Peninsula enterprise. [volume] (Accomac, Va.) 1881-1965, 1896-10-17
Cause Of Falling Prices.

In the October "Arena," Prof.
Frank Parsons has an interesting
article relating to silver and falling
prices. Professor Parsons shows that
a falling market means prostration,
panic, paralysis; that the downward
tendency of prices is the path to in
dustrial perdition, and the upward
slope of rising values is the plain
road to energy and life-the way out
of darkest America into the light of
prosperity. This giant evil, falling
prices, says he, is caused by contrac-
ton of the currency, or by increase
of business or changing conditions of
production unbalanced by O. due eX-
pansion of the currency.
Free silver, says Professor Parsons,
twill reverse the lever, Inaugurate a
rising market, afford a just relief
from overweighted debt and stimu-
late commerce, manufactures, and
agriculture to new activity. The
first silver dollar coined will buy as
much as q dollar does new. Silver
will rise to $1.29 an ounce; no one
will sell it for less than that sum
minus the expense of sending it to
the mint, because he can have it
coined into that at the mint. This
increase in value to be gained by
minting silver will bring large
amounts Of the white metal into
circulation and will raise prices, re-
lieving the debtor class and develop
ing business with an energy unknown
in this country since the flush times
of the war period. This, Professor
Parsons holds, is the heart of the
silver philosophy. 1t will introduce
an era of expanding currency and
rising prices in place of the falling
market that has SO long depressed
business and industry. Labor will
be in demand, competition for en-
ployment will become less severe,
wages will rise, and all this in turn
will operate for the general welfare
of the whole country, in shop and
field and store. The other side is a
continuation of the present policy
Of contraction, with no hope OF
any improvement in business. The
grind of the gold standard is
freezing the life out of American en-
terprise. No new enterprises are
undertaken on q falling market. We
are in the trough of the sea-"
According to Mr.. Bryan's state
ments made during the campaign, it
is shown that in the past two years
there has been q positive decrease OF
100000, 900 in our currency, and If
the proper ratio shauld be included
as estimated by Senator Sherman,
the contraction would be over $780,
100000, or about one fourth of the
volume of currency the people have
been supposed to have. The views
of Professor Parsons and those of
Mr.. Bryan appear to coincide on this
important feature Of the money ques
ton, and if their conclusions are cor
rect, there can be no doubt Of the
fact that our greatest trouble arises
from contraction of our currency.
With an increase OF the volume of
the currency of the country every
branch of trade and industry will be
benefited, and new life breathed in
all the channels of trade. 1t is not
supposed that under free coinage the
man who takes his silver to the mint
is going to make us a present of it
after it is coined into money-not
ClU Ol IL. L uO luda WIZ ECto hoAN VI
it will have to work for it, which he
will be perfectly willing to do, and
there will be work for him to do,
which is not the case now. He will
buy goods with the money received
for his labor. He will buy the farm
er's products; the farmer will be able
to get more money, will need more
labor, more implements, and more
machinery. He will have to buy
them from our manufacturers; the
manufacturers will need more help;
the workmen will be able to buy
more clothes; the clothing dealer will
be enabled to employ more hands in
the manufacture Of garments, who
will need dry goods, shoes, wood,
coal, food and in fact all the peces-
saries of life, and thus the benefits
will become almost incalculable.
With a contracted currency these
things cannot be, and Professor
Parsons theory that the salvation
of better times is only to be found IN
an increase of our volume of currency
is undoubtedly correct.-Norfolk Vir-
gilman.