Part 7

But at the very threshold of the discussion we are met with the declaration that we have no money in the Treasury with which to carry on these great projects. Before answering this objection I wish to point out the fact that we have millions of dollars to spend for a useless navy, a navy which in the hands of our senile government does not protect the life or the property of American citizens, a navy which is a constant and an enormous expense. While almost unlimited sums can be raised for the building and equipment of battleships, we have not a dollar to aid honest industry to maintain self-respecting manhood by engaging in works which would add immensely to the real wealth of the nation.

And, again, before pointing out how this money could be raised, I would call attention to the fact that this cry is by no means a new one. It was raised, and with much more show of foundation, during the dark hours of the early sixties, but the great Civil War exploded the fallacy. One would think that in the presence of the stupendous facts connected with the conduct of our Civil War, even if the question of the value to the state of an independent, contented, and prosperous manhood should be left out of consideration, the shallowness of the objection would be so apparent that it would have no weight with thoughtful persons. Let us not forget that there was a time in the history of our country when the Treasury of our government was empty, a time of great national peril when gold had fled across the seas or into the vaults of the bankers and usurers, as it ever flees in time of danger, when public credit was greatly impaired by the presence of war within our borders and a strong probability that even if the national government escaped overthrow a large number of the States would become an independent nation. In this crisis we had men in charge of the government who were statesmen, men great enough to rise to the emergency of the hour. Now, if we were able under such conditions to carry to a successful termination the most expensive and memorable civil war of modern times by the aid of the greenback, surely there would be no risk in resorting to a similar medium of exchange for the carrying on of a work which would immediately add to the nation's resources and free from the bondage of involuntary idleness a large army of men who are now a burden to society and a danger to stable government.

If, however, the fiction by which bondholders enslave the people still holds such power over our legislators and the public mind that the menace of the growing army of unemployed, the injury to the state by the enforced degradation of her children, and the continued unproductivity of both soil and industry must go on unless a concession is made, it would be wiser to make the concession than to let the crime against manhood continue. I therefore suggest that bonds on the land to be reclaimed be issued to the amount of the national notes used for these great works in redeeming the now useless land. The bonds issued against these lands could be cancelled as the lands were sold. I do not for a moment hold that this is necessary. I only advance this suggestion in case the prejudice fostered by selfish and interested classes might otherwise defeat a work of such inconceivable importance.

The inevitable result which would follow such wise, statesmanlike, and humane proceedings on the part of the government may be briefly summarized as follows:

Through this judicious, far-sighted, and enlightened course the government would, first, so strengthen and intrench herself in the hearts of the people that armories and militia would be little needed against the menace of lawlessness _within our borders_, while this wise solicitude and care for the welfare of her citizens would make millions of persons, who to-day have little or no love for a nation which is indifferent to their manly cry for work, loyal defenders of the flag. By such a broad, wise, and just course the United States would do more than she could in any other way to render herself impregnable in time of danger. Second, by affording millions of her citizens the opportunity to engage in productive work she would utilize a vast amount of idle energy in adding to the permanent wealth of the nation, and the state would be fulfilling the noble function of government to promote justice, increase happiness, and ennoble citizenship. She would be restoring hope and the spirit of independent manhood to her children, and so would prevent a great increase in beggary, in degradation, and in crime, which must inevitably follow unless present conditions are radically changed. From an economic point of view the government would be far richer through the amount saved from what otherwise would be required to provide prisons, poorhouses, and court expenses. Third, it would add vastly to the nation's wealth in increasing by untold millions the annual product of real wealth, while it would also supply homes for millions of home-seekers. Fourth, it would bring prosperity to America.

Let us suppose three millions of those now idle should be thus enabled to engage in productive work, there would then be placed in circulation each week from five to ten million dollars more money than there is now, and it would be paid out in small amounts, so that the bulk of it would instantly go into general circulation. The men would not only purchase for their own needs, but would send a part of their earnings to their loved ones, who would thus be able to do what they cannot now do--buy coal, wood, groceries, and, indeed, life's various necessaries. The prices of the farmer's crops would naturally rise, and he in turn would be able to increase his buildings and purchase more machinery. The increased demand for clothing would raise the price of wool and cotton, while it would start up the factories without any resort to artificial measures, such as levying a tax on imported goods.

The difference between present hard times and low prices and good times and high prices would be illustrated in this way: To-day millions of our people are idle, a load and an expense; they cannot buy what they need at any price, for they have nothing to buy with. Millions of others have to curtail in every way, frequently doing without many needed things, for times are such that it is impossible for them to do more than barely subsist. Now, the millions who to-day buy nothing, because they have nothing to buy with, under these provisions for internal improvements would soon be buying regularly, because they would have the wherewithal to buy. They would gladly pay the farmer, manufacturer, and merchant more than what they now ask because they would have something to buy with, while to-day they have nothing; and those other millions who are curtailing expenses to the last degree would gladly pay the increased amount, for all lines of productive business would receive an impetus from the great addition to the circulating medium put forth as a result of the productive work being carried on. Now, our tariff taxes may put up prices for the favored classes, but they thereby increase the burdens of all save those who are enabled to gain added wealth from the taxes imposed on the millions who are yet able to buy, while the small increase in the demand for work, so long as millions are unable to buy what is made, would make but little impression on the vast army of unemployed.

_A tariff tax is a burden to the millions, stimulating prices artificially, and benefiting chiefly the very wealthy._ But the plan for internal improvements here outlined would give all ablebodied men productive work which would benefit the nation far more than the amount of the outlay involved, and afford time for the general work of education, by which justice and equitable conditions could be brought about, to proceed. Those who love peace, those who would see mankind elevated and the wealth of the nation preserved and increased, should favor this great palliative movement for maintaining self-respecting manhood, for enriching the nation's resources, and for insuring prosperity in the quickest and most healthful manner possible.

AN OPEN LETTER TO EASTERN CAPITALISTS.

BY CHARLES C. MILLARD.

Gentlemen: Against you individually, or as a class of persons who have accumulated more or less wealth, and who loan it at interest to those who perhaps have been less fortunate, I have not the least prejudice. I believe that yours is an honest as well as a legitimate business; that great wealth may be, and often is, won by honest means; and that it does not border upon the marvellous that the capitalist is often an honest man, and the pauper as often a rogue. I believe that you are as honest as other men are, and that if you fully understood the situation in the West and South, and knew that a certain line of conduct would result to your own advantage financially, and also be a great benefit to the whole country, you would act as other honest people would act under similar circumstances; and it is because I so believe, that I write this letter.

I write neither as a partisan nor in the interests of any party, but to give plain facts which can be easily verified, and to show how these facts are seen and felt by those who, like myself, have been born and bred on the boundless prairies, and have had a varied experience with the ups and downs of life on the sunset side of the Father of Waters. I hope by so doing to help you to realize the extent of the disasters which a continuance of the present financial policy will inevitably bring to _you_ as well as to us.

THE ACTUAL CONDITION.

In 1886, the chief clerk and trusted agent of a great loan company, who has since been in the employ of Jarvis Conklin & Co., said to me: "There is plenty of money to loan, but the securities are practically exhausted." Everything "in sight" was covered with a mortgage. The few who had escaped the mania of speculation did not want any mortgage on farm or city property. Loans since then have been mostly renewals, and for a time one company loaned money to be paid to another; but, with a few exceptions, the Eastern money borrowed since 1880 has not been paid, and anyone familiar with the facts does not need the gift of prophecy to foretell that, under the present conditions, it never can or will be paid.

The mortgages, bonds, and most of the coupons you still hold, and, in many cases, you also have a deed to the property; but neither the one nor the other is of any practical present value. The mortgagor is dead, moved away, bankrupt, or working at daily labor--when he can get work--for his daily bread. Therefore the debt is worthless, and the property is but little better. The very best of it--costly business blocks in the heart of the cities--is unremunerative. No intelligent poor man would, or could, take a brick block as a gift and keep the taxes and interest paid.

And perhaps the larger share of the city property is unoccupied or paying no rental. He who rides upon a Western railroad can see the proof of this from the car windows. In every city, town, village, and on not a few farms, can be seen the broken or boarded-up windows which are the footprints, not of time, but of the Eastern mortgage. This property belongs to you. No Western man pays taxes or interest, and no one expects to pay the principal. No one wants the property; no one has any use for it; and no want ever existed which it was calculated to fill, except in the brain of the monomaniac who built it. Whether you have "foreclosed" or not, the property is virtually yours; the mortgagor has no equity in it. While he had an equity, the decline in prices affected that equity; now it affects only _your_ interest.

You own our business buildings, mansions, and cottages. You have an everlasting grip on our public buildings, Board of Trade halls, Young Men's Christian Association buildings, and even our churches. The Rev. Mr. Wooley, in the pulpit of the Central Christian Church of Wichita, said recently: "Every church building in this city, except one, is heavily incumbered, and most of them are practically insolvent." Even the "calamity howlers" of the "Populist" party are afraid or ashamed to tell the truth, "and the whole truth," about our financial condition.

And it is not improving. A few farm mortgages are being paid, and scarcely any new ones are being made except renewals; but all the reduction so made is more than equalled by the sum of defaulted interest payments on mortgages outstanding. The statements in the papers, that the mortgage indebtedness of Kansas--or some other State--was reduced so many thousand dollars during the past year, are misleading. They are regularly published to restore "confidence." For the benefit of my Eastern brother, I will explain, lest he may imagine that we are each year paying back more money than we borrowed during that time, and that therefore, in the course of geologic time, our debts would be paid.

The "reduction" is a reduction of record only. I have known of the payment of $25 to reduce the record of $650, and $20 to make a "reduction" of $400; and for various reasons many mortgages are cancelled without any cash payment. These are well-known facts, and I could give a long list of those which have come under my own personal observation, while the mortgages which I have known to be paid in full might be counted on the fingers of one hand.

In addition to this, nearly every city or incorporated town, and many of the counties, have a bonded indebtedness as large as they can possibly carry. In some cases bonds have been issued and sold to pay interest on other bonds, and in one case at least--Pratt Centre--the interest payments have been discontinued "by order of the council."

THE FUTURE PROSPECT.

So far I have been dealing only with the past and the present, and have given only a plain statement of facts, the value of which must depend upon my capacity as an observer, my opportunities for observation, and my truthfulness as a writer. If you are inclined to be sceptical, inquire of your neighbors who hold, or have held, Western mortgages. The value of my forecast of the immediate future must depend upon the character of my reasoning and judgment.

As "death and taxes" are certain, it is safe to predict that taxes will be levied to pay the interest, and afterwards the principal, of city bonds. Also, it may be assumed that you, who own the larger and more valuable share of the property, will pay the lion's share of the taxes. The Western man has "let go"; he is not "in the deal"; and when one capitalist is taxed to pay another, he is not an "interested" party. I sympathize with you. You have exchanged good money for bad property; and with the property you have assumed the bulk of our _burden of taxation_. You must pay our bonds, pay for the repairs and improvements of public property, pay for educating our children and making our laws, and yet you have no voice in determining when, how, or to what extent these things shall be done; nor power to prevent the jobs and steals which accompany such transactions in Kansas as well as in New York.

But, notwithstanding my sympathy, and the additional fact that I must indirectly suffer from the effects of your suicidal policy, it is amusing to see you trying to squeeze the remaining value out of _your own property_. For, I repeat, it is yours. Interest payments will cease in the same ratio that they have ceased, and for the same reasons. And the principal cause will be that the mortgagor has _discovered_ that he has no equity in the property. If property is worth only "what it will bring in money," there are few pieces of mortgaged property in the West in which there still remains an equity. But many farmers are economizing and wearing rags in order to make interest payments, which can only result in putting the evil day a little further off.

The Westerner is a practical man. When he finds that the equity is all squeezed out of his property, and that it is still being squeezed at the same rate, he stops paying taxes and interest, uses the property free while you are foreclosing, saves up a little money, buys a house for about one-tenth of the money it cost to build it, moves it onto a "clear" lot, and is then ready to help you squeeze your property by voting for taxes for various purposes. Under like circumstances the farmer raises one or two crops without rent, taxes, or interest, clothes his family more comfortably, replaces worn-out machinery, rents a farm, and is in better circumstances than he has been for years.

THE PROPOSED REMEDY.

It may be that there is no remedy, but that will not prevent us from trying to find one. During the last ten years we have experimented. We have tried Democratic rule and Republican rule; the "McKinley bill" and the "Wilson bill"; "tariff for protection" and "tariff for revenue only"; a Treasury "surplus" and a Treasury "deficit"; yet none of these things have sensibly affected the squeezing process. We have lost our faith in the tariff and in tariff-tinkering, as well as in the leaders who recommend it. We have dismissed our old political leaders and chosen new ones; and as your "gold-standard" squeezing policy is the only rational cause "in sight" for the origin and continuance of our condition--to use an expressive Western phrase--we are "going for it."

We are willing that you should own and control the property which was ours, and in which your money was invested, but when you attempt to force upon us your financial policy, your politics, and your religion, we object. You may own and control the property, but not us; here we draw the line. This is what Marsh Murdock had in his mental view when he said at the St. Louis Convention, "You want to own the country and run it too." But the veteran editor of the _Eagle_ has changed his mind and consented to being "run."

You have bought the leading papers, caused our editors to "change their minds," flooded the country with a trashy literature that is an insult to our intelligence, and provided funds to pay third-rate preachers for preaching to us a religion which we do not want. We are not rich, yet we are able to pay for our education and our religion--if it is a kind that will be of any use to us.

We do not fear the result of our experiment. If we fail, the same old squeeze will continue; if we succeed, there is a prospect of relief. Without variation, there is not even a prospect of bettering our condition. If we should succeed in creating that financial paradox, a fifty-three-cent dollar, we are such political heretics as to prefer that kind of a dollar to none, or to "confidence." We have unbounded confidence in the dollars which jingle in our pockets, but very little in those which exist only in the imagination, and are represented by stocks, bonds, checks, drafts, clearing-house certificates, and other devices, which always fail to perform the function of money in the last extremity, when money is most needed.

Do not allow yourselves to be terrified at the ghost of a silver dollar, for the ghost of it is all that will ever trouble you. In the event of free coinage, the trains going East will not be loaded with silver dollars to pay off old mortgages. I have seen a statement in Eastern papers to the effect that we wanted cheap money with which to pay our debts. It is a base slander; every intelligent Western man knows that, whatever happens short of the miraculous, only a small share of our mortgage debts will be paid.

All the holdings you now have in the West, new and old taken together, are not worth fifty-three cents on the dollar; and you cannot now in any way realize that much from them; and if your present policy is indefinitely continued you have no prospect of ever realizing fifty-three per cent on your investments. If, then, you should be paid in silver dollars, or if a larger share of the loans should be paid under the new conditions, you would be a gainer and not a loser by the change. It seems to me that an increase in the volume of money and rising prices are the opportunity for you to realize from your holdings, for without some favorable change you will hardly realize twenty-five per cent.

You can test the truth of these statements. Take twenty holdings, not selected, and try to convert them into cash. Or offer them to some capitalist who has travelled extensively in the West during the last five years. Time will convince you, if nothing else will; but the knowledge may come a little too late for practical purposes. You ought to be with us in this free-silver movement, and you would be if you knew what we know. We are not fools, although we may appear so to you; we know what we want, and we are trying to get it.

You threaten "to draw in your money from the West." If you have any money in the West which you _can_ "draw in," the sooner you do it the better; it will be an heroic remedy instead of misery long drawn out. A "panic" will return like a boomerang upon yourselves, and make _your_ property still less valuable. You can cause a panic, break our business men, make more idle men and tramps, and, in short, concentrate three or four years of squeezing into a few weeks or months; but what benefit can _you_ hope to derive from it?

Whatever adds to _our_ prosperity will increase the actual value of _your_ holdings; our interests are identical, then why should _you_ desire the continuance of present conditions? Have the present conditions done anything for you, as far as Western investments are concerned? Is not your increase of capital simply an increase "on paper" which you can never realize? We cordially invite you to join us in our effort to bring on an era of prosperity; forsake your political leaders, as we have forsaken ours, and use at least as much common sense in politics as you do in business.

Save this article; it will be good reading after the election is over. It is not politics, it is business; it is the naked truth. The writer does not want to borrow any money; he seeks no office, is not a politician, has no axe to grind, and expects no reward, except to share in the general prosperity, as he has shared in the general adversity, in the capacity of a humble citizen.

WICHITA, KANSAS.

THE TELEGRAPH MONOPOLY.

BY PROF. FRANK PARSONS.

XIII.

10. _The Union of Telegraph and Post is needed for the Interests of the Post as well as for those of the Telegraph._ It will elevate the skill and competency of postal employees. When mails do not arrive on time, it will inform the public thronging the post office, not merely that the mail has not arrived, but when it will arrive. It will permit the employment of the telegraph in tracing a missent letter or package, rectifying an erroneous address, discovering the whereabouts of an absentee, etc. It will permit the more rapid extension of the free-delivery system by affording a larger basis for its sustenance. It will multiply many fold the rapidity in transmitting letters across the continent.