Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-04-17
MONEY ANDPROPERTY
THEIR RELATIVE VALUE PLACED
UNDER THE X-RAY.
The View OF One of Our. Greatest
esmen-Deprcctatio or InfIa-
ton OF Currency Directly Affects
Property Values.

| Stafesmen-Deprec or Infla-
ton OF Currency Directly Affects
Property Values.
John c. Calhoun, in his speech de-
fivered IT, tire United States Senate,
March 81, 1884, on the Bill to re.
charter the National Bank, said:
"All feel that the currency is a del.
icate subject, requiring to be touched
with the utmost caution; but in order
that it may be seen as well as felt,
why it is so delicate, why slight
touches either in depressing or elevat-
ing it, agitate and convulse the whole
community, / will pause to explain
the cause. If we take the aggregate
property OF community, that which
forms the currency constitutes in
value very small proportion of the
whole. What this proportion is in
our country and other commercial
and trading communities is somewhat
uncertain. l speak conjecturally in
Ixing it as one to twenty-five OF
thirty, though presume that is moi
far from the truth; and yet this pro-
portion in our country and other com.
mercial and trading communities, reg
ulates the value OF all the rest, and
forms the medium OF circulation by
which all its exchanges are effected
bearing in this respect, striking sim.
ilarity, considering the diversity OF the
subjects, to the blood in the human
or animal system.
"If we turn our attention to the
laws which govern the circulation, we
shall find one OF the most important
to be that, as the circulation is in.
creased or decreased, the rest of the
property will, all other circumstances
remaining the same, be decreased OF
increased in value exactly in the same
proportion. To illustrate: If com.
munity should have an aggregate
amount of property of $31 900 900, oi
which 81 ,0O0, 900 constitutes its cur.
rency; if that 100000 be reduced
one-tenth part, that 10 to say 500 900
the value OF the rest will be reduced
in like manner one-tenth part, that il
81, 100000. And here q very import.
ant fact discloses itself, which ex.
plains why the currency should be
touched with such delicacy and why
stability and uniformity are such es.
sential qualities; I mean that a small
absolute reduction OF the currency
makes a great absolute reduction o
the value OF the entire property of the
community, az We see in the case sup.
posed, where reduction of 500, ,OO(
in the currency reduces the aggregate
value of property 100000, a sum
thirty times greater than the reduc
ton Of the currency.
CURRENCY CONTROLS VALUES.
From this results an important
consideration. II We suppose the en-
tire currency to be in the hands o
one portion of the community, ant
the property in the hands of another
portion, the former, by having tht
currency in their possession, nigh
control the value OF all the property il
their community, and possess them
selves OF it at their pleasure. Tak'
the case already selected, and suppos,
that those who hold the currency. di
ninish it one-half by abstracting i
from circulation, the effect of which
would be to reduce the circulation Il
$5OO.OO the value OF property woult
also be reduced one-hslf-that is, SIS,
600, 900. Let the process be reverse,
and the money abstracted be gradual
ly restored to circulation, and tn,
value of property would again be in
creased to s30,OOO,OOO. 1t must b,
obvious that by alternating these pro
cesses and purchasing at the point O
the greatest depression when the cir
culation is the least, and selling at th'
point of the greatest elevation, wher
it is the fullest, the supposed moneyee
class, who could at pleasure increase
or diminish the circulation by alb
stracting or restoring it, might also 6,
pleasure control the entire property O.
the country.
1t results from this that there is 9
dangerous antagonistic relation be.
tween those who hold or command the
currency and the rest OF the commun
ity; but fortunately for the country
the holders OF property and of the cur
rency are so blended as not to consti.
tute separate classes. Yet it is worthy
of remsrk-it deserves strongly to at.
tract the attention OF those who have
charge of the public affairs-tha,
under the operation OF the banking
system, and that particular distribu.
tion OF property existing in the shape
OF credit or stocks, public or private
which so strikingly distinguishes
modern society from all that preceded
it, there is strong tendency to create
separate moneyed interest, accom-
panied with all the dangers which
must necessarily result from such
separation, which deserves to be most
carefully watched and resisted"
THE "NoNEYED INTEREST" NOW EXISTS.
The relation between money and