The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-08-14


depreciates, wrongs the creditor. All
economists agree that the value of mon
ey depends upon itsluantity in proper
ton to other things. John Locke
says: The value of money in any
one country is the present quantity Of
the current money in proportion to the
present trade John Stuart Mill says:
The value of money, other things be-
ing the same, varies inversely as to its
quantity" Hense it is a law of polit-
cll eesno ny that the volume of money
should be increased in proportion to
the increase of wealth and trade.
The disturbance Of the par between
commodities and money in Europe and
America of late years has proved 50
startling as to call for the m,st serious
Dnsideration and investigation Eth
er g,ld has appreciated, orall comm"-
It'll IS have fallen in price almost con-
tinuously for twenty years. 1t is
wholly improbable that prices should
50 fall universally. 1t is far more rea-
sonable to conclude that 1.-THE variable
thing called gold has gone up. No
one has shown any satisfactory reason
for this fall in commodities, but it is
easy to explain why gold has risen.
Even Mr.. Gitfen, statistician of the
British Board of Trade, admitted that
1.-The recent change from high to
low level of prices is due to a change
in the money Of the nature of contrac-
tion," and that. in consequence, ''debt-
ors pay more than they otherwise
would, and creditors receive more"
Dr. Soetbeer, of Germany, found as far
back as 1886 an average fall in one
hundred leading articles of y per cent.
The London Economist estimated the
fall for lS9O-lS9l at 10 per cent. The
output of gold, by discoveries in a fric;,
and new processes, has largely increas-
ed, but wealth and trade in far greater
proportion. Since 1888 Germany,
Sweden, Norway, Denmark and Hol-
land have turned from the silver to the
gold basis. and Austria, Russia. Turk
ey, Italy, Greece and Spain from paper
h., mt. of In
dia and America have been closed
against silver. One-half the worlds
production of gold, according to Mul-
hall, is consumed in the arts, and Law
eleye estimates that the worlds pro
duction of gold is not more than sutii-
ent to offset the wear and tear of the
currencies. Under such conditions 800
millions of commercial people, hitherto
using unconvcrtible paper money or
silver, are scrambling for gold, which
is mostly cornered or locked up in war
chests. With such a change, creating
enormous demand, intensified by the
growing need of more money to meet
the wants of increasing trade, wealth
and debts, with silver no longer COM
petitor in the race and gold doing
double duty, the startling appreciation
of gold is fully accounted for; so that
impartial scientists agree that since
1876 gold has appreciated about 100
per cent, or at the average rate of 10
per cent per annum, forcing an average
fall IN prices, measured by gold, Of 5
per cent per annum.
With all the advantages ofincreased
invention, transportation facilities and
improved methods, commodities rose
steadily in the period between 1850 and
1878. Now we are approaching the
prices of the Dark Ages.
Paper money is only substitute for
real money, and it's volume cannot safe
ly he increased beyond Il fixed proper
ton to primary or redemption money.
Decentralization of silver has there
fore forced the reduction of all moneys
and credits to something like one-hal.'
their normal quantity, and cut in twain
the prices of all commodities. Unless
9 ,ld shall be discovered in fabulous
quantities, the fall in prices must, ur-
DIR the operation of the same law, con-
tinue for an indefinite period.
The single gold standard therefore
is not stable, and therefore not an hon
est but dishonest standard Under
| it we do t have IN honest 100 cent
dollar, but more nearly dishonest 200
cent dollar.
On the other hand. handicapped as
silver is by the closing Of mnts and
demonetization, tested by the same
rule, silver has held its own. In the
markets of the world, one ounce of sill
Yer bullion still exchanges for about as
i
1880, 1890. or 1896. Should we restore
it to mintaye, however, the increased
demand arising ont of its monetary use
would cause it to Oappreciate, and should
it become, as predicted by Suess, the
standard of the world, it would prove
as unstable as gold. The single silver
standard is therefore to be discarded
as an honest :tandard, tor the same
reason as the gold standard.
We are thus driven to accept the
( views of Professor .JcvonS. who says:
A little reflection must show that
/ VI. NJ. Wolowski and Courcelle-Seneuil
are quite correct in urging that Il com
pensatory or, as | should prefer to call
| it, equilibratory action goes on under