The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-11-21
A MISLEADING ASSUMPTION.

Recently several gentlemen met to listen
to two or three persons who have theories
and views on the monetary question. The
strange thing about the affair was that
those who taught assumed that there had
been a general shrinkage of values because
the worlds commerce is transacted upon
gold basis. Their assumption is that
scarcity of gold has caused it to appreciate
since it became the general standard and
measure of values.
The difficulty with the few men who hold
this theory and claim to be investigators is
that they have not investisa ted. They have
started out with n assuUl ption and have
employed their time in hunting for data of
some kind to sustain their assumption.
For the most part their alleged data are
fresh assumptions. at best half assump-
tions. They ignore the facts presented by
statistics and experience. They seem not
to realize that the volume of the output of
gold has increased about 100 per cent dur
ing the decade; that the gold used money
in the world has increased from So, 294, 600
in 1883 to SAFE. GEO. eco in $780, or over % per
cent, or that silver money, largely full
legal tender, has increased from 81. 754.OOO.-
600 in 1883 to s44s4,OOoQ 900 in 1S9O-an increase
much larger than the increase of COM
merce during the same period
These persons who blindly cling to an
assumption as if it were proved fact take
no account of the wonderful development
of the banking power and it's economizing
of the use of gold and other real money
for facts, else they would learn from Null
hall and others who deal with facts and
figures that since 1910 the banking facilities
of the world have increased eleven fold.
three times faster than trade and thirty
times as fast as population has increased.
They do not take into account the econ
omizing of the use of actual money by the
introduction of steam transportation, the
telegraph and ocean cables.
Not long since it was shown by COM
petent authority that the foreign trade of
the United States, Great Britain, France
and British India during the period 1SeO-e4
aggregated slS,56S 1876. 2l3, and that s3143,656.-
PAL of specie was used In making the
change of that volume of merchandise.
That is. the actual money employed was
equal to IL per cent. of the value of the
merchandise. During the period 1850 the
aggregate foreign trade of the same coun-
tries was $685. 2O4. 521.3S5, and s2,7l7. 3347S7 of
gold and silver used in transacting
that volume of business. which is equiva-
lent to 71s per cent. Thus in the later
period % per cent. more OF commerce was
carried on by the use of Is per cent. less of
actual money than In the first period.
=, The minds of these profcssed investiga-
tors do not seem TO be open to such argyll
ments these pregnant facts present.
They are so intent on proving their theory
or assumption in order TO vindicate their
own infallibility that they have no time to
devote to the facts coming from expert
ence They seem to believe that every COM
mercial transaction involves a payment of
s1C0 in gold it's equivalent for the ex-
change of every 500 worth of merchandise.
when, as a matter of fact. more than 90 per
cent. of the commercial transactions of
buying and selling are performed without
the use of a dollar of coin or its equivalent.
They do not realize that gold or it's .equiva-
lent is more the standard OF payments than
the actual measure of values.
What these assumptionists believe as
sert would be of no account whatever if
they were not able by the air of this is
settled" which they assume in all discus
sions of the money question, to lead many
others TO accept their heresies without
question. 1t is time TO get rid of the some
what current idea that the scarcity of gold
has had any material effect upon the de-
cline of prices. because the preponderance
of facts is against that assumption.