The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1896-09-04
OUR SUPPLY OF MONEY.


Increase the amount of money
more rapidly than the demand for
money increases, and you lower he
value of a dollar; decrease the quaint
tv of money while the demand for it
increases ana you increase the value
of dollar"
In Mr.. Bryan's Madison Square
speech. after making the above sound
statement, he quotes from one of
James Ct. Blaine's speeches in Con-
gress in support of the same. The
last part of the proposition is the
actual situation of our currency at
present time. Despite the statements
made to the contrary, the quantity of
money in circulation today, in the
United States has been greatly de-
creased, and the standard of value, the
gold dollar has correspondingly APP
preciated.
The gold men say that We have in
the United States circulation of gold,
silver and paper money which is
twenty one dollars per capita for every
man. woman and child in the country.
While this is the amount supposed to
be in circulation, yet the truth of the
matter is far different.
We have in round numbers sixteen
hundred millions of currency in the
United States, divided as follows:
Gold coin, GOO millions; silver coin,
625 millions: paper currency, 3S3 mil
lions. 1t requires no argument to show
that the 600 millions of gold is out of
circulation among the masses of our
people. One needs only to put his
hand in his pocket to ascertain the
fact that gold does not circulate. Then
let him try to remember the time
when he did have gold coin, and spend
and receive the same freely. This 600
millions has not been in circulation for
a number of years.
Furthermore, at the present time $50
millions of coin certificates are locked
up in the Treasury of the United
States in the shape of a reserve fund.
leaving in circulation of the sixteen
hundred millions, eight hundred and
fifty millions of currency, or about
twelve dollars per capita for every
man, woman and child.
France has today, thirty-six dollars
of money in actual circulation per
capita. of which twenty-five are gold
dollars, thirteen silver, and one paper
Surely we are not in danger of inha-
ton, if France can prosper with three
times as much money per capita as
we have; while at the same time she
spends more annually to maintain her
army than the United States pays
both to sustain her army in the field
and her army out of the field, the
pensioners. At the same time France
has been rapidly paying off her large
national debt.
Our commercial transactions are
greater and require more circulating
medium today than ever before, and
there is little danger at present of lin
creasing the amount of money more
rapidly than the demand for money
Increases Our contracted currency,
onthe other hand, has had depressing
effect on business generally; the value
of fixed investments has been grad
ually rising, and prices of agricultural
and manufactured products have
been gradually falling.
No man feels like investing in an
enterprise in which the price of the
manufactured articles is steadily on
the decline, ami in which his invest
ments in raw materials will be losing
venture, because of the gradual re
duction in price, before he can get his
finished article on the market.
Under the free coinage of silver,
prices would undoubtedly rise, but
the rise would be Il gradual one, just
as the increased volume of currency
would gradually be disseminated
among the people.
With a steady rise in prices capital
lists would invest in enterprises and
give employment to thousands who
now have no employment, because the
contracte and stringent condition OF
money leads them to withhold it from
business.
EFFECT OF DEHONETIZ1TION OF
SILVER.
The opponents of Bryan and Sewali
say that the low bullion price of silver
today is due to the over-suppIy OF that
article and not to the decentralization
of silver in 1873.
In the discussion of question of
political economy, there are so many
phases of the subject to he considered
that it is almost impossible to reach
absolute conclusions. In mathema-
tics we begin with certain aXioms
which are universally admitted to be
With sound reasoning from these, the
conclusions reached must be equally
indisputable. But in questions Of f.
nance it is far different. Dogmatic
STATEMENTS are mere lb nc ftSdThPh
with diStrust, and are too often used
10 cover lack OF knowledge and
thought Oh the subject.
In discussing the money question,
we must consider and he guided in
great measure by experience in the
past. one of the propositions most
frequently stated and used by the
gold men j. the one thtt increased
supply OF an article maze, the prize OF
tua. aFft@ie lower, while decrease in
t'ie supply without decreasing the De-
nanl raises the price.
Thj- law :, uo Gonbt, = factor. but
it is not the only camse. W"Enli that
the reconciliation OF silver would III
crease very materially the price OF
that article.