The Yale expositor., 1896-05-01
SILVER is THE CURE
TO REVIVE THE INDUSTRIES OF
THIS REPUBLIC.
DO Not ue Deceived by Free Trade or
Protection-0usntityo of Money in Cir
Issue.

VIII INC prosperity VI the couutIJ NC
promoted by the free and unlimited
coinage of silver at the ratio of 16 to l ?
Prosperity dependsupon the reward
Of production. III producers produced
only those things which they consume,
prosperity would depend upon produc-
tion itself But under our complex sys-
TEN everything is exchanged, through
the medium of money-hence, prosper
ity depends upon the reward of produc-
ton, or the value of products in ex-
change;- or, stated in it's simplest form,
upon the price of products.
The common reply to this is, that
price is immaterial, as rising or falling
prices are compensatory, and If the pro-
Queer receives lower price he can buy
correspondence larger amount, ana
vice versa. While this statement is ap-
parently true, there are two fallacles
concealed in it which entirely destroy
its value. Unfortunately our whole
economic system is based upon credit.
Debt is universal Debts are nominally
fixed in dollars. The value in exchange
of dollars is determined by prices.
While a certain number of legal tender
dollars will always liquidate any debt
expressed in that number, the amount
of sacrifice and labor needed in ex-
change to obtain the dollars is in
creased by lower-and decreased by
higher prices. So, in a country in
which debt is the universal condition,
prices, instead of being immaterial and
compensatory, are really the vital fac
tor in determining prosperity.
The second folly is found in the fact
that low prices may wipe out the mar
gin of profit in production. When this
is the case-when what he produces
costs the producer more in labor, sacri-
flee or money, than he can obtain for
it in exchange-though he may buy at
continually lower and lower prices, he
must eventually go to the wall.
So it remains absolutely true that
price is the vital factor that determines
prosperity.
The law of supply and demand de-
termines price. The old school of
economists this law consisting of only
two factors, the product and the need
for the product, assumed that where
the need for the product existed the
ability to obtain it also existed. The
later economists have discovered that
the law of supply and demand consists
of three factors, and that the third is
the controlling factor in fixing price,
viz: the produce, which is the supply
the need for the product which is
simply ineffective demand-and the
ability to purchase the product. or mon
effective demand, though there may be
never so great need.
Money does not escape the controll-
ing power of the law of supply and de-
mand. It's value in exchange is deter
mined by the law. Now, money, or
ters into every commercial transaction
every exchange. Hence it will be seen
that the demand for money is at all
times equal to the demand for all other
things. Hence, it must follow, by in
eXor2ble logic, that the total supply of
money at any given time, be it great
or small, must have a value in exchange
equal to all other things. From this
fact is evolved the law of the quanti-
tative power of money. This law is
an essential, integral part Of the law of
supply and demand. 1t inheres in it. 1t
is its controlling factor in it's power to
determine price. Formulated, this law
ic Gil, al 10 o Ia,
and demand applied to money)-that if
the mass Of money is increased it will
exchange for less products. In other
words, the quantity of money in rela-
ton to products determines prices This
law is inherent, and is as immutable in
it's operation as the law Of gravitation.
1t is also vitality important in consider
ing the money question, and is the key
to most of its intricacies and mysteries.
Money is the creation of law, and of
law only. It's creation is a government
monopoly. Law determines today, ap-
proximately, the amount of money that
the people may have with which to eff
feet their exchanges.
Briefly formulated then, my answers
are as follows: Prosperity is deter
mined by the reward of production, or
price.
Price is determined by the law of
supply and demand finding its express
sion in the relation of the volume of
money to the volume of exchangeable
products.
The volume of money is determined
by law. Hence, price, or the reward of
productions, is determined by law.
Hence, prosperity is determined by
law
My conclusion, therefore, is, that
prosperity has been destroyed by con-
traction of the volume of money result
ing from the decentralization of silver.
and can be restored only by the restora-
ton OF silver to it's former status.
Bull Fight on Bicycles.
Thu latest thin In tel bu1 q rbt o.,