The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-02-12
his property and employment for his

his property and employment for his
hands.
Now, let us compare these state
ments with the recent facts Of his
tory. The transactions Of the New
York clearing house, under the in.
tluence OF the greenback currency,
we're steadily upward from 1861 to
1866. There was then passed a law
for the contraction OF the currency.
Immediately the clearing house busi-
ness stopped increasing and began to
decrease. This caused hard times
and murmurs Of distress, which. in
tion law of 1866. Times at once re-
covered and the New York clearings
rapidly increased TO an amount not
before reached. Then came the law
of 1869, making currency bonds pay
able in coin, and the law of 1870. re-
funding certain monetary obligations
that had circulated as money into
registered bonds which could not cir
culate. This was contraction of the
currency. The decrease Of the New
York clearingS began promptly in
1870. The law of 1873. demonetizing
silver, and the law of 1915, preparing
for specie payments, both acted as
contraction laws, and the decrease OF
the business of the country, as shown
by the New York clearings, was con-
tinuous, with only an occasional very
slight rise. The clearings were about
thirty-seven billions in 1869, but had
sunk to less than twenty-three bill
lions in 1878. And the country under
the pressure Of hard times was almost
in a state of revolution. Strikes OF
suffering labor were prevalent and
cities began to burn.
In 1878 two remedial laws were
passed, one providing that no more
greenbacks should be retired, the 9TH
er that silver should be coined at the
rate Of two million dollars per month.
There was not much addition OF mon
ey, nor was there any provision to
give. lend or distribute the new mon
ey to the people, yet the slight in
crease assured the owners Of money
that prices had touched bottom. The
boards in the banks were quickly
checked out and set to work. Prices
went up, business increased, labor was
employed, ana the New York clear
ings. attested the changed conditions
by rapid increase from less than
twenty-three billions in 1878 to above
forty-eight billions in 1881.
The good times were not pleasing
in the systematic retirement OF their
own currency. This again knocked
the country down with falling prices.
and we have been on our knees begging
mercy Of the banks ever since. The
usual New York clearinys of recent
years have been from twelve to four
teen billions per annum less than in
1881. Notwithstanding the continual
Increase OF population Of over half
million per annum.
1t is now easy to see the truth Of
two financial laws: ~ Money will
not circulate when it's volume is de-
creasing ana prices are falling. 1t re-
mains locked up until prices touch
bottom. And, (2) Money will always
circulate freely when its volume is in
creaslng and prices are rising. These
statements have no exceptions. An
appreciating money will not circulate,
and 10 physical force will compel it to
do SO: but, increase the volume till
prices have touched bottom and be-
gin TO rise. and then no physical force
can prevent it from circulating.
State the case in any form you please
and the fact remains the same, with
out exception.
And still another fact is just as true
and just as free from exception, viz:
When prices are rising, and times are
good the prices of all property AID all
labor share in the general rise and
| owners OF property and all laborers
are benefited. This law, like all laws
! OF finance. is seli-acting; and it has no
exceptions.
In order to facilitate the distribu-
tion of increasing money it is some
times DrODOSed that the government
shall loan it to individuals Is on landed
security, in limited amounts. To this
it has Deen objected that only those