Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1877-12-19
TIM SILVER QUESTION.
Paper Read By the Hon. II. q. Mi
Ter Before the Philosophical Societ
of Ev0nsf0N. Dec. 10. 1877.

Paper Read by the Hon. II. q. MI
Ter Before the Philosophical Society
ofEvanston, Dec. 10, 1877.
Money is that form Of property
with which commercial exchanges are
effected. A unit Of money Is the do
nomination in which accounts are
kept. A unit Of other property is a
definite portion Of any kind Of prop
erty by the multiples and fractions
Of which the various quantities of
that kind are expressed. Money be-
ing the medium or exchange, the unit
tpf money becomes the measure Of the
value Of the various kinds Of other
property. q use value as synon-
ymous with price.) A definite guam
tity Of any Kind Of property is worth
the amount Of money 1t will bring.
When . nation has used q medium OF
exchange for long time, the values
Of its other property will become adj
justed to this medium. lifts finances
are in normal, healthful condition,
lie money will constitute . definite
portion OF Its entire property. 1t is
impossible to state accurately what
that portion 10, but we will suppose
that the ratio Of it's property In the
form of money to its property in 9TH
or forms 10 % l to 3O-that is, that
for every dollar Of money there are
$40 of other property. Under these
conditions, evrey dollar in money has
fixed purchasing power. II this
ratio or relation once established can
be made permanent, and continue
without any change, then the pur-
chasing power of the unit of money
WIN etweys be the same. Whatever
thing dollar will buy to-day II will
buy at any future time. II it will
buy bnshel of wheat to-day, and
the other influences affecting the
price Of this commodity continue 10
they now are, it will buy Just one
bushel of wheat and NO more at any
future time but If this ratio or rela-
tion is changed, then the purchasing
power of this unit Of money Is chan.
ged. tits diminished just in the pro-
portion that this ratio is diminished,
and increased just In the proportion
that this ratio 10 increased, In other
words, the prices Of property in other
forms than money, will rise as the
purchasing power of money decreas-
es, and fall - the purchasing power
of money increases, We will suppose
that the volume Of money 10 doubled,
with no addition to the other property
then the ratio will be as 2 to 30 or to
Is. Two dollars will now buy Just
what and NO mo-e than 81 purchased
before. A bushel Of wheat is now
worth 81 instead Of 81. Of course q
long time will be required to accom-
plish this change, and perfect the new
adjustment, but this substantially
will be the result; and this change in
lite progress will be distinguished as
On era Of rising prices. We will sup
pose that one-half of the money stock
is taken away; the ratio will then be
from l to 30 to from to GO.
"A half-dollar will now purchase the
bushel of wheat or what 81 purchas-
ed before. In other words. the bushel
of wheat that was worth one dollar
before the change was made is now
worth only half q dollar. This change
marks an era of falling prices. AS the
prices Of all exchangeablo property
are in addition affected by the law
Of supply and demand, the prices of
particular kinds Of property, such as
real estate in rapidly-growing cities,
and grain where the crops have fall
ed, will at times advance more rapid
ly than the prices Of property in oth-.
or forms. This rise is compensated by
. fall in the prices Of those kinds Of
that are from various causes
subject to the depressing influence OF
this law of supply and demand, leav-
ing the sum Of the prices of the en-
tire property in the nation, other than
that which is In the form Of money,
under the sole influence of the agent
which fixed and established them,-
namely, money. Prices of
kinds of property
are affected bX commsrsisl aas,Sis inter
creating or stimulating demand for
the subjects of this commerce. The
prices Of property in the country are
therefore controlled by two influen-
ces, depending upon the manner in
which It is viewed or regarded. IF
viewed in respect to it's various kinds,
then the price Of each kind is con-
trolled by the law of supply and de-
mand. If viewed in it's entirety, that
is, if the aggregate of prices is looked
at, then this aggregate is established
and regulated by the ration that ex-
lists between the amount of property
In the form of money and the amount
of property in other forms in other
words, by the quantity of the money
stock in the country as compared with
the quantity Of other property. By
continuing this ratio unchanged when
it is once established, the stability of
prices, An unerring index of a health
ful commercial activity, is maintained.
While this lasts, money has q proper
relation to all its appropriate objects
All the productive industries that are
adapted to the circumstances and con-
dition Of the people are prosecuted
ON an economical scale, and therefore
successfully prosecuted. Capital and
labor will receive just recompense
for their respective contributions to
that which IL the result of their friend
ly cooperation. The accomplishing
Of this beneficent object is always the
aim of wise statesmanship. To facil-
itate exchanges, credit money is used,
that is credits, such as bankers notes
founded upon and in respect to
amounts. measured by the actual mon
ey in the hands of the banker who
Issues them. To properly restrain
the issue Of these notes, they should
always he convertible into actual
money at the will of the holder, and
then their issue will not exceed such
Q limit as experience has shown cam
not be trangressed with safety. II
this quality Of convertibility is taken
from them or suspended, then they
become virtually > part Of the money
stock Of the country. This stock il
consequently inflated. The ratio be-
tween money and other forms oi
property IL diminished, the purchas.
ing power Of money is reduced, and
tho prices OF other property increased
Private credits enlarge with the swell
ing volume of money. These credits
take the place of money, and botf
money and prices set in the direction
| Of indefinite expansion. Fictitioul
money begets fictitious credits and
L UCtAt1Vuo RAAO0os 6uu VsAAo POhAOys =
persisted In, will, of course, end il
financial disaster. As increasing tn,
money stock increases the prices o
other property, 80 diminishing !
causes . decline in these prices. Il
The other case the purchasing p0we
Of money IL constantly depreciatine
and It will eagerly seek employmen
lin productive industries to shar
with labor the profits Of these indus
tries. In the other Its purchasing
power, or value, as compared wit
other property, 10 constantly appre
ciating, and it will retire from thes
industries, and leave labor to tax
lcAre Of itself. Money is selfish an,
Iquick to discern its real interests. ]
hears no cry of distress, is neithe
j moved by expostulstion nor cajole
by fiattery. Fattening in repose,
will hibernate in vaults, or ventur
into permanent investments ct . 10y
interest when the securities are an
pie, but It will never engage in Pre-
ductive industries while prices al
falling. The productive energies {
our country will enable 1t to endul
the process OF recovering from an III
i natural increase OF its money stock