The midland journal. (Rising Sun, Md.) 1885-1947, 1889-02-22

not raise the average annual prodmctloD
from 1909 to 1850, exclusive of the
gold produced IN California, above
$40, 100000. 1t has been contended
that this supply did not exceed wear,
loss, and consumption in the arts. At
all events the addition to the stock Of
coin on hand during the forty years
proceeding 1850 was wholly inadequate
to meet the demands of an increasing
population. Prices declined until they
reached lower point in 1850 than at
any time within the previous century.
In 1910, when the effects Of failing
supply of gold and silver were first felt,
the tide of prosperity was at full flow,
but the power that impelled it was
Withdrawn. Reaction, stagnation, and
depression followed the inadequate
supply of money in every part OF the
civilized world. The rich and virgin
lands Of the United States mitigated
but did not exempt the people from the
evils of stagnation and depression.
WHY MONEY Is DEAR AND PROPERTY
But the financial legislation in
Europe and the United States. secured
by the holders of accumulated wealth
in money and securities, has diminished
the supply of money during the last
fourteen years fully one-half by the
demonetization of silver. The produe-
tion of gold and silver since 1875 has
been about equal, but silver has been
excluded from the mints and treated as
a commodity. The progress of the
world is again checked. Stagnation and
depression have returned. Industry
and enterprise are languishing, not by
reason of failure of the mines, but by
the measures adopted by the holders of
fixed capital to enhance the value Of the
money and securities they hold by con.
tracing the circulating medium of the
world.
The volume Of money now in the
United States is altogether inadequate
to the necessities of the people. 1t is
at least one.third less per capita than it
was in 1865. l employed learned
accountant last spring to examine the
reports of the Treasury Department for
the purpose Of determining whether the
amount of money in the United States
of all kinds had been increased or d.
minished since 1865, and after several
months of careful examination he re-
ported to me that the amount of circu.
lation outside of the Treasury on June
80, 1865, was 81 ,112, 044 ia; and at
the time OF making the computation
MAY l, 1889 there was in circulation
among the people, exclusive of the
amounts locked up in the Treasury, only
81, OIL, ,653, 3,O57, decrease Of $40, ,39l,.
057, aud decrease per capita from
$46.37 in 1865 to $l7.29 in 1888.
Other accountants might arrive at DIFF
/
ierent results. There is nothing pos
tive in the estimates of Treasury De-
partment; but is immaterial whether
DR.. Michels. who made the computa-
ton for me is right or wrong The
condition of the money market corrob-
crates his report so far as to establish
the fact that money is scarce and dear.
The price Of commodities also furnishes
abundant evidence tending to the same
conclusion.
From 1850 to 1875. while the world
enjoyed the benefits of the product of
both gold and silver, yielding annually
nearly 100000 900, prices rose about
333 per cent. Since one half of the
worlds product of gold and silver has
been cut off by the demonstration OF
silver, prices have fallen in the brief
period of fourteen years to lower point
than they reached in 1850. Volumes
of testimony have been recently taken
by the royal commission on gold and
silver in England to determine the
cause of this alarming decline in the
general range of prices of commodities,
and although the gold standard contrac.
tionists, representing the bond.holding
interest of the principal creditor nation
of the world, labored hard to find other
reasons than the demonetization of sill
yer for the decline of prices, the whole
testimony establishes beyond controver-