The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-03-13
IMPORTANT QUESTION.
Is There Too Much Money?

1t is indeed strange to find men
high in public station urging, appar-
emily in sincerity. that the volume OF
money in this country is in excess OF
the needs of the people. There is
all other evidence, should suffice to
demonstrate that this theory is with
out foundation. The clear and un-
mistakable proof that money is in re-
dundant supply always appears in the
advance of prices. When there is too
much money, it becomes cheap, and
it may be bought with smaller
quantity of the products of human
| toll. The result is what are called
| higher prices. In what quarter may
| tendency of prices upward be dis
| cerned at the present moment?
Everywhere, indeed, the movement
upon the whole is downward, as it has
been for twenty years.
The volume Of currency in this
country decreased by $lO2, 100000 dur
ing the year 1894. In the meantime
the population increased to the ex-
tent of about 100000. We have now
81 per person less with which to do
business than we had one year ago.
Three years ago, with a smaller num-
Der of people, and with less money, the
SURPRISES in the New York banks
were very much less than those now
held. At that time there were no
evidences that the supply was too
great. Why should any one suppose
| that it is too great now, when nor
NAL demand would inevitably be
| larger than such a demand during
| President Harrison's administration?
OF course it is plainly apparent that
the present demand is altogether abb
normal Besides the fact that de-
Ginning prices check enterprise, the
abominable mismanagement of the
national finances produces uncertain
ty, and even CONSERVATION, SO that
the energies of the people are smitten
by paralysis. To abridge the
supply Of money now would be to pre-
pare the way for calamity when the
| possibility of return to prosperity
shall present itself. During the great
strike of railroad operatives in Chica
60 many thousands of freight cars
were held in enforced idleness. 1t
would have been as reasonable to con-
tend that the presence Of these cars
upon the tracks proved that the
transportation facilities exceeded the
demands of shippers as to insist that
idle money, in time Of CONNIE rcial
stress and depression, proves that
there is too much money in existence.
There are, indeed, good reasons for
believing that it is impossible to en-
large the supply Of perfectly sound
money beyond the fair and safe re-
quirementS of men; and Of the sound
ey now in existence there can be no
reasonable doubt. Such money acts
as healthful stimulant upon human
energy. When there is enough, en- ter
prise goes forward. When there is
less than enough, some productive
forces are restrained. Less money
than is required always represents the
idleness of men who would find en-
ployment were the supply larger.
Money is, in one sense, tool. If
there be four carpenters and but
three saws, one carpenter must re-
frain from the process Of saving. 1t
y
called small money that it is a labor
saver. When the supply is ample,
work is done which would be left I'M
done were the supply deficient.
Jevons, the British writer heretofore
referred to in these columns, attri-
butes the prevalence of pauperism in
England to the deficiency in the vol
ume of silver money:
mo wonder so many people are
paupers when there is a deficiency of
shillings and sixpences, and when the
amount merely Of the rates and taxes
paid in a year exceeds the whole sum
of money circulating in the king.
dom. Money" page vii of the pre-
face.
These are just observations. Plenty
of money is a positive essential of
general prosperity; and, as the smaller
transactions are the source of larger
business, plenty Of money of the low
er denominations is first Of all re-
quired. Silver money alone can fully
meet this requirement. At the pres
ent time, while the banks are stuffed
with money which they cannot lend,
there are great communities in the
West and South, possessing plenty Of
: greatest difficulty to find money with
which to conduct even an abnormally
small amount Of business. Just now
also, our own country contains hun
dredS of thousands of men accus-
toned to work and willing to work,
: but held in compulsory idleness. Be-
side them and in front of them are
, boundless natural resources, illimit-
. able possibilities for the creation OF
wealth, and countless tempting, but
unused, opportunities. ThOs. Carlyle,
speaking Of the impoverishment of
+ the British masses, once depicted an
| equally alluring prospect and then ex-
planned that some mysterious power,
after showing the people the riches
almost within reach, declared You
shall not touch Them This is the
situation of the American people.
All the conditions present the prom
Use of prosperity; all the conditions
but one; from some source has ema-
mated the decree that half the money
metal provided for the use OF man
shall be thrown aside. This has
forced down prices: and the decline Of
prices has forbidden the employment
of much Of the money actually ready
for use
He is blind leader OF the blind who
instructs the victims Of this conspir.
acy that further contraction uf tie
currency can bring relief from the
| consequences of the first contraction