The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-05-13

the augmented demand in such coun-
tries for the circulating medium IS
during a very short period OF the
year. 1t is different with manufactur-
ing and commercial pursuits; manu-
facturers usually turn off as com
pleted and ready for market more or
less every day or week, while those
engaged in transportation and com
merce-except when they handle the
products of agriculture-make and
complete their productive efforts con,
tinuously throughout the year with no
particular preference to any one sea
son. They therefore need a stable
and uniform volume of this circulat-
ing medium. If, then, a country be
composed intirely of manufacturers
and those engaged in trade, transpor,
tation and commerce, a stable volume
would exactly suit their requirements.
On the other hand, should a thickly
populated country be devoted entirely
to agricultural pursuits the fact that
they would practically demand c1rcu-
lating medium for a whole years
productive effort at n time, would
cause such a wide and sudden range
in the demand for money that a stable
and infexible volume of the circulat-
ing medium would utterly fail to
meet the want, and in season
would be entirely too small and in an
other relatively too large, and there,
by have the effect of a very unstable
and fuctuating volume. There is no
denying the proposition that a fuctu-
ating demand must be accompanied
by a corresponding fuctuating volume
Of the circulating medium in order to
produce stability of price.
Apply these facts and considerations
to the situation in this country today.
1t is a mixed country in its productive
pursuits, largely agricultural and fast
becoming thickly populated in the
South and West, principally manufac-
turing in the North and East, and
commercial throughout. The entire
active circulating medium is less than
one billion dollars. If it be granted
that this is sufficient for the transac-
ton of the business of the country on
the average, which is a more liberal
admission than the facts will justify,
it can not be denied that the volume
becomes extremely inadequate when
in addition to it's regular and custom
airy duties, it is called upon in the
last three months of the year to han
dle-perhaps several times-not less
than four billion dollars worth of
agricultural products. All political
economists agree that volume is a
relative term dependent on demand,
and that fluctuations in volume are
accomplished by like fluctuations in
price. That is to say, a volume of
circulating medium, be it n or fifty
billions, If it be equivalent to the de-
mand for its use will be attended with
prices for all commodities hat will in,
crease as such volume becomes
greater than the demand, and will
decrease as such volume becomes in
adequate to the demand. When,
therefore, agriculture presents her
product in the fall of the year and de.
mands money, and ~imperatively de.
mands it, to meet matured obligations,
and creates a demand for money in
excess of the possible supply and
greatly in excess of the actual supply
which has been diminished by the
m~anipulations of the exploiting class
who desire by means of this scarcity
to depress prices and purchase the
products of agriculture for specula
tive purposes, prices fall invariably
as is shown by the RECORDS and sta
~tistics.
But this is not all. Not only doe!
the small and inf1exible volume O.
money develop the "power of money
to Cypress" by an artificial scarcity
in the face of a season of great de
mand, thereby reducing the price O.
agricultural products below the actua
cost Of production, and at the same
time compel the farmer to accept it,
dictates; but as his products are con
sumed it gradu;iiy becomes relative
ly superabunda:.t, and during the
season in whicA he is a purchaser O
commodities, IL raises general prices
by virtue of me greater relation i
bears to the demand. This shows
conclusively taat a stable and inhexi
bic volume, be it great or small, cuts
against tie farmer by depressing
prices when he has his product foi
sale, and augmenting prices in tn,
: spring when he buys supplies.
The remedy to exactly meet thi
condition is found il a stable volum,
| sufficient to meet the wants of tn,
| occupations having y stable demand
for money, and a flexible volume
3, which will truly adjust itself to tn,
fluctuations in demand of those occu
pations having increasing demand il
different seasons All these indica
tions are fully met in the bill unde