The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-11-07
SUPPLY AND DEMAND.
MONEY METALS NO EXCEPTION
TO THE RULE.
An Able Letter From Judge o. p.
StearnS.

he worn value, dS uSeQ III political
economy, is relative term, eQuiva-
lent to the phrase eXchangeable value
and in this communication / shall use
it in that sense. The law of supply
and demand as affecting values is of
universal application. 1t applies to
money metals as we'll as other metals.
Wherever metallic money is used as
ultimate money Of redemption, the
value of unit of money as measured
by the price Of purchaseable things
will depend upon the supply of money
metals not keeping up with the de-
mand for them
1t is an important attribute of SOY.
ereignty to determine and declare
what shall be clothed with the money
function, and if it be metals, what
metals and at what ratio they shall be
coined. If the supply of money metals
Increases faster than the demand,
there will be decrease in the value
| and purchasing power of money and an
| increase in the value of commodities
as measured in money. Precisely the
opposite will result from the supply of
| money metals not ping up with the
demand for them.
If two metals are available as money
metals and the money quality of one
Of them is destroyed by legislation
the demand remaining the same-to
the extent that the supply of money
metals is diminished, the value of the
remaining money metal will be in
creased, or what is saying the same
thing in different form, the value Of
labor and commodities as measured by
money will be diminished.
In 1873 there was little more in
value of silver in the worlds stock.
than gold. The United States then
adopted substantially the English gold
monometallic monetary system, by de-
priving silver of monetary functions
whichit had possessed during practical
ly the whole life Of the republic. Since
then the leading nations of Europe
have followed the lead of the United
States. by depriving silver of it's none
tary functions. AS result of this
there has been steady increase in the
value Of gold, amounting according to
the most conservative estimate, to so
per cent.
Inevitable results of such an in
crease in the value of money have
been, first, the transfer of a vast
amount of wealth from debtors to
creditors, from debtor communities to
creditor communities, from debtor ma
tiOns to creditor nations. Second, it
has acted as deadener on many
| wealth-producing labor-employing en-
terprises. The history of the world
proves that steady, long-continued
increase in the value of money is al
ways accompanied by a diminution Of
wealth producing enterprises and in
the advance of civilization. While
money is increasing in value and every
thing else decreasing, men hold on to
money or securities that are gilt edged
and sure to bring the money. They
are very chary about investing it in
plants or commodities that are con-
stantly diminishing in value. Third,
in reducing wages and throwing null
titudeS of labOrerS out of employment.
Under system like our, as admin
istered by the executive department
of the government, wherein every dol
lar of currency, whether silver or pa
per, is convertible into gold coin, all
values are measured in gold coin,
though not dollar in gold should be
in circula ton.
One who loans money is entitled to
be paid in money of the same value,
the same purchasing power, as the
money he loans. If he gets money of
less value, he is to that extent wrong
ed; il of greater value, the debtor is
to that extent wrOnged; and if the
debtor is compelled to pay in money of
greater value, or what is saying the
same thing in another form, in money
that it takes more labor or commodi-
ties to purchase, to that extent he is
the victim CT legalized robbery.
England is a great creditor nation,
the United States great debtor ma
tion. And when she consented to
adopt the English gold monometallic
monetary system, she voluntary con-
sented to the legalized robbery of her
citizens, to the extent that it takes
more of labor or commodities to pay
their debts, than it would have taken
had she maintained silver as full
money metal within her Jurisdiction.
The fruits of this robbery goes not to
the mass of the English people, but
to the producing, nOn-labor en-
ploying drones of society.
Duluth, like all young, ambitious,
enterprising cities, is most emphati-
cally debtor community and each of
us must pay our due proportion Of the
aggregate Indebtedness, whether we
owe individual debts or not. AS to
public debts that is patent, but it is
equally true Of many other debts.
Who but the patrons of railway COM
panies, street car companies, water
companies and SO on, are to pay inter
est on their debts and finally their
debts? To a certain extent we are
thriving as other cities are not, but it
is because of our marvellous natural
advan tages: but for them we should
be where some of our young sister
Western cities are, in comatose con-
dition.
The great danger now threatening
the perpetuity Of the Republic we all
| love SO much and for which some of
| us risked our lives on bloody battle
fields, comes from the rapidly increas-
| ing congestion Of wealth in the hands
of a few and nothing has facilitated
| this more than our monetary legisla-
| tion for the last twenty years. | can
| be witness Of the hardships of the
present, and share them, brought up
| on us by unwise and wicked monetary
| legislation, with more complacency
than / contemplate the final outcome
to the country, if influences that have
dictated out monetary legislation for
Oh,