Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-08-25


blessings and the burdens Of government
Mr. Cockran's discussion OF the cur
rency problem will not earn for him RANK
among the economists OF the Worlu.
Much OF his eoouence was devoted TO am
effort TO prove that the volume of money
In circulation in country has nothing 10
do with property values or prosperity;
Tpon this point most OF the accepted
economists take issue with him. AS Ia
these later years Mr.. Cochran mas pc
come an ultra conservative. perhaps this
quotation from John stuart Mli VIII DC
held in respect by him:
THAT an Increase in the volume OF
money raises prices and a diminution low
ers them is the elementary proposition IN
the theory Of currency, and without 1t we
should have no key 20 any of the others
. or. IL Mr.. Cochran desires citation 70
more modern student Of economies 10
man more Immediately in touch with
present day economies, he can learn from
the writings OF General Francis A. Walker
that:
some monometanlc writer's. indeed.
have undertaken TO prove that The demon
citation of silver has had nothing 10 do
with the fan Of gold prices. Such pro-
position is. on Its face. monstrous, absurd
II a number of nations have largely d.
minishCd their use of silver and largely
increased their use Of gold, this must have
had the effect to lower prices expressed ID
terms Of gold. To deny this IS to deny
that demand and supply determine value.
But, says MIR. Cochran, What II the
supply OF money is decreased? In the
larger transactions OF life there IS no
money used at all" Upon invesuga-
ton. this declaration SINNERS down TO
the assertion that II the people have not
money enough for their business they
can use chccks-a contribution TO ecoho-
mics which irrosistiby recalls the cues
ton OF the French princess: IF the peo-
pie have no bread. why do not they eat
Cakeg' Yet, there IS half truth IN MT
Cockran's argument. Undoubtedly, the
wide use OF bank credits, checks, ana
drafts does TO some extent relieve the
monetary strngency due 10 contraction
Of the c-lrrency For aifording this re-
lief the bankers are paid, and IT is N
order that they may at ell times be
called upon 10 furnish this service, 70
their own great profit. that all bankers
are on the side Of every movement which
looks to a contraction Of the circulating
medium But. even the supply Of TINS
credit m0ney--checis and dratts-is limit
ed by the supply OF basic money, when
was once sold and silver. and IS now
gold alone. Inc case pl Niit hStlh Ntt.i
bs taken as typical of the whole banking
community. IL does a great credit busi-
ness on a comparatively small stock Of
actual money IN its vaults. II this stock
OF money by some disaster-thett or loss
De halved its credits VIII have 10 be re-
'duced So with the individual ana Win
the nation The stock OF money avalia-
ble fixes the amount of credits acting as
money which can be emitted safely.
Mr.. COCHRAN has. by implication. de-
MED that the increase or decrease OF
the volume OF the currency atecls
prices. His position on this point is
as We have already noted. controvertcd
by practically every economist VINO
has won authoritative place IN TINS
century he has also denied that the
demonetizAtion of silver has erected
ANY material contraction x the cur
rency, because bank credits have taken
its place. Here, too. he is at odds WIKI
the scientific students of the money
question. Finally he throws his glove
in the face of all teachers OF accepted
xcoIsomic dogma, by attempting 10
prove that falling prices are adNanta-
geous 10 the community and 10 lhdl-
vduals. In imprisoned defence OF
what he. perhaps honestly, believes the
[
you shall not obscure the golden pros
pect OF a further Improvement in his
condition. by a further cneapening Oh
the cost Of living as well as by tur-
ther appreciation OF the dollar Wnlch
is paid him"
Now Mr.. Cochran is not so young
a man as 10 be ignorant OF the history
Of his country. lie has been observant
Of public phenomena for many years
and he must recall tho fact that every
| era OF rising prices has been an era
l Of commercial prosperity, every period
OF falling prices a time OF Industrial
distress. Confidence between falling
prices. commercial depression, and ic-
| eislation for the contraction Of the cur
| rency has been given several striking
/ illustrations since 1860 in the United
| States. In Europe, the same intimate
connection between the volume Of money,
| prices, and prosperity was disiressinsly
/ shown in the dark years OF 1918,
when prices fell p per cent. Mr.. Cock
ran may be challenged TO cite one pc
Rod in tho history Of the world when
falling prices were not accompanied by
| the grayest commercial distress.
We do not have to rely on the evil
| dence OF history or the arguments OF
]
Mr.. Cockran's novel theory that falling
prices are beneficial. II We study the
conditions to-day. we End that with
everything cheap industry is paralyzed.
| and men are cheaper than ever. II the
/ eloquent orator Of Madison-S Square Gar
den will attempt 10 finance any pro-
| ductlve onterprise-eXcept that Of pro-
| duclng Mckinley Voters-he will find that
| money cannot be borrowed 10 be used in
manufacturing or producing goods. the
| prices Of which are likely 20 be cheaper
| six months hence than now. He viii
| find that the charm Of the approaching
| value Of the dollar in which he thinks
! the workingman should be paid appeals
| also TO the capitalist. who Is content 10
| keep the dollar IN his own vaults, and
! enjoy It's EXCHANGED value himself. IL is
the nature OF men to cling 10 that which
is growing more valuable. and TO unload
property which Is deteriorating. The APP
preciating dollar which Mr.. Cochran so
admires is a dollar for boarding. not one
10 be rsked in the enterprises Of pro-
| ductiye Industry. To-day II is easy to
borrow money on interest bearing bonds
OF perfectly solvent corporations OF a
public or a semi-public character. but
how easy Is IL TO borrow on the best
farm-lands. on the best equipped factory,
or on a stock OF goods? Money Is abso-
lutelv driven from the channels OF pro-
ductive industry, and therefrOm result
absolute stagnation OF business, dearth
OF employment, a grave curtailment OF
the purchasing power or the people, ana
widespread distress. That. with rising
market. which is rising prices, business
revives, factories reopen. the avenues
for the employment OF labor are multi
Of nf -