The Portland daily press., 1896-09-22

1859, and March 8, 1858, amounting In All
to $40 600 600 remains to be seen or Ga
planned. Our present National banking
sys TEN has had so little to do with TINS
and SO slight bearing on the free COIL
age question that, setting completely
aside the issue Of National bank noles.
there has Leen an increase in the voluMo
of legal tender otes, emanating d1recsiy
from government, in the past twenty
four years, of $452, 37S, 646 and while, IA
the same time, the issue of National
bank notes has fallen off Sl13, 706, 07S ~
has not affected the situation az the ao-
tual money supply has grown faster taa I3
the population. Ii il, OF course: Weh
understood that the withd rawal OF Dan
circulation does not, necessarily. depend
on the will of the bank, but on the neeus
of borrowers.
So it is safe to assume that an honesS
and wise government, a government y.
representatives, and not OF lobbles gnu
syndicates, will see to .ir that there y
always sufficient money supply any
that this may be Increased by direct sco
of government whenever thought neces
sary through popular demand or pupl!o
exigency. This being granted. the 1nncA-
full appreciation of gold can have no Dear-
ing on the fuctuation Of prices, or
change in monetary conditions, because
gold is fixed standard, necessarily 20
since It's output, existence and quantlIy
is not under government control. From
it's very nature it must always remain
reservs and redemption money. Anu
though there may be more or less OF ~
according to the development, or outpus,
of gold mines, there has never as yet Deen
such an excess as to disturb 1t, In its
relation to other money, as reserve ana
redemption money.
The retention, or assumption, OF tine
| Y1Hht nv n iaa11A l000l G8Qs
der notes may show "a reckless dlsre,
gard of we'll understood financial Laws,
but II shows oommendable regard lor
the rights and protection Of the people.
y Why is production the natural, ana al
most invariable standard of the val"e OF
money or of what represents money! II
there is an excessfof production it always
of commodities. If production IL limited
1t always takes more money to BUY q
given amount Of commodities. That 10
production fixes. as rule, the value OF
money and Is the primary cause OF nus
tuation in price. Then, it Is said, there
is corresponding appreciation or dspre-
citation IN gold. There ia not. While.
rs, at times. during the war, IL woula
take two dollars in paper to buy an artl-
ole Of merchandise, and the purchasing
value of paper money has decreased as
two to one with gold, single gold dol
lar will buy the same article. or the Same
amount of commodities, that two dollars
in paper would buy. This does not show
that gold has appreciated, that 1t 10
worth any more than before the period
of imitation, but that 1t has simply held
It's own and retained Its original value az
standard money. So that the appreoia-
tion. or depreciation, of gold, so far az
market prices are concerned, Is q purely
fanciful and Imaginary change.
We may imagine a condition. simply
for the purpose of argument, and not as
possible fact, at least In this country,
when even paper money, or the lack OF
it, might be the cause of huotuation In
prices. That is when there is excessive
production and very little money in cir
would tumble over each other in their
eagerness to sell their products at almost
any price. Economists may say that
gold, as standard, might hold precise
ly the same position and relation and so
be the cause Of high or low prices. 1t
could not for the simple and self evident
reason that it ia not, like paper money,
subject, by act of government. to fuctua-
tion in value through the increase or de-
crease of it's production and issue.
When 1T is considered how stupeudOus
a thing the business of this country is;
that 95. 10 per cent of all payments are
made by checks, drafts and bills of sx-
change, 1t will be seen how small part
metallic and paper money play in bust
ness transactions and, relatively, how
unimportant factor it is when COM
pared to that which represents the whole
sum of values and is the cause of all
forms and mediums Of exchange.
j. S. WHITE.