Middlebury register. (Middlebury, Vt.) 1886-1937, 1896-04-24

bullion coined. The coin is not redeemable,
and the matter of Its circulation is entirely out
side of government
You say the American people are not very
likely to 60 to Mexico for lessons in finance
The American people would do well to 90, and
are willing to 60 anywhere for lessons in f.
nance where they may learn to decidedly inn
prove their condition. That condition is not,
at the present time, so satisfactory that they
care to refuse opportunity to improve it. And
II 1t is true, as you suggest has been men
tened, that Mexico is more prosperous under
her condition Of finances than the United
States under hers, that would certainly appear
to be a most excellent reason why we shonld
study and perhaps copy after the finances Of
Mexico.
Your conclusion that the majority Of the
American people prefer sound money, good
everywhere at its par, to cheap money and
bankrupt treasury, ! cannot understand, for
do not know what you mean in this case by
sound money or cheap money.
But, If bysound money you mean the kind Of
money which we are now using. which requires
the borrowing Of 100000, 900 year TO main
tain its soundness, we very much question your
statement that the majority OF American peo-
pie prefer this kind OF money. Again, if by
sound money you mean the present condition
of our national finances under which lands,
their products, and nearly all property has de
creased in the last 20 years from Is to 50 per
cent is still decreasing, and under which all
prosperity has ceased and the want of money,
or profit, stares every producer, whether he be
a farmer or manufacturer, in the face, with no
possible relief under the present conditions.
but instead, certainty OF greater and greater
stungency and increased distress; we do not
believe that the majority Of American people
desire to continue such currency. Instead
they must be. and are most anxious to escape it,
And as cheap money, II 1t means anything,
means more money, you are mistaken in sup
posing that the majority of the American peo-
pie do not prefer it. 1t is precisely what they
want; money cheap enough or plenty enough
SO that all have a chance to get some OF it..
And So your connection of plenty of money
with a bankrupt treasury is altogether out of
place 1t is the high priced money that leads
to bankruptcy. national and individual. Dun
* Co.,, the highest authority ON this subject,
have stated within a week that during the last
three months there have been more failures in
business in this country than ever before in the
same length of time; and certainly the borrow
ing OF hundreds OF millions Of dollars in a few
months to sustain the gold standard, if carried
out for a limited time, would be a short cut to
national bankruptcy. Conversely, other things
being equal an abundance Of money is always
attended with prosperity, individual and ma
tonal.
To make this question better understood
permit me to state few general principles
in regard to money. Money is subject t.
the same laws of supply and demand as any.
thing else. When scarce it is Of high value
when plenty it is cheap. 1t is no more tru,
that hundred dollars buys a horse than tina
the horse buys the hundred dollars, and the
price OF the horse depends as much on the
amount of money in circulation as it does OF
the number OF horses to be had. And thi.
is true of everything that can be bought OF
sold And therefore it follows that the
prices of our commodities, whether they he the
products OF our farms or the farms themselves
or whether they be manufactured or mined Of
quarried; no matter what; the prices OF all
other things being equal depend absolutely
and irrevocably upon the volume Of none!
that is in circulation.
From the remotest history gold and silve
have been known as precious metals, and useC
as money by the different nations of the world
In 1873 the great commercial nations were
led, it is not necessary here to state how or by
whom, to discard the use OF one OF these met
ais, silver as money. This curtailcd the sup
ply fer metal or redemption money about one
half throwing the burden wholly upon gold
the value OF which as a matter OF course j
increased or, what is the same thing
lowered the value OF everything that wa
measured with it,-that is reduced prices
rs a matter OF fact this increase in the value
Of gold, or decrease in general prices
now stands at about 50 per cent How mucl
greater this may become, if present conditions
are allowed to remain, it is impossible to tell
There has been time in the worlds histor!
when the yalue OF money was so high tina
wheat sold for two cents a bushcl And i
would be possible, by decreasing the amount
to make the value Of money SO high as to be
practically, beyondreach. That is, it might taxi
ten horses to buy a dollar or even to buy on,
cent, and the price Of land might be forced
down to a dollar an acre or even one mill al
acre. Upon tins subject Adam Smith, thu
founder of political economy, said: SIN