The advocate and Topeka tribune., 1892-09-28
MONETARY COMMISSION.

Effects Of a shrinking C0Eu1ne OF money on
productive industry.
The worst effect, however, economic
= ally considered, of falling prices, is not
upon existing property nor upon debtors,
evil as it is, but upon lsborers whom it
depriVes of employment and Consigns to
poverty. and upon society, which it de-
prlves of that vast sum Of wealth which
resides potentially In the vigorous arms
of the idle workman. A shrinking vol
ume of money transfers existing prop
erty uDjustly, and causes a concentration
and diminution of wealth. It also i'm.
pairs the value of existing property by
eliminating from it that important ele
ment Of value conferred upon it by the
skill, energy and care Of the debtors from
whom 1t Is wrested. But it does not
destroy any existing property, while 1t
does absolutely annihilate all the values
producable by the labor which It con-
demns to idleness. The estimate Is not
an extrRvagant one that there are now in
the United States three million persons
willing to work, but who are idle because
they cannot obtain employment. This
vast poverty stricken army Is increasing
and Will continue to increase so long as
falling prices shall continue to separate
money capital, the fund out Of which
wages Is paid, from labor, and to dis
courage it's investment In other forms Of
property.
Money capital, labor and other forms
of capital are the warp and woof of the
economical system. Labor, co operating
with the forces of nature, is the source Of
all wealth, and to reach the highest de-
gree Of effectiveness, it must be classified
through the aid of capital and supported
by capital during the process Of produc-
tlon and be measured and paid in money,
each unit of which is sight draft on all
other forms of property, bearing value
In proportion to the number of such |
drafts. In order that any country may
reach the maximum of material pros
perlty, certain conditions are indispen-
sable. All Its labor, assisted by the most
approved machinery and appliances,
must be employed, and the fruits of In
dustry must be Justly distributed. These
conditions are only possible when capital |
is absolutely protected against violence
and free from illegltimate legislative In
reference, and when the laborer is pro-
tected In his natural right to dispose Of |
his labor in such manner az he may pre-
fer. They are utterly impossible when
the money stock Is shrinking and the
money value of property and services is
declining. Howsoever great the natural |
resources Of country may be, however
genial its climate, fertile Its soil, ingen-
ious, enterprlslng and industrious Its in |
habltants, or free Its institutions, If the |
volume of money is shrinking and prices !
are falling, Its merchants will be over
whelmed with bankruptcy, its industries |
will be paraly zsd, and destltutlon and |
distress will prevail.
The instinct Of self interest ls the |
handspring of industrial and commercial |
activity. 1t Is the anlmating motive
alike of the capitalist and Of the laborer.
Without 1t, no labor would be performed,
nor would capital have an existence. II
money capital Is withdrawn from produc-
tive enterprises, 1t Is from the sppre-
henslon of loss and from the same instinct
of thrift through which it was acquired.
It is natural that the money capitalist