Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1891-04-21
a STAPLE CURRENCY.

OF the Government much more SO.
There is a grea deal of anxiety mani
tested upon the part of persons who
deal in money concerning what they are
pleased to call stable currency. What
they mean by the phrase doubtless is
currency which shall at all times have
the same value, so that its purchasing
power will always be upon the standard
of a hundred CENTS for dollar, and that
in such relation there shall be no iuct-
uating tendency in our money. Let us
understand little farther what this
really means. It is assumed upon the
part of the friends Of stable currency,
that is to say those particular friends
of whom this is written, that gold has
a fixed value, and that, therefore,
gold is the proper standard On which
to base stable CURRENCY The truth
is, however, that gold is less stable
in it's intrinsic value than corn. Political
economists have long conceded that fact.
Take any considerable period of years
to make the comparison, and it will be
found that the rise and fall in value OF
corn as compared with other cOmmodi-
ties in general is not as extreme as the
rise and fall of gold in the same compar-
ison: so that in truth the argument
based upon gold as basis for stable
currency is utterly fallacious. In 1867,
lust after our great war closed, when
we had nearly 81, 900, 100000 of paper
money afoat in this country, our farmers
produced 1, 300, 600, 900 bushels of the GER
eals-corn, wheat rye, oats, barley and
buckwhest, and the value of that crop
was ,284, 900, 900. Twenty years later,
in 1887. the crop of the same grains
amounted to twice as much as that of
81, or 2.6O0,000,000 bushels, and the
value of it was only 81, 200, 900, 900, or
1884, 0O0,O0 less than one-half as much
twenty years before. These values, be
it remembered, were based upon the
gold standard. The question, then, is
proper, was this difference between the
price of grain in 81 and '87 because of
difference in the grains themselves, or
was it because of difference in value OF
gold? Let us think about that mo-
ment. AS stated above, the amount OF
money in circulation among the
people in the beginning of the year 81
was certainly rs much as 81 900, 600, 900,
when we had population of only about
81. OOO 600, whereas in 1887, the amount
of money circulated among the people
was not to exceed $500, 900, 900, when
our population was upwards of 60,000,-
900, and the business of the people had
increased perhaps as much as 100 per
cent in the meantime. 1t is a we'll
understood principle in economy that a
large volume of circulating money is
invariably attended with high prices
and active business. While, on the
other hand, small volume of circulat-
ing money among the people is quite
as invariably attended by low prices for
products in general and universal stag
nation in trade. Taking that well es-
tablished principle as our rule in this
case, it must be evident to every OBJ
server that the cause OF the difference
between the values OF grain in twenty
wears, amounting to fall OF % per
cent, was not occasioned by reason OF
any difference in the actual value OF
grain, but from difference of the actual
value of the metal upon which we
based our currency-gold.
How then, shall we obtain a stable
currency? Is there any such thing?
Can we find substance out of which to
make money, or can we devise any sys-
tenn Of finance by which we can procure
an invariable standard of money, and
establish the currency which will make
no huctdation in the money market?
Let us see: Suppose, for example, that
instead of using as 2 basis of our cur
rency metal which, as we all know,
fiuctuates in value from time to time,
and is constantly giving rise to trouble,
confusion, scares and panics at the
money centers, we try the use OF an
article which. on account of its peculiar
| :, ..4... 81 +ba amount ,,cod in n