The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1896-10-16
THAT QUALITATIVE THEORY.

the discrepancy existing between the
actual facts and the assertions made
by the Popocrats that more money
would cause better prices, and we
showed that during the last twenty
years the increase in the volume of
money has not in the least increased
prices of manufactured products,
while up to 1892 the average price of
farm products remain about the same.
If the cumulative theory of money is
true, all prices should be much higher
now than in 1873 because our money
volume has more than doubled.
Harper's Weekly last week in an able
editorial reviewing the fact that more
money is not demanded, gives few
facts upon the subject, and shows
that instead of more money being
needed, there is at present more
money than is actually necessary to
transact the business of the country,
and says that the sum now reaches
the enormous amount of $3.50, 100000.
1t shows that this amount of money
has not been needed because the vast
volume of business of the country
has been conducted by checks and
drafts, and only comparatively
small amount was needed to settle
the difference. The Weekly says that
"the advocates of the cumulative
theory of money have had their way
since 1878, much to the damage of the
business interests of the Union. The
amount of money in existence has
been more than trebled, while bust
ness is demanding only double the
UNI that was in circulation twenty
three years ago. In 1872, the year
before the crime was committed,
business was employing nearly all the
money in the country, but the makers
of money, who, like Mr.. Bryan, think
that the more the better, have gone
on adding to the stock of money, un-
all now, as we have pointed out, we
have 1899, 900, 900. more than we are u.s.
ing"
1t then calls attention to another
fact which has been revealed by the
lamp of experience and that is that
the increase in quantity of money evil
IDENTIFY has no effect whatever on the
condition of business, nor does a
large volume make matters more
stable and ward off panics. 1t says:
"The panic of 1873 was followed by
nearly seven lean years. Hard times
were upon the country but in 1879 the
amount of money in the country had
increased from STA, 445, 900, the sum
in existence in 1873, to S1,O51, OOO,O 900.
Dur ing the same time the per capita
employment of money had decreased
from S18.O4 to $l6.75. In 1877 it was
down to 1888, and in 1878 to 1882
Here is evidence enough to enlight
even Mr.. Bryan, that however much
the amount of money may be in
creased, business will use only what |
it needs. From 1873 to 1879, then,
business was in distress, yet the
amount of money at it's command,
though not employed by it, increas-
ed" The lamp of experience seems
to be pulling to pieces the cumulative
theory of money of the Bryanites re-
garding prices and general prosperity,
quite as badly as the present expert
ence with wheat in it's upward ten
dency, while silver has remained sta
tiOnary with rather of a declining
tendency, has exploded their theory
that silver controlled absolutely, with
no reference TO demand the price of
wheat Silver and wheat seem to
have parted company if ever the were
together and they have done'it at
very inopportune time for the 5O-cent
dollar advocates.
THE speech of Congressman Tawney