Pike County press. (Milford, Pa.) 1895-1925, 1897-10-22
PER CAPITA MONEY.
DO PRICES DEPEND UPON AMOUNT
on UPON KIND OF MONEY!

Facts whsch wul Help 10 Dispsi the
~Rfore Money" Delusion - Some ROsere
For tho sllverits Professors Who Are
Conduoting tho 'sNataonnI Financial
soboOl"-why Are Prices Hieh and Per
Capita Money Low In Silver Standard
Oountries9 - Should Deposits In Banks
Re Included In Estimating Amount Of
Money which AHec,s PrioesS
One Of the numerous failacies upon
which the free silver deluslon is found
ed is the assumption by all silverites
and cheap money advocates that prices
are regulated by the amount of money
IN circulation and that there is any neo-
essary relation between prices and
amount Of money. When driven from
one position, the bimelallists take ref
uge in another Just as insecure and IL
logical. but perhaps a little more hid
den by sophistry The more enlighten-
ed among them do not now assert that
10 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 IN
doubtedly means higher prices, and vice
versa.
The per capita idea Of money 50 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 30 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 1859 or 1879, the amount
of money in use bas increased enor-
mously. From per capita circulation
of $4.99 in 1900, $14. 6S In 1859 and
$18. 10 in 1879 we now have one of .$28,
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 S18; 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 greatS 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 useH Will they tell their class
es that gold has always been more val
liable, weight for weight, than silver,
and that II has recently become 89 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 silver3 Will they then ex-
plain that the velue Of both gold and
silver bullion Is fixed In the long run
by the cost Of productionand thatthere-
fore the value Of bullion does not de-
pend upon the quantity Of money In cir
culations
Will they try to make II clear
that II ii takes FIVE hours Of labor to
produce bushel of wheat and Ave
hours Of labor to produce 49, 30 grains
of gold one product will exchange for
the other-tbat is, the price of wheat
will be 81 per bushel under our present
Standard Will they then add that II Il
xor,,,{Y,oa o,,lu OIL horvof v.,o-l- =, 49,,
duce enough silver (871 u grains) to
make dollar that the 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
conntriesH VIII they explain the origi-
nal American financial policy, which
was to keep the coinage ratio as CLOSE
as possible 10 the market ratio7 Will
they ask the members Of their Glasses to
vote to restore this thoroughly Amer
lean financial policyY"
If the corps of silver professors and
cheap money statesmen who are con-
Quoting the national financial school''
fail to answer the preceding questions,
perhaps they are willing to explain
what kinds Of money are included In
making up the amount Of money which
affects prices, Does it include all kinds
Of government OF state paper money, az
we'll as gold. silver and copper coinsi
Does It include bank notes, which form
a considerable proportion Of our present
circulating medium? II you Include
government and bank notes, why moi
include bank credits? Are not more OK
changes and greater exchanges effected
by means Of checks than by means Of
either paper money or coins? Is it moi
as easy for one who has "eredit" (de
posits) In bank to buy and sell as Il
he had money in his pocket? Do thes'
credits or deposits necessarily consist o.
money at allS If man has that amount
Of property, can he not have 81, 600, OO(
credit with his bank ON which to draw
| checks at any timer Cannot such mar
buy and sell on large scale withou
the use Of ordinary money? Why, then
should bank deposits not be included ii
making up the per capita circulation O
a country
When the GLASSES Of the "nationa
financial school, can pass an examina
tion on these per capita" questions, ",
will prepare a set of questions on otbel
subjects, as, for instance. the cause q
high and low interest rates, the advan
tages Of high prices, the blessings q
cheap money, etc. byron W. Holt
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