Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1896-04-21
Fundamental Law of Money.

The recent special edition of the
National Bimetallist quotes a number
Of recognized authorities on the sub
jeet of the fundamental law of money
The quotations are here reproduced,
and those who will peruse them will
see that they sustain the assertion
frequently made IN these columns
that the value of money is not derived
from the value of the material of
which it is made, but from the rela-
tion which its quantity or supply
bears to demands:
From j ohm Locke:-Money, while
the same quantity of it is passing up
and down the kingdom of trade, is
really standing measure of the fall
ing and rising value of things in re
ference to one another, and the alter
alton in price is truly in them only.
But if you increase or lessen the
quantity of money current in traffic
i'll any place, then the alteration Of
value is in the money"
cult to perceive that it is the total
quantity of the money in circulation
in any country which determines
what portion OF that quantity shall,
exchange for certain portion of the
goods or commodities of that country
1t is the proportion between the cir
culating money and the commodities
in the market which determines the
price,"
From James Mill:-"And again, in
whatever degree, therefore, the guam
tity of money is increased or dlmin-
ished, other things remaining the
same, in that same proportion the
value of the whole and of every part
is reciprocally diminished or increas-
ed.'
From William Huskisson: eff the
quantity of gold in a country whose
currency consists of gold should be
increased in any given proportion,
the quantity of other articles and the
demand for them remaining the same
the value of any given commodity
measured in the coin of that country
would be increased in the same pro-
portion"
From John Stuart Mill:-"The
value of money, other things being
the same, varies inversely as its guam.
tity; every increase of quantity low.
ering the value, and every diminution
raising it in ratio exactly equiva
lent
From Sir James Graham:-"The
value of money is the inverse ratio OF
its quantity; the supply of commod.
tiles remaining the same"
| From Ricardo: 1.-THE value OF
money in any country is determined
by the amount existing. That com.
modities would rise or fall in price in
proportion to the increase or diminu
ton of money l assume as a fact that
is incontrovertible."
From Prof. Sedgwick: THE ex'
change value of any particular coir
will vary in exactly inverse ratio to
the variat ions in quantity of the ag
gregate."
From American Cyclopedia:-" Sup
posing the amount of trade and mode
of circulation to remain stationary, il
the quantity of money be increased
its value will fall and the price O.
other commodities will proportional
ely rise, as the latter will then ex
change against a greater amount o
money; if, on the other hand, tn,
quantity of money be reduced, it
: value will be raised, and prices in cor
responding degree diminished, al
commodities will then have to be ex
changed for less amount of none,
In whatever degree, therefore
the quantity of money is increased O
diminished, other things reInainins
the same, in that same proportion tn