The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-01-08
MONEY, WHAT 1T e
Hon w. H Kitchen Writes of q.
ence Of Money on Price, Of al 'D'o'
Commodities

correspondence OF the Progressive For
The technical meaning Of roa%
silver and gold coins, with tho Ivy Is
the sovereign power stamped tba. Of
These coins turned out from onr GOn'
only can be legal and constit,t l'us
money in the United States lal
bank bills, bills of credit and al
sorry notes are types and sbado~-
money, and their value depends nU
the honesty, punctuality and abirt1P Oa
the banks, government or parsor VI
ing the same and the facilities sSU'
nished by the sovereign power for |'
ing the collection of the same in W.
and silver coins. No bank bill oov o~N
ment bond or promissory note uo,,,
be worth the paper they are nriDt.s
upon without a promise to pa, Or w
deem and the ability to pay and III.
power to compel payment.
While these qualities and attribr...
ATTACHED to bank bills and goverpmort
bonds, they pass as and discharen fl.
functions of money. All paper svr,
bols or representations of money toI,
of any commercial value, must b.
payable in or redeemable in gold onS
silver coins under our Constitution ar3
the laws of the States. In its bros6oot
sense money is the medium Of ov
change between men and nation.
It is a thing substituted by the an.
lightened and business experience NJ
our educated and advanced Civilization
in the place of bulky, unwieldy sub
stances to expedite the traffic and com.
merce of the world, and as value d.
ponds upon its ultimate redeemabltv
and it's quantity in circulation.
The laws Of supply and demand ap
ply with the same force and with the
same results to money as they do to
corn, wheat, cotton and labor. L
wheat, corn, cotton and labor is veT
short or scarce and the demand il
very great, all things else being equal
they will sell very high in the markets
If they r very abundant, the markets
glutted and the demand is very light
all things else being equal, they will
sell very low. What is true of these
articles in the commercial world, i
equally true of money. If the supply
or quantity of money in circulation 10
proportion to population and business
is very short and scarce, all things else
being equal, prices of labor and the
products Of labor and of all other
things, real or personal, will be exceed
ipgly low, and oftener than otherwise
below the actual cost of production
If the supply or quality of money il
circulation, in proportion to popua
ton and business, is very great all
things else being equal, prices Of labor
and the produces of labor and Of all
other things, real or personal, will be
exceedingly high.
When money is very abundant and
there is no shortage in the prod0ctsd
labor, these products are high, ia
shortage in the products of labor they
are still higher.
When there is @ great scarcity Or
dearth of money and no shortage Of
the products of labor, these produces
are very low in prices, but if theroH
an increase of the products Of labor
they are still lower in price, and man!
times far below the cost Of production
Now if these statements be true aa
no man can prove them untrue, tS
laws of supply and demand con'a
the price of money as well as the prl@
of commodities If this be true 81
increase in the circulating medium, al
things else being equal, would lncr8a"
the price of commodities, and a o.
crease in the circulating medium Wou9
decrease the prices of all commodIls
Now, under these conditions, J
would be equally as correct anu Wv
to say that money had risen in pfH'
or purchasing power as to say toa
commodities had fallen in price, anaD
would be as correct to say that none
had risen III price because of its SI
city, or had fallen in price BECAUSE
it's abundance. If there is muD
money it will fall in price or purcDI
ing power; if there is little none! :
will rise in price, all things else Osps
equal. So you see, it depends ~,
the standard of measurment emu,
ly as to whether an article has l'T.
or risen in price, all things else rep'D
ing the same. If cotton, whea'
labor to day is measured by m0D's
they are very low in price. II DoD,.
is measured by cotton or whea'
H. nor ~