The advocate and Topeka tribune., 1892-08-31

Il
conclusions can be drawn from COM
parison Of the prices Of two periods un-
less comparisons be also made OF the
money stock, population, and exchanges
of both periods. Contrary to all Calcu-
lations as the volume of money shrlnks
prices continue to fall, and these dealers
encounter the fate Of their predecessors.
These operations repeat themselves until
universal dlstrust prevails, and until 1t Ia
found that when money is decreasing in
volume, prices have no bottom except q
receding one, and that they are inexoEa-
bly, ruled by the volume Of money. The
effects Of a decrease Of the volume OF
money In a particular country arising
from It's abnormal outflow or from its
withdrawal from the channels OF cIrcula-
tion through the distrust which prevails
when unsound and speculative undertak-
ings are breaking down, or when the
country is convulsed by political disturb.
ances, are the same as the effects Of q
general decrease in the volume Of money.
The result In both cases Is fall In prices.
But In the first case the equilibrium is
restored by qulckly-returnIng wave Of
prosperity, and the evils resulting ara
confined to individuals and to special lo-
calltles; and those dealers are fortunate
who purchase In the first stages Of the
decline. But In the second case the
cause Of the fall In prices is radical, and
must continue until prices 60 out of ex-
istence, unless the decrease In the volume
Of money is arrested. In the whole his
tory Of the world every great and general
fall of prices has been preceded by de-
crease In the volume Of money. There
never has been a decrease In the volume
Of money, nor has there ever been a sta
tlonary volume Of money, unless accom-
panied by q stationary population and
commerce, which has not sooner or later
resulted in q general fall of prices, and
there has never been q recovery there
from except through preceding increase
in the volume Of money. After the vol
ume OF money has begun to decrease
every dollar Of credit extended at the Old
range Of prices aggrayates the disaster
which must come sooner or later. Stag
nation and panic are nothing more nor
less than the results Of struggle to make
prices express truly the relation between
money and all other things. Fluctua-
tions Of prices frequently arise from spe-
cial causes, but they are local and
temporary In their character.
Even were 1t posi- le to devise money
system 80 perfect that steadiness In the
general level of prices would be abso-
lutely assured, there would still occur
occasional fluctuations in the prices Of
particular commodities, arising from
temporary glut or scarcity of such COM
modlties in the general markets, caused
by exceptionally favorable or uniavorsbls
conditions, which might suddenly en-
large or diminish their production, or
vary the demand for them. Such fluctu-
stlonS cannot be avoided. They mark
the ebb and flow Of business and no more
affect the general level Of prices or pros
perity than the ebb and flow Of the tides
affect the general level of the ocean.
The producers Of and dealers In each artl-
Gle should be better able than anybody
else to foresee and guard against them,
and have no reason to complain Of them.
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