The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1890-02-28

| ETeeQDacRS oil
National bank notes. which can hardly be less
for both kinds of currency, than per cent OF
| the whole, or &25,000OO, and may be much
more.
Then in stating the gold in circulation, in the
form Of coin or certificates, Si92 10000 1t is
| a question whether sufficient allowance has
been made for the gold carried out Of the coun
try by persons travelling abroad in the ten years.
For these two items alone, it would not seem
| an overestimate to allow S1D0O0,OO0, and this
| is sustained by the fact that while bank notes,
greenbacks and certificates are constantly met
with in circulation. gold coin is seldom seen.
Deductfng sl0O,OO,0o0 and we have left, as the
actual volume in circulation for 1899, but 81
$4,000 900. and this. 1t is believed, is full es-
innate. But the chief error lies in taking the
volume OF 1853 for comparison with that OF 1889.
The year 1873 was the year of topest pric be-
tween 1873 and 1881, and OF the smallest volume
of money.
Prices as stated above, were louer, TOO, in the
United States than in Europe. caused by the
boarding OF gold for resumption.
Now, mark the movement OF prices and the
rapid increase in the volume of money. Be-
sides the absorption of our own production Of
gold the net imports of gold from 1879 to 1881
were s176 900 and the money volume rose to
81 -0s2, 0Sa 6s5 by October, 1880. and in October,
1881, the volume was s1,1i7. 500, 425 or an in
crease in two and half years of S3i2, O9s 62S
By this time the equilibrium Of prices was re-
stored. as shown by rise In prices in the
United States.
From 1881 to 1882, eight years. the gain in the
money volume. according to Treasury reports
was but 1851, 565 or at the rate of about sS2
100000 year, instead of 81, 10000 as given by
the Secretary for the whole period Indeed, IL
proper allowances were made for loss of paper
currency and loss of gold by people travelling
abroad and in other ways, the actual increase
would not amount, probably, to S25 10000 a
year, or less than per cent, while population
increases at the rate OF per cent. and wealth
and commerce much faster. Hence we have
steady fall in the range of prices from 1892 to
1889, which still continues and will continue as
long as the money volume continues to con-
tract. From the above statement Of facts it
appears misleading to compare the money vol
ume of 1873 with that of 1889. and calculate an
even rate Of increase for the whole period.
1t is not commended that prices do not vary
from other causes than variations in the vol
urue of money. improved methods of produc.
ton multiplying commodities of various kinds
produce changes in prices. and prices of given
commodities are constantly VARYING. one with
another under the law of supply and demand.
But there has been little change in fifteen wears
in the cost of producing the great staples given
in the above table. Have landed properties so
increased. as compared with population as tn
cause a fall of one third in value since 1879 Or
is there less need for houses now than Them
The farmers acres have mt grown smaller but
they will not sell for as much. No prices Of
single things NAV and do vary from many
causes, but the general range Of prices. the
value of all things, change only with a change
in the measure. There is no other explanation
The measure has been changed II has been
changed from both gold and silver sunnle
mented by large issues of paper to gold alone
II has been changed from a volume of both
metals and the animal supn,v NJ both IN GOLD
and the annual SUNNY of gold only which as
We shall see further on il very Iitt,e moro than
required for the arts Here il a rera cou,g and
IL were idle to loo,, for any other
It is quite true that. when money volume is
lowest. idle money will accumulate in money
centers with the nnnearance of a n,etbora 81
money. and interest ON good securities range
very low. This has been the case in late wears
The exclamation. however ia not dificult The
abundance or scarcity Of money ia not measured
by the rate of interest ut which II can he bor
rowed on good security but nv the counmodities
REQUIRED to purchase money Monet volume
prices. profits and interest always bear certain
relations to one another. as cause and effect
The relations NAV be stated as follows:
Shrinking volume Of money-fallipg prices
and uncertain profits, investments unsafe. in
terest low idle money accumulates.
Stable money-prices stable (except yaria-
tions under the Law of SUNNY ana demandn
profits fair and reasonabIv certain Investments
safe interest steady sharing in regular nrofits
There never ia a time when there is not |, do
mand for money in exchange for commodities
The wealth of the world always stands as Of
fered against money Bpt a demand for money
for investment to he returned with interest is
another thing The demand for money for that
nurnose denends unon the Conditions above
stated
NATIONAL. nrrrs
While the nrices have fallen below tho Ieve,
n, 1881 dehts have NOT diminished Mr. Nav.
marck gives national debts of the nrincinal ma
tions for 1859 as so3 AN noom with animal in.
terest 81. O6O oOO0O No estimate of other kinds
of ind, :,te,lness annroxima,ing correctness can
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