Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1893-10-21
THE AUTOMATIC REGULATION
- or MONEY.


the mad race to set up the single
gold standard.
As long as it is possible to pro-
duce the precious metals in quaint
ties sufficient to keep pace with the
production of other things, it is pos.
sible to have the money supply reg
ulated by the same laws that govern
the production of commodities gen.
orally, and in this way to maintain
a close approximation to stability
in the purchasing power Of standard
money.
If gold could be produced in
quantity sufficient to keep pace with
the growing needs for money, aris-
ing from increase of population and
wealth, then stability could as we'll
be secured with the single as with
the double standard. But the ad-
mitted fact is that gold cannot be
produced with such regularity and
in such quantity as is necessary to
meet the increasing demand for it
in the. arts and at the same time
supply the growing needs for money.
Neither has silver in the past been
produced in quantities sufficient
alone to supply the needs for money.
Indeed, at times-and sometimes
for long periods, as during the mid
die ages-the production of both
metals together was not sufficient
even to keep the money volume in
tact. On the contrary, from the be-
ginning of the Christian Era to the
discovery Of America, the total
stock of both metals fell from about
$1,64O,OOO,OOO to $164, 100000 at the
close of the Fifteenth century. But
since the discovery of America, ex-
cept during the Spanish American
wars when many of the mines of
the New World were closed, the pro
duction of both metals has been
sufficient to fairly keep up the sup
ply of money, and thus to maintain
approximate stability in the pur-
chasing power of the metals.
While there has been at times
lack Of gold and silver for money.
the world has never suffered from
an oversupply of these metals, and
for the simple reason that continued
oversupply:is impossible; for, if the
production of the metals should at
any time increase beyond the growth
of population and wealth, the over
supply would beindicated by rise
of prices, which would continue till
the point was reached when dol
lar could be obtained with less labor
or with less sacrifice by producing
something else than by mining the
metal out of which to make the dol
lar, and the production of the metals
would thereby be checked while the
production of other things would k
stimulated. Through this regulat-
ing principle, as long as the supply
of the metals last, the stability in
the value Of the precious metals
may be fairly maintained. 1t is
through legislation that wide fiuc-
tuations, in recent years, have tax
en- place.
Because Of this principle of self
regulation, and this alone, the prec-
ious metals, through the process Of
evolution, have gained acceptance
everywhere as money. Indeed, but
for this principle of the automatic
adjustment of money supply to
other things, there would be no ad-
vantage in metallic money over
paper money. This principle of
automatic regulation has been in all
ages the conserving force in secur-
ing stability in money and main
tanning the equities of time obliiga-
tons. 1t has survived all revolutions
and preserved the value of money
amid the rise and fall of nations.
When this principle is given up
what will take its place? Wilt be
legislative regulation? Do they
Who now rla ,unr for khp nyart hrOw