The Arena, Volume 4, No. 21, August, 1891

by Various

It is useless to deny that these farmers have some intense prejudices. What class has not? And these prejudices must necessarily color opinion, and somewhat determine action. The farmer is bound to look at things from the standpoint of the poor man rather than from that of the corporation and the money loaner. The latter have had the thought and service of our statesmen for years past. As a consequence, the account between the rich and the poor is in an abnormal condition. Perhaps it is only right that the selfishness of the laboring classes should have its own way for a time, and even things up somewhat, before a new start is made.

But the class prejudice and selfishness of the farmer has been greatly over-estimated by his political enemies. His sub-treasury bill and plan for loaning money on real estate, to be sure, are intended to afford immediate relief to the farmer; but he believes, in his soul, that they would result in great advantage to the whole business world. He says, moreover, that condemnation of his plans comes with bad grace from the men who are even now supporting a financial system which delivers the money of the country over to the few and trusts them to distribute it among the many. His plan may have the same selfish ear-marks, but they are not so deep. We have been trusting a few men to distribute the currency of the nation, and have made it extremely profitable for them to do so. He asks now that this trust be transferred to the many, and gives good assurances, in the nature of things, that the many will touch the remotest needs of our people, and so diffuse currency that competition, if such a principle ever can be effective, will keep interest at a rate where labor can live and prosper.

That the independent movement is not considered a class movement, in a bad sense, but decidedly in the interest of all the middle classes, we have some proof in the citizens’ alliances and the labor unions, which have united forces everywhere with the farmers, brought about by a recognition of the simple fact that where the farmer has money, the tradesmen of his market town have money and industries of all kinds thrive. Here lies the strength of the movement. The farmers are, perhaps, the largest distinctive class of citizens, and can exercise great political influence by themselves; but they are not numerous enough to work radical changes without aid from other classes. As it is, however, in the strictly political movement among the farmers, all who sympathize with their political views are welcomed. The best evidence of this is the election of such men as Rev. J. H. Kyle and editor Peffer to the United States Senate. While the farmer has a great deal to say about the utter absence of farmers from the national halls of legislation, he is not disposed to say that farmers alone should be sent there. He is willing to send the men who are best fitted to do the work that is to be done, but they must be worshippers of the common people as distinguished from the bankers and “financiers.”

It is not possible to discuss the platform of the new party at any length within the necessary limits of this article. We shall be content to undeceive, if possible, those of our readers who have been charging that the platform is indefinite.

One of the chief recommendations of the Independent platform, to the voters of the West, was its brevity and definiteness, refreshing qualities in the minds of a people who had been accustomed for years to the platitudes and straddles of the old parties. Most of the Independent county and State platforms could be summed up under three heads, money, transportation, land. They declare in favor of a full legal tender currency to come direct from the government to the people, in volume sufficient to meet the demands of business; the government ownership and control of railroads and homes for the American millions. The main planks were summarized in the flaring posters which announced the great rallies of the party last fall. “Money at Cost! Transportation at Cost!” These were the headlines which everywhere caught the public eye, and drew the crowds. Opponents saw in these advertisements traces of a demagogue’s hand. If it is demagogism to awaken curiosity, arouse thought, and in a terse sentence to express the party faith, then are the Independent leaders guilty of it. But whether guilty or not, these two expressions have awakened echoes that will not cease reverberating until our ideas and systems of finance and transportation are quite revolutionized. As we are not proposing here to discuss the wisdom of the farmer’s demands, we need waste no time on the land and transportation questions. So much has been written on these questions, and the dividing line between disputants is so clearly drawn, and farmers have settled down so decidedly on one side of that line, that they are no longer open to the charge of juggling with words when they declare in favor of “homes” and “transportation at cost.”

With the money question it is different. “Money at cost” is one of those essences of thought which will bear analysis. We desire to show that with the farmer’s party it means but one thing,—that it is a declaration of war with the piratical system of the present. “Money at cost” is a sentiment and conviction which has grown up in the minds of the producing and laboring classes of this country out of a deep sense of the injury done them during the last quarter of a century, and a pretty clear conception of the nature of money and the duty of government.

Money, they say, is a medium of exchange necessary in the transaction of business between citizens; that it is the first duty of government to provide this medium for its citizens directly and at the minimum expense; that it should not be considered property in any sense, and that every incentive to the hoarding of it should be removed; that there is no such thing as “cheap money” under a proper system, because only commodities are cheap or dear according to the market price of them, and money is not a commodity; that money can be issued by government or by authority of government, safely and honestly, in but two ways: in return for services rendered, or as a loan on adequate security, and should always represent days of toil or material of value; that the present bank systems by which money is farmed out for private gain, furnishes a fairly reliable currency but an unreliable means of distribution; that loans should be made on lands or imperishable products to the many who have personal need of the money with which to improve homes and develop enterprises, thus giving not only a safe currency but providing also for a wide and safe distribution of it; that government creates money out of anything it chooses; that it should create only the best money, by which is meant a stable, full, legal tender currency; that the curse of an unstable currency is now upon us blighting our people; that an unstable currency is one whose volume is regulated by the owners of private banks, dependent upon the uncertain output of mines, and varying with the caprice of the few who hold and control it; that a material scarce by nature is not fit to receive the stamp of government, because it is sure to vary in supply; that the medium of exchange should be of material so plentiful that blind nature or designing men cannot reduce the supply of it below the government demand for it; that the money so created should be durable, easy of transportation, and difficult of counterfeiting; that paper money is the easiest of transportation, the most difficult to be counterfeited, and in a sense the most durable, because so easily replaced when lost; that to base the medium of exchange upon value is as effectual as to stamp it upon value; that out of deference to foreign customs and the necessities of foreign trade, our government should buy up the gold and silver bullion of the country and hold for resale to those who have foreign balances to settle; that the country to-day is suffering from a contracted and contracting currency, on account of which the debtor class has had its burden doubled, to the corresponding advantage of the creditor class; that if contraction has been good for creditors, inflation must be good for debtors; that any measure, therefore, which looks toward an increase of the circulating medium is to be favored; that free silver coinage is to be favored; that instead of flying to the relief of the stall-fed speculators of Wall Street in times of financial stringency, it is time that the government was coming to the relief of the common people; that loans from the government should be made at a merely nominal rate of interest, not to exceed two per cent., because any higher rate is a congestor of wealth and gives capital a leverage over labor; that money-loaning as a business, except on such a basis from the government to its subjects, should go out of fashion, and might be expected to disappear under a proper financial system; that the unemployed capital of the country would then seek investment, labor would then be employed, factories would hum and the credit system might go to the dogs; that rates of interest cannot be satisfactorily regulated by law until we have banks that are national in fact as well as in name, managed by salaried officials of the nation whose duty it shall be to make loans at cost, under wise and conservative rules, to those needing them who can bring themselves within the rules; that the proposed sub-treasury and land loan plans are suggestions in the right direction and calculated, when perfected, to bring the government into touch with the needy citizen, and make of it a distributor as well as a creator of money; that paper in the shape of checks and drafts already transacts ninety-one per cent. of the business of the country, and might be trusted to properly supplement our currency and make supply equal demand, were it not that the great bulk of our people are not known beyond the communities in which they live, and therefore are debarred from using checks to any extent in the outside world; and that each piece of national currency, issued as a full legal tender, in the hands of the people, would be in the nature of a certified check, enabling the citizen to do business with despatch anywhere.

Running through the above statement of the independent doctrine of finance, we see that three ideas are most prominent. First, a desire that the government supersede avaricious man and blind nature in the creation and distribution of money, in order that money may be a stable purchasing power. Second, a determination that money shall no longer be a commodity to be bought, and sold, and manipulated, a leech upon labor in the hands of a few, but a convenience of trade, accessible to the many at first cost. Third, a demand that the misnamed national bank system of the present shall have its spirit of greediness exorcised, so that it may hereafter serve the people instead of its management. Are these ideas indefinite? Do they not mean “money at cost”?

We would now call attention to those facts which the western farmer says have opened his eyes, made him indifferent to the sneers of the banking class and its servitors, and fixed him in his purpose to effect a permanent change in the financial system of the country.

He says that the average profits of business enterprises in this country do not exceed three per cent.; that money loaning at six and seven per cent. of necessity congests the wealth of the nation; that eighty cents’ worth of silver, stamped by government as a dollar, or a cent’s worth of paper, bearing the same stamp, buys as much for him in the markets of the country as a gold dollar; that it is easier for him to pay his debts when money is plentiful; that the paper demand notes of ‘62, a full legal tender, stood at par with gold while the greenbacks, repudiated in terms by the very bill which created them, went skyward; that a contraction of currency has preceded every serious financial panic in the history of the country; that prosperity for the laborer, the producer, and the debt-payer has always accompanied currency expansion; that money loaners are strangely interested in keeping money scarce, and for that purpose fought gold in ‘50 when California and Australia threatened to flood us, the greenback in Lincoln’s administration, and silver in ‘73, ‘78, and ‘91; that the farmer’s products have been refused a market within a year past because there was not money to handle them; that present rates of interest consume him; and that, with good security to offer, he is obliged to pay exorbitant rates for money and in many cases is refused it altogether.