Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1891-05-12
INTERSTATE ALLIANCE LESSON.
No. 3-FOR JUNE.

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ANSWER. By changing the relative
value between money and commodities.
Both are subject TO the law Of supply
and demand. When money IS scarce it
is in great demand and requires more OF
the products OF labor to obtain it When
the supply is equal to tho demand a
proper and equitable relation is estab-
lished between the two and labor is
properly rewarded for its efforts
Q. What authority have we got for
believing this theory 10 be lrle?
A. The financial history OF all ma
tons prove it to be correct. The best
writer's, in fact all standard authorities
on political economy have held this
theory to be true. That it is true Is
one of the reasons given by the owners
of money and evidences of Indebtedness
why the volume of money should not
be increased. They assert that it
would be an injustice TO them.
9. State some OF the authorities who
hold that an increase Of the volume Of
mOney-circulatinO medum-would en-
nance the prices Of the products of la
Dor.
a. David Hume, in his essay ON
women, says:
We find that in every kingdom into which
money begins to flow in greater abundance
than formerly, everything takes a new f. ce;
labor and industry gain life, merchants be
come mOre enters rising. the manufacturers
mo dligcnt and Skllfu', and tho farmer
follows tue pillow with greater attention and
alacrity. The good policy of the government
consists or keeping 1t, II possible, still in
creasing, as long as there is an undeveloped
resource or room for q new emigrant, because
by that means is kept alive spirit OF indus
try in the nation, which increases the stock
OF LABOR, in which consists all real power and
riches nation whose money decreases is
actually weaker and more miserable than
other nations which possess less money, but
are on an increasing hand.
Prof Walker says:
That prices will fall or rise as the volume of
money be increased or diminished, is law
that is as unalterable as any law Of nature.
John Stuart Miller says:
If the whole volume of money in circula.
lion were doubled, prices would double. If it
was only increased one fourth prices would
rise one-fOurth.
M. Ricardo says:
That commodities will rise and fall in price
in proportion to the increase or elimination
OF money assume as fact that is incontrO
rertible That such would be the case the
most celebrated writer's on political economy
are agreed.
parliament, says:
The contraction of the paper circulation OF
the British empire from the results of the act
imposing the resumption of specie payments
on the bank of England nd 230 county banks
was a reduction from oO,000,000 during the
last year OF the (Napoleonic) war to little
more than half that amount. Such was the
calamity, and so extensive the distress that
followed that it pervaded every part of tho
country The landed proprietors could get
sA.f6 fhn Foo ~. re-
The laborers no EN- loyment. Bankruptcy
was universal. Fluctuation in prices were
frlghtful, descending so per cent.
Thomas Doubleday, in his history OF
England, says of that period:
Prices fell on sudden to ruinous extent
banks broke-wages fell with prices of man
ufacturers: and before the year 1916 had
come to clos panic. bankruptcy, riot and
disaifection had spread through the Lana.
Vast bodies OF starving and discontinued
artisans now congregated together and de-
manded reform of the parliament. The dis
contents, as usual, the government put down
by an arme forced. AS the memorable LIST
of May, 1923, drew near, the country bankers
as well as the Bank of England, naturally
prepared themselves by a gradual narrowing
of their circulation for the dreaded hour of
gold and silver payments on demand.
The distress. ruin and bankruptcy which now
took place were universal. affecting both the
great interests of land and trade.
L MS same historian also says.
Government paper money has always en-
riched nation, when properly issued, re-
stricIed and secured. 1t has been a success.
Specie for domestic currency, or as q basis
for psper, has been failure without soli-
tary exception.
Napoleon, at St Helena, claimed that Eng
land beat him with her spindles; but it was
her paper money that kept her spindles in
IN ton. Specie in its stead would have given
him the victory.
England's entire disregard of specie and CO.
pious issue of paper money after the suspen-
sion of specie payments in 1877 till 1919 were
the most prosperous days that England ever
saw.
This wise policy. to which she was driven by