THE FARMER AND THE CURRENCY. S i !) 



gages are now made payable in "lawful money" are those for 

 deferred payments due to the seller of tlie land. There are 

 many of these, held by fanners, who, in case of free coinage, 

 would lose the difference between the gold value and the silver 

 value of the face of the note. If any farmer doubts that such 

 a mortgage is even now depreciated, let him try to sell one to 

 a bank. 



Another matter to be considered is the life-insurance inter- 

 est. Tbe amount of life insurance outstanding in this country 

 is enormous. With free coinage of legal tender silver, such 

 insurance would be payable in the depreciated money. In a 

 multitude of cases the policies are assigned for debt, or ke[)t 

 up for the purpose of paying off a mortgage on a homestead, 

 on the death of the father of the family. Under free coinage 

 the value of this insurance as security, or for the protection 

 of a family, would be enormously depreciated. In like manner 

 deposits in savings banks would depreciate, except as they are 

 being protected in making or extending loans, by contracting 

 for gold payments. 



The amount of indebtedness that would be relieved by free 

 coinage is enormously exaggerated. Short-time indebtedness, 

 while of huge proportions, does not count, as for the most 

 part every such debt involves a corresponding credit. The 

 manufacturer borrows from the bank, but has a corresponding 

 note coming from the jobber; the jobber has the note or 

 account of the retail merchant, who in turn has tlie obligation 

 of the farmer, who must dig up the money. If free coinage 

 were seen to be coming, he would be made to pay while yet he 

 could be made to pay gold, and in default of payment would 

 be sued. The only indebtedness which could in any case be 

 "relieved" by free coinage would be mortgage debts not 

 specifically payable in gold, which should not become due 

 until the silver basis was established, and upon which interest 

 should be carefully kept up so that the principal could not be 

 declared due in advance of maturity. With every day this 

 class of indebtedness grows less; before any change of the 

 money basis could be made, very little would remain. It is 

 not worth while to invite certain calamity to all other interests 



