Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1897-09-10
PER CAPITA MONEY.
DO PRICES DEPEND UPON AMOUNT
or UPON KIND or MONEY!

Tor the Silverfto Professors Who Arc
Conducting tho "Nationai Financial
schooi"-why Are Prices nigh and Per
Capita Money Low In silver Standard
Countriesr 49, Should Deposits In Banks
He Included In Estimating Amount OF
Money which Affects Prices9
One Of the numerous fallacies upon
which tho free silver delusion is found
cd is the assumption by all silverites
and cheap money advocates that prices
are regulated by the amount OF money
So circulation nnd that there Is any nee
crsary relation between prices and
amount OF money. When driven from
one position. the bimetallists take ref
Ugo in another just as insecure and il
logical but perhaps a little more hid
den by sophistry. Tho more enlighten-
ca among them do not now assert that
Go double the amount of money is to
double prices. They generally admit
that tho rapidity Of circulation and tho
uso Of credits affects the efficiency Of
money and prevents an exact statement
Of tho relation between amount of mon
cy and goods, hut that more money un-
doubtedly means higher prices. and vico
versa.
The per capita idea of money 70 prov
alent with silyerites is disproyed in |
Ilauy ways. Statistics Of prices and |
amount Of money per capita in use in
different countries at the Same or at |
different times fail 10 show any cor
tain relation between prices and money
Thus whilo prices have declined In tho
world and in this country very greatly
rince 1900 or 1852 or 1879, the amount
Of money in use has increased enor-
mously. From per capita circulation
Of S. 90 in 1900, $14. 90 in 1862 and
gi8. 10 in 1872 We now have ono Of $23,
and this Notwithstanding the greater
rapidity Of circulation of modern dol
lars and tho vastly improved and ex-
tended use Of credits. Will some "moro
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 $l& that of tho silver stand
ard countries only about 81. 80. viii
some of the silyerite professors who are
conducting financial schools in west
Crn and southwestern states explain 10
their classes why prices in silver stand
ard countries are about twice as high
na in gold standard countries, although {
the Per capita circulation is less than {
cre.third as great? Will they explain
that the value of the material from
which money is made has much moro
60 90 with prices than the amount of
money in use? viii they tell their class ]
es that gold has always been moro val q
liable, weight for weight, than silver, {
aud TINT IL has recently become 33 times ,
us valuable while most Of the coming ,
ratios Of the world were established
when gold was only Is OF 10 times as :
as silverl Win they then ex- l
plain that tho value of both gold aud
silver bullion is fixed in the long run
by the cost Of production and that there
fore the value of bullion does not do
pend upon tho quantity of money in cir
5
Will they try TO mako it clear g
that If it takes five hours OF labor to
produce a bushel Of wheat and five
hours Of labor 10 produce SO. 22 grains II
of gold one product Will exchange for p
the othcr--that Is, tho price of wheat u
will be 81 per bushel under our present r.
standard? WIN they then add that il II n
requires only 2k hours work to pro- =
luce enough silver (371A grains) to
make dollar that tho bushel of wheat
will not exchange for less than two sill O
Ter dollars, and that this is the reason -;
Why prices are higher IN silver standard ~
Will they explain tho origi-
lal American financial policy, which Ga
vas 20 keep the coinage ratio as close a.
IS possible 10 the market ratioy Will al
hey ask the members of their classes to lii
ote 20 restore this thoroughly Aaler- !
can financial policy?"
II the corps Of silver professors and
heap money statesmen who arc con- ra
ucting the national financial school" To-
all 20 answer the preceding questions.
crhaps they are willing to explain So
hat kinds Of money are included in
iaking up the amount Of money which
fleets prices. Does IL include all kinds &c
government or state paper money, as
'ell as gold. silver and copper coins?
'oos IL include hank notes. which form w
considerable proportion Of our present
REGULATING medium? II you include II
oyernment and bank notes. why not
iolude hank creditsg Are not moro OK. .-
Ranges and greater exchanges effected
= means Of checks than by means of
thor paper money or coinsg Is il not
: easy tor one who has credit (de- nj,
1sits) in bank 10 buy aud sell as if
Q bad money in his Pocket? DO these VIC
edits or deposits necessarily consist OF ch