The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-05-13

PER CAPITA MONEY.
DO PRICES DEPEND UPON AMOUNT
OR UPON KIND OF MONEY!

a.. SeN
Conducting 'ne Netionai Financial
sohoop-why Are Prices High and Per
Capita Money Low In Silver Standard
| Countries9 Should Deposit. Tn nonks
BE Included In Estimating Amour, q,
mo,ov u,,., .o.o,. pr,o...
One Of the numerous fallacies upon
which the free silver delusion is found
ed il the assumntjon nv all s;lver;tea
and cbeon money advocates that rr,ceo
o~o u.a,p..s -. 49, . -. 80 - - - .0s'
~ o;.as,a.:o So ~ ' IL. . .n "a lnone'
AZ ''i'''ao'oii anu sn"' 'ieie ~ any heo-
essary reiation 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 little more hid
den by sophistry. The more enlighten-
ed among them do not now assert that
to double the amount of money is to
double prices. They generally admit
that the rapidity Of circulation and the
use Of credits affects the efficiency Of
money and prevents an exact statement
Of the relation between amount Of mon
ey and goods, but that more money un-
doubtedly means higher prices, and vice
versa.
The per capita idea of money SO prev
alent with silverites is disproved in
many ways. Statistics Of prices and
amount Of money per capita in use in
different countries at the same or at
different times fail to show any GER
tain relation between prices and money.
Thus, while prices have declined in the
world and in this country very greatly
since 1900 or 1869 or 1879, the amount
of money in use has Increased enor-
mously. From per capita circulation
of $4.99 in 1900, $14.6S in 1862 and
SIS. 10 in 1879 we now have one of $23,
and this Notwithstanding the greater
rapidity of circulation Of modern dol
lars and the vastly improved and ex-
tended use of credits. Will-some more
money" advocate please explain this
great fall Of prices in connection with
the great increase in per capita money?
Again, the per capita circulation Of
the gold standard countries Of the world
is about $18; that Of the silver stand
ard countries only about $3.50. Will
some of the silverite professors who are
conducting financial schools in west
ern and southwestern states explain to
their classes why prices in silver stand
ard countries are about twice as high
as in gold standard countries, although
the per capita circulation is less than
one-third as great? Will they explain
that the value Of the material from
which money is made has much more
to do with prices than the amount Of
money in use? Will they tell their class
es that gold has always been more val
liable, weight for weight, than silver,
and that it has recently become SO times
as valuable while most Of the coming
ratios OF the world were established
when gold was only 10 or 10 times as
valuable as silver? Will they then ex.
plain that the value of both gold and
silver bullion Is fixed in the long run
by the cost of production and that there
fore the value Of bullion does not de-
pend upon the quantity of money in cir
culatlon?
Will they try to mako 1t clear
that il it takes five hours Of labor to
produce bushel of wheat and five
hours Of labor to produce 29. 80 grains
Of gold ono product will exchange for
the other-that is, the price Of wheat
Will be 81 per bushel under our present
Will they then add that il it
requires only az hours work to pro-
duce enough silver (371A grains) to
make dollar that tho bushel of wheat |
will not exchange for less than two sill |
yer dollars, and that this is the reason !
why prices are higher in silver standard |
Will they explain the origi-
nal American financial policy" which
was to keep the coinage ratio as close
as possible to the market ratio? Will |
they ask the members of their classes to
vote to restore this Thoroughly Amer
can financial policy"
If the corps Of silver professors and
cheap money statesmen who are con-
iucting the national financial school"
all to answer the preceding questions,
they are willing 70 exnlein
what kinds Of money are inclndpd in
making up the amount of money which
'ffocts prices. Docs it include all kinds
# government or state paper money, "a
veil as gold, silver and copper coinsp
Does it include bank notes, which form
. considerable proportion of our present
circulating medium? If you include