The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1894-10-27
The Scarcity of Money.

The CourierJ journal was asked by
a correspondent how much money.
per capita of population is in circu-
lation in the country; whether it is
less now than formerly, and if not
why it is so scarce in some sections
Of the country, and replies:
THE quantity Of money per capt
ia varies more or less from time to
time. To estimate it, in other than
census years, it is necessary to guess
at the population of the country, the
per capita being obtained by divid
ing the amount of money in circula-
tion by the supposed population of
the country.
"The latest estimate of the circu-
lation which we have at hand is a
Treasury statement for thes month
of August, 1894. 1t gives the total
circulation on the 1st day of Sep
TENDER, 1894, as 81 GAG, 671 ,4S1 The
population Of the country at that
date is estimated to have been 68,-
GAP, 900, and the quantity of money
in circulation to each head of popu-
lation at $3.50 On September l,
1898, the circulation per capita was
$25.01.
at thus appears that the circula
ton per capita on the lst of Septem-
Der this year was about dollar less
than at the same date last year.
The present per capita, however,
1914 in round numbers, is larger than
it ever was until the last two or
three years. The amount on July l.,
1860, was $13.S5; in 1865, $20.57; in
1878, $1S.01; in 1888, $229I; in
1891, $23.41; in 1892, $2444. Sub
ject to occasional fluctuations the
amount of money in the country as
compared with population has been
increasing steadily, and is now near
ly twice as great as it was in 1860,
thirty four years ago. The country
enjoyed high degree of prosperity
in 1860, with a circulation of $l3, SIS
per capita. In 1898, with a circula-
tion of $25 per capita, the depression
of business was extreme we must,
therefore, seek for other causes for
prosperity or depression than the
quantity of money in circulation.
"Our correspondent wishes to
know if the supply of money in the
country is adequate why it is so
scarce in some sections. The Cour-
iea-Journal is not one of those pa.
pers which undertake to explain ev-
erything by reference to changes
in tariffs or in the supply of money.
There are often local causes which
explain the scarcity of money in par
ticular communities, such as fail
ure of crops, on the one hand, or an
overproduction of particular com
modities on the other. By overpro
duction we mean the production of 8
greater quantity of a commodity
than the purchasing power of the
people permits them to buy and pay
for at remunerative prices.
at is to be observed, however,
that money naturally flows in the
direction where there is the greatest
demand for it. This is tendency
which legislation can not control
though it may create conditions
which affect the demand. Not all
money in Eastern money centers be
longs to the people residing there
Much of it is sent to the East be
cause it can not be profitably en-
ployed at home. Whenever it is
needed in the South and West to
move the crops, the tide flows back
for time Whoever has the means
of purchasing money can get it il
any part of the country, and il
money centers there are now grea
accumulations Of money for wbicl
there is no employment at a profit
The reason why this money does no.
flow to the sections where it is scare
is that i. can not be employed Their
, profltably."