Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1889-12-21
FREE COINAGE.

psr Prepared for the q. Louis Silver
veneion On currency ana Free
tonnage by H u. Kelly, Of
| McPherson, Kansas.
ina question Of Free Coinage" or "Ful
tonnage" OF silver.under the present law involves
Two propositions, the first having reference te
me worlds standard of values, while the second
us' reference more particularly to the volume o,
circulating money in the country.
Inc argument for free coinage rests upon the
oemand for an increase in the volume OF the
worlds standard of values. The argument fol
iull coinage may go no further than the de
mand Tor an increase in the volume of money II
| IHis country without reference to any enlarge
ment OF the volume of the standard of values
doid Is the standard by which the value of 9th.
| moneys, paper and silver, is measured, the
salue OF these being determined by the facility
w1tn which they may be exchanged for gold
hence as gold is standard of a very greatly re-
| stricted volume as compared with the worlds
commercial transactions, so must the volume OF
silver and paper money interchangeable with this
Ss OF be IN Like
standard by which the volume and hence the
Lalue OF circulating money is determined, it is
therefore, the standard by which the price Of labor
AND It's products Is measured. As the volume OF
the standard of value is diminished so in a core
spending ratio is its purchasing power augment
e, and in an increase ratio with the augmenta-
non OF the power of the standard so as the de-
cline in the price of labor and its products
Free coinage of silver and its general accept
mce by the world as co-associate with gold as a
standard of value would prove the great liberator
Of labor nom the oppression to which it is sub
tec1ed. coln standard, rather than gold stand
ard, not the double standard of two metals, Civ
ing the world standard of double the capacity of
the gold, giving the standard growth common
surate with the growth of production and bust
ness OF the last thirty years.
Paper money or demand notes, constitute the
money of business transactions. Paper is the
worlds medium of exchange in business, and as
the volume must increase with the growth of
business, go must the standard by which paper is
like ratio with the growing demands of the bust
ness of an advancing civilization.
The population or per capita basis for approx
mating the required circulation of older countries
where production is fixed annual quantity and
where business follows established lines, cannot
be made to apply here, where development and
condition of population are continuous, no more
than can growing boy be clothed year after year
BY the same fixed standard of measurement.
Currency is any invention of civilization by
Just as civilization advances SO is there growing
demand for the use of currency. A pastoral peo-
PIE living in tents and feeding and clothing them
while the many new enterprises that spring up
with our growing civilization, the increasing
army OF wage workers, a class receiving and e1-
corresponding ratio a growth in the volume of
circulating monev. The extension of settlements
remote from business centers, calls for wider
distribution of money circulation, making 1t less
responsive to business demands. The growing
volume of railroad and other stocks and bonds,
necessitates an increasing aggregation OF money
handle this class of securities, and this growth is
far beyond the ratio of increase in population,
that an adequate circulation at the present time,
for all business demands, might without chang
ing the ratio to population prove wholly made
Quate few years hence, and as ours is a country
of rapidly changing conditions, it is important
that this be kept in view in adjusting currency
The rapidity of the change that is transpiring,
appears iq part in the growth, from 1870 to 1880.
in the industrial classes the number engaged in
cade but 70 per cent, while the non- agricultural
classes increased SO per cent at the same time,
and as development in mining, manufacturing
emit than during the last decade it is safe to esti-
mate twO-thirds of our entire industrial popula-
ton at the present time, engaged in other pur
In my efforts to detect so much of the difficulty
as might be traceable to shortage in our circula-
ton, the population standard proved of no value
change, but when business growth was Compared
to currency growth, it was like an electric blaze
turned upon picture in q dark corner, the lines
# this standard has heretofore been applied, it
has escaped my observation, hence l desire par
ticularly to call attention to this thought ''cur
rency groYth compared with business growth :.
permeates all lines of business, falls most heavily
upon agriculture in ruinously low prices, for the
reason that the farm can not shut off the engine
OF production at will, nor hold products for bet
ter prices. The diseases in our commercial sys-
tenn is wide spread and organization in all pur-
suits is being effected for the purpose OF detecting
conservative element in all matters of great i'm
port, loyal class to the best interests of gov
eminent, becoming discouraged with the long
purpose of relief if it be possible to find it.
Upon the per capita reckoning q sufficient cir:
culation for the older countries of Europe would
population Is more widely distributed, develop
ment and improvement greater, municipal in.
debtedness greater, hence greater percentage OF
funds to meet maturing bonds. And yet when
measured by population, production and material
wealth, while the United States is the richest
are poorer than France or England. notwith-
standing our requirements are greater than
either.
The fifteen years from 1877 ito 1888 inclusive di-
vides into three separate and distinct financial
and commercial periods, of five years EACH as
follows The first, 1874 to 1878 inclusive, was the
period preparatory to the resumption OF specie
payments, during which the volume of currency
was diminished II per cent, which with devel-
opment during the time of perhaps 20 per cent in
production aud business, created wide gap be
tween currency supply and demand, hence "a de-
cline in the price of farm staples of 80 per cent
and an increase of 40 per cent in the number of
failures.
The second period, 1879 to 1888 inclusive, circu
lation was augmented 9S per cent by resumption
of specie payments and by a large coinage of do
nestle and import gold, followed by an advance
In prices OF farm staples, OF 20 pei, cent
failures.
During the third period, 1884 to 1883 inclusive,
growth in volume Of currency fell IS per cent
prices of farm staples declined IL per cent, fail
ures increased in number % per cent and in
amount involved As per cent. OF these three
periods the two in which the volume Of currency
tailed to keep pace with the growth of business
were characterized by financial depression, low
prices and business failures. This period in