Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1896-09-22

1873, population, production and COM
merce have continued to grow and extend.
The use for money has increased. That
is, there has been more work for it to do,
and the work has been extended over
greater areas. If both silver and gold had
been fully utilized the production of these
metals would not have supplied suffi-
cheney of standard money to wholly main
tain prices. 1t is safe to say, however,
that with the larger basis for safe credit
which the use of both would have af-
forded, the fall in general prices would
have been slight. With silver discarded
as standard money, the basis for credit
has been contracted and prices have had to
shrink to come within the range at which
the exchange could be effected by the
quantity of standard money available and
the credit which it could safely maintain.
A single illustration is sufficient. Our
Minnesota wheat crop this year is esti-
mated at 100000 bushels. At 81 per
bushel it would take twice as much
money and credit to handle it as at pres
cnt prices. AS there is not enough coin to
furnish the necessary money and to sus-
tain the needed credit available for han
ding wheat at that figure, prices have
had to shrink to bring them within the
amount of money and credit available for
handling it. ~ e.
What is true Of wheat is substantially
true of all products. 1t is this shrinking
process, this necessity for a larger amount
Of exchange and products to be expressed
in q relatively smaller amount of money
and credit, that causes the continued fall
in prices and is responsible for the fore
closure notices and the failures which fill
our papers. But, say our opponents, it is
not the want of money, it Is the want of
confidence that makes the times hard. I
grant it. But, let me ask, the lack of con-
fldence in what? In our money? No, our
money Is SO good that it takes two BUSH
els of wheat to buy the silver dollar where
it used to take only one. It is want Of
confidence in business = in production
You can safely challenge any man TO point
out a line Of industry today that promises
profit unless it enjoys q monopoly. Fall
ing prices and prosperity cannot exist to-
gether. It is this condition of affairs that
1 has silenced the mill, closed the shop, Ind
{ turned hundreds Of thousands of efficient
workers into idlers and tramps Speaking
-of the results Of fall in prices, Professor
Marshall Of Cambridg university says:
s.A fall in prices lowers profits and Inn
poyerishes the manufacturer, while it in
creases the purchasing power Of those who
have fixed incomes. So, again, it en-
riches the creditors at the expense Of the
debtors; for II the money that is owing to
/ them Is repaid, this money gives them q
greater purchasing power, and they
have lent it at q fixed rate Of interest each
payment is worth moro to them than it
would be Il prices were high But for the
same reason that it enriches creditor and
! those who receive fixed incomes, It inn-
p0yerishes these men Of business who
( have borrowed and e iinpoverishes
{ those who have to make, as most business
men have, consid fixed money pays
ments for rent, salartes and other INIT.
& tiers g
E The tall in prices since the demonetiza-
ton 81: silyer IS nearly 30 per cent, as 5ls
shown|b 81 our Statistical reports and no
] o1B can assert, and give valid reason Tor
/ his that we; hare yet reachedt the
& botto I1sss money and q narToWarh basis
j Tor credit relative t0 the mount of work
forit todo always HIS and always viii
/ prodnee lowe. ears ago, On
aoe llQl zelgs lye