Marble Hill press., 1896-05-14
SILVER Is THE CURE
TO REVIVE THE INDUSTRIES OF
THIS REPUBLIC.
DO Not Tse Deceived by Free Trade or
ProteetiOn-0uantity OF Money in Cir
oulation l. the Real Question at
issue.


issue.
The question before the Club was,
''Will the prosperity of the country be
promoted by the free and unlimited
coinage of silver at the ratio of 16 to l =?
Prosperity dependsupon the reward
of production. If 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 its 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-
| ducer receives lower price he can buy
a correspondingly larger amount, and
vice versa. While this statement is ap-
parently true, there are two fallacies
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 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 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
:.
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
ey, which transforms ineffective into
effective demand, though there may be
never so great need.
Money does not escape the cOntrolI-
ing power of the law of supply and de-
mand. It's value in exchange is deter
mined by the law. Now, money, or
some accepted substitute for money, en-
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
exOrable 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
determine price Formulated, this law
Island it is simply the law of supply
and demand applied to money)-that If
the mass of money is increased it will
exchange for less products. In other
wordF, the quantity OF money in rela-
ton 10 products determines prices. This
law is inherent, and is as immutable in
it's operation as the law of gravitation
1t is also vitally important in consider
ing the money question, and is the key
to most of it's intricacies and mysteries
Money is the creation of law, and OF
law only. It's creation is government
monopoly. Law determines today, ap-
proximately, the amount of money that
the people may have with which to ef-
feet their exchanges.
Briefly formulated then, my answers
are as follows: Prosperity is deter
mined by the reward of production, OF
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 exchangeablt
products.
i The volume of money is determined
: by law Hence, price, or the reward O
productions, is determined by law
! Hence, prosperity is determined b!
| law.
My conclusion, therefore, is, tha
prosperity has been destroyed by con
traction of the volume of money result
ing from the demonetization of silver
and can be restored only by the restora
, tion of silver to its former status.
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