The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1885-03-04

but as long as the population and wealth go on in
crossing, the conditions OF the problem are
cns.eeed. IN iaet IN oroer 70 preserve pres a stsole
and wealth, an annual increase Of not less than
100000 in currency OF some kind is now
popnistion ana weash calls for an addition
10 the circulation at least 1900, 900 year. II.
while these conditions continue. silver Is coined
still considerable vacuum to be filed with gold.
This is the reason why gold has so increased in
tHe county & seacy SINCE @ inc ses o. M 1oo WIS
1000, eco during the last year. and is now in
oressing at the rate of nearly sl,o0O,OoO month.
Notwithstanding the depression OF business IN the
country, and es matter of fact, there is to day
more gold in the country than there ever was be-
fore in its whole history. Another fact is the
Wss put there in exchange for silver.
certificates, and the immediate effect Of stopping
the prices Of silver bullion, and gradually to APP
pTeciate the value OF gold the world over. Tee
oiicultles in the way OF establishing an interna-
tional ratio, so much desired, or OF the readjust
ment OF the relative value 70 gold here woSld
thereby be increased. How II is possible for such
things to take place as are predicted in the last
Gold is 70 be Withdrawn 10 its boarding places,
followed by unprecedented contraction in the
1t has been shown must be followed
by gTeat fall in prices. What then? Would not
gold flow here as the tide fows2 Surely II would
come as fast as tie ships could bring IL. WHAT
then would those VINO have been boarding gold
DO With il? Labor the letter says already greatly
depressed would suffer still further depression by
called dolsT paid into the hands
of toll Here. in one sentence, we have
OF prices and scaling down OF the purchasing
power Of the doller-that is, when these impend-
ing calamities come prices are to fali everything
become cheaper, end money become less valuable
at the same time that is, both sides OF the bal
anee go down together. Usually, one side goes
up as the other goes down; usually, as COM
mo l.
stively deGrer, and wise versa; usually, a con.
traction of the money volume results in
not ihe in !" fall % The 6 Contraction ion
involved In this paragraph OF the letter are hardly
calculated to carry CONVICTION to those who have
in them any sense OF alarm at approaching
calamiies from such causes in one thing all
will agree. and that is in the Importance to the
classes, now struggling with the want of revival
OF business and 3 reaction Of prosperity. The
one condition essential TO this Is TO stop
try ever did this, and never can
while is money is undergoing contraction. Busi-
ness can not be sseuTed when its foundstiOn Is
constantly giving way. Stability in the volume
OF money is the one essential requisite TO safe
ana prosperous business What is the monetary
condition OF the world to-day? are we not
brought face TO face with the startling fact that
the gold projection of the world has fallen be-
low its eonI umpton in the arts and that there is
no probability OF any new gold tor the
centuries to conner With this condition of
things as 20 gold. shut OIL silver
as is now proposed, and where Is the money sup
ply, even FOR keeping up the stock of coin now in
the hands OF the world to come from? AS aggTe-
eating this state OF affairs in this country. the
paper currency is undergoing contraction by the
surrender of bank notes Ii this state of things is
10 last upon what is there 10 build hope OF re-
tuning prosperity? In the last three
years, according to London ecOnOmi IS, prices
have fallen more than 20 per cent-that is, money
has appreciated in that ratio. In the quarter OF a
century following the gold discoveries, in CaifOr.
ana Australia. the STOCK OF the precious met
sls IN use money was increased by nearly 20 per
cent. The trade and commerce of Great Britain
and the United States during the same period in
portion.