The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1897-10-23

~ - 49,
and cheap money advocates that prices
ere regulated by the amount of money
in circulation and that there is any nee
cssary relation between prices and
amount of money. When driven from
one position the bimetallists take ref
uge in another Just as insecure and il
logical, but perhaps a little more hid
den by sophistry. The mOreenlightened
among them do not now assert that to
double the amount of money is 10
double prices. They generally admit
that the rapidity of circulation and the
use OF credits affect the efficiency Of
money and prevent an exact statement
of the relation between amount of mon
ey and goods, but that more money IN
doubtedly means higher prices, and vice
versa.
The per capita idea of money so prev
aleEt with silverites is disproved in
many ways. Statistics of prices and
amounts of money per capita in use in
different countries at the same or at
different times fail to show any certain
relation between prices and money.
Thus. while prices have declined in the
world and in this country very great
y since 1890 or 1852 or 1872, the
amount of money Ia use has increased
enormously. From ! Per capita circu-
lation OF $3.50 in 1850. $14.G3 in 1852 and
$I8.19 in 1872 VIC now have one of S23,
and this Notwithstanding the greater
rapidity of circulation of modern dol
lars and the vastly improved and ex.
tended use Of c:cui.s. VIII some more
money" advocate please explain this
great fall of prices in connection with
the great increase in per capita
money.
Ag2in, the Ter capita circulation OF
the gold standard countries cfthe world
IS about SIS; hat OF The silver standard
countries only about $3.50. VIII some
Of the silverite professors vino are con-
Quoting Financial schools" in western
and southwestern states explain TO
their classes why prices IL silver stand
ard countries are about tIice IS high
as il geld ajaEGa!d countries, although
tie FER capita circulation is less than
oae-lLird as great: VIII they explain
that The value C ;ae material from
which the money :: made has much
more to 90 witt lie prices than the
amount Of money il use? VIII theF tel
their classes thai geld has always been
more valuable, weight for weight, than
silver, and that il has recently become
30 times as valuable While NEST Of :he
coming ratios Of ihe world we're ,a.ab-
lished when geld was only Is or Is
times as valuable as silver? VIII they
then explain tina; the value of both
gold and silver bullion is fixed in the
long run by the cost of production and
that therefore the value of bullion does
not derond upon the quantity of money
in l,.yD'a;;on?
WI they try to make ii clear that If
it tales Gye hours q l2hor to pro-
dues i bushel of rh~u; and five
hours of labor to produce 1922
grains of gold one product will eN-
change for the other-that is. the price
Of wheat will be 81 per Gushel under our
present standard? VIII they thcn add
that if it requires only 2h hours work
u ssECtalGt SICll-I SiA'Nl ASt "A StSiA''J /
- make q dollar that the bushe! of
Y. at will not exchange for less than
;uo silycrdoliag and thattlis is the rea-
IN VII --,rasare Observation-Disclosures
ard countries? VIII they explain the
original american financial policy"
which vas % keep t.e caiaaGe ratio as
{ Q ,a i.ossih!e tc the market ratio?
vi iAey ask the members Of their
classes to vote TO restore this thor
III A1.grican financial policy?"
If the .arIs of silver professors and
hap money statesmen who ar con
Ct...nr TIE "nation&i financial school"
faf 10 aaswc the preceding questions,
!.-a.:s they are willing to explain
= II l,o3s Of money are included in
; e. G3 the amUunt Of money which
1t prices. Da55 i include all kinds
q; as.irsmcnt or state paper moneys rs
. i. as g1lI. silver aud copper CONS?
rs.z / include bank notes, which form
r considerable proportion OF u pres
c.t circulating medium? Ifyou include
government and bank notes. Why not
include Gaak credits? Are not more eN-
changes and greater exchanges effected
L. r.,ans Of checks than ~ means OF
either paper money OF coins? IS ii not
as c..sy for cue who has credit" de
LISTS in 4 bank TO buy and sell as Ii
h had money in his pocket? Do these
credits or deposits necessarily consist
q E5a:y al all? if q man has that
ama..at {: property, y"u lie not have
100000 credit with his bank on which
to draw checks at any time? Cannot
such a man buy and sell on q large scale
without the use Of ordinary money?
Why, then. should hank deposits not be
included in making up the Per capita
circulation of the country?
When the classes of the national
financial school, can pass an eXamina-
ton in these per capita" questions, we
will prepare n set Of questions on other
! subjects. as. for instance. the cause of
high and low interest rates, the advan-
tages of high prices. the blessings of
cheap money, etc.-Byron W. Holt.
Important Business.
aApDoip+ vour committees Mr. Reed.