The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-08-16

some degree of fidelity, the changes
He will show, by the system of in
dex numbers. that, taking into view
not few years, but the sweep of
centuries. and not single country,
but the whole area of the industrial
world over the globe, that prices rise
and fall in some correspondence with
the supply of the money metals.
We think that both will be COM
PEELED to abandon their positions def
nitely. However great may be the
gold deposits brought into the service
of mankind, their total, when added
to the worlds circulating medium,
will be so small relatively that the
effect upon prices will be scarcely
more perceptible than the change in
the level of a reservoir several acres
in extent after emptying into it
hundred gallons Of water. Exchanges
are now carried on so largely by sub
stitutes for money, and with so small
basis of actual cash, that the guam
titative theory of money must perish
by the demonstration of it's weakness.
1t would be a fortunate thing, in
deed. If the influx of new gold into
the markets Of the world could have
corresponding effect upon prices.
The chief benefit would follow from
convincing the people at last Of the
worthlessness Of any metal or other
commodity or substance as a meas
ure of values. One by one we have
discarded such commodities and such
metals. until the world is now prac-
tically reduced to the single metal,
| gold, as it's standard and measure.
That standard, in the nature of
things, cannot be invariable Hith-
erto the variations supposed to exist
in it as a measure have been believed
| to work to the benefit of the creditor
| class. If, by any depreciation in it's
value, they could be seen to work for
| the benefit Of the debtor class, there
would doubtless be a stronger effort
20 get rid Of it. Whatever its flucrua-
| tions are, and in whichever direction
| they turn, they work an injustice in
| the terms of all contracts. Il is a
crime to make man pay back more
than he received. and equally crime
| to authorize him by law to pay back
less.
There will be TO escape from a
choice between these evils until we
have selected standard that is either
absolute in itself. or that varies in
| conformity with the markets and the
| conditions of human life. The former
is impossible because we have not yet
discovered anything not subject to
change. The latter is simple and
easy. The world ought to have adopt
ed long ago as a standard of deferred
payments. to be used in all contracts
extending over any considerable
period of time, a unit based upon and
derived from the average market
price of the leading staple commodi-
ties. These are the measures of hu-
man productivity and Of human COM
| fort. Money derives it's own value
from the amount Of such commodities
that it will obtain The use of such
a unit would simply be the equivalent
of saying 1 will loan to you TODAY a
quantity of metal or of credit that
will enable you to purchase today so
|
Of all the leading articles necessary to
life and industry. And 1 shall re-
| quire, and the law will compel you to
pay back to me, at the expiration Of
such quantity Of metal or credit as
will enable me to purchase in the mar
ket at that time the same number Of
| yards, pounds, gallons or acres of the
same commodities that you could buy
when you borrowed. This is Justice,
and it is also sound finance. If a.
| heavy production of gold could bring
DEBTOR and creditor together on this
| basis. renouncing the hope Of shyster
profit on either side through an in
crease Or a decrease in the purchasing
power of currency Of whatever ele-
ments composed. it would be the
greatest gain made by civilization on
| the economic side since the use of
money was invented These are some
of the enlargements and corrections Of
| the economic views that are most de-
sirable and that may possibly result
from an enormous addition to the
| worlds gold supply.