984f G482 UC-NRLF / DISASTROUS \ Financial Panics CAUSE AND REMEDY Benefits From Silver Coinage ?>, 34, 36, 37 41, 43, 44, 47, 48, 49, 62, 65, 87 Prices, Produce 21, 28, 77 Prosperity 21, ?>?>, 36 Ragnet, Senator C 15 Railroads 94, 95, 103, 120 Republican Leader 46, 71 Riots . . 30, 63, 86 Ripley, E. P 94, 103, 106, 108 Rolin, M 108 Roosevelt, Theodore 89, 90 Rothschilds, 30, 35, 57, 59, 73,74,106 Sherman, James S 120 Sherman, John 48, 54, 55, 56 57, 58, 60, 62, 68, 71, 106, 107 Sii^vER — Coinage 8, 9, 19, 20, 23, 28, 54, 55, 61 62, 65, 66, 99, 105, 110, 120 Debased 35 Demonetized 36, 47, 110 Export 19, 21, Z2>, 35, 36, 47, 57 Imports 28, 30, 2,?,, 37 Remonetize 48, 108, 110, 111, 112 Suspension 10 Trade Dollar 48. 54. 59 Pages Slidell, John, U. S. Senator, 1857 40 States, Bonds 26, 28, 29, 30 Supreme Court, U. S 63, 69 Taft, Wm. H., Gov 61, 90, 120 Tariff 11, 24, 32, 117 Thompson, John 29, 108, 109 Tyler, John 25, 26, 31, 40, 119 U. S. Government— Congress 7, 22, 23, 74, 118 Deposits 13, 16, 23 Government Loans 13, 90, 91, 100 Legal Tender Notes ..6, 10, 13, 29, 55, 64, 79, 110 Treasury Notes 10, 22, 24, 26, 32, S3, 35 37, 40, 41, 43, 44, 49, 58, 64, 73 Van Buren, Martin 21, 25, 26 Vicksburg 18 Wages and Salaries 21, 50, 87 War 11, 14, 32, 41 Wealth 5 World's Progress.. 98, 100, 106, 108 Disastrous Financial Panics TWO GENERATIONS. My father, Jonathan Gillmore, was born June 10th, 1779, at Ira, Vermont, being before the final adoption of the Constitution of the United States. The population then was about 4,000,000, now about 90,000,000. In 1800 my father left home on horse- back, arriving at New York City, population then about 60,000, now about 4,300,000. EXPANSION, WEALTH AND INVENTIONS. The area of our country from a comparatively restricted width of territory along the Atlantic Ocean, has been immensely expanded, and occupies the very larger portion of the land be- tween the Atlantic and Pacific Oceans. The wealth from less than one thousand million dollars has been increased enormously, now, estimated at one hundred and twenty thousand million dollars, and the discoveries of most wonderful inventions, of every con- ceivable nature. All within the lives of two generations — my father and myself. DISASTROUS FINANCIAL PANICS. The growth of the wealth of our country has been acquired under very varied conditions. At times the people throughout the country, with a gradual increase of the circulation, would make good progress and their wealth increase gradually, then it would be more rapid with expanded credits, when there would be a sudden check owing to the inability of the people, through an unwise financial system, to increase the volume of the circula- tion, thus creating a crisis, which, through the checking of the business, caused a stagnation that would in the course of a few years grow into a disastrous financial panic of such magnitude as to most seriously affect the entire interest of the people, and retard the continuous growth of the wealth of our country. There- fore, our Government should adopt a just, wise and generous financial system of its own, free from all other interest or alli- ance, to enable it through its vast wealth to maintain an adequate d continuous increase of the volume of money required for the Ifare of our people, and prevent such further disastrous ancial panics as prevailed throughout our country as in 1814, 1837, 1857, 1873 and 1893, each of several years duration, and that of 19 07 now prevailing, and most seriously affecting the Iople — all brought on by the very bad and expensive financial stem of our Government and its bad management. DR. FRANKLIN'S VIEWS. Go back to the days of the Colonies and learn of the condi- ms that prevailed then. Benjamin Franklin, in his autobi- iraphy, makes the following statement: "I remember well when I first walked about the streets of Philadelphia, I saw many of the houses in Walnut street between Second and Front m streets, with bills on their doors, "To Let;" and many likewise in Chestnut street and other streets, which made me think the inhabitants of the city were one after another deserting it. Pennsylvania, before it made paper money, was totally stripped of its gold and silver. The difficulties for want of cash were accordingly very great, the part of the trade being carried on by the extremely inconvenient method of barter. When in 1723, paper money was first made, there was a cry among the people for more paper money. The utility of this currency became by time and experience so evident, that the principles upon which it was founded were never afterwards much disputed, so that it grew soon to be $275,000. Trade, building, and inhabitants all the while increasing. On the whole, no method had hitherto been found to establish a medium of trade, in lieu of money, equal in all its advantages to bills of credit, founded on sufficient taxes discharging it, on land security of double the value for repaying it, and in the meantime making it a legal tender. The experience now of nearly half a century has convinced them of it, by the increase of their settlements, numbers of general buildings, im- provements, agriculture, shipping and commerce; and the same experience has satisfied the British merchants, who trade thither, that is has been greatly useful to them." LEGAL TENDER MONEY. Pennsylvania enacted a law for the issue of legal tender paper money, which proved of great benefit to the people of that colony, enabling them to become very prosperous through being enabled to have an ample volume of real money — serviceable money. Several of the colonies issued a paper currency, redeem- able in Spanish milled dollars. A few of such dollars were to be found in the colonies, which did not answer satisfactorily, and caused hard times among the people. COLONISTS' GRIEVANCE. Finally when the British Government found the colonists of Pennsylvania were so prosperous, and that it was brought about through the issue of legal tender paper money, they declared by law that only gold and silver coin thereafter should be a legal tender in the colonies, of which there was only a very limited amount, being entirely insufficient to make the exchanges, and which caused a great hardship upon the colonists. Consequently the people became greatly dissatisfied and rebelled against the action of the mother country. All the colonists joined and declared they would no longer tolerate the bad conditions and a rebellion broke out. A number of the British people sympathized with the colonists and protested against the wrong. VIEWS OF HITME. David Hume, English historian, states that, "The British Gov- ernment took away from America its representative money, com- manded that no more paper bills of credit should be issued, that they should cease to be a legal tender, and collected the tax in silver. This was in 1773. Now mark the consequences: This contraction of the circulating medium paralyzed all the indus- trial energies of the people. Ruin seized upon thpse once flourish- ing colonies; the most severe distress was brought home to every interest and every family; discontent was urged on to despera- tion, till at last 'human nature arose and asserted its rights.' In 1774 the American congress first met in Philadelphia; in 1776 America became an independent state." CONTINENTAL CONGRESS. Delegates from the several colonies assembled in 1774 and declared their grievances. They prohibited importation of mer- chandise from Great Britain. Congress in 1775, in order to carry on the war against Britain, appointed a committee on currency and engraving, composed of Benjamin Franklin, John Adams, John Rutledge, James Duane and James Wilson. AVISDOM OF FRANKLIN. Benjamin Franklin, patriot, philosopher, and statesman, who drew lightning from the clouds and the sceptre from tyrants, met with the committee, and most strenuously ur^ed that no cur- rency be issued unless it be real money, full legal tender to pay any debt. The other members of the committee differed with him and they declared for a paper currency, made redeemable in Spanished milled dollars, something of only limited volume. Franklin, in his great wisdom, had witnessed the wonderful benefit of the legal tender paper money issued by Pennsylvania for the people of that colony, which brought exceedingly prosperous con- ditions, while other colonies issued a currency redeemable in Spanish milled dollars, which produced hard times and suffering. JOHN ADAMS In a letter to Mr. Warren, said: "A paper currency in its value will ever produce appearances in the political, commercial, and even in the moral world, that are very shocking at first sight, but upon examination they will not be found to proceed from a total want of principle, but for most part from necessity." It was a great blunder on the part of Adams in forcing the paper currency that could not be used legally in payment of debts, con- sequently had but short life. But bad as it was, it saved the people from taxation for several years, and finally gained them independence. JAMES DUANE Wrote on the 17th of June, 1775, t?o his constituents in New York: "Your great complaint of the want of money will I hope soon be removed, a resolution to emit in Continental paper cur- rency a sum not exceeding the value of two million Spanish milled dollars." Mr. Duane made a great blunder. His constituents wanted money, and not currency. Also in ample amount for the pressing needs of the people. Dr. Franklin, after the first issue of the Continental cur- rency, proposed the funding into bonds bearing 5 per cent, per annum interest, which was not concurred in. The issuance of the currency was continued without change, and during 1775 to 1777 about $25,000,000 of the Continental currency had been issued, and had done good service in carrying on the war for independ- ence. But it began to depreciate in value, owing to its being refused in payment of debts by the Tories, and not being a legal tender, could not be enforced to pay debts. 8 In 1779 the currency began to depreciate ^;reatly in value, not being a legal tender and having no debt paying power, besides was being counterfeited and put in circulation by Tories and British spies. There being but a very limited amount of coined money the people were forced to barter, causing very hard times and considerable suffering. BANK OF NORTH AMERICA. Congress in 1781 incorporated the Bank of North America. Jefferson disapproved of its action, stating that the Government had no power to do so. He wanted the money to be issued by the Government and made a legal tender. In 1782 the Continental currency had become worthless, and the times continued to grow more severe. Rev. John Clarke wrote Timothy Pickering: "It is my firm belief that we are the most wretched people under Heaven." Here was a grand opportunity to prevent further suffering among the people, by accepting the views of Benjamin Franklin and Thomas Jefferson, who urged Congress to issue Government legal tender paper money, to enable the employment of the people, enable the payment of debts and thus build up commerce, in lieu of the paper currency and bank note issues, which have always proved a failure. But John Adams, James Duane and others were for bank note issues, which brought failure, hard times and suffering among the people. All the money issued by the Government of France is a legal tender and can pay any debt. Gold is always held by the Bank of France to sell at a premium. In Great Britain gold coin only is a legal tender, and the Bank of England has often had to send and borrow gold from the Bank of France and pay a premium for it. GENERAL GEORGE WASHINGTON. Congress convened in 1789 at New York City, and George Washington was inaugurated President. He was the idol of the people. Soon after his inauguration foreign nations recognized the United States Government. His administration began under favorable circumstances. BANK OF THE UNITED STATES. On the 25th of February, 1791, Congress granted a charter to the United States Bank for 20 years, capitalized at $10,000,000. Our Government subscribed for $2,000,000 of the stock, also con- siderable was subscribed for by foreigners, paying for the same in specie, thus bringing quite a sum of metallic money into the country. But in time the profits made by the bank, due foreigners, had to be sent them in coin. Therefore, our Government could have issued its legal tender paper money in ample volume to main- tain prosperous conditions, and no coin required to be sent abroad for profits to foreigners nor for reserves, as is required in the case with the bank note circulation and deposits. Besides, it would be impossible for the bank to have sufficient wealth to furnish the continuous increasing and vast amount of circulation needed by the people. MINT AND COINAGE. On April 2nd, 1792, Congress enacted a law establishing a mint at Philadelphia. Also, enacted a coinage law for the coinage of gold, silver and copper coins, all a legal tender In the payment of debts. GEORGE WASHINGTON. On the 4th of March, 1793, George Washington was in- augurated President for a second term. His administration was successful and the people prospered. JOHN AD.IMS INAUGURATED. On the 4th of March, 1797, John Adams was inaugurated President, who went into office while the country was in a fairly prosperous condition, and the growth of wealth gradually increas- ing and all the while needing an increasing circulation, but Presi- dent Adams was extremely conservative, and bitterly opposed to any issues of Government legal tender money, and as the banks could not give the needed supply, being based upon specie, which could not be had in ample volume, the people were forced to suffer in their business from a contracted circulation, and there was considerable complaint among the people of hard times. SILVER AND GOLD COINED. The coinage of the mint from 1792 to 1800 was as follows: Silver $1,216,158 Gold 696,530 Copper 50,111 Total $1,962,799 GOVERNOR SULLIVAN. Governor Sullivan of New Hampshire, in 1800, stated: "The balance of trade against a nation is like a whirlpool, drains off the cash and leaves the people poor indeed. This among others is a great cause of the scarcity of money among us at this day, and is one of the principal foundations. We feel the evil and com- plain, though very few attempt to discover the source." He should have studied legal tender. THOMAS JEFFERSON. On the 4th of March, 1801, Thomas Jefferson was inaugurated President. The condition of the people had greatly improved from what it was during the days of the colonies, but of late the cir- culation had not been increased adequate to maintain the con- tinuance of the growth of wealth. The United States Bank nor the State Banks could not provide the needed circulation, as the bank notes and deposits had to be based upon specie, which was very scarce, consequently there was complaint of a scarcity of money, and hard times. SALE OF UNITED STATES BANK STOCK. In 1802 the Government sold the stock it owned in the U. S. Bank, as President Jefferson alleged that a large share of the stock was owned by foreigners, whose share of the profits in the bank was being sent out of the country in specie, causing a con- traction of the circulation. Besides, the bank was the medium for the gathering and the export of the specie, of which consid- erable had been exported. There being but few factories, people had to import foreign products. 10 JEFFERSON RE-ELECTED. On the 4th of March, 1805, Jefferson was inaugurated Presi- dent for a second term. It was reported that the members of the legislatures of the States being mostly lawyers, many of them were occupied in securing charters for State Banks, but the banks, after being organized, had great trouble to secure specie to enable the issuance of bank notes and secure deposits, there being a large demand for currency, and the people suffering in consequence. SUSPENSION OF SILVER DOLLAR COINAGE. In 1805, owing to the great scarcity of fractional siver coins. President Jefferson directed the suspension of the coinage of silver dollars, and the coinage only of the fractional coins. The silver dollars had been very largely exported. TREASURY NOTES. President Jefferson saw the great necessity for a large in- crease of the circulation, and urged upon Congress to enact a law for the issuance of a large volume of legal tender U. S. notes, which the bankers bitterly opposed. UNITED STATES NOTES. The population then numbered about 6,200,000, who could have made good use of at least $150,000,000 in legal tender U. S. notes. Finally Congress authorized the issue of only $25,000,000, made legal tender to the Government for all dues, to be re- issued or exchangeable for stock bearing 7 per cent, interest. Afterwards another issue was authorized for $18,600,000, being temporary makeshifts. The bankers and their attorneys in Congress made continu- ous opposition to the issuance by our government of its legal tender notes, which should have been increased in ample volume and could have sustained the people in prosperous conditions. JAMES MADISON INAUGURATED. On the 4th of March, 1809, James Madison was inaugurated President, The country was still suffering from a too contracted circulation, SCHOOL TEACHER. My father, Jonathan Gillmore, taught school at Milledge- ville, Georgia, from 1800 to 1810, thence went to Covington, Louisiana, where he, in partnership with Jesse R. Jones, engaged in the manufacture of brick, shipping them to New Orleans for building purposes. I was named Jesse after the partner of my father. Here my father met anfl married Sarah McCay, daughter of Alexander McCay, a linen manufacturer of Dromore, Ireland. Five sons were the issue of the marriage, all born at Covington, and lived to manhood and were occupied in various branches of business. I am the only survivor, and am now engaged in work- ing for the best welfare of the people, to induce them to have our government adopt a sound, generous and safe financial system and creating and placing in circulation ample legal tender United States Notes, in lieu of permitting banks to issue the circulation, which has never been ample, safe nor satisfactory for the business of the country. 11 COTTON. 10,000 bales of cotton were manufactured in our country during 1810, Had the money supply been ample there would have been a far larger quantity raised and manufactured, and our, people saved importing foreign made goods, had the money supply been ample to enable the building of factories. STATE BANKS. From 1809 to 1811, 88 State Banks were chartered. Senator Lloyd of Massachusetts estimated the State Bank Note circulation in 1811 as follows: Bank notes $50,000,000 Specie 10,000,000 Total $60,000,000 U. S. BANK NOTES. Congress, on the 12th of March, 1812, declared that the bank notes issued by the U. S. Bank be no longer received for dues to the Government, the charter having expired. WAR DECLARED. Our Government, in 1812, declared war against Great Britain. BANK CHARTER EXPIRED. The charter of the U. S. Bank having expired on the 25th of February, 1811, after winding up its affairs $7,000,000 was paid the foreign stockholders, who exported their funds in specie, which caused a severe stringency in money. STATE BANKS. The State Banks were increased to 120, and the State Bank note circulation in 1813 was estimated by Mr. Dallas as follows: Bank notes $62,000,000 Specie 8,000,000 Total $70,000,000 The population was estimated at about 8.000,000, showing the volume of circulation entirely Inadequate for the use of the people, which kept the great masses in poverty and idleness. It was a crime. TARIFF. From 1789 to 1813 Congress changed the tariff thirteen times to raise duties, also mainly to occupy the mind of the people and take them from the discussion of the financial ques- tion, just as the politicians, mostly lawyers, have ever done and are still doing, humbugging the people with buncombe and tariff, in lieu of educating them upon that vastly important subject of finance. If the people would study their interests, in lieu of politics, the country would prosper. The tariff should be settled by a commission and not be continually occupying the time of the members of Congress, many of whom are interested attorneys for the banks and other large corporations. 12 JAIVIES MADISON. On the 4th of March, 1813, James Madison was inaugurated President for a second term. Mr. Dallas, Secretary of the Treas- ury, deposited the Government funds in the State Banks, consist- ,ing largely of Treasury notes, for which action he was condemned by the people. Financial conditions were very critical and bank failures increasing. DISASTROUS FINANCIAL PANIC. In 1814 a general suspension of the State Banks throughout the country occurred, completely paralyzing all business. Each bank refused to receive bank notes in exchange with one another, causing a pandemonium which increased rapidly and with great severity. What a wretched condition and horrible financial system, which kept the people in poverty! Ex-President Jefferson urged upon President Madison the issuance of two hundred million dollars in United States legal tender notes, as an immediate remedy for the frightful ills of a contracted circulation, from which the people were suffering. WRETCHED FINANCIAL SYSTEM. The State Bank system, permitting the banks to issue bank notes based upon specie, was about on a par with the Continental currency notes, which were based upon "Spanish milled dollars," and no dollars to be had. Also, the deposits in the banks were dependent upon specie reserves, all to be accomplished with a very limited amount of specie in the country. What a devilish system concocted by the members of Congress, mostly carried out by the paid attorneys of the banks, and who w^re reported as largely indebted to the banks. ' Of course, some of the lawyers were doing the best possible for the people, but most of them were looking out for themselves. Whenever a lawyer becomes a member of Congress he should be sworn to cease all other ser- vice than that of the people. Then the legislation would be honest and in the interest of the great masses of the people. It was only a few tricky bankers who did the scheming. They lost in the end far more than they gained by the wretchedly bad system, than if they had an honest and just system. There would have been a far larger volume of circulation, which would have been deposited with the banks, besides there would not have been that continued hoarding of the specie by parties not having confidence in banks, also the bankers themselves continu- ally fighting one another to secure the larger share of specie by creating runs upon each others, banks, as they were continually doing by gathering bank notes to create a run. SENATOR KENT. Senator Kent of Maryland, in 1834, delivered an address in the United States Senate, in which he said that in 1813 he was a member of the House of Representatives, and in speaking of the deplorable conditions existing at that time (1813), stated: "The paper money issued by the banks continued to depreciate until it became so worthless that the members of Congress re- fused to receive it in payment for their per diem allowance. They were paid in Treasury notes and those sold at a premium. What the people individually lost, and what the Government lost embracing tne period of the war, I will not attempt to estimate. We know that there is enough of the trash of that day now 13 remaining in the public treasury, called unavailable funds, which, with the interest added to it, would be sufficient to complete the Chesapeake and Ohio canal, the Baltimore & Ohio Railroad and the Delaware Breakwater, three great and magnificent works intimately connected with the future prosperity of the country." He said that in 1813 some wag put up a sign in the Custom House in Baltimore, "Bills of broken banks received here." "De- preciated paper borrowed by the Government at par." The banks received the deposits of the Government in 94 State Banks made depositories. A. J. Dallas was Secretary of the Treasury. GOVERNMENT LOAN. The Government being in urgent need of funds to prosecute the war, A. J. Dallas, a prominent attorney and Secretary of the Treasury, succeeded in negotiating a loan of $21,000,000 with Stephen Girard, John Jacob Astor and David Parrish at 88 cents on the dollar, which they furnished in State Bank notes worth about 65 cents on the dollar in specie, a brilliant stroke in finance. Mr. Dallas was a particular friend of Mr. Girard. GOVERNMENT DEPOSITORIES. Ninety-four State Banks were made Government depositories and the Government funds were deposited with them. A further loan for the Government was secured in September, 1814, by Secretary Dallas, of $25,000,000 at 88 cents on the dollar, from the State Banks. The Secretary of the Treasury con- tinued depositing the Government funds with the State Banks, which called forth considerable criticism, and which finally brought his resignation. Andrew J. Dallas, Secretary of the Treasury, drew the follow- ing picture in August, 1814: "The recent exportations of specie have considerably diminished the fund of gold and silver coins and another considerable portion of that fund has been drawn by the timid and the wary from the use of the community, into the private coffers of individuals. On the other hand, the multiplicity of banks in the several states has so increased the quantity of paper currency, that it would be difficult to calculate its amount, and still more difficult to ascertain its value. But the benefit of even this paper currency is in a great measure lost; as the suspension of payments in specie, at most of the banks, has suddenly broken the chain of accommodations that previously extended the credit and the circulation of the notes which were emitted in one State into every State in the Union. It may in gen- eral be affirmed, therefore, that there exists at this time no adequate circulating medium common to the citizens of the United States. The monied transactions of private life are at a stand and the final operations of the Government labor with extreme inconvenience." A. J. DALLAS. Albert Gallatin was appointed as successor to Dallas. He recommended that only $15,000,000 U. S. legal tender Treasury notes be issued in lieu of $200,000,000 U. S. notes recommended to be issued by Ex-President Jefferson. Had such money been issued relief would have been in short order. 14 BATTLE OP NEW ORLEANS. On the 8th of January, 1815, the Battle of New Orleans was fought upon the Plains of Chalmette, just below the City of New Orleans. Major-General Andrew Jackson commanded the American army and General Sir Richard Packingham that of the British, whose forces were completely routed. My father, Jona- than Gillmore, volunteered and served in a regiment under com- mand of Brigadier-General David Bird Morgan of the army of General Jackson. The war ceased between the United States and Great Britain on the loth of February, 1815. STATE BANKS. The number of State Banks in 1815 had increased to 208, notwithstanding the continued failures. Matters had reached a very serious condition. The banks would not receive the bank notes issued by one another, BANK NOTE CIRCULATION. On January 1st, 1816, the State Bank note circulation amounted to $110,000,000, and 246 State Banks^ were doing business, but not paying specie. STATE BANK NOTE DISCOUNT. On January 1st, 1816, the discount rate on State Bank notes for oij^jie was reported as follows: Washington City 22 per cent, discount Baltimore 22 " Philadelphia 18 " New York City 10 " Charleston, S. C 7 " New England 2 " The bank notes of banks located at a distance from business centers ranged at 10 to 40 per cent, discount. STATE BANK FAILURES. During the period of 1813 to 1816 no less than 240 State Banks suspended payment, many were complete wrecks, showing a shocking financial system that caused a most frightful con- traction of the circulation at a time when a large increase in the volume of good Government legal tender United States notes was greatly needed to maintain prosperity. The specie basis system was a fraud and delusion. There were too many attorneys in the halls of Congress, acting for the banks in lieu of the masses of the people. COTTON MANUFACTURED. In 1815 about 90,000 bales of cotton were manufactured into 81,000,000 yards of cloth. There was a very great demand for good money to build machinery and factories, but the only supply to be had was worthless bank notes (rags, as they were called by the people), "Wild Cat" bank notes, that is, bank notes of no known domicile, were forced on the ignorant. Also, counter- feits were being circulated among those not posted. Conditions were really horrible. Yet many of the lawyers in Congress would not consent to the issue of United States legal tender notes. The moment a discussion arose upon the subject, the attorneys would 15 begin with ai_tirade against the tariff, Continentai currency or the Assignats issued'by France. UNITED STATES BANK. Congress, on the 10th of April, 1816, chartered the "United States Bank" for 20 years; capital stock, $35,000,000. The Government subscribed to one-half of the stock; 25 directors, 5 to be appointed by the President. The Bank to receive deposits of Government funds. The Bank notes to be received for Govern- ment dues. Many of the lawyers in Congress bitterly opposed the chartering of the United States Bank, being attorneys of the State Banks. The United States Bank opened for business on the 7th of January, 1S17. JAMES MONROE. On the 4th of March, 1817, James Monroe was inaugurated President. Conditions generally had improved through the in- creased volume of the circulation. The tFnited States Bank was a great improvement over the State Bank currency. But Govern- ment legal tender treasury notes would have been a Godsend to the great masses. About $200,000,000, as recommended by Jeffer- son, of such currency, would have been a blessing and made all the people contented and very happy. STATE BANKS RESUMPTION. In 1818 a number of State Banks resumed payment, causing conditions to improve. STATE BANK NOTES. In 1819 the bank note circulation of the State Banks was reduced from $110,000,000 in 1816 to about $65,000,000 in 1819, causing a most frightful contraction of the circulation and doing great injury to the people. O. RAGNET. C. Ragnet, Chairman of the Senate Committee of the State of Pennsylvania, reported on January 29th, 1820, on causes and ex- tent of distress as follows: "A general scarcity of money throughout tne country, which renders it impossible for the husbandman, or other owners of real estate, to borrow even at a usurious interest, when landed security of the most indubitable character is offered as a pledge. A general suspension of large manufacturing operations and general suspen- sion of labor and a stagnation of business, which is limited to the mere purchases and sale of the necessaries of life. Over- flowing of our prisons with insolvent debtors, most of whom are confined for trifling sums." It is a lengthy report and gives a frightful statement of conditions. The United States Bank and the great number of State Banks were not successful in increasing the needed circulation. The Government only could place in circulation the ample volume of money needed by the people to carry on their vast industries, but the greater number of the attorneys of the banks in Congress would not consent, consequently the great masses of the people were forced to suffer. 16 THOMAS H. BENTON. Senator Benton should have urged upon Congress the enact- 1820 were a period of gloom and agony — no money, either gold or silver. The local banks, all but those of New England, after a brief resumption of specie payments, again sank into a state of suspension. No price for property or produce. No employment for industry. No demand for labor. No sound of the hammer. No medium of exchange but depreciated paper; no change even, but little bits of foul paper, marked so many cents, and signed by some tradesman, baker or innkeeper. Distress the universal cry of the people; relief, the universal demand, thundered at the doors of all legislatures. State and Federal." Senator Benton should have urged upon Congress the enact- ment of a law to create and pla«e in circulation, through making internal improvements and thus employing the idle people, $2 00,- 000,000 in United States legal tender notes, say about $20 per capita. It would have set the wheels of industry rapidly in motion for the 10,000,000 population, which would have afforded immediate relief and made the people very contented and happy. But Benton was a "hard money man," and ias the specie was very limited, not even adequate for reserves for deposits or basis for bank note circulation, he did nothing more than cry out against issues of legal tender United States notes, being always frightened at the shadow of Continental currency, which was not a legal tender but made redeemable in "Spanish milled dollars," of which only a very limited sum was to be found, and which currency the wise Franklin denounced, declaring that only legal tender notes should be issued. But bad as the Continental currency was, it gained freedom for the people. ASSIGNATS. Many people denounce the Assignat paper currency issued by the Government of France, but it worked wonderfully well for the great masses of the French people. At the time of the re- bellion, after the execution of King Louis XVI, there were only about 30,000 landed proprietors in all France, the land being owned by the nobles and the clergy. The Government of France had confiscated the lands and made the Assignats receivable in. payment for the confiscated lands. The consequence was that near five million persons purchased rapidly of the land, and thus such a large number became land owners that they could not be dispossessed of their property, and ever since have stood loyally for their country. But eventually through counterfeits issued at the instigation of the British Government, it ceased to be of value. No true lover of liberty should ever decry the Continental currency nor the Assignats. GOVERNMENT DEPOSITS. The funds of the Government were deposited by Mr. Craw- ford, Secretary of the Treasury, with the State Banks, to help them in their great need, being in a critical position. JAMES MONROE. On the 4th of March, 1821, James Monroe was inaugurated President for a second term. A general complaint of bad con- ditions prevailed, judging from statements made both out and in Congress. 17 HENRY CLAY. During the session of Congress in 1823, Henry Clay, a prom- inent member of the House of Representatives, in a lengthy speech upon the tariff, said: "This distress pervades every part of the Union, every class of society. All feel it. It is most painful to me to attempt to sketch or to dwell upon the gloom of this picture. But I have exaggerated nothing. Perfect fidelity to the original' would have authorized me to have thrown on deeper and darker hues." Mr. Clay was a leading lawyer and pleader for the United States Bank, but in lieu of discussing relief for the people through the only possible means, an honest, just and generous financial system for the Government, and issuing ample legal tender U. S. notes, to maintain the people in prosperity, he was blinding them with a speech upon the worn out tariff, which never can or will be settled, except by a commission. There are too many lawyers in Congress employed by interested parties pro and con, to ever have it settled otherwise. Give the people an honest financial system and the country will grow rapidly in wealth and they be made happy. NEW STATE BANKS In 1821 some 40 State Banks were chartered by the State of Ohio, and 44 by the State of Kentucky. JOHN QUINCY ADAMS. Having been elected by the House of Representatives. John Quincy Adams was, on the 4th of March, 1825, inaugurated President. He was very conservative in his views, and did not seem to take with the people, and conditions throughout his term remained about the same. They wanted a more active man for a leader. ANDREW JACKSON. On the 4th of March, 1829, Andrew Jackson was inaugurated President. In his first message "he questioned the constitution- ality and expediency of renewing the charter of the Bank of the United States, that it had failed in the great end of establishing a uniform and sound currency."#He further said, "I submit to the wisdom of the Legislature whether a National one founded upon the credit of the Government and its revenues might not be desirable, which would avoid all constitutional difficulties, and, at the same time, secure all the advantages to the government that were expected from the present bank." UNITED STATES BANK. Nicholas Biddle, with others, made an application for a charter for a United States Bank through Senators Henry Clay and Daniel Webster, Attorneys for the Bank. President Jeckson objected to foreigners being permitted to become stockholders. Attorneys Clay and Webster were very bitter against President Jackson, and denounced the President in unmeasured terms. The lawyers in Congress were sorely divided, about one-half of them favoring the United States Bank and the other half holding out for the State Banks, as they wanted to continue in the House. 18 VICKSBURG, MISSISSIPPI. In 1828 my father sold to his partner, Jesse R. Jones, his business at Covington, Louisiana, and in the summer of 1829 moved to New Orleans, and there with the family took the small stern wheel steamboat named "The Walk in the Water," Captain Henry S. Buckner commandiijig, arriving at Vicksburg after a tedious and long trip (now made in 12 hours). He immediately bought a large lot at the corner of Main and Locust streets, and had constructed thereon a two-story brick buildmg, of which he occupied the second story for the home and the ground floor for his general merchandise business, taking in partnership with him. Miles C. Fowlks. At that time Vicksburg was quite a lively place. Cotton was raised and hauled to town upon ox and horse teams from all that section as far east as Pearl River, and it met with ready sale. In 1834 my father sold out to his partner. In the meantime he had constructed a large store building, and adjoining a large warehouse, where he engaged in the wholesale and steam- boat trade, in partnership with Elias Bruner and W. J. Boyce. About that time many steam boats were being built to ply between New Orleans and up river towns, always stopping for passengers and cotton. Also, many flat boats were built on the upper rivers and brought down loads of pork, corn, flour and other produce, always making a stop at Vicksburg, which city grew rapidly, and a very large business was done. At that time there were four banks, the Commercial Bank, J. L. Riddle, President, and Wm. L. Grayson, Cashier, occupying a very handsome building, corner Main and Locust streets, just opposite our home. The Bank of Vicksburg, Wm. F. Markham, Cashier, The Water Works Bank, and a branch of the Planters Bank. There were several handsome brick churches, three newspapers, "The Whig," edited by Wm. Shannon, "The Sentinel," a Democratic paper by James Hagen, and "The Financier," by Wright & Hagen; a theater, a large iron foundry owned by Wm. H. Sims, and operated by a large force, an extensive brick yard owned by Wm. and John Bobbs, a large saw mill, also a very large number of very handsome two- story brick residences. In 1836 my fatehr sold out his business to his partners, Bruner & Boyce, who were doing a very large business. Those were pretty flush times. The Sliite Banks had a large circulation of bank notes, which were not hoarded but spent very liberally. TWO SHIPS. In 1836, two ships loaded in England with railroad iron, were towed up to the City of Vicksburg and unloaded at the wharf, destined for the building of the road to Jackson. Many Irishmen just arrived from the old country were employed to work grading the roadbed. A great sight to see railroad building those days. I witnessed the first railroad accident, by two cars becoming uncoupled and running down the grade at the levee, and jamming against other cars loaded with iron, which bent the iron nearly double. THE CIRCUIiATION. In May, 1832, the amount of money reported in circulation was as follows: 19 U. S. Bank Notes $21,044,415 Specie in U. S. Bank 7,890,347 State Bank Notes 59,000,000 Specie in State Banks 12,110,000 Total $100,044,762 SUSPENSION COINAGE SILVER DOLLARS. President Jackson in 1836, finding that the silver dollars had been largely exported, also fractional silver coins very scarce, directed the suspension of the further coinage of the Silver Dollar. POPULATION. The population then was estimated at 14,000,000, a far to small circulation for the people, as their wealth was growing rapidly. It should have been increased to $200,000,000. But the financial system of bank note circulation was extremely bad. In 1832 Congress passed a bill to charter the United States Bank, which President Jackson vetoed on the 10th of July, 1832. This ended the fight with Nicholas Biddle, president of the bank. ANDREW JACIvSOiV. On the 4th of- March, 1833, Andrew Jackson was inaugurated President for a second term, and in an investigation of the affairs of the United States Bank ordered by President Jackson, it was found that 70 Members of Congress, 20 being in the Senate and 50 in the House of Representatives, were indebted $450,000 to the United States Bank, a horrible condition. (See Vol. 1, p. 415 Benton's Review.) During this second administration, there was a continuous fight between President Jackson and the State Banks, who were represented mostly by the lawyers. The fight was very bitter, but the banks were always ahead. My father always favored the United States Bank, saying he could use the bank notes of the United States Bank for ex- change, to send away to make settlements, while the State Banks were continually failing and their bank notes nt. a discount or worthless. In those days business was nearly all the time done at great disadvantage, but taking everything into consideration, the two administrations of President Jackson proved a success, as he left the Government out of debt, and a considerable fund in the Treasury. SECRETARY INGHAM. Mr. Ingham, Secretary of the Treasury, differed with Presi- dent Jackson, and in March, 1833, wrote thusly: "The Bank of the United States has purified one of the worst currencies that ever infested any country or people. It consisted of mere paper, of no definite value, accompanied by worthless tickets, issued from broken banks, petty corporations, and partnerships in almost every village. Instead of this (this, the U. S. Bank) it has given us the best currency known among nations. It supplies a medium equal in value to gold and silver in every part of the Union." Secretary Ingham having refused to remove the government funds from the United States Bank, had to step down and out, when President Jackson appointed Roger Taney Secretary of the Treasury, who caused the government funds to be removed from the United States Bank to the State Banks. 20 COINAGE LAW AMENDED. Under the coinage law enacted 1792, the gold dollar con- tained 27 grains standard gold ll-12ths fine. On the 28th of June, 1834, and in 1837, Congress amended the law and reduced the quantity of gold in the dollar from 27 grains standard gold to 25.8 grains standard gold 9-lOths fine. In regard to the silver coinage, the law of 1792 made 371 ^4 grains pure silver or 416 grains standard silver to the dollar. The law of 1834 made a change leaving still 371%, grains pure silver but reduced the alloy, making 412 1/^ grains standard silver 9-lOths fine, one dollar. Virtually no change was made in the pure silver from 15 to 1 to 16 to 1, only the ratio was changed. GOLD COINED. From 1792 to 1835, $11,825,890 gold was coined at the mint. GENERAL JACIiSON. In 1835 General Jackson visited New Orleans and on his way down the river stopped over at Vicksburg and was received by W. H. Gwin, then United States Marshal, who invited all the people to call. My father went and I with him, and had the grati- fication to see and shake hands with General Jackson, who was looking rather feeble. Mr. Gwin in after years moved to Cali- fornia, and was elected United States Senator. NEW BANKS. Many new State Banks were organized and chartered through- out the country, and flooded all sections with their bank notes. STATE BANKS. Senator Benton reported that in 1836, six banks were chartered for the District of Columbia, with $2,250,000 bank note circula- tion, and about 800 State Banks in operation in every section of the country, and being received by the Federal Government Treas- ury. STATE BANK REPORT. Report of State Banks, January, 1836, as follows: Loans $525,115,702 Circulation. Bank Notes $750,000,000 Specie 30,000,000 Total $780,000,000 Estimated Specie in General Circulation 30,000,000 Total $810,000,000 SHIN PLASTERS. Fractional silver coin being very scarce, municipal corpora- tions issued fractional currency, and business people put out what was called "shin plasters," redeemable on presentation in sums of $5.00. 21 PROSPEROUS CONDITION. Real estate sold readily at good prices. My father, Jonathan Glllmore, was offered by a Mr. Green from Philadelphia, and refused $100,000 for some 1000 acres cultivated in cotton four- teen miles below Vicksburg on the river, without the negroes. There was a great deal of building going on in every section, and debts were paid promptly. WAGES AND SALARIES. Wages were liberal, carpenters $3.50 to $4.00 per day; clerks, $75 to $200 per month, the latter for good bookkeepers. My father paid at the rate of $3,000 per annum for his book- keeper, named Stepehn M. Lee from Bangor, Me. Ministers of the Gospel were paid from $2,000 to $5,000 per annum, and a rectory furnished, and at times a carriage. Bonds of States, Cities and Counties sold readily at par or a premium. PRICES FOR PRODUCE. In New York City in November, 183 6, prices were as follows: Cotton, g. o. per pound 18 Sugar, La., brown, per pound 08 Tobacco, Va., leaf, per pound 09 Wheat, choice, per bushel $ 1.90 Flour, choice family, per bushel.... 10.00 (See N. Y. Journal of Commerce). GOVERNMENT OUT OF DEBT. In 1835, the Government had paid all indebtedness, and had/v funds on deposit with the State Banks to the amount of about $40,000,000. 5~J i^'^.^S^, ■ DONATION TO STATES. Congress, on the 23d of June, 1836, enacted a law donating to the states pro rata, the sum of $37,468,856, payable quarterly, beginning on the 1st of October, 1836, say, $9,367,214 per quarter. MARTIN VAN BUREN. On March 4, 1837, Martin Van Buren (Sage of Kinderhook) was inaugurated president of the United States; who, finding the financial matters of the country in an alarming condition, SPECIE EXPORTED. -^ Caused by the loss of their specie basis from the State Banks, the gold and silver money having been nearly all exported to Europe to pay for foreign products which the people greatly needed. The manufactories in our country were very limited, owing to the very inadequate supply of money to build them. Hence the importation of foreign products and exportation of our silver and gold money to pay for them. Had our government kept in the channels of trade an adequate supply of United States notes (commonly called greenbacks), the people would have built factories, made their own products, and largely dispensed with those of foreign countries. Our government has up to the present continued following the same ruinous policy by keeping a totally inadequate supply of good money in circulation for the uses of the people, to enable them to carry on successfully their vast internal trade; also, to build factories and largely dispense with the importation of foreign products, thus saving our gold and silver money from being exported to pay for them. \ CIRCULATION DECREASING. . -"^^ Money decreasing and population increasing. Yet the peo- ple, heeded not these loud warnings, nor seemed to realize their perilous situation, rhe reckless conditions continued and a heavy crash came — "Sauve qui pent." What specie was not exported the misers hoarded, making conditions for the banks go from bad to worse. DISASTROUS FINANCIAL PANIC OF 1837. On the 10th of May, 1837, the report of the failure of the banks was being given from all sections, only three in New York City holding out. The wreckage was frightful. It came like a thunderbolt in a clear sky, and was soon appalling to the people. X NO MONEY Senator Thomas Hart Benton said, "The spectacle of a Gov- ernment waking up in the morning of 11th of May, 1837, without a dollar to pay the day laborer with. The banks having suspended the day before. Such of the banks that kept open their doors could only pay in depreciated bank notes of very doubtful specie value." EXTRA SESSION. President Van Buren called an extra session of Congress to convene in September, to consider the condition of the country. LAWYERS IN CONGRESS. Among the most prominent members in the Senate were James Buchanan, Franklin Pierce (afterwards both were elected to and served in the oiaace of President), Thomas H. Benton, John C. Calhoun, Wm. Allen, Silas Wright, Henry Clay, Daniel Webster, Robert J. Walker, John Davis and R. H. Bayard, all leading law- yers. Those in the House of Representatives were John Quincy Adams, an Ex-President, James K. Polk and Millard Fillmore (who afterwards filled the office of President), John M. Bell, John Seargent, James Harlan, Thomas Corwin, Caleb Cushing, James Graham, Isaac Toucey, Wm. Cost Johnson, Waddy Thompson and Henry A. Wise, all leading lawyers and very prominent politicians. ^After the failure of the banks, matters grew from bad to worse, and there was a heavy falling off in the revenues of the government. GOVERNMENT BONDS. The government was unable to sell bonds or borrow money. There was no other way to pay its expenses than by an issue of Treasury notes. Yet many members of Congress opposed the measure, especially those representing the banks. TREASURY NOTES. Therefore, to pay the expenses of the government, Congress on 12th of October, 1837, directed the treasurer to issue $10,000,000 in treasury notes; to be in denominations of not less than $50, to be receivable for all debts to the government, to bear such in- terest as the treasurer might fix (which he fixed at one mill per 23 ' annum), and to be cancelled on receipt back into the treasury. Those treasury notes were very ingeniously made as undesirable as money for circulation among the people could possibly be made. JOHN C. CALHOUN John C. Calhoun in a speech in the Senate upon the bill said, "No one can doubt but that the government credit is better than that of any bank; nore reliable, more safe. Why then should it mix it up with the less perfect credit of those institutions. We are told the form I suggested is but the repetition of the 'old conti- nental money,' a ghost that is ever conjured up by all who wish to give the banks an exclusive monopoly of government credit. The assertion is not true. There is not the least analogy between them, the one is a promise to pay when there is no money, and the other to receive in the dues of the government when there is an abundant revenue." ^ CONTRACTING THE CIRCULATION. A, The Treasury notes issued to pay the expenses of the govern- ment, were paid back into the Treasury for lands and custom duties as fast as issued and then cancelled. Thus the people who were sorely in need of a large volume of good money, to carry on their vast and rapidly growing industries, were afforded only a tem- porary use of this makeshift. BANK NOTES. Bank notes were very undesirable on account of fluctuation in value, liability to be counterfeited, and when taken to other states than where issued met heavy loss from discount under the bank notes of such state. Also from general distrust, want of confidence in the banks, and their dependence upon specie for redemption, of bank notes and bank deposits. GOLD AND SILVER. The gold and silver money in the country was very limited and entirely inadequate, besides could not be increased. A MOCKERY. Treasury notes were the only money that our government could create and make immediately available and in adequate volume for the wants of the suffering people. The people had the utmost confidence in the government money. Yet every obstacle was placed in the way of the treasury note being issued and made one of the permanent and servicable moneys for the people. They were restricted to the use of treasury notes to be issued in denominations of not less than $50, and to be destroyed when paid back into the treasury — a mockery. REGULAR SESSION 1838. Just as fast as the treasury notes were destroyed when paid back into the treasury, the times grew from bad to worse and the suffering of the people increased. Also, the revenues of the gov- ernment continued to fall off. GOVERNMENT DEPOSITS. The government deposits of about $40,000,000 in the banks were unavailable, as the government could not use depreciated bank notes to pay its expenses. 24 \ ^ NO SALE FOR BONDS. The government was unable to sell bonds or borrow money. There was no other way to pay its expenses than by an issue of Treasury notes. Yet many members of Congress opposed the measure, especially those representing the banks. TREASURY NOTES AGAIN. Consequently our government again had to resort to the use of treasury notes. Congress on the 21st of May, 1838, author- ized the issue of $10,000,000 in treasury notes to be in denom- inations of not less than $50 and to be destroyed when paid back into the treasury. Yes, containing the same obnoxious conditions as those Treasury notes issued in October, 1837, as undesirable, unserviceable and as temporary for the uses of the people as pos- sible. If the bankers could not issue the paper money, then they would not consent that the people should have other than the most objectionable that could be issued. They failed to see then, just as they do now, that by preventing the people from having an ample supply of good legal tender government money, they were injuring the people and destroying the banks. But they "killed the goose that laid the golden egg" as only a few banks ever re- covered from the crash. I5ANK ATTORNEY. Nearly all the members of Congress were very prominent lawyers, with a sprinkling of bankers. Congress was run then, as now, by the attorneys of banks, who refused to have issued only undesirable temporary treasury notes. They insisted then, as now, that banks only should issue the paper money for the people. Yes, bank notes that are not and cannot be made a legal tender to pay debts, and their value to be maintained by a coin basis. When the coin disappeared by exportation, or otherwise, the bank note became worthless. Away with such fraudulent currency! The people have too often suffered the pangs of poverty from such worthless bank issues. TARIFF. A heated discussion arose in the Senate over the tariff ques- tion, between Henry Clay in favor of a high tariff or extreme pro- tection, and Robert J. Walker of Mississippi, for low tariff, both declaring that all the ills the people were then suffering from were caused by the tariff; that if the question could be settled according to their respective notions, the very hard times would cease and the ills of the people soon blow over. i HUMBUGGING. \ Both were humbugging the people. Congress had amended the Tariff law about 20 times, putting it up or down with the whims of the attorney. I have heard the tariff discussed by the ablest lawyers since my boyhood, and I am convinced that it can never be settled satisfactorily, except through a commission of as nearly disinterested persons as possible. BUSINESS MEN. Were Congress filled with business men, in lieu of lawyers who had devoted a life to studying technicalities, to aid them in freeing criminals, the tariff question, also the financial question, 25 could be readily settled. Such men as Benjamin Franklin, Peter Cooper, Pliny Freeman, John Thompson, Warwick Martin, Thomas J. Durant, and other able and practical business men. DEMOCRATIC FAILURE. Both Congress and President Van Buren were unwilling to make Treasury notes serviceable to the people, which brought great odium upon the Democratic party. But the Democrats still clung to Martin Van Buren and nominated him for president and Richard M. Johnsoh for vice-president. The great masses of the people were alive for a change. The Whigs at the National convention nominated General William Henry Harrison for president and John Tyler for vice-president. They erected wigwams all over the country for their gatherings, where their orators preached the doctrine for more money. Their famous hurrah was "two dollars a day and roast beef for dinner for the working man," most of whom were idle and their wages very low. Immense gatherings were held at which fat beeves were barbecued to feed the multitude and hard cider was doled out to the thirsty. The writfii^eaiid_manyjoftheiT_or^^ none pleased him more than~Sargent S. Prentiss"^ MlssissippF, who"^as the most eloquent and humorous of all. He always made a plea for more money. Many discontented Democrats drifted into the Whig party. In November, 1840, Harrison and Tyler were elected by an overwhelming majority. The people everywhere rejoiced and sang the song, "Little Van is a used up man," and they hur- rahed for "Tippecanoe and Tyler too." WILLIAM HENRY HARRISON. On the 4th of March, 1841, Harrison was inaugurated presi- dent, and finding the country still in a most deplorable condition, he called a special session of Congress, to consider measures of relief for the impoverished people. President Harrison died on the 4th of April. JOHN TYLER. John Tyler was immediately sworn into office as president, and called an extra session. A bill chartering a joint stock com- pany with $50,000,000 capital, having authority to issue bank notes based on coin, called "The National Bank," passed both branches of Congress, but was vetoed by President Tyler, who rec- ommended an issue of legal tender treasury notes. Congress at- tempted to pass the bill over the veto, but failed, which action caused a wrangle between President Tyler and a majority in Con- gress, which lasted during his term. No relief came to the people; a majority of Congress was for the National bank, and against the issue of treasury notes as rec- ommended by President Tyler; times grew harder and harder all the while and bankruptcy became general all over the land. BANKRUPT LAW. Congress, on the 31st of August, 1841, enacted a plain and simple bankrupt law, which went into force on the 1st of Ferbu- ary, 1842, and out of existence on the 1st of March, 1843. During the thirteen months existence of this memorable bankrupt law, a large majority of the business men of the country partook of its benefits, which enabled them to begin business life anew. At that / 26 time the writer and several others were engaged in the office of McCay & Mossy, notaries, at 42 Royal street. New Orleans, pro- testing notes and drafts of unfortunate* merchants for the Canal Bank and Merchants Bank of that city, frequently writing all night. In December, 1841, President Tyler in his message to Con- gress, recommended the enactment of a law authorizing the issue of non-interest-bearing treasury notes, not to exceed $15,000,000, to be made redeemable in silver and gold and receivable for gov- ernment dues; also, the issue of certificates of deposits for de- posits of gold and silver; but Congress failed to concur. The Bank of the United States, a state institution with branches throughout the country, suspended in 1841, and was a complete failure. QUOTATION BANK NOTES. Saturday, February 9, 1839. Prom the New Orleans "Ob- server:" Bank of Vicksburg 15 to 18 per cent discount. Vicksburb Water Works. 20 to 25 " I copied the above statement from the "Vicksburg Whig," that paper copied from the "Observer." DEPRECIATION IN VALUE OP LAND. The large tract of land located on the Mississippi river, for which my father was offered in 183 6, $100,000, was sold in 1841 for $5,000, and such were the general conditions in regard to real estate everywhere. PENNSYLVANIA HARD UP. In 1841, the state of Pennsylvania being in sore straits for money to pay for extensive public works, put under construction to give employment to the great number of idle workmen, by au- thority of the legislature issued "Relief money," not bearing in- terest but receivable for all taxes due the state, which currency passed current with the business men and afforded much relief. INDIANA DITTO. The state of Indiana, also, being greatly in need of money, issued non-interest bearing warrants, which were made receivable for taxes, and passed current, affording great relief to all. It would have been a just, wise and simple transaction had our gov- ernment issued ample legal tender money and loaned it to the re- spective states, cities and counties, upon their bonds at 3 per cent per annum interest, to make improvements, which could have giveh full employment to the great number of idle people. The population was all the while increasing, but the money supply continued contracted, which caused the continued decline in rents, real estate, products, salaries and wages, forced the great masses of the people to become more and more impoverished and eventually so poor that very many could neither pay rents, inter- est nor taxes. Persons who had loaned money on country and city property were in most cases forced to take it for the debt, and such property, even the improved, being unproductive, was al- lowed to be - sold for taxes. State and municipal governments failing to collect taxes, were forced to default in paying interest on their bonds. The holders of those bonds not receiving their 27 interest, were compelled to sell them, and in some cases at a very heavy discount. NEW ORLEANS. My father died at Vicksburg, March 23, 1839. In March, 1841, I went to New Orleans and took a position with my uncle, David L. McCay, a Notary Public, office 42 Royal street. I was assigned to assist with the protesting at the Canal Bank, receiv- ing all notes and drafts left over unpaid at 3 o'clock, to present to the drawers and if not paid to protest. It was a busy time pro- testing paper, as pretty much every business man had failed and was a bankrupt. Congress again in regular session met in 1842, and passed a bank bill, to be again vetoed by President Tyler, who again, in his message, recommended United States Government legal tender notes to the extent at least of $15,000,000, to be made perman- ent currency. He said, "It would add to the available means to the Treasury without cost or charge. Great beneficial effects would be produced in aid of all the active pursuits of life. Its effects upon the solvent State Banks would be highly beneficial." Henry Clay entered Congress in 1806, and resigned in March, 1842. He was a briliant orator, a great friend of the banks, op- posed the issuance of government paper money, and defended many criminals who escaped merited punishment, through his wonderful eloquence and his great knowledge of the technicalities of the law. I frequently met Mr. Clay after the expiration of his term as Senator, while visiting in New Orleans. I also saw at the same city Mr. Van Buren, after his term was out. I consid- ered him exceedingly vain and pompous in his dress and appear- ance. In the summer of 1842, the Consolidated Association, Union and Citizens banks, which had struggled along, failed. The state of Louisiana had largely aided those banks. Their failure very seriously affected the sugar and cotton planting interests. Confidence played out, credit became greatly restricted, which caused a heavy demand for money, but it was not to be had. HENRY CLAY. In the United States Senate, Henry Clay said: "The revul-. sion produced a far greater havoc than was experienced in the^ disastrous financial panic of 1813 to 1816. All prices fell off ruinously; production was greatly diminished and in many de- partments practically ceased; thousands of workmen were idle, with no hope of employment, and their families suffering from want. Our farmers were without markets; their products rotted in their barns; their lands, teeming with rich harvests, were sold by the sheriff for debts and taxes. The tariff which robbed our industries of protection failed to supply the government with nec- essary revenues. The national treasury, in consequence, was bankrupt, and the credit of the nation very low." (Colton's Life of Henry Clay). SENATOR GALLINGER. Senator Gallinger attributed the hard times of 1842 to th then existing low tariff. He is in error. It was not tariff that brought the ruin, because Congress in 1842, changed the low tariff to a high tariff which continued in force until 184 6. Yet J 28 the hard times and ruin continued on into the Mexican War, when good times came through a very large increase of money in treasury notes, bank notes and gold, which latter came after the discovery of gold in California. BOND SALE. By November, 1842, bonds of the states named below had greatly depreciated and sold as follows, to-wit: New York at 80 cents on the dollar. Pennsylvania at 70 cents on the dollar. Ohio at 50 cents on the dollar. Maryland at 35 cents on the dollar. Indiana at 19 cents on the dollar. Illinois at 16 cents on the dollar. (See N. Y. Journal of Commerce, or Baltimore American of November, 1842). LOW PRICE OP PRODUCE. In New York City about same date wholesale prices were as follows: Cotton, g. o., per pound $ .07 Sugar, La. brown, per pound 05 Tobacco, Va. leaf, per pound 03 Wheat, choice, per bushel 85 Flour, choice family, per barrel.. 4.50 (See same paper). Also, farm products about the same time sold from the farmers' wagons in the towns of Ohio, as follows: Wheat at 40 cents per bushel. Flour at $1 per hundred pounds. Dressed hogs at $1.25 to $1.75 per hundred pounds, the lat- ter price for extra fat hogs, to be rendered into lard oil for light- ing cities, towns, and dewllings (coal oil was unknown and gas not much used). In i\ew Orleans, whiskey sold from the flat boats in dray lots of 5 barrels, at 12 cents per gallon. Those days much of the whiskey, bacon, corn, lard, etc., was carried down the Mississippi river in flat boats. SPECIE BASIS. No banking law can be made safe enough to secure a stable and safe bank note circulation based on gold and silver coin, to save the people from loss and the country from financial panic. The Union Bank and the Brandon Bank flooded the country with their worthless bank notes, so did the banks in Atabama, Arkansas, Illinois and Ohio. The little Ohio river town of Gal- lipolis had its bank, which shipped loads of bank notes down the Ohio and Mississippi valleys for distribution. The bankers of Michigan who procured chatrers for banks to issue bank notes in 183 5, '36 and '37, did it by stretching the blanket, in making one box of silver and nine boxes of nails pre- sented to the auditor do full duty. The box of silver was opened for him to count. He would say, "no use in opening the others; I am satisfied; go ahead and issue your bank notes" (based on one box of silver and nine boxes- of nails). There has always been feuds among the bankers, which not 29 only kept themselves but the people also in hot water. The war between the Suffolk Bank and the banks of Maine and other New England states continued for years. JOHX THOMPSON'S BANK NOTE REPORTER. I could give a history of the heathenish, worthless and rot- ten banking systems that our people had to conduct their busi- ness under in the forties, prior to the greenbacks. The writer had to ponder over and over the counterfeit detector issued week- ly by the eminent financier, John Thompson, to learn of the new counterfeits being issued, also of the latest failures among the banks. It is only wily, cunning bankers who plead the privilege of Issuing bank notes backed by gold. John Thompson and other able bankers, who were familiar with the old rotten system, de- clared for Government notes. Banking is a legitimate, useful and honorable business, when conducted in a straightforward and business way. All banks should be confined to the legitiamte business of banking, deposits, discount and exchange. When that is done under full govern- ment supervision for the full protection of the people, there will be no war by the people against the banks. But so long as bank- ers contend for one of the strongest powers of the government, that is, issuing bank notes, the war will continue to be wage ^finances by Cleveland: Bank Year. Failures. 1895 162 1896 186 Total bank failures . 348 The above statement shows the disastrous effects of the tcious administration of President Grover Cleveland. A CUT IN SALARIES. Special to The News. Cheyenne, Wyo., July 16. — "The county commissioners of Lara- mie County have been struck with the retrenchment idea and a wholesale reduction of salaries is in order. Paul Bailey, deputy clerk of the district court, has been dismissed. The Deputy County Clerk's salary has been reduced from $100 to 83,33 per month. The second deputy from $75 to $60 per month. The Deput:^ Treasurer has his salary reduced from $100 to $75 per month. One Deputy Sheriff is reduced to $100 to $75 per month and the second to $2.50 per day. The wholesale reductions have caused considerable comment, not especially favorable to the commission- ers." July 17, 1896. AGAINST GREENBACKS The Hon. James H. Eckels, June 30, 1898, was appointed Comptroller of the Currency during Mr. Cleveland's last adminis- tration, a young lawyer of no financial ability and no knowledge of the National Baking system. He reminded the Republican leaders that there was still much to be done to retain the support of gold Democrats who, in 189 6, voted for McKinley. Mr. Eckels conveyed a hint to the Republicans in this language: "The Republicans, with a safe opposition party, could be successfully attacked on their lack of evidence of a willingness to deal in a strong and positive way with the currency question." The strong and positive way in which Mr. Eckels wanted to have the Republicans deal with the currency question was the en- actment of a currency bill at the next session of Congress flatly declaring for the gold standard and preparing for the substitution for greenbacks by national bank notes. WILLIAM Mckinley. -^ On the 4th of March, 1897, William McKinley was inaugurat- ed President. The entire country at that time was still suffering frightfully from the very disastrous financial panic brought on by President Grover Cleveland during his second term. Also, what occurred after that gradually brought back improved conditions. SHORT CROPS IN EUROPE. The partial failure of the grain crop in 1897 in Europe, also short crops in most wheat exporting countries, except that of our country, which produced bountiful crops, enabled securing higher prices, especially increased to a still higher figure by Leiter, the multi-millionaire going wild on wheat. This helped conditions in all sections of our country. WAR AGAINST SPAIN. In 1898, our country declared war against Spain. The army- was immediately filled with volunteers recruited from the very great number of idle. In order to prosecute the war, our Govern- ment in March, 1898, caused to be issued $200,000,000 in 3 per cent Government Bonds. There was no necessity for an issue of bonds because congress could have directed the issue of that sum in U. S. legal tender notes and saved paying interest. In fact, an issue of $500,000,000 in such notes would have been a great blessing, as the entire country was greatly in need of much more^ money. But those in power wanted to help the National Banks. INCREASED NATIONAL BANK CIRCULATION. The National Banks secured the Government Bonds and were thus enabled to deposit them with the government, and authorized to issue a like amount in National Bank Notes. The large in- crease in circulation, of $200,000,000 in National Bank Notes, was of immense benefit to the people in aiding them to rebuild the business, and very largely checked bankruptcy, but had the sum been $500,000,000 that increased circulation would have acted like a charm. The small favors were most thankfully re-j ^ceived by the people. WAR OF GREAT BRITAIN AGAINST THE BOERS. Vast quantities of supplies were taken by Great Britain in the war against the Boers, which was a great help to our people in^ enabling them to get out of that disastrous panic of 1893. ALASKAN GOLD. The great number of people going to Alaska, giving em- ployment to a very large number of people, and the taking of vast supplies in working the gold mines, and the sending back of large amounts of gold, and its diffusion among our people, helped wonderfully to get our people over the panic. WORLD'S INCREASE OP GOLD. The very large iricrease in the product of gold throughout the world helped conditions everywhere in restoring confidence and great industrial activity to the people of our country. Through the exceedingly fortuitous circumstances recited, our country got relief from that exceedingly disastrous financial panic which broke out in 1893, brought on solely by the incompetency of President Grover Cleveland in forcing the vast contraction of the circula- tion of our country, also in his very bad management. Had theV financial affairs of our country, and the coinage of the silver dol- \ lars been allowed to continue, thus largely increasing the circu- A lation, our people would not have suffered from a panic, nor / would those 348 banks have been forced to close their doors / ^ and fail in 1895 and 1896. ^ WILLIAM McKINLEY. On the 4th of March, 1901 William McKinley was inaugur- / ated President for a second term. The entire country had been / brought to very prosperous conditions through the fortuitous / circumstances of famine, wars and increase of money that had / taken place during his first term. Labor in all sections had 89 had greatly improved and prosperity prevailed. Thus during this scene of activity, a villainous assassin, an ignorant man, struck down our President, a most unfortunate occurence for our people. THEODORE ROOSEVELT. Theodore Roosevelt, the vice-president, upon being notified of the death of President McKinley, was immediately sworn into the office of president. President Roosevelt entered office during very favorable conditions throughout the country, and to the end of his term. During the war against Spain Roosevelt had made himself quite popular, then likewise after his inauguration and services as president, up to the end of his first term. The peo- ple being quite prosperous did not desire to see any change made, and were desirous of seeing well enough let alone, thus his elec- tion was scured for another term without it being made neces- sary to make any very great effort to secure his re-election. On the 4th of March, 1905, Theodore Roosevelt was inaugu- rated president for a' second term. Upon entering office at the beginning of his first term, the entire country had just recovered from that extremely disastrous financial panic of 1893, from which it recovered during the term of President McKinley through the fortuitous circumstances of famine, wars and the discovery of gold, giving generous employment to the people, and enabling the large increase in the circulation of gold and National * Bank notes, all of which very favorable conditions continued on / after his election to a second term, and up to about the end of / ' 1906, when a reaction set in and conditions became worse up to / the breaking out of the panic of October, 1907, and have been I growing more disastrous ever since, and will cotninue to do so i until relief comes through an ample volume of the circulation, V^^_or conditions equalize through depreciation of values. y^ WANTING IN FINANCIAL ABILITY. / Had President Roosevelt been a man of good financial / ability, and had he familiarized himself with the rapid and vast / growth of the wealth of our country, brought about by the sev- / eral fortuitous circumstances, which have happened during the I several years just previous, and sent a message to Congress V making known the fact of the total inadequacy of the circulating ^ medium to meet the enormous demands of our intensely ener- getic people, and urged upon Congress to create and issue a gen- erous and ample volume of money to maintain and continue the former very prosperous conditions, when all the people through- out the country were fully employed and contentment reigned; then had Congress made the provision, which the banks had not the wealth to produce, prosperity would have been maintained. But his wanting in financial ability and the secretaries under him mismanaging the finances have forced the business people to suffer severely, and such disastrous conditions will continue until the correct relief be granted. y Witness within the past eighteen months the enormous ^e- /^preciation in the value of the railroad properties, estimated at / over three thousand million dollars. The railroads had in their j employ 1,500,000 persons; about 250,000 have been discharged, I which means that their consumptive powers are sadly checked, I bringing suffering upon a class of our most deserving workers; Y also, estimated that about 3,000,000 from other occupations are 90 die. Gradual depreciation in the value of real estate, and slow of sale, throughout the country, building in all sections falling off. Take the month of August of this year compared with same month last year in the 25 cities enumerated in this pamphlet showing losses ranging from 13 to 89 per cent. In- vestigate the cotton mareket. In January, 1906, cotton in New York City was selling at 13 cents per pound; now, September, 1908, at 8 ^/^ cents, a decline of 4i/^ cents, say $22.50 1 per bale. The crop is estimated at 13,000,000 bales, which shows \ a loss at present prices to the cotton planters of fully $270,000,- V, 000, with disastrous conaitions still ahead. v^" /" President Roosevelt, let me urge you to realize your responsi- /bility to the people. The same conditions prevailed during the / administration of President Martin Van 6uren (Sage of Kinder- J hook) in 1837, who wa& wanting in financial ability, and the I people suffered extremely irom that very disastrous financial >>»>^panic that only subsided in 1847. The treasury department has filled the land with silver cer* tificates of the denomination of o-^cj, two and five dollars, amount- / in to about one hundred million dollars, that are not legal tender ( and cannot be held by the banks as legal reserves, while the 'y silver dollars remain in the treasury uncalled for. All money Vjvhile in circulation should be a legal tender. C-^ Governor Taft, the appointee of President Roosevelt, reduced the value of the Philippine silver dollar from its legal vaiue to fifty cents each — a sei^ious and costly blunder. It is the law that gives value to money, not the metal. This grave mistake should be remedied without delay and those silver dollars re- stored to their legal value. /^ GOLD AND SILVER COIN. / There is on deposit in the United States Treasury about $1,280,000,000 in gold and silver coin, which is a legal tender, and held for redemption of a like amount of certificates, that are not a legal tender, and which the National Banks have not the authority to hold for reserves. Among the silver certificates in circulation there is about $100,000,000 in small denominations of $1.00, $2.00 and $5,000 scattered throughout the country and not generally deposited. A bad condition and one of the causes which, in October, 1907, forced the National Banks to issue about $160,000,000 in Clearing House Certificates, an illegal currency, or to suspend payment to their depositors. A very bad condition, and which should be changed to a good system. CLEARING HOUSE CERTIFICATES. In October, 1907, the National Banks in all the large cities throughout the country, except San Diego, Cal., being very short of ample money to pay their depositors, were forced to make use of Clearing House Certificates, an illegal currency, otherwise sus- pend payment to depositors. About $160,000,000 in such certifi- cates were issued and paid out to depositors. / LOANS TO NATIONAL BANKS. The government in order to help the National Banks out of their bad condition, made loans to them in December, 1907, to the extent of about $260,000,000 without charging the banks any interest. The banks receiving interest at an average rate of 91 3 per cent per annum upon the bonds pledged to the government for the repayment of the money. FURTHER GOVERNMENT AID. Our government to further aid the National Banks disposed of about $35,000,000 of Panama Canal construction certificates, bearing 3 per cent interest. The banks were thus enabled to ac- quire the certificates and issue a like amount in National Bank Notes. In my judgment a wiser action would have been to issue the same amount in legal tender U. S. notes, and have paid that sum to the banks for government bonds and saved interest. In fact, the entire expense of building the Panama Canal, and a great many other public improvements, could be paid for our of an issue in U. S. legal tender notes to the extent of $1,000,000,000, and give relief to the people from the present disastrous panic. DISASTROUS FINANCIAL PANIC OF 1907. Owing to the inadequacy of the volume of the circula- tion of our country, a disastrous financial panic broke out in October, 1907, causing great derangement to all the immensely vast business interests of the country, immense losses to the people, frightful shrinkage in value of crops (cotton alone, $270,000,000), and great numbers of workers thrown out of em- ployment, many enforced to poverty, much misery, and some few to commit crimes. EMERGENCY" CITIRENCY. The panic was discussed in the last session of Congress. An act was passed authorizing the issue of $500,000,000 in emergency currency, and a commission authorized to be ap- pointed by the President to make report upon a correct financial system. FINANCIAL COM»nSSION. The president appointed a commission, composed of Sena- tor Aldrich et al. The newspapers report that they are now in Europe consulting with the Rothschilds, the great "Money Kings," in regard to the matter, and their report will be made to the 'next Congress. ACKNOWLEDGMENT OF INCOMPETENCY. Congress in appointing a commission to go abroad, investi- gate and report upon a correct financial system, considered itself incompetent to deal with the subject. On finding the country in such a desperate condition, Congress should have remained in session until the bad conditions were remedied. MONEY OF NATIONS. T ^rwick Martin, a banker in the city of New Orleans, prev- ious to Ifte '^IVll "Wii'i-, is the author of a book styled "Money of Nations," published in 1880 in Washington City, D. C. I was in early days well acquainted with the late Mr. Martin, who was a very just and honorable man. His work upon the money ques- tion and systems of finance is the ablest that I have read. I would advise every member of Congress to read the book, as well as all others interested in that most vastly important subject for the welfare of the people. 92 SENATOR DEPEW. Senator Depew, in a speech delivered in the United States /Senate on the 6th of March, 1908, stated: "The railroads last / year needed $1,600,000,000 to place the roads in good condition / and make extensions, but no money could be secured on bonds \ for long terms. All the money they could secure was about $900,000,000, and that on short time notes at 6.7 and*7i/^ per cent interest." He further stated: "We have had several disastrous pan- ics, the most noted being those of 1837, 1857, 1873, 1893 and 1907. "All but the last became subjects of rancorus party discus- sion, and there was no agreement at the times of their occur- rence as to tte causes of their happening. But now contempor- ary opinion with great unanimity puts the blame upon our sys- tem of banking and currency and demands action and remedial legislation." The panics of 1837 and 1857 mentioned by Senator Depew occurred during the State Bank note system, when the deposits and the bank note circulation were based upon specie. With the export of the specie which took place, all the banks, with but very few exceptions, suspended payment, and mostly were very disastrous failures, the bank notes in most cases becoming worthless. In each case it brought heavy decline in all busi- ness and intense idleness among the people. The panic of 1837 wound up about nine years after, causing the unjust war against Mexico. That of 1857 lasted several years. It was the very great scarcity of money that caused the business to decline very heav- ily, throwing great masses of people into idleness, and creating intense poverty and misery, which brought on the civil war. y "The Specie Basis Banking Ssystem" was always a fraud / upon the people, too vile, disastrous and worthless ever to be \^ considered. The panics of 1873, 1893 and 1907, mentioned by Senator Depew, occurred under the present National Banking system. The bank notes are secured by pledges with the government of govrnment bonds, bearing an average interest of 3 per cent, which is paid to the National Banks as a bonus, or graft, as the government could create and place in circulation, as needed, an ample volume of United States legal tender notes, without cost to the government, in lieu of paying the National Banks about $20,000,000 per annum for issuing the National Bank notes. Also, our government loans the National Banks vast sums of money without charging the banks any interest. In December, 1907, our government loaned to the National Banks about $2 60,- 000,000, without charging the banks any interest. In fact, the National Banks received interest upon the government bonds pledged by the National Banks as security for the repayment of the loans to the government, a rank graft. Who ever heard of parties receiving interest upon borrowed money? 1906 CO>IPARED WITH 1908. rAt the present time (September 1, 1908) conditions com- pared with those which existed on the 1st of January, 1906, show that a frightful change for the worse has come over the country. It is stated that out of 1,500,000 persons employed by the rail- roads in 1906, about 250,000 have been discharged, being one- 93 sixth. No cars were idle then, now about 300,000 cars are laid up. The gross receipts of the railroads for the first six months of 1908 show a loss of $280,000,000. The managers of the rail- roads are threatening the reduction of th'^^ wages of their em- ployees, or a raise in freight charges to make up their losses. Further, throughout the country, about 3,000,000 persons who had ample work in 19 06 are now idle. Thus, through the loss of wages of the vast number of idle people, their consumptive powers are being greatly reduced. The decline in the value of railroad property during the^ past two years is estimated at least $3,000,000,000. Real estate market is dull and prices declining. Building in every section is falling off. Heavy decline in price of lumber. . J COTTON AND HOPS. ^ / In 1906 cotton was selling at 13 cents per pound, now, / September 1st, 1908, it is quoted at 8% cents per pound, a re- / duction of 4 y^. cents per pound. The cotton crop is estimated at / 13,000,000 bales, of 500 pounds each, say a decline in value of I $22,50 per bale, which would show a loss to the cotton planters I on their crop of the enormous sum of $270,000,000. Such a I condition is frightful to consider. In 1896 during the extremely / disastrous financial panic brought on in 1893 by President Grover I Cleveland, through his vici(^isness, stupidity and ignorance, the / price of cotton was forced down to 4 cents, being so great that / the raisers proposed to burn part of their crop in order to lessen j the crop and thus raise the price. About the same time the price I of hops was so low in New York, that it did not pay to raise hops, 1 and the governor of the state urged the hop farmers to cease I raising hops. The same year very low prices existed in California. V^ The producers of hops this year, 1908, are now complaining about the very low price of hops, that it does not pay to raise them. X TO PRODUCERS. ^ All the people of the United States should investigate the cause of such very frightful conditions and remedy the wrong. PANICS AND CAUSE. Senator Depew in his si)eech aforementioned, delivered in the United States Senate on the 6th of March, 1908, on the sub- ject of the disastrous financial panics of 1837, 1857, 1873, 1893 and 1907, said: "But now contemporary opinoin with great unanimity puts the blame upon our system of banking and cur- rency, and demands action and remedial legislation." FINANCIAL SYSTEM. I concur fully with Senator Depew, that the entire financial system of our government, which has caused such noted disas- trous financial panics as those of 1837, 1857, 1873, 1893 and 1907, is very bad. Also, the administration has been and is still very bad, and those members of Congress who insist on en- acting such very bad laws should be urged to resign, and men of correct financial knowledge replace them. FINANCIAL COMMISSION OF 1891. About 1891 a commission composed of Jesse Seligman, a dealer in silver bullion; H. W. Cannon, president of the Chase ( 94 National Bank; C. C. Cromwell, president of the City Bank of Buffalo, et al., were appointed to investigate the proposition of silver coinage. They went to Europe and after a conference with the Rothschilds, the great "Money Kings," and bullion dealers, they made report that the further coinage of silver was not advisable. There is where Presidents Harrison and Cleveland got their cues about silver, securing the suspension of silver coinage and thus preventing any further increase in tTie circulation, which at the time was greatly needed by the people to conduct their business successfully. Money is the power to build up a country. If adequate, prosperity reigns. If inadequate, there is the devil at play! FINANCIAL COMMISSION OF 1908. During the past session of Congress, President Roosevelt appointed a commission to investigate and report ppon a cor- rect financial system, composed of Senator Aldrich et al. A re- port comes that the commission is in Europe conferring with the Rothschilds upon the subject. Possibly the Rothschilds might recommend that our silver dollar coins be reduced to the value of 50 cents each, as was done in the case of Mexico and the Philippines. . RAILROAD NEEDS. Associated Press, July 10, 1908. Mr. E. P. Ripley, presi- dent of the Santa Pe Railway, stated: "But the wages of rail- road employees could not be reduced without bringing on a strike, which would paralyze the country for months. The only thing left seems to be to increase rates." "The fact is that, with few exceptions, the railroads in this coimtry are merely imitations of railroads. They are skimpingly built and have all kinds of money to spend for the protection of life and property and to handle the business entrusted to them as the public demands that it shall be handled. "For this new capital must be raised." SLAUGHTER ON THE RAILROADS. The intersetate commerce commission has just made public the figures of the railroad shambles, for the fiscal year of 1907. According to these oflEicial figures the railroads killed last year 11,839 persons, and crippled and injured 111,016, making a total of 122,855 victims of the railroads. What an appalling presentation! The railroads .of the country not only maintain but increase their reputation as the greatest mankillers in the universe. War, with its horrors and bloodshed, its killed and wounded, is a bagatelle beside the slaughter of the railroads. SENATOR DEPEW. Senator Depew, in his address, further stated: "The rail- •MDads need $1,600,000,000 to put them in good condition and make extensions, but money could not be secured on long term bonds. Only $900,000,000 could be obtained and that on short terms at 6.7 and 7i/^ per cent interest." A most frightful condition, which Congress should remedy without delay by creating and placing in circulation ample money to run the industries of our country successfully. The slaughter- ing of the people on the railroads should not be permitted longer to continue. The National Banks have not the wealth to secure 95 the bonds required to increase the immensely vast circulations needed. Therefore, our government should change its financial system and adopt a just, safe and generous one to maintain the country in continuous prosperity and not keep the people in con- tinuous tumult. /^ DECREASE IN VALUE OF RAILROAD PROPERTY. / Just imagine the shrinkage in the value of the railroad prop- / erty within the past two years, estimated at $3,000,000,000, all / • owing to a totally inadequate volume of money being maintained / i in circulation, through the v/ant of a correct knowledge by V President Roosevelt of a generous system of finance for our gov- ernment. / EMERGENCY CURRENCY. / The enactment by Congress, authorizing $500,000,000 emer- / gency currency to force the ^shrinkage in the wealth of the coun- / try, in the interest of the very wealthy National Banks in New / York City, is a sham and a base fraud. All the financial legisla- / tion is largely in their interest. Only permanent and continuous j circultation should be emitted to maintain the continuous increase I of the industries and the growth of wealth. Our immensely ex- \ pansive country, with its enormously vast industries and very V^ active population, should have at least a circulation of $50 per capita of continuous circulation. FRANCE. Smaller than Texas, France has about 39,000,000 popula- tion and has the largest per capita supply of money of any coun- try in the world, to-wit: Gold about $ 850,000,000 Silver 488,000,000 Bank notes 673,000,000 Total $2,011,000,000 About $50 per capita. Which large volume of money has made that country exceedingly prosperous and powerful. The gold, silver and paper money are on a parity, maintained thus by their equal debt-paying power. Contracts for the payments of debts are not allowed to be made in specific money (gold) only in the legal money of the country. Debtors have the right to pay their debts in such legal money as they may have. "No country is more misunderstood than France and her currency. The notes of the Bank of France are literally fiat money. They say '50 francs' and '100 francs', and do not prom- ise to redeem the bank note in any kind of coin. The 5 franc piece in silver is the general legal tender of France. They main- tain the parity of gold, silver and paper by main strength." Still the bank pays its notes at its option in either silver or gold coin. This power is used to prevent the export of gold coin. THE REBELLION. In 1790 the money supply of France was low, the masses of the people were without work and suffering for the want of bread. They sent a committee to King Louis XVI. and asked for work or bread. He told his minister to throw them a stone. They revolted and guillotined the King. A National Assembly 96 was elected which confiscated the estates of the nobles and clergy, and to carry on the government issued an immense amount of "assignats," which were made redeemable only in confiscated lands. It acted as currency, paying debts, and enabled the gov- ernment to wage war with Europe. By 1797 about $9,000,000,- 000 was estimated to be in circulation, but the English people had counterfeited the "assignats" to such an extent that the good could not be told from the bad, so they went out of existence just as our continental money did, which the British counter- feited in order to cripple our country, but they failed. The "as- signats" had the effect of increasing the land owners of France from 30,000 in 1790 to over 5,000,000 by 1800. The French people love their homes and their country, and but few emigrate. Politicians on the stump speak sneeringly and contemptu- ously of "assignats" and continental notes as being worthless paper money, and ridicule our greenbacks as similar and undesir- able, that should be put out of existence. Neither assignats nor continental notes were invested with legal tender power to pay debts, consequently were not money. The assignats fortunately were redeemable in lands, which gave France over five million loyal land owners. The continental notes were payable in Spanish milled dollars, only a limited number of which were in circulation. Counterfeits drove both out of existence, but both worked wonders for their respective countries. LAND OWNERS. France is owned by the many. There are now 5,500,000 land owners among the 39,000,000 people which make up the French republic, or almost a land holder to every family. The average holding is less than six acres, and thousands own little tracts upon which they live, working a part of the year for some one else. FARMERS. ^ There are more than eight million farmers in France who / belong to agricultural syndicates, and there are altogether over / two thousand such syndicates. These syndicates are for the / general furthering of the farming and commercial interests of I the members, and they are further organized into ten unions I which work together for the interest of their class. They have I a head ofiice at Paris, and this deals with the railroads as to V freight rates and also pushes agricultural interests before the \French Parliament. /- LOVE HOME. / The French love their native land, and it is this common / ownership that keeps them at home. They are not an emigrating nation, like the Germans and Italians or the English. More strangers go into France every year than Frenchmen leave, and notwithstanding this the people are about the richest on the face of the globe. RAILROADS. The government owns most of the railroads. They are thor- oughly built and kept in excellent order, and the charges for fare and freight are moderate. 97 MANUFACTORIES. France has immense manufactories. Lyons produces an- nually silk of the value of over $50,000,000 and sustains a pop- ulation of 500,000. St. Etienne produced silk ribbons of the value of $20,000,000 per year and sustains a population of 165,- 000. They sell the people of the United States about $2,500,000 of ribbons every year. TAXES. The taxes are raised with good judgment and paid by the wealthy, largely through incomes. FRENCH INDEMNITY TO GERMANY. In July, 1871, the indemnity from France to Germany was fixed at $1,060,209,015.00; after crediting France with the value of certain railroads in Alsace and Lorraine, the amount of indemnity due Germany became $999,172,069, or 4,990,860,349 francs, which was paid in November, 1871 by the Bank of France, a portion of which was in its notes at par. The indemnity was settled as follows: IN PAPER. Francs. In bank notes of the Bank of France 125,000,000 In German bank notes 105,039,045 Total paper 230,039,045 IN SILVER. Francs. In French five-franc pieces 239,291,875 In bills of exchange drawn in silver thalers 2,485,513,729 In bills drawn on Hamburg ki marc banco 265,216,990 In bills drawn on Frankfort in silver florins 235,128,152 In bills drawn on Amsterdam in silver florins 250,540,821 In bills drawn on Antwerp and Brussels 925,704,546 Total silver 3,771,395,913 IN GOLD. Francs. In French gold coins 283,003,250 In bills drawn on Berlin 79,072,309 In pounds sterling on London 637,349,932 Total gold 989,425,391 75,6 per cent in silver, 19.8 per cent in gold, and 4.6 per cent in paper. They were able to pay the enormous Franco- Prussian war debt without feeling it, and they have now hun- dreds of millions of dollars stored away in their homes. France never send abroad to borrow money, but has always largely to loan. France coined of silver during 1903, 4 and 5, $70,887,561, and made a profit between commercial price paid and gained by coinage into legal tender silver coins, about $31,000,000. GOLD AND SILVER. In 1907 thfe per capita circulation of gold and silver France was as follows: Gold, $23.75 Silver, $10.75 ^ 98 MONEY TO LOAN. France always has plenty of money to loan. When they want money the Bank of France creates bank notes for the amount needed. COMMISSIONS. The government does not send commissioners abroad to learn about finance, as our government has done and is still do- ing. President Harrison sent Jesse Seligman et al to ask the Rothschilds if it was advisable to stop the coinage of silver. Of course, the Rothschilds advised suspension. President Roosevelt has named Aldrich et al to report upon a good financial system and they are now visiting the Rothschilds at Berlin. Daniels in wisdom! The Bank of France will pay out gold coin to their people needing it at par, but should foreigners ask for gold the Bank of France demands a premium. In January, 1908, the Bank of England borrowed about $15,000,000 from the Bank of France, and paid a premium for the gold, and has done the same thing on previous occasions. In 1907 our people borrowed about $100,- 000,000 in gold from France, paid a premium, good rate of in- terest, and gave best securities. Our people are paying it back now. Already about $50,000,000 has been returned in gold. WORLD'S PROGRESS. The 1,650,000,000 people in the world have during the past half century very greatly improved in their condition, made immense growth in commerce, and vast increase in wealth, which all the while demands an increase in the volume of their circu- lating medium. All indications show that their progress in the future will be far more rapid and ^astly greater than it has been in the past, as the communications, business arrangements and connections throughout the world have been and are being made with greater facility, and more expeditiously. CHINA. The Chinese since their limited connection with the outside world have made wonderful progress, especially in manufactur- ing. They have the very best plants for the manufacture of cot- ton, with the most approved machinery to be found in any part of the world, and all the while are greatly increasing the number of their operatives, likewise their consumptive powers, thus cre- ating a far greater and ever-increasing demand for the circulat- ing medium necessary for the continuous demand of their own people. Also to make the exchanges with other nations. MONEY NEEDED BY CHINA. The Chinese will require a silver circulation of about $10 per capita, say $4,000,000,000. To obtain such a needed supply would require the entire product of all the mines of the world for 20 years, at the present rate of production. The pro rata of circulation for China is $1.10, far too low, and from which they are now suffering very greatly. y- BRITISH INDIA. *^X /^ With a population of 350,000,000 British India has only a 1 / per capita circulation of about $3.10. The silver coinage per I (™ .. .... ........ „.„ ..„ .„ ..„ . „y 99 per capita per annum. During 1906 British India coined in sil- ver $64,691,356 and made a profit of about $22,000,000 between the commercial price paid for the silver bullion and the value gained by the coinage into legal tender silver rupees at which it was issued. The people of British India use mainly the silver coin, and it will take many years to enable them to secure an ample volume of circulation. The circulation of India should be at least $10 per capita, say $3,500,000,000. India has made, great improvement in the condition of the people of late years. CANADA. Canada has progressed wonderfully within the past ten years. Particularly has her population increased in the North- west. Mines are constantly being opened, new farms created, new factories started. Since 1898 she has constructed many thousand miles of railroad. Her encouragement to the emigrant has won a vast number even from our own country, from such states as Maine, Vermont, Michigan, Minnesota arfd Wisconsin. We who think the United States is the biggest nation on the Western Hemisphere might look up the figures telling about our size. They show that Canada is larger than all our states and territories, including Alaska. From the Atlantic to the western coast the distance in this country is about 8,000 miles. Canada stretches to 3,400. It is interesting to know, too, that her fishing industry in a quarter of a century has yielded more than $500,- 000,000. Its lumber industry is simply immense and will con- tinue increasing more rapidly than ever with the rapid growing of the transportation facilities. Canada has taken within the last five years from the United States, mainly in the Northwest section, at least $250,000,000, all kinds of U. S. money being current. Considerable gold has been shipped. For awhile it went in at the rate of about $5,000,000 per week, which drain is being felt in the United States. No^-thwestern Canada will continue to make a heavy and increasing demand for money upon the United States right along, as all that section is building up very rapidly. FUTURE OF SILVER. According to a recent writer on the subject, China and India, in another ten years, at their present rate of progress, will require a per capita of $10, and as they will never give up silver, it is a reasonable estimate to say that China will require $4,000,000,000 in silver, while India will need $3,500,000,000. Now, if the world's silver output reaches $200,- 000,000 a year it would take thirty-seven and one-half years to produce enough to answer the needs of India and China, leaving out the rest of the world. JAPAN. Since the ports of Japan were opened by Commodore Perry in 1852 its commerce has grown immensely, and its steamers are plying on every sea. The financial system of Japan is bad and works a great drawback to the increase of its business. The great mistake made by the Japanese government was in reduc- ing the value of their silver dollar to 50 cents each, also their gold coin in the same ratio, causing considerable loss in money and a very great injury to their business interests. 100 It is the enactment of the law of legal tender that fixes the value of money and not the value of the metal or the paper. Therefore, the Japanese government acted most unwisely and injudiciously, besides at considerable loss. STRIVING FOR BUSINESS. The people of all nations are seeking arduously to increase their supply of money to enable them to build up the commerce. The business of a country will grow or fall off, just in propor- tion to the increase or decrease of its volume of money. HONEST FINANCIAL SYSTEM. Congress can prevent further hard times and disastrous financial panics by adopting a wise, just, generous and honest financial system by our gove^rnment assuming its prerogative and power, creating, issuing, placing in circulation and maintaining an ample volume of legal tender U. S. notes — genuine money, fully adequate to sustain our people in continuous prosperity and thereafter gradually dispense with further circulation of National Bank notes, and thus save to our government the vast amount paid private corporations for issuing a bank note currency, that can be withdrawn from circulation at their will for speculative purposes and injuring business and moreover cannot be increased in sufficient volume absolutely needed by the people for continu- ance of prosperous conditions, as the banks have not the im- mensely vast wealth to accomplish the demands. Whereas our government has the power and wealth to create and issue ample legal tender money to keep all the people fully employed and maintain a continuance in the growth of wealth throughout our country. NATIONAL BANK NOTES. On July 1st, 1908, there was in circulation about $700,000,- 000 in National Bank Notes upon which the National Banks (pri- vate corporations) receive from our government, average inter- est at the rate of 3 per cent per annum, upon the bonds pledged by the banks to our government, say about $20,000,00 annually, a graft, a down right robbery of the peoples money as there is no necessity for the issue of any such currency, which is not a legal tender to pay debts between the people and is only redeem- able in U. S. notes in Washington City when presented in sums of not less than fifty dollars. LOANING GOVERNMENT MONEY. About $262,000,000 of government money was loaned by the Secretary of the Treasury Cortelyou to the National Banks in December, 1907, upon which loans to said private corporations they received from the government an average interest at the rate of 3 per cent per annum upon the bonds pledged for the re- turn of the funds, an outrageous graft. Our government should not loan its money to private corpora- tions to speculate with; a much wiser plan would be for our gov- ernment to use its funds in paying expenses, making internal im- provements, slackwatering rivers, improving harbors, building roads from ocean to ocean, from the Great Lakes to the Gulf, also loaning upon bonds at low rate of interest, say 2 to 3 per cent per annum to states, cities and counties to make improvements. 101 TELEGRAPH SYSTEM. Our government should use its money in the purchase and improvement of the telegraphic and cable system and thus im- mensely benefit all the people throughout the country by greatly reducing rates, also treat employees with generous consideration. Telegraph operators have a hard struggle. BANK EXA3nNERS. They Are Given a Pretty General Raking Over the Coals Comptroller of Currency Murray. (Associated Press Special Leased Wire.) Washington, Sept. 21, 1908. — "I say to you emphatically that your work must be improved. Embezzlements have failed of dis- covery, defalcations and dishonesty have been concealed from you, and in many cases you have failed to correctly or even approxi- mately estimate the value of the paper and securities held by the banks." This was the declaration made today by Comptroller of the Currency Lawrence O. Murray in addressing the confrence of National Bank examiners representing practically all of the terri- tory east of Ohio. The conference which is being held behind closed doors, is expected to continue several days, and is the first under the comptroller's call of September 9th, designed to discuss the bank examiner's work. Why should such conditions have been permitted? The Pre- sident should supervise the financial system of our Government and see that it is just, safe, and honest and have corrected all wrong doing. DEPOSITORS' MONEY. All banks and all other institutions receiving deposits should be required to give ample security to the depositors of their funds. The government requires security! Why not the widow? In fact everyone should be secured. Why not? 1908-1907. AUGUST BUILDING RECORD. Statement of Operations in Twenty-five Cities Showing Decline. The following statement tells the story in full: CITY- August, 1908, cost. Baltimore $ 711,932 Brimingham 143,817 Bridgeport, Ct 141,820 Cincinnati 553,210 Detroit, Mich 861,950 Hartford, Ct 45,335 Greater New York 10,485,410 Omaha, Neb 483,425 Philadelphia 2,024,330 Paterson, N. J 177,266 Pittsburg 1,528,683 Portland, Or 772,395 Reading 55,975 Los Angeles 954,271 August, 1907, cost. ; 824,215 200,257 267,902 810,256 1,055,000 445,695 14,204,319 568,700 3,238,715 302.189 2,076,428 881,360 92,450 1,342,006 102 New Haven 201,010 232,842 13 Newark, N. J 668,252 1,035,700. 35 New Orleans 296,784 311,992 36 Manhattan 4,448,lt)5 7,776,195 42 San Francisco 2,140,420 3,109,056 31 Scranton, Pa 282,440 490,535 42 South Bend 46,505 126,985 63 Toledo, 164,238 232,780 29 Wilkesbarre 154,720 638,132 75 Worcester 223,998 389,758 42 Total $27,566,341 $40,673,467 The above table shows building operations in August, 1907, to amount to $40,673,467, while August, 1908, shows $27,566,- 341, a falling off of $13,107,126, in the twenty-five cities above enumerated. JAMES T. HOILE. James T. Hoile, secretary of the Manufacturers Association 'of New York. In an- interview with "The American," Mr. Hoile makes it clear that the manufacturers, who constitute a majority of the shippers, have for many months subjected themeslves to losses in order to prevent a cry of hard times, and are not willing to have additional burdens thrust upon them in order that the railroads may pay larger dividends. Mr. Hoile says, in his letter to me, Mr. Brown states very frankly that if they cannot secure a freight rate that will be satis- factory to them they will be compelled to cut the wages of their employees. He adds that a cut in wages at this time would almost certainly bring about the greatest Railroad strike this country has ever known. After telling how the Debs strike of fourteen years ago stunned the business interests of the United States, Mr. Brown says: "I want to say to you that this strike, as bad as it was, would be. like a summer shower compared with the blackness of the storm which confronts the business interests of the Country if the Railroads are compelled to attempt to enforce a general re- duction of wages." I do not take much stock in talk of that kind. .It is only a repetition of the threats always current when discussions of this kind come up, W. O. BROWX. W. C. Brown, senior vice-president of the New York Central, says that railroads must all begin to pay dividends again before prosperity can be expected in other lines of commerce. "If the Railroads could resume the purchase of equipment and material and the great and vitally necessary work of improv- ing their facilities, the present depression would, in my opinion, vanish in a day, and the re-employment of the hundreds of thousands of idle workmen would, by their purchasing power, start running to their capacity thousands of idle manufacturing plants. These results would very speedily follow the taking effect of the suggested increase in freight rates." Mr. Hoile and Mr. Brown as well as all the other business men of our country should educate themselves in regard to the cause of the several disasterous financial panics that has oc- 103 curing during my business career and learn how to remedy the very bad conditions now prevailing. My views regarding the very disaterous panic of 1873 was published by John D. Forney in the "Philadelphia Press" in 1877. Hon. W. D. Kelly, M. C, from Philadelphia gave me credit of being thoroughly posted in regard to the various disasterous panics and said he would be glad to see me at the head of the Treasury Department. E. H. GARY. In an interview with N. Y. "American" July 10th, 1908, Ex- Judge Gary, chairman of the U, S. Steel Corporation stated. "The necessities of the purchasing community are greater than ever before and the ability to pay is greater than ever before. All that is requisite to bring about satisfactory business con- ditions is the restoration of perfect confidence, and that appears to be at hand." Queer reasoning of Judge Gary, "The necessities of the purchasing community are greater than ever before and the ability to pay greater." Is it possible that the ability to pay is greater than ever before? Senator Depew in his address in the Senate, stated that the Railroads wanted $1,600,000,000 (being near one half of the circulation of the country) and that they were only able the secure $900,000,000 at short term and pay 6, 7 and 7 Vz per cent interest. Judge Gary further stated all that is needed is "perfect confidence." So it is with filling the dinner pail, confidence cannot do it, money only can do so and that is only to be se- cured by work. Let our government issue ample money to run the industries and the work will come. E. P. RIPLEY. (Associated Press July 10th, 19 OS.) Mr. E. P. Ripley, president of the Santa Fe Ry, stated: / "But the wages of the railroad employees could not be re- duced without bringing on a strike which would paralize ^the country for months. The only thing left seems to be to increase rates." The fact is that, with few exceptions, the railroads in this country are merely imitations of railroads. They are skimpingly built and have all kinds of money to spend for the protection of life and property and to handle the business entrusted to them as the public demands that it shall be handled. For this new capital must be raised. The National Banks have not the wealth, to supply the vast volume of circulation needed to run successfully the immensely vast industries of our country. Our government proposes to issue $500,000,000 emergency currency, which only can give temporary relief and when withdrawn, the people will find themselves in a more wretched condition than ^-'ever ^ DECREASE OF VALUES. It is estimated that the shrinkage in railroad property is placed at about $3,500,000,000, being about one-fourth of the value in 1906. Real estate in every section of the country is becoming more difficult to sell and prices gradually dropping. It is diflicult to estimate the srinkage of values. 104 HARRIMAN SAYS PANIC LEFT HARDLY A SCRATCH. "We find ourselves in better shape than expected," he de- clares. Portland, Ore., Sept. 6. — E. H. Plarriman, before leaving last night for San Francisco, spoke at a reception held in his honor at the Commercial Club. He said: "We find ourselves in far better shape after the senseless money panic of last fall than might have been expected, and the past year leaves us with hardly a scratch. We are in a position now to go ahead and complete the work laid out and will do so." — N. Y. A., Sept. 7, 1908. >v y^ The financial panic of 1907 was caused by the total inade-N. /^ quacy of the circulation to maintain the vast wealth. Financial ^ / panics grow disastrous gradually, with the gradual depreciation \ i in the value of the wealth of the country, and continue until the I V volume of the circulation becomes ample to maintain the wealth,^^/ ^- that is, equalized. Confidence cannot be restored until the volume of the circu- lation be increased adequately, which would now require at least $1,000,000,000 to revive the conditions that existed January 1st, 1906. Take the duration of the several former panics, to-wit: Panic of 1837 continued until 1847 " 1857 " " 1864 " 1873 " " 1879 " " 1893 " " 1900 / The National Banks have not the vast wealth or backing of /Donds to increase the circulation adequate to meet the enorm- ous demands for money. The government only has the wealth to make the necessary increase through a creation of law. Our government should with the least delay possible increase the volume of the circulation at least $1,000,000,000, which can be done rapidly in U. S. notes. It is reported that there are about 3,500,000 persons out of employment — 250,000 were discharged from the railroads. Further, that the shrinkage in the value of railroad property amounts to about $3,500,000,000. Also, in ^real- estate throughout the country it is incalculable. Money in ample volume only can restore prosperous conditions. CRIME IN NEW YORK CITY. N. Y. "American," Sept. 10, states: "Millions of dollars in booty stolen in a few months." "New York is robber-ridden." "Hundreds of burglaries are being committed every week." "No section of the city has been forgotten. All districts seem to have been easy to the thieves." "The aggregate of these robberies for the year 1908 will as- sume enormous proportions, an estimate from an expert source placing the losses to New Yorkers at several million dollars." "Result of the hard times during this panic which broke out in 1907." If the volume of money be not increased adequately, such conditions will result in riots and wars, as they did in 1837, 1857 and 1873. COINAGE OF GOLD AND SILVER. The coinage of gold and silver for 1905, for the 1,650,000,- 000 of the world was as follows: 105 Gold coin $245,954,248 Silver coin 163,805,115 Total $409,759,353 Showing about 26 cents per capita increase in the circula- tion for the population of the world in gold and silver coin. There will never he any danger of securing too much or even ample metallic money. ^ DISAPPEARANCE OF COIN. / The coinage of gold, silver and copper has been going on / throughout the world for ages. Still, but few old coins are to be / found. They seem to disappear in some manner — shipwrecks, fires, I floods, hiding and abrasion. About thirty years is supposed to be \ the average life of coins and the losses continue on the increase, V and will so continue. GOLD PRODUCTION INCREASING. The production of gold throughout the world has been in- creasing during the past ten years, likewise the demand for coin- age and the arts, besides more being very largely hoarded. Take the case of Egypt during the past 18 years, that country has im- ported a net amount of about $180,000,000, yet the banks of Egypt do not hold of gold exceeding $12,000,000. The Egyp- tians are great hoarders. UNITED STATES AND FRANCE. The per capita circulation of gold and silver in 1907 of the United States compared with that of France is as follows, to-wit: Gold. Silver. France • $23.75 $10.75 United States 16.50 8.50 France is all the while buying silver bullion produced in the United States, now at the very low price of 51 cents per ounce, and has it coined at the ratio of about $1.33 per ounce, making the enormous profit of about 80 cents per ounce. France has the silver coined for their people, as well as those of the Colonies. During three years, 1903, 4 and 5, France had coined of silver $70,887,561, and made a profit of about $30,000,000; our people sustained the loss. -^ ASIATIC SILVER. During the campaign for the presidency in 1896, Mr. Barrett, ex-minister to Siam, on the 24th of October, 1896, ad- dressed the people of San Diego upon the silver question, and at times was roundly applauded. Mr. Barrett stated: "I saw with my own eyes that Japan, China and Siam were praying for Mr. Bryan's election that they might dump their vast accumulations of silver on our shores and get gold in return." At the close I requested a minute to make reply, but was denied. The statements made by Mr. Barrett were ridiculous and not credible. Those countries were only of late years beginning to make progress in building up their commerce. They needed all the silver possible to secure for circulation. Take China, the per capita circulation does not exceed $1.00 in silver, say $400,000,- 000 distributed over a vast empire of 400,000,000 population, which took many years in gaining the silver, and it would be im- 106 possible to gather, besides could not be dispensed with for a day- out of the business, all of it being in very active use. Besides, China, with its present progress needs a far larger circulation in silver, as it is the money of the masses. During three years, 1893-4-5, Asiatic nations had coined, to-wit: British India $ 57,493,822 Hong Kong 34,822,044 Indo-China 19,905,000 Siam 8,651,794 Japan 25,824,947 China 19,275,585 Total $165,973,192 Where could be found th6 vast accumulations of silver? The Asiatics do not desire to dispose of their silver, they could not if they would. China should now have, in order to build up more rapidly its growing commerce, a silver circulation of at least $5.00 per capita, say $2,000,000,000 for the 400,000,000 people, which to give China the adequate circulation would take the en- tire product of the world for ten years, rating production at $200,000,000 per annum. GIGANTIC SILVER SCHEME. Extracts from an article in the N. Y. "Herald," under the heading, "Silver Bullion for China." "There is a big scheme on foot to furnish China with the necessary silver bullion for paying off the war indemnity of 200,000,000 taels to Japan. Prominent Amer- icans, and possibly Englishmen, will take a hand in it. There might have been big profits in such a scheme, but the Japanese were not so stupid as to allow the indemnity to be paid in so many teals, but they specified, it is said, that it should amount to so many taels' worth of bullion, which amounts to double. "This spoils the chance for a really big deal. The proposed Chinese loan will be on a gold basis, and after it has be.^n ar- ranged and the money obtained thereby, China will be free to buy silver wherever she chooses and have it delivered as Japan di- rects. It is believed by foreign bankers in New York that a very large part of the silver will be drawn from this country." MORTON, HENDERSON, HAIG, MANNING AND ATKINSON. There is no doubt but there exists a syndicate with a big scheme to grab the $120,000,000 silver bullion in the U. S. treas- ury, bought under the law of the 14th of July, 189 0, as evidence the repeated urging of late of its sale. Secretary Morton urged Secretary Carlisle to "sell it as so much scrap iron lyin.; in the treasury." Ex-Senator John B. Hender.son, a leading lawyer of St. J^oiiis, at the request of Secretary Carlisle, gave his views on the fmancial question through the press. In his second proposition he urged- "the silver bullion in the government's vaults should at once be sold for cash in gold." George Augustus Haig, in a letter of May 30, 1893, states thus: "I would recommend the U. S. government to offer to sup- ply the British government with 120,000,000 ounces of pure silver at 80 cents per ounce. It will sugar the pill and make it more easily swallowed. You have plenty of silver bought a long way below 80 cents, so you would make money by the transaction." 107 Ex-Secretary Manning, Edward Atkinson and others have urged its sale. "" The schemes of 1873 and 1893 show who the power is he- hind the throne. Once it has been agreed upon to sell, the price can be lowered from 80 cents to the present market price, 60 cents. Who is it. that can command such an enormous amount of gold; that can pay down the cash at once for the 120,000,000 ounces of silver bullion at 80 cents per ounce? There are millions in it. FAILURE OF SILVER SCHEME. Owing to the very large amount of silver certificates that had been issued in small denominations of one, two and five dollar notes, amounting to about $100,000,000, and which were scattered among the people all over the country, they could not be collected for redemption and the silver had to remain in the treasury. Thus the scheme failed. Had the certificates been in large denom- inations, the silver would ^have been secured. The London "Central News" correspondent in Madrid, Spain, sends this dispatch: "A sensation has been caused by the dis- covery that 24,000,000 spurious Spanish silver dollars are in circulation. The coins are of the full mint weight; many are even slightly superior to the standard. The authorized dollar has a face value of 5 pesetas and an intrinsic value of about 2 % pesetas. Hence the coiners of full weight dollars can make a high profit. The Spanish officials say that the dollars are produced in France and America. Certain bankers here are suspected of com- plicity in the distribution of them." "Sir Morton Frewen reports that large numbers of U. S. sil- ver dollars are in circulation in the Straits Settlements, and has an idea that they are being coined by some banking firm in Lon- don." SPANISH COUNTERFEITERS' TRADE IS PROFITABLE. Paris, Aug. 29,^1908. — Coiners seem to have about the most secure and profitable business that exists in Spain. For fif- teen years they availed themselves of the difference between silver bullion and coined silver and turned out five-peseta (dol- lar) pieces that were just as good metal as the state product. All the issues from 1876 to 1894 were falsified. The police have never got on the coiners' tracks. Their business reached such volume that the government intervened and the Cortes passed a law retiring all the doubt- ful pieces from circulation and reconverting them into silver ingots to be put "on the market for sale. The treasury loses be- tween $30,000,000 and $40,000,000 on the forged five-peseta pieces. The period from ^he 10th to the 24th of this month was fixed for the Bank of Spain, its branches and the state to- bacco stores to accept good pieces for bad. As for the coiners, they may apparently continue their business until the market is flooded again. — N. Y. Am. Sept. 8, 1908. If our government would restore the coinage of the silver dollar as it existed for 81 years, with great benefit, i^ would again prove of an inestimable advantage in every business way. Increasing the volume of money, enhancing silver bullion to its coinage value, create vast trade between our country and Latin American and Asiatic countries, using silver coins. Further it would stop the work of the illegitimate coinage of silver bullion 108 that is now being made at an enormous profit oy surreptitious coinage. Our people produce the silver and should have the ben- efit. FRENCH FINANCIER. ~"^v. The late M. Rolin, ex-director of the Bank of France, and\ member of the convention held in Paris regarding the coinage 1 silver declared "that since the dawn of civilization, both gold I silver, as money, had most usefully and beneficially served I the people of the world, and that the suspension of the coinage j of either metal would prove a great disaster." ^/ FINANCIER OF GREAT BRITAIN. Sir Morton Frewen, one of the ablest men of the world, in regard to monetary affairs, repeatedly published statements de- nouncing the proposition to suspend the coinage of silver, say- ing it would prove exceedingly injurious to the commerce of the world. Since the suspension by tlje United States and other countries, he continues to denounce the great wrong done the people. In 1895 Sir Morton Frewen published a statement of the surreptitious coinage and circulation of U. S. silver dollars in large numbers in the Straits Settlements. Who was it that had those silver dollars coined? Where were they shipped to? MONO-GOLD STANDARD A STEPPING STONE TO ANARCHY. Here is what the most eminent financier that has lived in this country had to say in regard to silver coinage: "A paper from John Thompson, vice-president of the Chase National Bank of New York, was then read as follows: 'With the demonetiza- tion of silver began an era of (Jontraction not perhaps shown by the aggregate figures of outstanding currency, but by a dispro- portion between the increase of currency and the business of the country, which has increased out of all proportion to the growth of our circulating medium. Our working currency consists of legal tender U, S. notes, National Bank notes, silver coin and silver certificates. The latter do not now increase as fast as the na- tional bank notes are retired. Therefore it can be truthfully said that the stock of currency that does the work of the coun- try is slowly but surely diminishing, while the business demands upon it are constantly increasing. There have been two influ- ences at work tending to increase the measuring power of money in the United States, and there has been a consequent deprecia- tion of property. The one was the general effect of the demone- tization of silver, and the other the contraction of the particular kind of currency used, while our dollars are of silver and silver certificates are based upon them. So far both these dollars and their representatives have been restricted in amount and kept on a gold basis by a policy that has favored a gold mono-metalic standard. The demonetization of silver has been and is a wicked . preference given to the creditor over the debtor classes of our entire population, and it is this preference that is driving our mid- dle classes into poverty and enabling millionaires to multiply their millions. Nothing in my opinion, will save our people from social revolution so surely as a full remonetization of silver and giving it all the advantages we are now giving to gold, both in law and in the ruling of our treasury department. A mono-gold standard is the stepping stone to anarchy. Nay, it is more; it is a 109 flight of stairs leading from the Chamber of Commerce to bank- ruptcy, panics, suicide, repudiation, agrarianism and universal poverty among all real wealth producers, for whose welfare the best -minds, best statemanship, and best representaitves of all legitimate business interests should ever be enlisted.' " BANK NOTE REPORTER AND COUNTERFEIT DETECTOR. The lat John Thompson, of New York City, was the pro- prietor and editor, in early days, of the "Bank Note Reporter and Counterfeit Detector", afterwards founder of the First National Bank, and, later, of the Chase National Bank of New York City. In the "forties", while buying and selling uncurrent bank notes, the "Reporter" was kept on the counter constantly for reference. John Thompson, Warwick Martin and Peter Cooper were the peers of financers of the' United States. Each of them, to my V knowledge, denounced the crime of the suspension of the coin- age of the 'Standard Silver Dollar" in 1873, and afterwards each of them urged the re&toration of the coinage. It is still in order and should be done. It would be of vastly immense benefit to our people. In fact all the world would be greatly benefitted. ^ FOLLY OF MONO-dMETALLISM. / Philadelphia, Dec. 22, 1892. / Editor of the "Manufacturer": Your views on the silver / question are, in every respect, perfectly correct — and I say this I from an experience of over fifty years in the banking business. I Our statesmen and the press, generally, are woefully blind 1 to the effect this opposition to the remonetization of silver is hav- I ing on our country's prosperity, to say nothing of what is greater, \its effect upon the whole world. It seems inconceivable that when the world is increasing so rapidly in population, in development of every kind, in railroads, manufacturing, and the opening of vast agricultural regions, that the business of this world, by a mere arbitrary decree, should be reduced to a condition of reliance upon gold only, as a measure of values; and, then, in my opinion, we have not yet begun to feel the full weight of this foolish and absurd attempt to bring the world to conform to mono-metallism. The demonetization of silver in 1873, although a measure enacted ignorantly, confessed by Congress, was a great crime to civilization and progress; and, further, the vast majority of the people, who are not capitalists, have been reduced in resources and in debt-paying capacity to the full extent of the withdrawal of of the legal tender silver money. It is almost laughable, were it not so serious, to read the edi- torials in the daily press of the country, which are in a great ma- jority averse to the upholding of silver and restoring it to the basis of 16 to 1, and to its former position as a legal tender, debt- paying metal. Silver, for all time, has held a place far above that of gold in the money transactions of the world. Amongst at least two- thirds of the population of the world it is now the sole currency. Now, in the fullness of time, when the world is full of activities and development, instead of making a legal tender basis of silver and gold each, the wiseacres of this day have deliberately de- stroyed one-half of this necessary basis. Was there ever anything so full of folly? 110 The newspapers seem to be doing all they can to create a panic by declaring that the further buying of silver will expel the gold from the United States treasury, and from this country, which is a silly prognastication. It has no foundation whatever in fact, or in the experience of those who have watched the course of events in the past. Hoping that you will continue to battle as you have done in the past, namely, for the right, I am sincerely your friend and rell-wisher, JAY COOKE. Jay Cooke, the leading and most prominent financier during the Civil War, in his letter declares, "The demonitization of silver \ in 1873, a measure enacted ignorantly, was a great crime to civ- ilization and progress." Senators Sherman and Bayard were not ignorant of the vile wrong done. Bayard was attorney for, Belmont, the fiscal agent of the Rothschilds, who gained immensely by the foul deed. REMONETIZE SILVER. Right the frightful and foul wrong done our people in sus- pending the coinage of legal tender silver money as it had existed for 81 years, and had been all the while of inestimable service, not only to our people, but to those of the great masses of the world. The suspension of the coinage of silver by our government has forced down the value of the silver coins of Mexico, Central and South America, Japan, Philippines and other countries, where not sustained by the legal tender value at the same ratio of the gold coin, to more than one-half of its previous coinage value, also reduced the value more than fifty per cent of all the silverware of the people of the entire world. Injured immensely the trade of the manufacturers in silverware, caused by the constant fluctuation of the value of silver, and most injuriously affected the commerce of all nations. The United States government has the power and wealth to immediately restore the coinage of silver, which would immeas- urably benefit the people of the world, not only in restoring the value of the silver coins and silverware in all countries, but en- abling the increases in the volume of money absolutely needed to enable all the pebple to build up their constantly growing wealth. Open the mints to the coinage of silver. It is the talis- man to right the foul wrong done the people of all nations. It would add immediately and vastly to their wealth. Such action would rapidly create prosperous conditions throughout the world. Here the increase of money only, has been the great power that has been improving the condition of the people of the world during past centuries. ~X^ GREAT BENEFITS FROM RESTORATION OF SILVER COINAGE. As stated before, the benefits that would come to the peo- ple through the coinage of the Standard Silver Dollar, would be immense. 1. It would cause silver bullion to advance immediately from its commercial value of 52 cents per ounce to the legal ten- der or coinage value of $1.2 9 per ounce, and thereafter to remain permanently on an equality in value .with gold bullion. 2. It would cause the opening of many new silver mines, the re-opening of many abandoned mines — closed owing to the Ill low price of the bullion — also the active and rapid development of all silver mines, also many gold mines that do not under present conditions pay to work on account of the low price of the silver and other metals taken out of them. 3. It would cause the active working of many lead, iron and coal mines, also lime quarries, as all these products are used very largely in producing silver bullion, also in smelting the ores. 4. It would bring about an immense demand for all kinds of machinery and cause very active work in all foundaries and ma- chine shops. 5. It would create an immense demand for all products of the ocean, garden, orchard and farm; also of caneries, manufac- tories of shoes, hats, clothing, millinery goods, rubber goods, elec- trical products, powder, dynamite, and in fact everything that is used or consummed by mankind. Silver miners are the most lib- eral and generous consumers in proportion to their income of any class; besides, they are prompt and good pay. 6. It would create an immense demand for wood and lum- ber, as both are used very largely in mining and by miners in building homes, etc. 7. It would put to work in a brief period at least 300,000 persons in the mines and different branches of business incidental to the activity in mining, tnat are now idle. In fact, one can scarcely imagine what would be the activity of its ramifications. 8. It would bring into generous consumption all the newly employed and those dependent upon them, — over 3,000,000 persons; also, all persons in employment, through increased sal- aries and wages resulting from the great activity that will come in all business. 9 It would largely benefit schools and all institutions of learning, as well as the churches — through full and active em- ployment of the people at the increased salaries and wages. 10. It would immensely benefit all the railroads, steamers, ships and all crafts, in the heavy addition to transportations of passengers and freight, . resulting from the prosperous times silver coinage would bring. 11. It would cause the silver coin of all countries of equal standard to our silver dollar, to advance to par; that is, on a parity with the gold dollar. The rupee of British India would advance to par — 4 7 cents in lieu of 33 cents, the present legal valuation which cost them 16 cents and with it British India ex- change, which is based upon silver bullion; also the Mexican dollar and the yen of Japan, would advance to par, and those countries would not thereafter have such a decided advantage in exporting their products into our country. Cheap silver bullion now acts as a bounty. 12. It would immensely increase our trade with Mexico, also Central and South American countries, which produce sil- ver bullion and use silver coin as money, most of which coun- tries now trade with European mechants. 13. It would immensely enlarge the value of our exports to European and Asiatic countries, as the quantity now sent abroad would have a largely increased value over present quantities ex- ported. 14. It would immensely benefit the people of all countries that now use depreciated silver coin mainly in their transactions, through the large increase in value of their coins to par, as they would receive a far larger quantity of products for their money. 112 Mexico and all South American countries which produce largely of silver bullion would be immensely benefited through the great activity in the working of all their mines and the very large in- crease of money resulting from its use. 15. It would immensely benefit our shipping interests through the increased value of the products and the large increase in transportation of passengers and freight. 16. It would largely increase the product of gold in our country, as two-fifths of all our gold comes out of silver mines; also largely increase the product of silver bullion through the great activity in working of the increased number of silver and gold mines. 17. It would enable our merchants dealing with Asiatics, to settle their enormous balances owing for teas, silks, spices, rice, etc., of about $85,000,000 per annum, in silver bullion perma- nently at about $1.29 per ounce, its legal tender or coinage value, in lieu of its fluctuating commodity value, now 52 cents per ounce. For 3 6 years silver bullion has been tumbling in price, causing heavy losses to our importers. The merchant who bought the cheapest bullion had the best bargain over his neighbor. Last year silver bullion which could have been coined Into $60,000,000 w^s exported at its commidity value of 58 cents per ounce, a loss of about $30,000,000 to our people. The Asiatics will in a few years make an enormous demand for' silver bullion for coinage, also the arts. 18. It would largely increase the volume of money through the largely increased output of the large increase in mining of both gold and silver — and this large increase in the volume of money would bring general prosperity and largely benefit every business in the country, 19. It would largely increase salaries and wages of all per- sons working in or about silver or gold mines, and in all other business benefitted by the increased working of all mines, also benefitted by the increased volume in money coming from mining. 20. It would cause a large increase in the consumption of silver bullion in the arts, as the manufactured silver would have a permanent coinage value, which would make investments in such products safe and desirable. 21. It would start actively railroad building through the mining and agricultural sections, to afford facilities arising from the great activity in and large increase in all kinds of mining. 22. It would cause an immense demand for all products, through an increased demand for generous consumption, created by activity in employment, and thus force prices of all products to advance. 23. It would create an active demand for lands and farm property, caused by the profits arising in farming from the in- creased value of all farm produces. 24. It would create an active demand for all village, town and city property, from the improved condition of all the people, who would then be buying instead of selling out their homes. 25. It would start up largely and actively railroad, ship, factory, store and house building, through the improved condition brought about by the immense increase in mining in all kinds of minerals, by being enabled to do so by the largely increased volumne of money coming out of the great number of mines. 2 6. It would make much easier the collection of debts, through the improved condition of the people by the enhanced 113 value in products and property, also by the largely increased money volume, and stop foreclosures. 27. It would, through the enhanced value of silver bullion to its coinage value, stop the surreptitious coining of silver bullion, and Mexican silver dollars into U. S. standard silver dollars, which is being done very largely, and thus make counterfeiting unprofit- able. Counterfeiters' profits would cease. 28. It would restore confidence and convince the people that here is more honesty among one another. 29. It would, through the large increase in the volume of money, largely increase the deposits in the banks, which would relieve them from their present strain and embarrassed condition, also enable them to increase their loans, facilitate collections, and make banking more profitable than now. 30. It would greatly relieve manufacturers and merchants, through an enlarged business from the enlarged consumption, also from being enabled to procure loans from banks without be- ing required to give "all the world" for security, and render business profitable. 31. It would stop the issuing of bonds by our government, also enable our government to begin again paying off its indebted- ness, through the large increase in its revenues, resulting from the improved and largely enlarged business of the country. 32. It would make the great masses of the people — who are now sad and careworn — prosperous, contended and happy, oc- casioned by their improved condition and prosperity. MONEY. Q. What is money of the United States? A. A creation of law, an enactment by Congress, declaring legal tender. Q. For what purpose did our Government create money? A. To pay debts. In the payment of debts it enables the exchange of services and products, creates commerce, which em- ploys labor and causes the building of towns and cities. Q. Why did our government make use of gold, silver, nickel, copper and paper to create money? A. Of gold, because it is hard, wears well, and very difficult to counterfeit, used by all nations of vast wealth to make settle- ment in large commercial transactions. It is a scarce mineral and very valuable for manufacture into jewelry and the arts for the wealthy people, and should be created a full legal tender to pay any debt up to a certain sum, say $5,000, not too cumber- some to handle in business transactions. , A. Of silver, for the same reason as gold, it being hard, lasting and difficult to counterfeit, needed in greater quantity and used vastly more by the great masses of the people throughout the world, and enables commercial exchanges with nations of vast population. Used for manufacture into jewelry and the arts, should be created a full legal tender in payment of debts, but limited to sums of $500 in one payment for dollar coins, $200 for 50 cent coins, $100 for quarter, $10 in 10 cent pieces, $2.00 for nickels, and 50 cents for cent coins. A. Of paper, because the material is inexpensive, durable and not susceptible to being counterfeited, can be used for trans- actions in vast sums, should be issued only by the Government, creptpd a full legal tender to pay any debt, but the amount of the tender should be regulated by the denomination of the bills, say: 114 BETWEEN INDIVIDUALS. 1.00 bills legal to pay $ 500 5.00 " 3,000 10.00 " 5,000 20.00 " 10,000 50.00 " 20,000 100.00 " 50,000 500.00 " 100,000 000.00 " unlimited CERTIFICATES. The government should receive on deposit gold and silver coin, and issue certificates of deposit therefor. For the gold coin, gold certificates in denominations of not less, than $1000, and silver certificates in denominations of $500 and up. All cer- tificates to be a legal tender in any sum, otherwise the small notes will remain in circulation and the coin be held in the treasury. MONEY. The money of the United States is a creation of law a legal tender enacted by Congress. It is made for one purpose only — that is, to pay debts. In paying debts it enables settlements for services and the exchange of products, which carries on and builds up commerce. The par value of money depends solely upon its having full debt paying power, a legal tender. If it is excepted from paying certain debts then it is dis- credited and subject to depreciation. Therefore, it is the duty of our people to be vigilant and see that our government issuer money only having full debt paying power; genuine money, honest money. Such money will at all times be worth 100 cents to the dollar, provided Congress prohibits all debts from being made payable in specific money. Creditors should not be accorded priv- ileges over debtors. Both should stand before the law on an equality. It is against public policy to permit debts to be made payable in gold or any particular kind of money. If permitted, and such gold or other kind of money becomes scarce from expor- tation, hoarding or being cornered, then such money is made more valuable by legislation, than any other money not possessing such debt-paying power, and thus debtors, to pay their debts, are forced to buy such scarce gold money and pay a premium, to their great loss and injury. It hinders trade, hampers commerce, and causes great loss to the people. Farmers, laborers, merchants and land- owners would be forced to receive the depreciated money, while the bond and holders of notes with special gold contracts, only would receive the most valuable money. POWER OF MONEY. The money supply should always be generous and ampl 3 for the successful running of all of our industries. It should never be allowed to decrease from any cause, but kept increasing wi*^^h the increase of the population and industries. If coin should be ex- ported for any reason, or paper money should be retired from cir- culation, then other money, made by our government only, should replace the same. Had such been the case the people of our country would not have suffered from the periodical financial panics that have heretofore prevailed over our land, nor would they at this time be suffering from the crisis that is now upon us. The volume of money in the channels of trade regulates 115 5 well as the pay for wages and salaries. The condition of the people in every country depends upon the volume of money in circulation and its full debl-paying power. If the volume of full debt-paying-power money is ample, to keep all the people fully employed and thus enable them to consume generously of all the products, then they will be pros- perous, happy and honest; otherwise poverty and misery will prevail to a large extent; also crime will increase. The money question is paramount to all other questions. Give the people plenty of money and they will take care of them- selves. Ihey will erect good schools and educate their children. They will take hold of the storehouse of nature and bring forth the hidden forces that exist in the elements. They will enslave the elements, not men. They will liberate the people and give them money to maintain civilization and business. RISE AND FALL OF PRICES. "That commodities would rise or fall in price in proportion to the increase or diminution of money. I assume as a fact that is incontrovertible." — Ricardo. If the money volume is ample, all is well. If it is insuffi-- cient, all is wrong. Therefore it behooves the people to be ever on their guard, and watchful of all legislation relating to finan- cial matters, to see that no wrong be accomplished. EFFECTS MONEY INCREASED OR DECREASED. "In whatever degree the quantity of money is increased or diminished, other things remaining the same, in that same pro- portion the value of the whole and of every part is reciprocally diminished or increased." — James Mill. SILVER PERMANENT. The population of the world is all the while increasing and their wealth growing rapidly into immensely vast proportions. Therefore, the people in order to maintain prosperous conditions should demand a continuous increase in the volume of legal tender money. Both gold and silver coin always have and ever will be de- manded in increasing volume by the people in the various sec- tions of the world to make their exchanges. China and British India, having a population of about 750,- 000,000 need annually an enormous increase to their money cir- culation in order to keep the people fully employed, enable them to consume generously, build up their commerce, and maintain a continuously prosperous condition. The people of those coun- tries have for all time used silver money in their dealings, and will always continue to do so. Therefore to facilitate business transactions, the value of the money should be fixed and made permanent, which can only be effected through coinage into legal tender money, otherwise a fluctuating currency deranges com- -merce and becomes destructive. Those two countries could now readily absorb $750,000,000 of gold and at least $1,000,000,000 in silver coin. In fact, double the amount in silver would be a great aid to make the people prosperous. 10UR FOREIGN DEBT. Here is an estimate of our annual indebtedness to Euro- peans: "In the 'Forum', Mr. Heidelbach, a prominent New York foreign banking house, a heavy exporter of gold, gives the I 116 amount of the annual indebtedness of the United States to Eu- rope about as follows: , Money spent by Americans abroad $100,000,000 Freight carried in foreign ships 100,000,000 Dividends and interest on U. S. securities held abroad 75,000,000 Profits of foreign corporations doing business here. 75,000,000 Total $350,000,000 "The 'American Banker' states that Mr. J. W. Cross, a London banker, estimated the amount at $325,000,000 annu- ally." MEXICO. About 185 8 its money circulation did not exceed $3 per capita. The writer at that time was in that country and saw the wretched and miserable condition of the masses, most of whom were peons or slaves whose wages were about a reale (121/^ cents) per day. Bandits roved over the land, who fre- quently attacked the armed conductas, carrying silver from the mines to the seaports, to be shipped to Europe. In 1864 I was again in Mexico on the Rio Grande, buying and shipping cotton. Money was far more plentiful then and labor scarcer, as the masses were in either the Mexican or Maximillian army. Then I usually paid laborers $1.50 to $2 per day, and their condition in a short time improved rapidly and the necessaries and conven- iences of life began to show up around their homes. In 1900 the money volume was over $9 per capita, rating the population at about 13,000,000, as follows: Mexican silver dollars $ 85,000,000 Bank notes 32,666,130 Total $117,666,130 BANKING. The three leading banks of the City of Mexico had the fol- lowing amounts in Mexican silver dollars, also circulation: Circulation Name of Bank. Silver Dollars. Bank Notes. National Bank $28,593,450 $21,250,154 London Bank 10,614,949 9,501,476 Mortgage Bank 1,295,730 1,914,500 Total $40,504,129 $32,666,130 These banks have branches in all the large cities; besides there are many private banks. Just in the ratio of the increased money supply has tne condition of the masses of the people and of the country wonderfully improved. Railroads have been and are still being constructed in every portion of the country, also many factories and vast irrigation systems. Mouths of several rivers have been jettied and grand harbors and wharves con- structed. Mr. Howard Hinds of Sonora informed the writer that he employed about 1,000 men in his mine, and the least wages he pays is, to laborers, 75 cents, and from that up to $10 per day; the latter price in gold to expert American mechanics. Carlos Conant of Cocorito, Sonora, has constructed a vast irrigation sys- tem to irrigate 300,000 acres of choice land on the south side or the Yaqui river. Wages of laborers have advanced 500 to 800 117 per cent. Under the able administration of Porfiro Diaz, one of the most industrious men of the country, Mexico has made aston- ishing progress. The officials in their anxiety to force the country onward have made two serious mistakes; one was in issuing about $110,000,- 000 bonds, principal and interest payable in gold, to-wit: 1^^ 1888, QV2 per cent interest £10,500,000 ^K. 1890, 61/4 per cent interest 6,000,000 ^^^n 1893, 61^ per cent interest 3,000.000 ^^^^K Tehauntepec, 5 per cent interest. . 2,700,000 Total £22,200,000 Mexico produces but little gold, therefore as Mexican silver dollars are excepted from paying the interest or principal of this heavy debt, silver dollars have to be sold as bullion to acquire gold to make the payments. This exception of the silver dollar from such payment of debts has alone caused it to depreciate from its par value to its bullion value of 52 cents. Just as our greenbacks were excepted from paying custohi duties, our merch- ants were forced to sell them at a heavy discount to procure gold to pay duties. Whenever money is discredited from paying debts, then it becomes depreciated under its par value of 100 cents. It is wrong to discredit any money issued by government from pay- ment of debts. The other serious mistake was in permitting the banks in Mexico to issue bank notes, a prerogative of the government, which no corporation should have been permitted to acquire. It is a sovereign power of the government alone. The government should issue all the money, gold and silver coin, also paper money. The government of Mexico also should become the custodian of the silver dollars and for the convenience of the people issue silver certificates against the same, and save them from the worry and annoyance of handling the cumbersome coin, also to prevent abrasion and loss, also make the silver certificates a legal tender. Bleichroeder and Rothschild got ahead of Mexico, and are now getting our country into their clutches and impoverishing our people. Mexico as well as the United States should throw off the oppressive foreign financial yoke and maintain their dignity and independence for which the people fought and gained from their tyrannical rulers. The importations into Mexico of late years have fallen off, while the exports have increased enormously, and that country is now advancing onward in civilization and in the near future will become a powerful nation should the govern- ment adopt a wise, generous and correct financial system. The L^^jgovernment of Mexico made a very grave blunder in having the ■^fcovernment change the financial system in regard to silver, in B^R-educing the value of the silver dollar coin, from the legal value I^K)f late are now most grievously suffering. Mexican silver dollars I^Hpow are only a fluctuating currency like so much silver bullion I^Kvorth 44 cents each, and is now causing the reaction and suffering. IB^ TARIFF. Ever since the formation of our government the tariff has been the main question to be discussed in Congress. It has been changed very often, yet it is as unsatisfactory now as it was when the first tariff law was adopted, and such will always be the case so long as the subject has to be settled by members of Congress, over 330 of whom are lawyers, some of them being the { 118 paid attorneys of the wealthy corporations having selfish motives. The only correct and just plan for the settlement of the tariff is to take it out of the hands of the politicians and have the subject referred to a commission to investigate and report to Con- gress for ratification. At most every political meeting that has been held in any part of the country by either of the parties, the first and main question discussed would be the tariff. Possibly by a member of Congress, a paid lawyer, to hammer at the subject, and tell a few of his old yarns to amuse the crowd. (' I have heard the tariff discussed ever since before the elec- tion of Harrison and Tyler, and the question is no nearer being solved now than then. y The people should lay politics aside for a while, and elect Xmen to Congress who will vote for the adoption of a sound and I generous financial system for our government, and thereby pre- l vent further disastrous financial panics, which throw vast num- \ bers of people into idleness and check the consumption of the ^products of the country. The Los Angeles "Times", of September 7, 1908, statedf "The exact history, and the direful days of 1893 to 1896 were the direct result of a Democratic free trade policy." Ridiculous! The frightful contraction of the money circulation brought about by the action of President Grover Cleveland was the sole cause of the disastrous financial panic of 1893. It is the same policy of a contracted money circulation that has originated the panic of 1907. A generous volume of money only can give relief/ Money is the power. EDUCATE. y^ Our people have periodically suffered most frightfully from / exceedingly disastrous financial panics that prevailed throughout / our country, causing intense idleness, great suffering and much / misery to very great numbers of our worthy people. A financial / panic broke out last year, that is now increasing in severity and I prevailing in all sections. The sole cause of the present and all I former panics has been brought on by the inadequacy of the Y volume of the circulation to carry on the industries of our coun- \^ try successfully and maintaining a continuous growth of the vast wealth. . REMEDY. y/^ The only remedy to check the present panic, restore con- / fidence and return prosperity to the people, is for Congress to / increase the volume of the circulation adequately for the vast / needs of the people to carry on their industries successfully and / thus maintain the continuous growth of wealth. Otherwise the I panic will continue to grow in severity, bankruptcy increase I greatly, idleness prevail to a great extent, and poverty, misery I and crime result, causing within a few years an exceedingly dis- \ astrous financial panic similar to those of 1837, 1857, 1873 and \ 1893, that I witnessed, and of which I am familiar with the con- ^ditions, result and the cause. CONGRESS. Congress during the last session enacted a law to increase the volume of the circulation to the extent of $500,000,000 in an emergency currency, a temporary makeshift and totally inade- quate to afford relief to our very active business people. Besides, a commission was authorized to investigate and report to Congress a remedy to give relief. The President has appointed a commission, which is now making investigation and conferring with the 119 ^Rothschilds, the great Money Kings of Europe. Heretofore "^similar commissions were appointed, went to Europe and con- ferred with the Rothschilds, which resulted, in my judgment, inju- riously to our people, because the Rothschilds were interested parties then, and would be interested in giving advice now that would be in their interests. LAWYERS IN CONGRESS. There are over 300 lawyers and quite a number of bankers in Congress, who should be able and wise enough to enact an honest, just and generous financial system for our government. But there are too many interested members to do so conscien- tiously, being attorneys for the national banks, owners of stock, or borrowers of money from the banks. C^^ JEFFERSON, JACKSON AND TYLER. Jefferson, Jackson and Tyler, each in their days as Presi- dent, made every possible effort for the adoption by Congress of an honest, just and generous financial system for our govern- ment, without individual alliances, to retain its prerogative and issue the legal tender money of its own creation, as shown and embodied in their respective messages. THE OPPOSITION. But the larger number of the lawyers and bankers in Con- gress always opposed Governments issuing the legal tender gov- ernment money. In the time of the refusal of President Jackson to approve the re-charter of the United States Bank, an investi- gation was made, and some 70 members of Congress were found to be borrowers from the Bank, to the extent of $240,000. It is more than probable that quite a number of the lawyers and bankers, members of congress, are now too deeply interested to act independently and solely in the interests of the people. Some are ignorant of a correct financial system, having devoted a life to the study of technicalities, and their brains are full of crotchets. (^ ZEAIX)rS AND INDEPENDENT. Among the very large number of lawyers and bankers in Congress, there are quite a number of them who are zealous, in- dependent, and making every effort to secure for the people a just, honest and generous financial system for our government. I have read quite a number of speeches delivered by them in Congress urging such measures. INVESTIGATE. The people have too long neglected to investigate and study the financial conditions, in order to vote for suitable parties to represent them in the respective legislative bodies. Therefore they have had to suffer very severely from the several very dis- astrous financial panics that have prevailed periodically through- out our country. INTEREST YOraSELVES. Members of high schools, universities and colleges, as well as professors and presidents of such institutions, also people struggling for a livelihood, should turn over a new leaf, investi- gate and educate themselves upon a correct financial system for our government. They could hold public meetings and discuss the subject for their own and the general welfare of the people. It would dismember parties, drive out bosses, and prevent further graft. Thereafter, prosperity in lieu of disastrous financial panics ^ould prevail throughout our land. J J y out J 120 dAUSE OF DISASTROUS FINANCIAL PANICS. A. very inadequate volume of money in circulation throughout the country has been the cause of each of the disastrous financial / panics that have occurred within my business life, to-wit: 1837, I 1857, 1873, 1893 and this of 1907, now increasing in severity. / RELIEF FROM DISASTROUS FINANCIAL PANICS v A considerable increase in the volume of the circulation of^V money throughout the country brought prosperous conditions to \ the people on each of the respective dates, to-wit: Relief came \ in 1846 from the panic of 1837. In 1863 prosperous conditions \ returned from the panic which originated in 185 7. In 1879 the large increased circulation of money restored the people to pros- I perity from the panic of 1873. The large increased circulation of / money by 19 00 relieved the people from the panic of 1893, and / when the circulation shall have been made adequate, relief will • come to the people from the panic of 1907. 'I One source through which immense benefit could be derived V immediately, would be the enactment by Congress of the restora- \ tion of the coinage of silver. On March 28, 1878, Congress passed \ the law to purchase monthly four and a half million ounces silver, \ presuming it would absorb all the silver mined. Immediately ) silver bullion advanced from 90 cents to $1.21 per ounce, wheat to $1.25 per bushel and cotton to 12 cents per pound; but the Roths- 1 V childs had prepared for the occasion by hoarding silver bullion, and offering a large quantity for sale at a reduced price, which 1^ immediately caused a decline in value of silver, wheat and cotton. A James S. Sherman, candidate for vice-president, on the 24th /of September, 1908, delivered an address before the Honest Money / League, of New York City, denouncing silver coin, as a debased / currency, which is not correct. Our people were served with silver I dollars beneficially, equally with gold, for 81 years, when Senator I John Sherman surreptitiously had Congress on September \ its legal value — It is the law of legal tender, that makes and un- ^^akes money. -^ \ /• William H. Taft, while Governor of the Philippines had the U value of the silver dollar of that country reduced in value from $1 to 50c each, thus perpetrating a great wrong upon the people. ^ No person should be voted for legislative office, who is op- / posed to silver coinage on an equality with gold, as it existed / formerly. Our country needs a vast addition to the supply of V, money to give the people relief from the panic of 1907. EUROPEAN NATIONS COINING SILVER. sed ^ ver fi tor / 12, / ^ay / / n( P M All European nations are constantly buying silver bullion7 ' / now at about 51 cents per ounce, and having the bullion coined / into legal tender money at the ratio of about $1.33 per ounce, I making a profit of about 82 cents per ounce, between the price V paid for the bullion and coinage gained through its issue as legal V^ tender money. * BRITISH INDIA. ' / In 1906 British India coined $64,891,356 in legal tender sil- / ver rupees and gained a profit between the price paid for the / silver bullion and the value gained in issuing the legal tender ( rupees of about $32,000,000. *' / Candidates Taft and Sherman ar^ not worthy of the /eration of the silver miners of our country. Only foreig ^ernments are to be regarded in their consideration. N San Diego Cal., Sept. 20, 1908. jfisSE GILLMORE. consid-| ;n gov-/ LUAN PbRIOD 1 \2 HOME USE RE^Ai^RI^J.L"^'*^"'' *"" 7 DAYS rnu^ ^^M NO. 006, 60., ./8T^^^S?^^;,^S^?r2o^^^^^^^^ (C17 ®$ "^T Syracuse, N. Y. Stockton, Calif. GENERAL LIBRARY - U.C. BERI BDOOfllMias RETURN CIRCULATION DEPARTMENT TO—^ 202 Main Library LOAN PERIOD 1 2 3 HOME USE 4 5 6 ALL BOOKS MAY BE RECALLED AFTE Renewals and Recharges may beyrt^Se^iUxtf^ pri^ to the due date. Books may be Renewed by calling 642-3405 DUE AS STAMKOAECOW UllURU f^^e FEB26 E l VfcD 1994 MAY 251994 CIRCULATION DhH I FORM NO. DD6 UNIVERSITY OF CALIFORNIA, BERKELEY BERKELEY, CA 94720 ®5