The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-10-17


The per capita argument Is one to which
the Populisss stick most eenacious,y,
When driven from ali other positions
which they have attempted to hold during
sistentiy declasm tina; prices are governed
By the volume Of money In circulation.
That II the volume OF money IN circulation
increases. the prices advance. while II the
volume OF money decreases prices fan
This IL the basis Of the whole nat money
demand for a heavy increase IN the circu-
lating medium. and Il is one Of the stock
arguments in advocating a policy Of free
coinage. which policy. they allege, with
out foundation, win result In IN Increase
IN the amount OF money In circulation
Now IL It Is not true that prices rise
and fsl with the fluctuations In the VOL
une OF currency. then this PopuIisric ar
gament falls to the ground. The statistics
entirely disapprove tfiss theory. The per
capita circulation OF the United States IL
in round numbers 81. The per capita cir
eulation in Central American countries il,
according 10 the reports Of the director Of
the mint. rather less than 81. According to
popu.istie theories prices In this country
ought 10 be fully twenty-five times as high
az they are in Central America. So far
that Seattle Is building up a very profit
able trade with Central America, by ship
ping there and selling many articles which
could be very readily manufactured there.
Prices of everything except home pro-
ducts Of the soil, are enormously high in
Central America. and of the latter, the
only difference in price between Central
America and the United States Is the
amount which IL would take to pay freight.
expenses OF handling and minor losses in
shipment TO this country. The price OF
coffee. the main export Of Central Amer
lca. varies but slightly In any port OF
that country from Its price in the ports o:
the United States.
And 50 IL Is with other countries. France
has a per capita circulation approximately
OF $40. Italy's per capita Is but SO. Tho
money coined in either country clrcula,es
at par in the other. pursuant to treaty
stipulztions. Yet the franc buys nothing
more on the Italian side OF the line than
1t does on French soil.
France has the heavier per capita cir
try, transacts more business and needs
more money to do IT with. II is not be-
cause IL has the heavier per capita clrcu-
lation that II is the Weather. as the Pop
ui,stic argument would have II. This ar
gument. like most OF the Popullstic argu-
ments, confounds cause and effect France
and Italy have the same monetary system.
the money coined by one Is good In the
other. no matter which country coins the
money. Il naturally and materially gravi-
tases toward the one which does the most
business.
This illustrates the whole question OF
per capita circulation. The way to retain
the largest amount OF money in circula-
ton is 10 produce more at home and
trade less abroad. II the money. no mat
ter what its metal may be. Is kept at
home. and u In addition thereto coun-
II St4tS VI 1tS ActkbE aBFoS4I
thus bringing in more money. the per
capita circulation VIII steadily rise. MINIS
cut but minor feature in the matter. as
compared with the workings OF favorable
balance OF trade.
Here is the difference between the Re
psshiican and the popuiistlc platforms. The
latter proposes 10 make good times by
setting the minis 10 grinding out dollars,
worth nothing more In that form than they
were as bullion. The Republican pro-
gramme is 10 set the factories at work
under conditions which VIII not only af-
ford profitable employment for the labor
OF the country, but vii prevent the money
Of tho country from going abroad 10 buy
what can just as well be made at home