Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-10-18
The Cause Of Falling Prices.


The Cause Of Falling Prices.
Elsewhere on this page we print al
article which ought to interest ever,
! farmer who raises cotton, every mer
chant whose business and profit, de
pend on the volume of money put il
circulation by the sale of the cottol
crop, and everybody else who is inter
ested in the prosperity of the people.
The article in question is from tn.
pen Of one of the most distinguished
lawyers in Georgie-one of the mos
conspicuous as well as one of the ables
of the Atlanta bar, who has no interest.
in politics beyond a sincere desire te
see the people relieved from the unjust
and unnecessary burdens that have
been imposed on them by the destruc.
ton of more than half their primary
mouey. and the obliteration of the
most prolific source of their money
supply.
We commend the article to our read.
ers. 1t is unsigned because the writer
prefers not to engage in a public dis
cussion connected with current politics,
but the clearness and simplicity of the
style and the logical completeness OF
the arguments employed will convince
those who read it carefully that it is
from the pen of a profound thinker.
1t will be observed that the writer of
the article lays 1t down as an axiom
that the price of commodities which
the people have to sell determines the
quantity of money in circulation. This
absolute and universal truth was recog-
nized and announced by Mr.. Calhoun
in the senate of the United States six
ty years ago. Said that great man:
"If we turn our attention to the laws
which govern the circulation we shall
then find one of the most important to
be that as the circulation is decreased
or increased the rest of the property
will, all other circumstances remain
ing the same. be increased mr. decreased
in value exactly in the same propotion. :"
Mr.. Calhoun illustrated this truth by a
futher statement that elf community
should have an aggregate amount of
property of $11, 100000, of which 81,
900, 900 constituted the currency, and
this 81, 100000 should be reduced one
tenth part, the value of the remaining
property would be reduced one-tenth
part" In other words, Mr.. Calhoun
the fact that the universal
law of supply and demand fixed the
value of the currencv-thisv value show
ing it self infallibly in the higher or
lower range of property values and
prices.
All the great economic writer's recog-
nize the same law-John Locke, David
Hume, James Mill, John Stuart Mill,
and Ricardo. In his reply to Bosan-
luet Ricardo declares: 1.-The value of
money in any country is determined by
he amount existing. That commodi-
les would rise or fall in price in pro-
portion to the increase or diminution of
money l assume as a fact that is incon-
In the face of the testimony of all
he authorities there are numbers of
editorial writer's all over the country
Who will say that the people ought to
ubmit to the hard conditions imposed |
lpon them because the robbery and op-
preston is carried on in the the name
# - sound money" There are editors
light here in Georgia who are ignorant
enough to declare that the circulation
s larger now than ever before. in the
ace of the fact that the prices of all
are lower now than since
he exhaustion of the gold and silver
mines in the forties, and constantly
alling.
1t is singular that any intelligent per-
on in this country should need argu-
nents to convince him that prices and
prosperity depend on an adequate mon
" supply, or that values and prices are
aised Or lowered by an increase or a
decrease in the volume of currency cir
ulation. We have had during the
past thirtyfour years three object les
ons, showing beyond all question the
fleet that an increased or a decreased
has on values, prices and
prosperity. In the south, when the
var began the confederate government
'egan to issue its own currency notes. |
these notes displaced both gold and
liver almost Immediately and as the
upply grew to the limit of the demand |
# the people and went beyond it, val
les and prices rose, and for two years
II more there was every note OF pros
'erity in the south. But as the issue
+ notes grew larger and larger, coinci- |
ent with the gradual loss of conf
ence in the ability of the government
o establish itself by force of arms, !
'rices and values rose enormously and