The Louisiana populist. [volume] (Natchitoches, Natchitoches Parish, La.) 1894-1898, 1894-08-31
BASIC PRINCIPLES.

Everybody admits that the value Of all ofnef
thngs is regulated by the play against each other
of the forces of supply and demand, No reason
has been or can be given why value Of the unit OF
money is not subject to this law.
The demand for money is equivalent to the sum
of the demands for oil other things whatsoever Tor
II is through demand first made on money that
all the wants Of man satisfied. The demand
for money is instant constant. and uneeasins and
is always at a maximum. II any man wants
pair of shoes or suit Of clothes Re DOES not make
his demand first ON the shoemaker, orelotEier. No
man except a beggar makes demand directly for
food. clothes. or any other article Whether il be
10 obtain clothing. food or shelier-whether the
simplest necessity or the greatest luxury of life
il !. on money that the demand is first made As
this rule operates throughout the entire range of
commodities IL is manifest that the demand for
money equals at least the united demands for all
other things
While population remains stationary. the do
mand for money viii remain the same As the
demand for one article becomes less, the demand
for some other which shall take its place becomes
greater. The demand for money. therefore, must
ever be az pressing and urgent the needs of man
are varied, incessant, and importunate.
Such being the demand for money, what is the
supplyl II is the total number of units OF money
in circulation actual OF potentia in any country
The force of the demand for money operating
against the supply is represented by the earnest
incessaut struggle to obtain in. All men, in all
trades and occupations, offering either proper
ty or services for money. Each shoemaker in each
locality il in competition with every other shoe
maker in the same locality, each halter is in com
petition with every other halter each clothier with
every other clothier, all offering their wares for
units of money. In this universal and perpetual
competition for money, that number of shoemakers
that can supply the demand for shoes AT the small
est average price excellence of quality being taken
into ACCOUNT win fix the market value of shoes in
money and conversely, will fix the value of money
in shoes. So with the matters as to hats, so with
the tailors as to clothes and with those engaged
in all other occupations to the products respeo-
lively of their labor.
The transcendant importance Of money and the
constant pressure of the demand for 1t may be
realized by comparing its utility with that of any
other force that constributes to human welfare.
In all the broad range of articles that In state
Of civilization are needed by man, the only abso-
Intely indispensable things is money For every
thing else there is some substitute-some alterna-
tive; for money there Is none Among articles OF
food If beef rise in price, the demand for it will
diminish as a certain proportion of the people will
resort to other forms of food. IT, by reason of its
continued scarcity, beef continues to rise the de-
rnand viii, further diminish until finally 1t may al
together cease and center something else. So in
the matter of clothing. If any one fabric becomes
scarce and consequently dear, the demand will
diminish, and, if the price continue rising, 1t is
only a question Of time for the demand to cease
and be transferred to some alternative.
But this can not be the case with money. 1t can
never be driven out of use. There Is not, and
there never m be, any substitute for it. 1t may
become no scarce that dollar at the end Of de-
cade nav buy ten times as much rs at the begin
ming: that Is to say. il may cost In labor or com
modities ten times as much to get IL. but at what
ever cost, the people must have it. Without
money the demands of civilization could not DO
supplied.
Money was tho most potent instruementality In
the evolution of society from low to high plane
of civilization. 1t is valueless to man in isolation.
1t is indispensable to man in organized society. 1t
is as necessary for proprietary distribution of
wealth as railroads and steamships are to its physi
cal distribution. The aggregate force Of the de-
mand for money in sny country depends upon the
numbers of the population; with stationary pop
ulation the demand Is steady. with an increasing
population the demand increases, and in order to
maintain undisturbed the equation of supply and
demand the volume of money should be increased
IN at least ratio corresponding to that Of the in
crease of population
There are certain circum stances that to some ex-
tent disturb the relations between population and
money supply, such as the broadening of the
areas of population and the multiplication of money
centers These circumstances might render ne
cessary a larger percentage of increase in the
money volume than would be indicated by the in
crease of population.
But under any circumstances the smallest money
increase that win suffice to maintain the equity Of
time contracts is an increase corresponding to the
increase Of numbers Of the population.
If the money volume be not increased by pro-
portion at least great this, the true relation
between the supply of money and the demand for
IL viii not he maintained. The demand increasing
~ the population increases while the supply either
docs not increase at ALL increases in degree in
commensurate with the demand. the money volume
shrinks and the purchasing power Of the unit be-
comes greater by reason of the increased keenness
Of competition to get it. This is but another
mode of stating that the price of all products of hui
man labor decline. Prices falling business ceases
to be profitable stores and workshops close. and
men relegated to idleness.
Thus by the universal competition to get it the
value of the dollar is made to depend upon the
number of dollars that are OUT This is principle
that lies at the very foundation of the science Of
money. The law, stated broadly. is that the value
of each unit Of money in any country at any given
time depends on the whole number Of units in cir
oalation in that country. The larger the number
al units out population remaining the same the less
must be the value Of each unit; the smaller the
number Of units out, population remaining the
same. the greater the value of each.
Notwithstanding the variance sometimes found
between the premises and the conclusions Of
economic writers, there Is no economist of repute
who does not admit this 20 be fundamental prin-
eiple.
The true money standard Of any country is not
the material of which the money il made.