The commonwealth. (Greenwood, Miss.) 1896-1923, 1897-08-05
"vkxSHs" NINTH MORE than 400 900 deposits in one bank
.v"t.. in ti. cnxM saw. The pepccr News. .aalarado

"'"t' in this city" says the Deneer News, Colorado
have its home capital invested" what is becoming Of the News stock
declaration that il l. more money that IS needed and that there j. not now
cheap money mononaniacs inadvertently speak a financial truth. As the
enough i money "" "a. 'ne county oen n"mio Is x n o 3 ac,m 20 ;" y, ~. ,he
, ,a,,a h1 +" .,s TM ,hs nc, i%I. " randui"u. that ,"t whit Prov S.s" u n OF eHI is message ., ne
st. Louis Globe. Democrat.
The foregoing shows how easy 1t is for a gold paper to make a fool Of
itself II we ever sw an article in such a paper lin this country which
showed a fundamental knowledge {" the money question, " e are unable to
recall il.
VIVA, the Denver News meant was simply that it as not necessary for
Colorado to borro" foreign copital when she had $" much OF her own lying
idle.
The fact that there /. money lying idle in the banks has not the slight
est tendency to prove that there is a abundance Of money, but rather the
opposite. There is always idle nancy in all countries, no matter how small
may /" aggregate supply in any o each. Indeed, the smaller the supply
the greater Is the tendency for it 10 accumulate in idle boards, and it comes
about in this way: When money fails to increase in quantity as rapidly as
other things increase, prices decline and the profits Of active business fall
on. II the money deficiency be grcas. those profits will entirely cease.
Then there is no induccmcnt to men having money to emplay it in manu-.
featuring or trade 1t will, therefore be withdrawn to avoid risks and it
will naturally grayltate towards the banks. 1t seeks profitable investment
1t dincult for a borrower to proftably Use IT. This withdrawal fmoncy from
active investment and its concentration IN banks, makes it still scarcer in
the general circulation, forces prices still lower and increases the evil.
Hence We hays the phenomena Of money very scarce in the channels OF
trade, abundant in the banks and still interest rates low at the money cen.
tiers. 1t is merely because it cannot be used with profit in productive en-.
tcrprise. In fine, money is plentiful for loanng ION git-cdge security but
scarce for manufacturing, mining and commercial transactions generally.
The conclusion II the Globe Democrat Is mere 'baby talk, and re-.
minds one Of the pra,te which q child has learned from its parents and re.
peats In the most implicit confidence without any reason for it except the
faith Of helpless babyhood.
There are scarcely two republicans In congress who are agreed on all
the schedules Of the tariff bill, and upon some Of the most important the
differences are bitter in the extreme.
And yet this great st. Louis daily confdentiany assures its readers that
everything will be lovely when that bill becomes a law. Does not the
Globe. Democrat know that business depression has prevailed almost contin.
nously since 1873, although We had republican tariffs all the time up to the
latter part OF 1894, and that even the Wison-Gorman law was itself a high
tariff measure:
How does that paper suppose the enactment OF the new tariff is going
to raise the general level OF prices? How is it to advance the price Of
wheat and cotton and the other products which We sell in foreign markets?
How will shutting foreign articles out Of the American market enable or
induce foreign countries to buy more of our export staples OF pay better
prices for them?
Without better prices To-. the things which we export, how is the gen.
eM level OF prices to be raised? Without a general and permanent rise Of
prices how are we to realize general and permanent prosperity? Does the
Globe Democrat imagine that the farmers OF this country will be satisfied
with a prosperity that enriches the sugar trust to the extent of IL o Is
millions a year, and leaves their wheat and cotton and corn at prices which
will not pay for raising them? II the Globe Democrat SO believes, then its
knowledge Of human nature is about on a par with its knowledge Of the sill
yer question, and the opinion is respectfully vcntured that the Globe. Dem
Wat is mistaken.
A remedy to he effective must be of 50 general IA character as to affect
the prices of all our products, Not merely those sold only In the home mar.
kt, but also those which find their purchasers abroad.
This remedy must be found in the rcadustment Of our monetary ss.
TEN, for money measures all things. We must restore silver. That will
lower the value OF gold all over the world and raise the price Of everything
which this country produces. This will give general prosperity and nothing
else wil.-Natlonal BmetaIHt.