Cottonwood report. [volume] (Cottonwood, Idaho) 1893-1901, 1896-09-11

q determined by the total num-
fof dollars-in circulation. In other
Words the sum total of prices will al
ways be equal to the total volume Of
money in circulation. Thus If one bill
lion dollars now performs the business
OF the country and measures the total
| value of its circulating commodities, it
| Is plain that if the volume is struck
down to one-half billion. the total
| value of the circulating commodities
will be half billion, and one dollar
in the latter case will have purchasing
power equal to two dollars in the for
mer case. The total circulating COM
modities divided into the total money
always determines the price.
Noted Authorities.
If anyone doubts that this is the cor
| rect law in the case, authorities are
not lacking to support it,
| John Stuart Mill says: "If the whole
money in circulation was doubled,
prices would be doubled; If it was only
| Increased one-fourth prices would rise
one-fourth.''
Ricardo says: "That commodities
would rise and eall in price in proper
| ton to the increase or diminution of
| money. 1 assume as fact that is in
controvertible."
| David Hume, the historian, says: 1T
| is the proportion between the circulat-
| ing money and the commodities in the
market which determines the price
| Fawcett, in his Manual of Political
Economy says: 1.-The greater is the
| quantity of coin in circulation the
higher will be the price of commodities.
| Where circumstances occur which
| double the demand for money without
it's supply being increased, the price of
all commodities will be diminished one
| half, or in other words, the value of
gold will be doubled"
could quote every distinguished au-
thority in political economy to corrob-
crate the law that the prices of COM
modities are determined by the proper
ton which the total volume of money
i bears to the total circulating commodi-
ties; that prices are high when the
number of dollars in circulation is
great in proportion to the number of
things to be exchanged by means of
dollars, and low when the dollars are
proportionately few.
| Value and Price.
If we can gain correct conception
of the terms value" and price" the
above law will be perfectly clear,
Value" implies the comparison Jf oac
commodity with another. If sack of
wheat exchanges for ton of coal then
a ton of coal is the value of sack Of
wheat Value, therefore, is relative
expression.
when, therefore," Fawcett says.
1.-The general value of a commodity de-
clnes, less of every commodity can be
obtained for 1t in exchange, but, if this
be so. the value of all these commodi-
ties must rise when compared with the
particular commodity in the value of
which it has been supposed a general
decline has taken place. These con-
siderations demonstrate the erroneous
nature of the statement not unfre-
quently made, that there is a general
rise or fall in the value of all COM
modities."
Notwithstanding the fact that this is
so self evident there are great many
goldbugs who cannot comprehend the
true nature of value. In fact, as Faw-
cett says: "a shade of error has been
cast over the writings of some eminent
political economists because they nave
neglected to keep steadily in view the
correct meaning of the word value
Gold "a Commodity.
That gold is now a commodity to be
placed alongside other commodities in
comparing it's value with the values of
other commodities can clearly be seen
from clause in the bond agreement
between the secretary of the treasury
and the bond syndicate: 1.-The parties
of the second part GtothschilO hereby
agree to sell and deliver to the United
States $500, 900 ounces of standard gold
coin" ETC., ETC., at the ratio of $17.S044l
per ounce They do not agree to fur
n.sh the government certain number
of gold dollars but they count it by
weight. Gold is handled by the money
power today as a commodity. The
gold bugs want a gold standard and
that standard G commodity. Now
keeping in mind the fact that in polltl'
cal economy the greatness or smallness
of value is estimated by the power
which a commodity has to obtain 9th
err commodities in exchange for it. we
can soon find out whether gold has ris-
en- or not. Now, what is price? Price
is a particular case of value. FaWcetl
says: IF the value of a commodity
is estimated by comparing 1t witt
those precious metals which civilized
countries employ as money, then 1t Is
said that the price and not the value
of a commodity is ascertained." If &
| sack of wheat is exchanged for a guam
, tity of gold termed a dollar, it would
. be perfectly correct to say that thu
: value of a sack of wheat, estimated IL
, gold, is one dollar, but in the evolution
, of economics this has come to receive
, a particular name, for it is not termed
, value but price. The price of com
modify then may be defined as it
value when compared with the com
modify which is adopted as money
If the commodity which has beel
adopted as money becomes more plenti
full, it's value therefore, compared Will
all other commodities declines, since
certain quantity of gold will then ex
change for diminished quantity of 81
J. other commodities. If the value of tn
. money commodity, compared wit
u other commodities is increased, tn
e value of all other commodities, com
J, pared with the money commodity mus
e be decreased; but as before stated, tn
+ value implied in this latter comparison
s is termed price, and consequently III
: price of all commodities will be decreas
r ed. and vice versa. Up to the presen
e | time n has been a general popular as