The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-05-14
LAW OF SUPPLY AND DEMAND.


mand affects and controls money as it
controls other commodities, there can
be no question or controversy as to the
influence of the decentralization of sill
yer on the prices of labor, the
product of labor and commodities
in general. If half the wheat, corn
and cotton now in existence were
destroyed by fire or sunk in the ocean,
the other half of each would at once 20
up in price. If the amount of wheat.
corr or cotton in existence could to-
day be doubled, the prices of these ar
ticles would at once fall.
And what is true of these articles is
true of every other commodity. So
you see the quantity of any article or
commodity has much to do with its
market value, everything else remain
ing in Statu quo.
Should the amount of money in cir
culation throughout the civilized world
to-day be doubled the marketable value
of all kinds of commodities through
s. out the same territory would rapidly
advance in price, all else remaining the
same. Should the amount Of money
to-day in circulation be decreased one
half, the market value of all kinds or
commodities would at onc assume a
rapid downward tendency, all things
else remaining the same.
Should the government forbid the
use of mules in the future as farm and
wagon animals andlay a heavy penalty
on any one violating its decree, WouId
any one doubt that the price of mules
or their value would at once fall, and
that the price of houses would at once
go up in this and all other courties9
And should all other countries initiate
this, and forbid the Use of mules as
beasts of burden under severe penal
alties, would not the value Of mules
decrease still more, and the value go
I'D still higher3 This is sslf-evident
and requires no proof. To destroy the
use to which an article is applied Is to
destroy its value. Prohibiting the use
of mules for agricultural and draught
purposes does not in any way effect
the intrinsic value of mules, but does
destroy the market or commercial value
of mules and at the same time embraces
the market or commercial value OF
horses. The intrinsic value of both
remain the same and could be applied
to former uses as soon as the restric-
lions and prohibitions are removed,
and the commercial value of mules
would at once go up, and the CONNER
cial value of horses would at once go
down, and continue TO go down, until
the two extremes met on some just and
equitable grounds, and both assume
their former commercial values &C
cording to their use
Now, if this be true, the quantity of
money, corn, wheat, cotton or any
other commodity and the demand for
these commodities must Invariably fix
the price or value of each.
A short crop of wheat and cotton in
this country might not effect the price
of either, because other portions of the
world might produce enough of these
two leading articles to more than sup
ply our deficiency; but a short crop
the world over would increase the
market price of these two articles.
There are three distinct elements
that universally enter into the price of
any article or commodity: First, the
amount or quantity of money in pro
portion to the population and business
in circulation throughout the territory
which the commodities are to be con.
sumed. Second, the amount or quantity
of commodities in existence through
out the same territory, or which may
come in said territory for consump-
stion. Third, the ability or capacity of
the people in said territory to consume.
If there is but q limited amount of
money In circulation, and that amount
rs controlled by a very small number,
commodities would be very low in
= price, but the price would still go up
or down according to the amount of
commodities on hand. On the other
hand, the amount or quantity of com
~ modities remain the same, and increase
or decrease the amount Of money in
circulation, and the prices of commodi-
ties would increase or decrease the
quantity of money in circulation; and
1.-THE third proposition is equally true.
If you could increase the ability and
capacity of the people to consume in
the same territory you would thereby
increase the price of the commodities,
all things else being equal and remain