Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-02-03

VOlume OF eXcna-z, ~z-JIC COmmOQIc1Ss
remains stationary, and the volume or
mum Der of units is increased, the pur-
chasing value" of each unit is decreased;
l. e., prices of commodities raise-if the
volume of units is decreased each unit
gains in purchasing value and prices
are said to fall If, on the other hand.
the volume of units remains stationary
and the volume of exchangeable prod
uctS increases or decreases, the pur-
chasing value of each unit of account
rises or falls proportionately, and prices
are again said to rise or fall. But if
both the volume of com oditieS offered
for exchange and the volume of units
of account in circulate n are either in
creased or decreased in the same pro-
portionate ration, the purchasing value
of each unit of account remains station
ary; i. e., prices of commodities do not
fiuctuate-neither rise or fall As all
legal tender dollars, or units of ac-
counts, possessing without any limita-
tions or exceptions, all the legal at
tributes pertaining to money, are of
the same legal or money value, it fol-
lows that dollars coined out of metal
are fully as susceptible and amenable
to these laws as are dollars coined out
of paper: that is to say, that if a vol
ume of money consisting wholly of
metallic coins be expanded by the ad-
dition thereto of considerable number
of legal tender paper dollars, the pur-
chasing or money value of each unit.
both metallic and paper, would be re-
duced in exactly the same ratio. This
fact effectually annihilates the absurd
theory of intrinsic value as applied
to metallic money
The true scientific limit to the volume
of money is that number of units that
can be profitably used in productive
industries and the channels of COM
merce, if such units can be freely OBJ
tanned at rate of interest, or cost,
which will equitably divide the net
products of the nation between the two
factors, labor and capital
l have stated in former articl lie that
the net annual increase in wealth in
the United States for the last twenty
years was just about four per cent and
that if the current rate of interest upon
money was four per cent, the money
lenders absorbed the total net earnings
of productive labor, from the fact that.
as the net increase of wealth represents
both the savings of labor and the earn
ings of money, there is nothing left for la
Dor if the rate of interest upon money is
equal to the total net annual increase
in wealth. 1t follows, therefore, that
rate OF two per cent. upon money
would make an equal division of the
net results of the nations toll between
ha -
capital Hence, the peoples party
bnilded It's platform wisely and well.
and in the true interest of productive
and distribution labor, when it de.
manded that the peoples collective
credit (money) shall be issued to them
selves, as individuals. direct without
the Intervention of banks, at rate of
cost not to exceed two per cent.
Interest is the factor through the
medium OF which the money power,
aosorbs the earnings of labor. The
output or supply, of the precious (?l
metals Is ridiculously inadequate as a
basis for volume of money to per-
form the necessary money functions in
the nineteenth century. We prove this.
first, from the fact that labor paws ali
and more than all of it's total produc-
ton for the use of money as factor in
production and a medium of exchange;
second, from the fac. that with a total
volume OF monev IN circulation of less
than twelve hundred millions of dol
lars, the various banking institutions
have loans and discounts out amount
ing to forty-fve hundred millions
OF dollars. at rates of interest ranging
from six to twenty-four cent. and we
| may safely assume that If the rate of
interest were reduced to two per cent,