The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-02-12
How An Increase of Currency Will
Reach the People.
THE VOLUME OF MONEY IN
CIRCULATION CONTROLS
PRICES.
Contraction of the Currency Increases Taxes
and Lowers Prices-An Increased Money
Volume Lessons Taxes and Raises
the Prices.
Facts and Figures Showing Cause of Recent
Panics-Able Exposition of the Whole
Subject by Ex-Congressman Davis.

An intelligent Populist correspond
ent asks me to state in as few words
as possible how an increase of the cur
rency Of the country will benefit the
common people who are at present
without money. In other words;
suppose more money should be issued
by the government, how would any
particular individual now without
money get any of it or in any way be
benefited by it?
The question is an important and
very proper one. But, before answer
ing it, let me ask another covering
the same ground from another point
of view. Suppose the government
should issue more money, and pay it
out in the usual disbursements of the
government, for pensions, running
expenses, ETC., and for all those pur-
poses for which appropriations must
be made, thus making money plentier,
prices Of labor and property higher
and taxes less, how could any individ-
ual man now without money fail to
get some Of it, and to receive some
benefits from the issue?
Then, again, to make the matter
palmer: The running expenses of the
government, including the usual dis
bursements, for which appropriations
are made, are about five hundred mil
lion dollars $500, 0,000.O00) per annum.
Every cent of that immense sum costs
every individual man something, be-
cause he uses taxable articles or buys
goods at higher price on which the
merchants have paid taxes. The
facts show that almost the entire
amount of the government taxes to
meet its expenses and disbursements
fall directly or indirectly upon the la
Dor of the cOuntry-upOn the common
people, who are usually very scarce of
money. Now suppose instead Of max
ing appropriations and levying taxes
to pay that $500, 100000 per anuum,
the government should issue new
greenbacks to that amount and pay
them out to the pensioners and en-
ployes of the government, without
taxing any body single cent. This
would not be giving or lOaning money
to any body, but it would permit
every man and his neighbors to keep
what they have or are trying to get, to
the amount of $500, 600, 900 per ,annum.
The question now is, would that bene-
fit any individual man to any extent?
The answer is seen by dividing $780,
OO0, 900, by 10000. coo people. 1t would
be a little over seven dollars per an
fNr ,,l, Ill -
In the nation, or about fifty dollars
per annum for each family of seven
persons. Now with the fact in view
that such taxes fall entirely upon con-
sumption, it will be seen that people
of small means cannot escape paying
Z their full proportion. Then the QueS-
tiOn arises, will it benefit a poor man
to have his taxes of fifty dollars per
annum remltted? Will it not be
equal in benefits to direct gift to
him of fifty dollars per annum? Will
1t help him any:
But there is another and broader
view Of this subject. We arc not suf-
fering so much from the want OF mon
ey in existence as from the fact that
the money in the country does not
circulate. 1t is boarded in the banks
and will not circulate. And there is
no physical force in existence that
can make it circulate. Why is this?
1t is because the population and
the needs OF the people for money are
increasing and the volume Of money
is not. This condition of things
causes falling prices: and money will
not circulate freely during IL time of
falling prices. The men owning mon
ey place it in the banks or otherwise
hoard it. waiting for prices to touch
bottom. No man VIII invest or pay
out his money during time of gem
eral falling prices ii he can help it.
Why should he build a house or buy a
farm, or in any way invest his money
If it will cost him less to do so
month or two later? He will not do
it..
So our situation today is this: Mon
ey is boarded and will not circulate
because general prices are tending
downward, and prices will not cease
falling as long as money is boarded.
1t is game of freeze-out. One condi-
tion perpetuateS the other. Neither
will yield. And. without the assist
ance of some outside agency there is
no escape from general bankruptcy
and ultimate ruin.
Now let the government enter the
field with new money to be paid out in
the annual expenses and disburse.
ments of the government. The dead
lock is then broken. There is gen
eral rise of prices. individuals at once
see that there is profit in the use Of
money. Immediately the money is
checked out Of the banks and set to
work; labor finds employment in max
ing long deferred improvements.
Every man with either property or la
bnr frr Gale tn meet his rSnOal Or
family expenses, finds market for