The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-07
RIVER AT 8 A. NJ.
A REMEDY SUGGESTED

The discussion of the all-pervading
financial question would be a pleas
anter and more profitable task If all
communications concerning it were
written with the intelligence and fair
ness Of spirit which characterizes a
letter from Mr.. George c. Lambert,
which appears in another column. The
writer, moreover, propounds certain
questions which it gives us great pleas
ure to answer, AS to the "quantita-
tive theory of money" as he states it.
we have, of course, denied it's validity,
and do SO again. We do not
recognize the authorities that he
quotes, Graham and Stewart. as
of final weight in any such
controversy, and we have only to re-
peat the assertion originally made that
In the present state Of civilized devel-
opment, with the enormous volume of
international exchanges Of commodi-
tles' ana with the fixing of values by
common agreement of the world
prices will vary by additions to money
volume only when such additions af-
rect sensibly the relation of the total
supply of commodities in the CONNER
clal world to the total volume
OF money in all the principal conn
tries. That an imitation of the chr
rency by an addition of CHEAP money
VIII raise prices by debasing the cur
rency Is, OF course, admitted by everv-
DOQY. The
money Is all right as applied to the
great international business world of
To-Day. 1T was all right as applied to
single country in the period when
foreign trade was limited. a nations
business was done chiefly with
'tself' and It's monetary experiences
We're Its own concern. AS applied TO
modern conditions, 1t can be Accented
only as we have stated it. in the broad
and general sense.
1t is quite true, as Mr.. Lambert saws
that Prof. Laughlin falls into an arro,.
IN speaking of intrinsic value" This
however, as he commits it, does not
anect his argument at all, but is a
mere misuse of language. If he had
SAID, what he really meant, the "com-
Aloolty value of the silver dollar, he
would have been accurate without
changing the sense as he meant 70
convey it. So, of course. all econo-
mlsts must admit that there is no
such thing as a general fall.in val
ues," because value Is a ratio.
haNn
clent to bear out the assumption that
the volume Of money is not nronor-
tlonate to the demands made upon If -
since the fall of prices does NOT af-
feet all commodities, 1t seems to. us
mat this is a conclusive proof thar II
cannot result entirely or even largely
from an appreciation IN the value of
money. Referring our correspondents to
general price tables, and especially to
the report of the senate committee ON
hnance on prices and wages. he will
ma that there are many things that
nave risen, while others were falling:
and especially that the commodity of
chletest Importance and of most GEN
eral supply, namely, labor, has risen
materially in value, while other prices
1en. Therefore, we have to DENY en-
tirely his proposition that we need an
increase of money to keep pace with
increase oe population and extension of
trade.
What the G o b e holds is that the
Veiume of money should be, for pur
poses Of convenience, accommodated
to the wants of trade in both direc-
lions; namely. by contraction, as well
as by expansion, exactly as the volume
of any other commodity is We do not
think of saying that the number of
coats must be Increased to keep pace