The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1893-11-24
Business and Circulation.

Prosperity does depend on an album
dance of money in the hand OF the
people. That much, at least, has been
demonstrated by the panic. On the
1st day of October, 1898, the people
had in their possession, sol ,377 ,247
more of currency of all kinds than on
the 1st day of September, and $780,
100000 more than they had a year ago.
Not money so much as confidence
makes the mare 90 in this instance.
With the largest per capita circula-
ton ever known in the country, bust
ness is still stagnant and the money
market is tight as drumhead. This
increase has taken place during a year
of the most serious business depres-
sion ever know in the country. Dur
ing the month of August, while the
depression was at it's worst, the clrcula-
ton increased nearly one dollar per
capita During the past month 1T IN
creased about twenty-eight cents. 1t
is now $500, according to the estl-
mate of the treasury apartment. 1t
was $25O1 September l, the largest
ever known to that time.
If an abundance of money is the
only requisite to great prosperity, the
inanciers who hold to that view have
task before them in reconcillng
these facts to their theories. And If
it is possible for the country to have at
the same time the worst panic and the
largest circulation in it's history, what
becomes of the scheme for making
everybody rich and happy by turning
out tons of silver or cords of green
backs and forcing them upon the
plople? Money is an implement Of
trade confidence is the life of it. If
confidence fail, vitality fails, and
money is not utilized. 1t may pile
itself up in abundance, increasing en-
ormo6sly in the aggregate, as it has
done during the past year, existing In
quantities far in excess of what has in
other days suf1iced to create a glut Of
currency, and yet the wheels of trade
may stand still, as we have seen them
do this year. For lack of the vitaliz-
ing confidence necessary to keep
money at it's work, it retires into sec
ret places of safety to await the resto-
ration of credit. Under such circum-
stances, it matters not how plentiful
money may be. The same distrust
Will continue to hide it away as rapidly
as it was put out, and if it be not pri-
vately laid away, it will be almost eff
fectually boarded by lying idle in banks
afraid to venture out and with little
call upon it to do so.
If, on the contrary, there be a
healthy state of credit, a comparative
ly small amount of currency will SUI
fee to keep trade at its best, while a
surplus of money, offered at low rates
of interest, will tempt an abuse OF
credit and lead to disastrous era OF
speculation. The capacity of business
for safely assimilating currency is linn
tied and variable. No man can accur-
ately define that limit. It's existence
creates the necessity for a ready means
of contracting or expanding the cur
rency, according as the legitimate bus
mess of the country absorbs the money
in existence, or leaves a surplus OF it to
seek investment in unwise channels.
The greater the confidence and activ-
ity in legitimate business circles, the
more general the use of forms ofcredit
in all transac tions, and the greater the
apparent surplus of money for other
purposes. No rule can he laid down
for steering the public around the dam
gers of speculation at such time. Its
common sense must he its only pro-
lection. If credit be abused it will
break down, confidence will be de-
stroyed, and the panic that will follow
Will be sufficient to drive from use and
from view an unusually large supply
of currency-W. G.. Trade.