The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1894-10-15
The Cause of Falling Prices.

chant whose business and profits de-
pend ON the volume of money put IN
circulation 10y ,hc sale of the cotton
crop. and everybody else who j inter
eSied in the prosperity 81 the people.
The article in question Is from the
pen OF one OF the NEST distinguished
lawvrrs i'm GeOrgia-onc of the most
conspicuous as we'll - one of the ahl''St
Of the Atlanta Ilar. who has no interests
i'm politics beyond u sincere desire 10
So. the people relieved from the unjust
aud unnecessary burdens that have been
imposed On ,hem 10y the destruction ot
NOR. th1n half ttcir primary money.
and the obliJcriticn of the MOST prolific
sourc,. 81 their money supply.
We commend the article I" oar read
erS. II i unsigned because the writer
prefers not 10 engage in a pnblic
discussion connected with current
politics. hut the clc,IrneSS and
simplicity Of the styir AMI the
logical completeness 1T the ar
gmncntS employed will convince those
who read il carefully tliat it i from
the pen IL profound thinker II will
be observed that the writer "f the ar
tirIc lays il down a. an axiom thai the
price If commodities which the pr"pl"
have To- sell determines The quantity Of
money IN circulation. This absolute and
universal truth WAS recognized AMI an
n0mced by Mr.. Calhoun in the senate
az the Tnife,l States sixty years ago.
Said that great man: III We turn our
attention 10 the laws which govern the
circulation W. shall then find one of the
most Important To be tina, a. the circu-
o. tho property wiz all other circiiIiiiIii.
stances remaining the s.smc. hc in
creased or decreased in value exactly in
tire same proportion" Mr.. Calhoun IL
Illustrated this truth 10y 81 further state
nscuf that IL a community should have
III aggregate amount "f property uf
Sli.'ssi.WE. Of which $IWD.U1 cuuSti-
tutcd the currency. AMI this S1.Da0nO
should u. reduced one-tenth part. The
vdIu" 81 the remaining property would
BE- reduced =, onc-icuth part" In "!hcr
words. Mr.. calhoun recognized lie fact
that the universal law 81 supply AMI
demand fiXcd jh. vaiuc ~ the currency
This value showing itself infallibly ia
tl'r higher OF lower range Of property
values AMI prices.
All ihc great economic writers rccog-
niZc tie same Law John Locke. David
Hume. IImcS Mill. john Stuart Mill.
snd Ricardo Ia his reply - Bo>anuurt
Ricardo declares: The value II mon
~ in amy country i determined hy the
amour; existing. That commodities
would rise - fall ia price in proportion
{" the incrcs>,. "r diuiiuu'iun II money
! assume a. fact thai i incpuirov.r-
:iIIr.-
IN Ihc face Of iLc tcS,imouv co. all
The authorities there are numbers II eel
it"riJl writer's all over tHc .-uuu;ry who
viii SAY that the people. ou-hi fp submit
a. the har,l conditions ir..Is.s.-d ..pnu
them hr'-'u~c Jhc robbery snl ,pprrS-
sl"E l. carried uu In the name ~ sound
money There are e,li.o,S right here
In Georgia who are ignorant enough Ia
declare thag tiic .-ircula ion i l,r.pr
now than ever before. in tie FACE. of tb.
fact that The PRICES 81 all commodities
sre lower now than Sing,. The ..xh,uS
ti"n ~ the gold AMI silver mines in IN.
f"s'icS. and constantly falling.
IL j. singular iilat amy Intelligent Der
sDn IN his country should need ar.u-
meaiS to convince him that prices and
prosperity depend on an a,legrat,. money
supply. or that values aud prices are
RAISED or lowered by M increase or 4
decrease IL the volume 81 currency cir
culatiun- We have had during The mas,
thirty-fnur years three object lessons
Slowing beyond al question the effect
that an Increased or a decreased chr
rcncy has on values prices and DroS-
pcTiiy- In tine south. when the war he
gan the confederate government began
90 issue its own currency notes. These
D"tes displaced both gold and silver al
most Immediately and a. the supnJv
grew Z" the limit of the demand Of the
people and went beyond it. values and
prices rose. and FOR two years or more
there WAS every note Of prosperity I'm
IN" south. But a. Ihe issue Of notes
grew larger and larger. coincident with
the gradual loss of confidence in the
ability % the government L. establish
itself by force "f arms. prices and val
ucs rosc enormously and everybody had
about n much confederate money as
h. could comfortably take care OF
AT the north. on the other hand, the
ISSUES of currency were made on more
accurate basis The greenbacks were