or left amounting to less than $10,000 should- 
 be exempt from paying any inheritance tax, but property left or 
 bequeathed amounting to the value of $10,000 up to $100,000 
 should pay a tax of 1 per cent., which should be collected by the 
 United States Government, and be returned to the city or State 
 from which it was collected, to be in lieu of any other inheritance 
 tax being imposed by the city or S'tate. Personal or real estate 
 bequeathed or left amounting to $100,000 up to $250,000 should 
 have an inheritance tax of 2 per cent, levied upon it, which should 
 go into the Treasury of the United States, as likewise the follow- 
 ing amounts: Personal and real estates bequeathed or left to the 
 amount of $250,000 up to $500,000 should have a tax of 3 per 
 cent, levied upon it; estates ranging from $500,000 to $1, 000,000 
 should be charged 4 per cent. ; estates bequeathed or left of the 
 
rv-w-rvj-y j. kj i i\uorr.Rii x. 
 
 value of $1,000,000 up to $2,500,000 should pay 5 per cent.; estates 
 left to the value of $2,500,000 up to $10,000,000 should pay 8 per 
 cent.; estates left amounting to $10,000,000 up to $20,000,000 
 should be charged 10 per cent., and all estates left to the value of 
 $20,000,000 and over should pay 15 per cent. Those who receive 
 the property in these large estates would feel the tax far less in 
 proportion than in the smaller estates. These taxes would to 
 some extent check the congestion of money in a few hands, and 
 repay in a small degree some of the money obtained out of the 
 people by the unjust laws which have favored the accumulation of 
 such vast sums in so short a time. 
 
 Enforce the Payment. — When these graduated inheritance 
 and income taxes become legal, they should be enforced to the 
 extent of having sworn inspectors, similar to those appointed to 
 examine national banks, to look into incomes and estates, and 
 when persons or corporations are found to have made fraudulent 
 returns, double the amount of tax should be imposed and col- 
 lected; otherwise the tax will be evaded to a great extent, as is the 
 case now in similar instances, evidence of which has just been 
 revealed in the case of millionaires in New York. 
 
 The editor of the Review of Reviews, in the September, 1897, 
 issue, says editorially: "Not many of the rich men living in or 
 near New York have been accustomed to pay any personal taxes 
 at all, while of those whose names are on the tax list very few 
 have been put down for anything more than a nominal sum rep- 
 resenting a trifling fraction of their actual holdings of personal 
 estate. The past month has witnessed a rather remarkable agi- 
 tation on the subject of assessments in Westchester County, 
 which lies just north of New York City, extending from the 
 Hudson River to Long Island Sound, and which included among 
 its residents or property owners a much larger number of people 
 of great reputed wealth than any other suburban district in the 
 United States. Under the admonitions of one of the State judges, 
 the Westchester County assessors attempted for the first time 
 in many years to assess real estate at its true value. The sum 
 total of the realty assessments for 1897 at once mounted up to 
 three or four times as much as for 1896, the proportionate differ- 
 
THE ROAD TO PROSPERITY. 6s 
 
 cnce being still greater for some of the largest estates, such, for 
 instance, as those of the Messrs. John D. and William Rocke- 
 feller. Furthermore, the assessors concluded to try the plan of 
 finding some personal property to levy against. Thus some 
 neighborhoods, where in 1896 the total valuation of personal 
 property was only a few thousand dollars, the valuation for 1897 
 is several millions. The total assessment of personal property in 
 the county is many times as large this year as it was last year. A 
 great outcry has arisen against the assessors, and many rich men 
 are leagued together to contest their action in the courts. The 
 fact is that this agitation in Westchester County over assessments 
 merely serves to illustrate our obsolete taxation methods. The 
 pretense is that it involves an attack upon rich men, as such, is no 
 less erroneous than the opposite pretense that it reveals an evil 
 disposition on the part of men of wealth to evade their fair share 
 of public taxation." 
 
 These rich men avoid paying their just dues, and some few 
 then try to pose as philanthropists by giving largely to some col- 
 lege or charitable institution. 
 
TRUSTS, MONOPOLIES AND COMBINATIONS. 
 
 Exceedingly injurious combinations have been formed in 
 the United States, which have deprived thousands of persons of 
 a livelihood, and these combines of capital have been the means 
 of driving a large number of people out of trades and occupations 
 in which they were employed, because they were unable to com- 
 bat against united wealth, and the unequal and greedy methods of 
 doing business. It may be asked, why did not the people who 
 were ousted turn to some other occupation? To which is an- 
 swered that many did and found that other trusts, monopolies and 
 combines had been formed in other lines, which in like manner 
 had deprived thousands of other persons of employment, through 
 which they supported themselves and their families. 
 
 Extenuation and the Effect. — It is argued in extenuation 
 that by these large combines of capital and destroyers of compe- 
 tition goods are produced cheaper. That is admitted, but 
 the price paid for the concession is as naught compared with the 
 starving families which they have caused. Capitalists seem de- 
 termined to control both money and manufactories, and abstract 
 therefrom still greater wealth, and the subservience of the people, 
 whether families starve through the operation or not. It is a dif- 
 ficult problem to solve as to how many persons have been affected 
 even by one large combine. In a recent trial in New York one 
 ■ witness was examined who admitted that two of the firms repre- 
 sented did, prior to the formation of the trust, expend about 
 $750,000 per year in advertising, and that this amount was then 
 avoided through the combination. Here is one item saved, which 
 through the various ramifications of printers' ink affected thou- 
 sands of persons who apparently were entirely outside of the 
 business of the trust. These injured persons in turn, through 
 
 66 
 
THE ROAD TO PROSPERITY. 67 
 
 being deprived of a living, affected those with whom they spent 
 their earnings, and so it went down to injure persons far removed 
 from those in immediate contact with the trust. 
 
 "Live and let live" is a motto which it would be well to adopt, 
 and it seems to have been contemplated by the fundamental laws 
 of this Government that a man should be able to obtain a living 
 occupation; yet, notwithstanding this and the bounteous provision 
 of our Creator in supplying sufficient for the needs of all, we are 
 told that all trades and occupations are full; that production has 
 overtaken demand; that there is not now sufficient profitable oc- 
 cupations whereby men can honestly obtain a support for them- 
 selves and families. Have we outgrown God's Fatherly provi- 
 sion, or have we by our selfish avarice perverted the laws of God 
 and man, and made living hard and unpleasant for millions by the 
 greed of capitalists, instead of being content to let others enjoy 
 life as well as themselves. 
 
 As matters now stand, it is a difficult matter to know how to 
 legislate justly to counteract the baneful effect, except by the im- 
 position of the graduated income and inheritance tax previously 
 mentioned. These will have a good effect, and, likewise, when 
 more money is in circulation, it will be easier for the small 
 manufacturers to borrow money, and at a cheaper discount rate, 
 giving them a better chance to compete with the larger manu- 
 facturers, who are at present able to obtain loans at a much less 
 rate than their smaller competitors. A healthy sentiment in re- 
 gard to these trusts will be beneficial, in teaching that low prices, 
 at the expense of depriving thousands of persons of the oppor- 
 tunity of obtaining a living and support for their families, are not 
 equal or desirable. 
 
LAWS AND LEGAL PROCEEDINGS. 
 
 Through unjust injunctions, which are robbing cities of their 
 charter rights, the people of freedom of speech, and of meeting and 
 the press of publication, and by unintelligible laws which cause the 
 miscarriage of justice, the people are becoming disgusted with 
 legal proceedings, and are treating them with contempt, which is 
 
 That scoundrel who has brought so many families to grief escapes- 
 through technicalities in the law. 
 
 creating lawlessness. Laws are made vague, apparently in the 
 interest of the lawyers, so that few judges agree with each other 
 in their interpretation, and different authorities are cited in ex- 
 planation or confusion by each side of a case. Technicalities are 
 interposed, which are often successful in defeating justice; delay- 
 ing demurrers are constantly raised, it matters not whether they 
 are just or not; cases are carried from court to court; criminals 
 who have committed crimes escape punishment; hence, people 
 
 68 
 
THE ROAD TO PROSPERITY. 69 
 
 are disgusted with the proceedings of law, with their great un- 
 certainties, and persons who have just causes suffer rather than 
 appeal to the law. 
 
 English Laxv. — It seems to me that England, notwithstand- 
 ing our sneer at her, is far ahead of us in the administration of 
 justice. There the trials of criminals are speedy, and no appeal 
 from the sentence is allowed. Collection of debts through the 
 county courts is cheap and effective, and when judgment is given 
 for an amount, the question, how can he, she or they pay? is usu- 
 ally put by the judge, and an order is entered for the amount to be 
 received in accordance, and in installments if necessary. Should 
 the amount not be paid into court by the time decided upon at 
 the trial, reasons must be shown why. In this lenient manner 
 accounts are collected which would be lost if harsher methods 
 were adopted. 
 
 Improved Law Proceedings. — It suggests itself to me that 
 effective economical and inexpensive law proceedings could be 
 established in the United States, which would be equal to nearly 
 all cases, whether criminal or civil. To establish these, three or 
 four intelligent judges should be appointed or elected for cities 
 or counties, any one of whom should dispose of minor offenses, 
 such as drunkenness, quarreling, etc. All other cases of greater 
 importance should be tried by three of the judges or justices, who 
 should meet weekly or monthly to sit in a court of justice and 
 equity, and try all criminal and civil cases. After hearing the 
 evidence they should render judgment according to the merits of 
 the case, which decision should hold good' unless either party felt 
 aggrieved, and in that event an appeal should be made and al- 
 lowed to the county court. These county courts should be held 
 each month, and should be presided over by a judge. Twelve 
 intelligent men should be impaneled as a jury to hear evidence 
 and try all appealed cases, a majority of nine of the jurors agree- 
 ing upon a verdict, should be a final decision. I mention nine 
 because it is found in practice that through a unanimous deci- 
 sion being required as at present, so many criminals escape jus- 
 tice, and equity decisions in civil cases are defeated either by the 
 crankiness of some juror, or through the tampering with them 
 
70 THE ROAD TO PROSPERITY. 
 
 by interested parties. It is believed that a decision by a majority 
 of at least two-thirds in the first trial would dispose of most 
 cases. If the first decision is unsatisfactory a verdict arrived at 
 by three-fourths in a second trial should b.e satisfactory in all 
 cases. This would give to all the privilege of two trials, which 
 would be inexpensive, just and final, and from which no appeal 
 should be allowed. 
 
 In the matter of assignments, the law should require all estates 
 to be wound up within two years, or in default of the official com- 
 plying, the court should be required to oust the delinquent and 
 appoint other commissioners with imperative orders that they 
 must wind it up within six months of their appointment. 
 
 No preferences should be allowed to be made by persons or 
 firms who cannot pay their debts in full, and who find it necessary 
 to make an assignment. All creditors have favored the debtors 
 by granting credit, and all should fare alike in the distribution of 
 the proceeds of defaulting debtors. 
 
 No judge should be allowed to imprison for contempt of 
 court. Habeas corpus should apply in all cases, and the liberty 
 of persons only be taken away after a fair trial. 
 
 That ancient law in favor of the landlord's claim prior to 
 creditors who supply food and other articles seems to be an act 
 of favoritism, which could be improved upon. 
 
 These improved law proceedings which are suggested would, 
 if adopted, be a great factor in creating confidence and facilitate 
 justice, both in civil and criminal cases. 
 
THE EXECUTIVE, LEGISLATIVE, JUDICIAL AND 
 VARIOUS OTHER SUBJECTS. 
 
 The Veto. — We have in the United States a power exercised 
 which seems to be out of place in this enlightened age. I have 
 reference to the "veto" power. It is a relic of the "Divine right 
 of kings," which this age and nation should have grown beyond, 
 and why such an antiquated remnant should be allowed in this 
 country is only to be accounted for by the difficulties with which 
 people regard anything relating to a change in government pro- 
 cedure. The veto was abolished in France one hundred years 
 ago, and the effort to retain it there was one of the causes which 
 led to Louis XVI. losing his head on the guillotine. 
 
 In England, no bill passed by the House of Parliament has 
 ever been vetoed by Queen Victoria, and it is certain, as much as 
 she is loved, that if she were to veto any measure passed by the 
 people's represntatives, it would cause no little excitement and 
 trouble, and there does not seem to be any common sense reason 
 why such power should be exercised in the United States. 
 
 The Executive branch of the Government should see that 
 the laws are properly executed, and the President should not in- 
 terfere with the enactment or framing of them, as is now the case. 
 One reason why the people are taking so little interest in national 
 affairs and letting them drift is because it is such a frequent occur- 
 rence that the will of the people is thwarted by the President or 
 the Speaker of the House of Representatives. It is a common 
 thing for the representatives of the people to be reminded what 
 the excutive desires when they are considering the framing of 
 laws. The representatives in this manner hide their responsibility 
 behind the executive, and lose their independence by the pressure 
 brought to bear upon them through fear of losing favor with those 
 
 71 
 
72 
 
 THE ROAD TO PROSPERITY. 
 
 in power. The people, knowing this, get careless about what 
 laws are passed, as they know the difficulties which are encoun- 
 tered. After a law is passed by both houses of Congress, and has 
 run the gauntlet of the veto, then the judiciary may step in and 
 stop its execution, and say that it is unconstitutional, thus pre- 
 venting the wishes of the people from being adopted. This no 
 enlightened nations, such as England, France and Switzerland, 
 would allow. In those countries the people rule; in this country, 
 which is called the land of liberty, the people submit to being ruled 
 
 After the arduous duties of committees and protracted deliberations 
 in the House of Representatives and Senate, the bill is vetoed by the 
 President, and the people and their representatives are thwarted by an 
 old relic of "the divine rights of kings." 
 
 by one man. We will look at some instances: President Cleve- 
 land was elected the second time on a tariff reform platform, the 
 silver issue being then a very secondary thing. Immediately 
 after taking his seat he called Congress together in a special 
 session to pass a law to stop the purchase of silver, and- thus pre- 
 cipitated this question and brought it up to the first rank, while 
 the tariff, which had been the foremost question, was relegated 
 to the regular December session. President McKinley was 
 elected on a currency issue, and yet as soon as he became Presi- 
 
THE ROAD TO PROSPERITY. 73 
 
 dent he called a special session of Congress to consider the tariff, 
 which was a very secondary question in the last presidential elec- 
 tion, and the currency issue, which was considered the primary 
 question, was put off until December. The income tax bill was 
 passed by the people's representatives in both houses of Congress, 
 and signed by the President, but after getting through these de- 
 partments it was considered by the Supreme Court and decided 
 constitutional, but upon its coming up again in that court for the 
 consideration of one feature which had been left undecided, one 
 judge changed his mind, and the whole law, by his act, was de- 
 termined unconstitutional. Is not that submitting to one man's 
 power with a vengeance? Why don't the people arouse them- 
 selves and demand majority rule in legislation? Surely the House 
 of Representatives and the Senate should be sufficient to deter- 
 mine what laws are best for the people. 
 
 Eminent Persons Discredit Our Methods. — Dr. Woodrow 
 Wilson, in an address before the Virginia Bar Association this 
 year, said: "And so we have the composite thing which we call 
 Government of the United States. Its several parts are severally 
 chosen; it is no corporate whole. This is not a government of 
 systematic checks and balances. A system of checks and balances 
 would enable you to distinguish cause and calculate effects. It is 
 a government without definite order, showing a confused inter- 
 play in which no man stands at the helm to steer, whose course is 
 beaten out by the shifting winds of influence and popular 
 opinion." I will here insert another opinion upon a subject which 
 has already been considered in this treatise. The Hon. Jas. H. 
 Eckels, Comptroller of the Currency, stated before the Banking 
 and Currency Committee that "The United States has the worst 
 financial and currency system of any leading nation." That such 
 statements as the above can be truthfully made is, to say the least, 
 discreditable to this nation, which claims to be the leading nation, 
 but which is in fact far behind others in many respects. Switzer- 
 land .appears to be the most advanced nation as regards liberty; 
 there, they have both the Initiative and the Referendum. The In- 
 itiative is operative in national, state, county, township and muni- 
 cipal affairs. By the Initiative is meant that any agreed number 
 
74 THE ROAD TO PROSPERITY. 
 
 of persons can initiate and express approval of a measure which 
 is voted upon by the entire body of voters, who indorse or reject 
 the measure, and it becomes a law or not, according to the verdict. 
 
 Referendum. — By referendum I understand is meant that 
 any law passed by the representatives of the people shall not be- 
 come a law before some time has elapsed, say for three months 
 after it is passed. If within the three months 5 per cent, of the 
 voters desire the law referred to the people before it goes into effect 
 it is submitted, and the vote of the people decides whether it shall 
 or shall not become a law. If such proceedings were in force in 
 this country it would cause many infamous laws, which have 
 been passed through bribery and by money spent in lobbying, to 
 be relegated to the waste paper basket. 
 
 Congressmen 's Deception. — It is a humiliation to this country 
 that such respectable papers as the New York Journal of Com- 
 merce could write truthfully and editorially as it did on August 
 7th, 1897. In speaking of a clause in the tariff bill just enacted, 
 it is said of Senators and Representatives, "Whatever confidences 
 the conspirators may have exchanged among themselves on this 
 subject, the section was introduced into the bill by deception and 
 passed by a lie, and these alleged friends of American shipping 
 who are now vociferous in their merriment over their achieve- 
 ments were as still as mice as long as publicity might have over- 
 turned their plans. * * * It is using language of extreme 
 moderation to say that legislation procured in this way, by 
 stealth, and even by mendacity, is a national disgrace, and that 
 the so-called friends of the shipping interest, who experience noth- 
 ing but satisfaction in contemplating the history of this most im- 
 portant change in our legislation, confess their destitution of a 
 moral sense." Is it not infamous that any Senator or Representa- 
 tive would act so unjustly as to merit such words, and who can 
 have confidence in such representatives? 
 
 It is not pretended to be denied that millions of money were 
 used to control and thwart freedom of voting at the last presi- 
 dential election, and deceit and coercion were freely used and 
 approved of by so-called respectable men, who try to make us 
 believe they are virtuous when they say they desire fair elections. 
 
THE ROAD TO PROSPERITY. 
 
 Congressmen are influencing votes in their own behalf by the 
 paltry gift of a few seeds. They are aiding in destroying robust 
 manliness, teaching pauperism, and to look to the Government 
 
 How It Works. 
 
 Members of Congress — Not only 
 vote for me, but use your influence, 
 and I shall send you a package of 
 government seeds free. 
 
 B B & Co., one of the 
 
 oldest seedsmen in the United 
 States, have gone to the wall, owing 
 to the fact that the government fur- 
 nished seeds free, consequently peo- 
 ple will not buy of them. — From the 
 Democrat and Chronicle (Roches- 
 ter, N. Y., Oct. 2, 1897). 
 
 for support, instead of instilling into the people that it is their 
 duty to support the Government for the good of all. Each Sen- 
 ator and Representative had this year 42,500 packages of com- 
 
76 THE ROAD TO PROSPERITY. 
 
 mon varieties, of field, garden and flower seeds, purchased for 
 them and mailed free by the Government to voters whom they 
 named. Yet the Secretary of Agriculture says, "A careful re- 
 view of the department reports, especially those of the Chief of 
 the Seed Division during the past decade, in which $1,000,000 
 was expended for free seed distribution, fails to reveal a single 
 instance of benefit to agriculture attributable to this distribution." 
 
 As I have above pointed out some of the disgraceful existing 
 order of things in the United States, I think it best to formulate 
 a better system. This I do by giving a further outline to be filled 
 in at some future time, or by other or more capable hands, as my 
 time is too much occupied with other business to dwell much 
 longer upon these subjects. 
 
 The President of this republic should be elected as an execu- 
 tive officer for six years and be ineligible for re-election. He should 
 appoint his cabinet, which it would be better to select principally 
 from Senators and Representatives, men who have been trained 
 in the making of laws and studying political subjects. This 
 would be an improvement and be an incentive to members of 
 Congress, as something for them to look forward to. The mem- 
 bers of the cabinet should have seats in Congress and be answer- 
 able to the President as well as to Congress for their actions, in- 
 stead of being almost independent of Congress while in office, and 
 sometimes even hostile. A vote of want of confidence by Con- 
 gress should at any time be sufficient cause for them to vacate 
 office, to be replaced by others nominated by the President. This 
 would keep them and the President to an extent in check, which 
 is desirable, and which method other liberal governments have 
 adopted. 
 
 Members of the Senate should be elected by a direct vote of 
 the people, and their term last for six years. Members of the Na- 
 tional Legislature should be elected for three years; the terms of 
 both Senators and Representatives to begin the first day of Jan- 
 uary after their election in November, and the session of Congress 
 of which they are members should assemble for business within 
 two months after their election, instead of, as at present, allowing 
 old Congressmen to hold a session after an election of new mem- 
 
THE ROAD TO PROSPERITY. 77 
 
 bers has taken place, and the session of new members not usually 
 being held for thirteen months after election. Is not this a parody 
 on a professedly advanced people? 
 
 As efficiency and economy in the public service is desirable, 
 civil service rules should be strictly adhered to, and the people 
 taught that it is proper for them to support the Government for 
 the good of all, and not look to the Government for support. 
 Referendum should be provided for in national, state and muni- 
 cipal affairs. 
 
 Miss Columbia — Dear Uncle, these are representatives of the Hawaiian 
 Islands, which I desire you to annex. 
 
 Uncle Sam — No, I do not desire any more of that class of subjects, as 
 they would cause me vastly increased military expenses and be a constant 
 source of trouble. 
 
 As regards annexing Hawaii or other territory, it should not 
 be done, as we have now a larger expanse of country than is prop- 
 erly managed. Annexation of territory not adjacent to the United 
 States means the commencement of a new policy which will add 
 trouble to our present difficulties and will lead to enlarged military 
 and naval establishments, which are undesirable and may become 
 a means of curtailing our privileges and freedom, as soldiers are 
 the tools used by tyrants in suppressing liberty. Adding a 
 lot of mongrel races cannot add to our happiness. We have now 
 
7 8 THE ROAD TO PROSPERITY. 
 
 on our hands the Indian tribes, and have not in a hundred years 
 taught them so much as self-reliance, probably for the reason 
 that a lot of fat offices are created, and plunder provided for 
 schemers. 
 
 I have now briefly and hurriedly dwelt upon several sub- 
 jects which I think are important to the welfare of this country. 
 I hope they will be favorably considered and improved upon, so 
 that measures may be adopted that will cause this land to become 
 a true land of liberty, and permanent prosperity to prevail, to be 
 enjoyed by all classes, which will contribute to the happiness and 
 contentment of the people, and make secure republican institu- 
 tions in the United States. 
 
 
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