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The majority of the pleasure-loving San Franciscans, and indeed all Californians, have accepted the story of Portola as that of a great captain who made wearisome forced marches and counter-marches, and who planted slabs and crosses to mark his path in the then wilderness. It's little I care whether Portola is Portola, with the accent on the last syllable or the pen-ultimate! He is having a fine celebration, and he has served his purpose as a means of advertising San Francisco once more to the world, in a new guise. There was a danger that the world lapse into a belief that we were so commonplace as to never have been discovered at all. It's the color jangle that bothers me. I cannot help thinking of San Francisco as a jaundiced individual suffering with nasal hemorrhage, when dressed in the Spanish oro y sangre. The yellow is bilious and the red is brickish. It cannot be denied that San Francisco is gay in its bunting, and in its life. It is the old San Francisco again! The Portola is not so much a festival of discovery as it is a notice, to the world at large, that San Francisco is once more master of its own destinies, and that it is once again come into its own. There is the same spirit, the same bohemian bon hommie and good nature, the same frankness and jollity. San Francisco is getting to where it can stop and look about and take a breath and a rest from its herculean task. San Francisco is a-pleasuring!

The nation has lost one of its big builders, and History will know how to eliminate the chaff from the grain when the final record is written. E. H. Harriman was a constructor of great ability. Everything that he touched during his very short tenure of office with the big transcontinental lines turned to gold, and every property became a successfully run concern. He was in no wise a wrecker. His mind, as well as his method, was Napoleonic. He was the logical successor of the age of the hewers, of the iron men of the Huntington, Stanford, Crocker type. While he fitted in the day and the hour, it is true that he is gone only just before his type, too, will disappear. This is an age of vertiginous advance, and we will be surprised when, in ten years, we look back

at the records of the men that have gone before.

James J. Hill has again delivered himself of a whining jeremiad, and bids fair to become the National Scold. He is of another school, and while he invariably vents his liver troubles on the public in unwholesome predictings, there is much that we should take to heart in his semioccasional lectures. Back to the land, should be the cry. Back to the land; if we would save the Republic.

President Taft seems to have surrendered to the "vested interests" in more ways than one, or-this may be the way of the judicial mind. It seems to be, in the case of Ballinger, an idea of "let us have peace at any price." Time will tell!

The next gentleman to have attention at the hands of the people and the President is one Wiley, of the Chemistry Bureau. He says he is the only man who stands between the people of the United States and their wholesale murder by the manufacturers of food stuffs. He practically promulgates the idea that he is a bigger man than the big-stick ex-president, and the rules of the Agricultural, Interior and Treasury Departments have no meaning for him! He will abolish them by State enactions! He is the great nullifier, and just now he negatives the acts of the Remsen board.

P. N. B.

The eminent divine, Mr. C. T. Russell, writes me as follows, and as many of our readers are intensely interested in "The Divine Program," as interpreted by Mr. Russell, his letter is published in full:

Editor Overland Monthly, San Francisco, California.

My Dear Sir-My attention has just been called to the fact that in your magazine, August number, Page 109, Column 1, Line 15, "ninety-five millions" should read "ninety-five thousands." The error is so eggregious that surely no one would be deceived by it. I looked up a copy of manuscript, and must confess that typographical fault was not yours. The error was not caught by my proof-reader. Very truly yours,

C. T. RUSSELL.

CITIZENS' BANK OF THE UNITED STATES

BY ELIAS LOWE MCCLURE

President Taft, before starting on his journey through the West, gave out a foreword to the public in a newspaper interview, in Boston. The one valuable suggestion made in this interview was in regard to a United States Bank. Mr. Taft mentioned that Mr. Aldrich had some sort of nebulous plan which would later be sprung on the public, and that this financial plan contemplated the establishment of a United States bank. The idea is a good one, and will, if carried out, along sound lines, go far toward curing all the ills we are heir to through the legislative pampering of special privilege. The remedial financial panacea will never come, short of a miracle, from the money holding or controlling power, and the allusion that the cure will come from Aldrich is a bit of unconscious and inimitable humor on the part of our honest President. Senator Aldrich and his friends are the Greeks bearing gifts.-EDITOR OVERLAND MONTHLY.

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NINTERRUPTED CREDIT creates the most favorable environment for the normal development of the body-politic, but whenever money supply vanishes, it precipitates bankruptcy throughout the body-politic, as inevitably as severing the juglar vein would kill the individual. The uninterrupted circulation of sound money is as vital to the life and development of the body-politic as circulation of the blood is to the individual.

The world is teeming with treasures inexhaustible. It has been created by Omnipotence perfect and complete, under natural law, for the habitation and development of life, and every normal individual has been endowed with intelligence to distinguish good from evil. A puppy or baby knows its dinner instinctively, and under normal conditions, if it obeys instinct and reason implicitly, it will develop character necessary to perfect being as inevitably as the growth of its body and mind.

The rule of natural law would create perfect environment for normal human development. It is the rule of unjust human laws enforced by every Government that is responsible for the universal development of abnormal human beings, and it is special privileges monopolized by

the few and subversion of natural law, that precludes the possibility of normal development of any individual. No environment has ever existed since civilization began that was favorable to the development of goodness, and no individual worthy to be called good has ever lived. If the dinner provided for the puppy or baby, under the normal conditions of birth, was withheld, it would perish. Likewise, whenever credit ceases, no matter how wealthy or prosperous the body-politic may be, it will produce bankruptcy, poverty and starvation until money reappears in circulation, or confidence restores credit.

Wealth is necessary to maintain life, and the desire for wealth to sustain and enjoy life is innate in all normal adults. Natural law would permit the exchange of wealth secure from interruption by money manipulation, and the natural opportunities for the production and distribution of wealth would be open and free. It would release all laborers from the strain and menace of idleness and poverty to certain employment, and the unlimited demand for labor to produce wealth would be compelled to reward all laborers with a just share of the wealth they produce, which would stimulate industry and produce such an abundance of wealth that

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The President of the United States, William Howard Taft, now en tour. Photo by A. Chickering (copyright.)

sustenance would be placed within reach of all men, as free and abundant as air, and poverty would be as preposterous and ridiculous as nakedness.

The entire aspect and conception of life would be changed, and the human struggle of existence transferred from the mere physical to the moral and intellectual plane of life. There is no doubt that popular ambition would seek the distinction of character, rather than the possession of wealth, when freedom and plenty have become as natural to human existence as respiration and consciousness.

A fixed and unchangeable money measure of value is the greatest desideratum for human development. Gold coin

stamped with the fiat of the Government, in popular belief, is the fixed standard of value, because fluctuations in value are discerned by the price of all other things stated in dollars to express the value. The fallacy of this economic theory is proved by the quantity theory, and the principles of money cannot be comprehended until the quantity theory is understood.

The quantity theory of fluctuation in money value by changes in money supply and demand proves that all metallic money standards must necessarily fluctuate in value. The reason for the changes in value of gold coin will be explained when the significance of the following facts are clearly understood. The total world's stock of gold, the increase from the world's gold mines, the demand for gold in the arts, the disappearance of gold from circulation through hoarding, the activity of exchange, the perfection of business organization and use of substitutes for money, and the demand for moneyall enter into and produce the quantity theory, making it an impossibility keep money supply and demand at equilibrium when so many factors are constantly operating to make the money standard fluctuate in value.

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If the sole function of money could be limited to a measure of value and medium of exchange, with no effect on prices, there would have to be no surplus or deficit in money supply, a condition prerequisite to a fixed unit of value; or the quantity of money in circulation must equal the demand for money (and vice versa), to maintain the money unit at a

fixed value. Any fluctuation in either the money supply or demand must be equalized by a remedy that will positively operate to change money supply correspondingly, or the dollar must necessarily fluctuate in value. And this remedy is as simple and comprehensive as gravitation; i. e., the adoption of scientific money or a normal measure of value and medium of exchange.

It is apparent to all that any excess of yard-sticks above the need for measuring purposes would have no value. If only one yard-stick was needed, a dozen yardsticks in stock would be superfluous. The fact is well established that excess money is as valueless as superfluous yard-sticks. When this law of money is perceived, the fact will be apparent that all money in circulation in excess of the demand for money has no value. And the effect produced by either an increase or decrease in the quantity of money in circulation, the demand being unchanged, will manifest itself by either lowering or raising the value or purchasing power of money.

Value is created by human necessities and desires and fluctuates with the intensity of-and the difficulty in satisfyingnecessities and desires. There is no such thing as intrinsic value, popularly believed to be innate in metallic money in contradistinction to paper money. A person perishing on a desert, though he owned a mountain of gold, would give it all for a jug of water or a loaf of bread. The fact is so self-evident that it needs no argument to prove that intrinsic value applied to metallic money, or to anything, is a misnomer.

Air has no value, because there is an abundance for all without price. Land has no value, until population has created a demand. Gold has qualities that make its use greatly desired above other metals, but it is not so essential to man as air, water or food. But the scarcity of gold (endowed with omnipotence by the fiat of the Government), compared with the abundance of the others, makes the value of gold greater than the common necessities of life.

Gold is the measure of value created by law. But the value of the money measure fluctuates with the rise and fall in the quantity of money in circulation compared.

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