The advocate., 1890-04-30

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enc time, and 40 once demands money for Il
oil, and In thickly populated agricultural
countries the surplus thus offered In OK.
change for money III greater In proportion
than In thinly populated, and consequently
the augmented demand IN such countries fOI
the circulating medium ls during very
short period Of the year. IL Is different with
manufacturing and commercial pursuits
manufacturers usually turn OF as completed
and ready for market more or less every day
or week, while those engaged in transpOrta-
ton and COmmerce--eXcO when they
handle the products OF agriCulture-make
and complete their productive efforts con-
tinuously throughout tho year with no par
ticulRr preference DO any one season. They
therefore need a stable and uniform volume
OF this circulating medium. IL, then, a
country be composed entirely OF manufac-
turers and those engaged in trade, transpor-
tatiOn and commerce, stable volume would
exactly suit their requirements. On the
other hand, should a thickly populated
c0utFy DO devoted entirely TO agricultural
pursuits, the fact that they would practically
demand circulating medium for whole
years productive effort at one time, would
cause such a wide and sudden range In the
demand for money that a stable and iniiexi-
utterly fail tO meet the want, and in one
season would be entirely too small and In
another relatively too large, and thereby
have the effect Of a very unstable and fluc-
tuating volume. There Is no denying the
proposition that a iiuctuating demand must
be accompanied by corresponding tiuc-
AuRtinR volume of the circulating medium
In order TO produce the stability Of price.
a.. 4 4
situation In this country to-day. 10 is a
mixed country in lis productive pursuits,
largely agricultural and fast becoming thick
ly populated In the south and west, princi-
pally manufacturing In the north and east,
and commercial throughout. The entire
active circulating medium is less than one
billion dollars. III II be granted that this il
sufficient for the transaction OF the business
Of the country ON the average, which is Il
more liberal admission than the facts will
justify, IL cannot be denied that the volume
becomes extremely inadequate whom in adj
dition TO It's regular and customary duties,
II IL called upon in the last three months of
the year 10 handle perhaps several times
not less than four billion dollars worth OF
agricultural products. All political econo-
mistB agree that volume is a relative term
dependent on demand, and that fluctuations
IN volume are accompanied by like iluctua-
ti0na In price. That Is TO say, a volume of
medium, be IL one or fifty bill
ions, If IL be equivalent TO the demand for
its use will be attended with prices FOR all
commodities that will increase as such vol
ume becomes greater than the demand, and
will decrease as such volume becomes made
quate 90 the demand. When therefore, az
riculture presents her product in the fall of
the year and demands money, and impera
lively demands 10, 20 meet matured Oblipa-
tiOns, II creates demand for money In ex-
cess Of the possible supply, and greatly in
excess of the actual supply which has been
diminished by che manipulations of the ex-
plotting class who desire by means of this
scarcity 10 depress prices and purchase the
products Of agriculture for speculative pur-
poses, prices fall invariably, Ns is shown by
the records and statistics.
But this 10 not all; not only does the small
and infexibl0 volume OF money develop the
power OfmOney TO Oppress" by an artificial
scarcity IN the face of a season of great de-
mand, thereby reducing the price of agri-
cultural products below the actual cost of
production, and at the same time compel
the farmer To accept It's dictates; but az his
products are consumed, It rapidly becomes
superab bundant, and during the season in
which he is a purchaser OF commodities, 10
raises general prices by virtue Of the greater
relation II bears 10 the demand This shows
c0nclusively that a stable and inhexible vol
ume, be IL great or small, cuts against the
farmer by depressing prices when he has his
product for sale, and augmenting prices in
the spring when no buys supplies.
The remedy TO exactly meet this condition
ls found in stable volume sufficient to
meet the wants OF the occupations having a
stable demand for money, and a flexible vol
ume which will truly adjust itself 10 the
fluctuations in demand OF those occupations
having increasing demand at different sea-
sons. All these indications are fully met In
The bill under consideration.
For convenience, this bill may be consid
cred undertwo headings--one, its agriCultur-
al features, and the other its financial feat.