Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-08-28

kind of a bushel will do. I am going TO
measure these potatoes in an eight-peck
bushel." Away. then. with the solemn
cant about the best dollar"
We have now to note a difference be-
tween a measure Of value and other meas
ures. You put before boy foot rule and
a board and he can compare them and tell
you there are ten foot lengths in a board
but if you put 81 alongside the board and
ask him to compare the 81 and the board
can he do it? Could you. if you had no
knowledge of the lumber market? Take
the value of a horse measured in dollars
Suppose the number Of dollars in a country
be doubled. will that affect the price Of
the animal? Suppose the number of the
horses be doubled. will that disturb the
exchange notes between dollars and
horses? Certainly. on the other hand.
does the number of foot rules and half
bushels In any way affect the number of
inches in a board or of bushels in a bin?
Certainly not. In fact. when we compare
things, not in respect to their own quail
ties such as length or weight, but in re-
spect 10 relative value. we always find the
law Of supply and demand governing.
You can readily compare a basket of po-
tatoes and basket of peaches in respect
to weight but when you want to compare
them in respect to value YOU have got TO
take in account the crop or supply of each
and the demand for each. The law of sup
ply and demand governs the exchange ra-
ito Of hats and caps. Of coal and cordwood
of copper and steel. and likewise of dollars
and goods. e., it controls price and pur-
chasing power.
Often YOU hear it said: There are al
ready enough dollars TO do the business
of the country and TO measure the value
of its products To make a lot more dol
lars would be as silly as to double the
number of bushel baskets or of yard
sticas." But if what l have just said is
true the number Of dollars has good deal
to do with the honesty of the dollar while
the number of yardsticks has nothing 10
do with the honesty OF the yardstick.
The prices in a country, therefore, de-
pend upon the supply and demand of dol
lars. or better yet. upon tie demand and
supply of money work. The more rapidly
the dollars go from hand TO hand the
more work they do. just as he more trips
the locomotive makes the greater its
duty" The supply of money work de-
ponds upon two factors-upon the number
of dollars and upon the average rapidity
of circulation. If dollars passed from
hand 10 hand twice a week instead of once
a week the effect would be the same as
doubling the number. Now the demand
for money work depends upon four chief
factors. There is. first. the quantity OF
wealth. Other things remaining the same
the more wealth to be exchanged the low
or the range of prices. Then the moro
hands this wealth PASSES through on its
way to the consumer the more business
and hence the greater need of money. The
need IS lesscned. on the other hand, by
resort TO barter and by the use of credit
these then. are the six factors in deter
mining the level Of prices.
Is the government under any obligation
to guarantee an honest dollar? We find
that all civilized governments feel under
obligations TO guarantee the yardstick,
pound or gallon, and one found using
measure differing from the legal pattern
can be punished. Thousands of dollars
have been spent in sending men to find the
length Of a degree on the earth's surface
IN OIuFI 10 NfliNt A4Oltl IL al t'NlNtiNA4lN =. -
tenn of measures. II the government I'M
dertaIles to guarantee measures Of weight
or capacity. how much more is il bound
10 guarantee an honest dollar? Granting
this obligation. how is to be discharged?
How shall the government 20 about it
to maintain an honest dollar? Why sim
ply by controlling some one of the six fac
tors that control the price level.
Let us take them up separately. In the
first place. the government cannot control
the quantity of wealth to be exchanged,
nor can it control the number of transac-
lions each article gives rise 10. It cannot
govern the use Of barter nor can il deter
mine the extent To which men shall resort
to credit IN fact TO maintain a price
level by altering the demand for money
work 20 suit the existing supply would be
as absurd as pairing a boys feet down to
III his shoes instead of stretching the boys
shoes to tit his feet. There yet remain the
two factors of supply-number OF dollars
and the rapidity Of circulation. Can the
government control the latter? No. Can
the government control the former? Yes.
The government can certainly affect the
number Of dollars C.. the volume Of
lawful money I'm the country. The ways
i'm which this may be done I shall speak
of later F. \. ROSS.