The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1897-12-17
THE MONEY VOLUME.
ALWAYS CONTROLS THE AVER
AGE OF PRICES.
Variations in Prices Caused by Shortage
Of Surplus OF Any Product-No Con-
Dollars Grow Fewer.

40 tAG No1uuAS IuCiSdSeS, ul1Ceo l1oS,
as it decreases, prices falr'-is hard
to perceive when applied to nation.
In order to make it clear, whether or
not it be true, let us apply it first to
a small community. Let us suppose
the case of an island, entirely isolated
from the rest Of the world. Upon this
island let there be twenty men, with
their families, but not cent Of money
on the whole island. Suppose you offer
your labor to a man for a whole year
for one cent; suppose you offer him
your years farm crop. delivered at his
door, for the same sum-one cent. You
could find neither an employer, nor
buyer, for the simple reason that there
is not a cent on the island. This would
be the situation with no volume of
money at all!
Suppose now that each man had one
dollar-100 cents. The volume of mon
ey is now $40. Renew again your offers
to labor or to deliver your years farm
crop. In this event you could obtain
for your years labor, probably as
much as 10 to 20 cents, and for your
years crop as much, or rather more
No man could give you more than 100
cents, for this number is all he has,
nor could he use them all for this one
purpose, as he needs must use some
for other things. Each cent would be
to him as precious rs diamond. vet
It's fair to assume one could obtain
the prices above quoted, 10 to 20
cents. Let us suppose again that each
man had $40. The money volume is
now 5000. Renew again your offer of
labor or farm crop, and it's only rea-
sonable to think you could obtain a
price of a dollar or so for either.
Suppose again that each man had
500. In this event the price obtain
able for like offers should be $40 to
$40. You see, as the volume increases
the prices rise proportionately Now,
let us suppose that each man has
$1,000; nay, more, say $4,000. In this
latter event it's not too much to ex-
pect that you could obtain for your
= Soi . iNbol VI Aal LII NlOJ lHG SUN III
$1,000. Each man would have plenty
Of money to obtain what he needed or
wished. Your labor or crop would be
desired and he would have the money
to pay with. TO the writer this illus
tration seems as clear as a simple the
orem in geometry that, as the money
volume increased, prices must rise
Let us now reverse the proposition.
Suppose each man started in with So
900, money volume would then be
100000. Then let certain laws be
enacted, the effect of which would be
to gradually reduce the money volume
on the island, little by little, year by
year, each man having less and less,
soon each to have only $4,000, then
$4,000, then $1,000, and so on until
each was again reduced to no money
at all.
AS each man found his dollars grow
ing fewer and fewer, would not each
become more and more precious?
Would you not have to give more and
more labor or products TO buy one of
them?
Is it not inevitable that prices would
shrink little by little, until again there
was no price at all?
If there il any error in this reason
ing the writer is unable to perceive il.
and so convinced is he of it's truth that
he Is running his business on these
lines on the basis that the tendency OF
all prices is downward, and must con-
tinue so for an indefinite time to come.
There is no bottom in sight.
Each nation that goes to the gold
standard will drive prices down an.
other notch.
EYES," says some party. but wheat
is going up; cattle is going up and
this, that or the other commodity is
going up, with the money volume re-
naming substantially the same. hence
your reasoning must be wrong"
Let us see. The needle of the com
pass points to the north pole.
Bring near it a ten-penny nail. AWAY
goes the needle from its natural course
for awhile, while the ten-penny nail
is near, but at once when It's removed
the magnetic attraction reasserts itself
and brings the needle again to it's
course.
Thus, when under shrinking money
volume any commodity rises in price.
look out for some ten-penny nail, and
its presence will not be usually hard TO