Daily capital journal. (Salem, Or.) 1896-1899, 1898-03-08


power OF gold rose 145 per cent. Why
Because from 1902, for several year
onward, the war between Spain and
her colonies sn America, in the latter
Of which there was The chief supply
Of gold and silver with which The
world was doing its business, caused
those mines to fall of in their yield
so that, as Jacobs has estimated, the
world had, in l849, 40 per cent. les:
gold and silver with which to do It's
business thau IL had in 1909, despite
the fact that the population Of the
world had vastly grown and its bus
iness had vastly expanded.
But as sOon as this new supply OF
the precious metals came into the
worlds business the effect was elec-
trical. 1t distributed itself gradually
not only inCo the place where ii was
Immediately felt-where the discov-
cries were made, where the supplies
were first availed Of, where civiliza.
tion began TO be founded anew, and
the bulwarks Of this great common.
wealth we're laid-but backward over
the country, through the established
channels OF the worlds commerce,
and out INTO the broader relations
with other lands. this fructifying,
afiiuent supply OF gold and silver
went, encouraging production, rails
ing wages, increasing the return 70
the producer and the laborer and the
honest capitalist throughout the
world, until the very face OF nature
seemed to wear a smile. Applause. J
That has been the custom, univer.
sally, from the dawn OF history until
now. 1t has been the experience OF
mankind IN every age, that when
there was large amount OF gold and
silver coming from the mines, rela-
lively, there was buoyancy, an en-
couragement, profit in business.
My friends, prices rose. AS prices
rise, or are sustained upon a fair and
level-productiOn goes on.
Men are ambitious: men are desirous
of getting ahead. They are looking
about always for an opportunity to
produce. When their energies are
not cloGged by a false and mischeiv-
GUS money system, the average of
mankind will be busy in making and
exchanging the utilities
FALLING AND RISING MARKETS.
How does it operate? The rise in
the prices OF things is due to an in
crease in the money in which they
are reckoned, Suppose this goblet
that l hold in my hand represents
the average OF commodities when they
are falling in price. Do you find
money coming out for Investment in
them 50 that presently he who puts
up the money will take out less
money than he put in? Do you not,
on the contrary, find that, when
prices are persisUently falling, money
will not go into the making OF the
things whose prices are falling?
Money runs away from production
when it Is worth more than the
things that are to be produced. 1t
goes into hiding. 1t runs into the
banks, and when it gets into the
banks, my friende, the gold standard
men come to us and say" y,"Why, there
Is money euOugh; there isjtoo much
money. There is a redundance of
money. Look at the banks" laugh
ter,)
MONEY MAKES WORK.
On the contrary, when prices are
sustained or are raising, then men
that have money will go to the making
Of things with their money, because,
when the prices raise or are main
tained, they can figure the cost of
their raw materials; they can figure
their fixed charges in the way of in
surance and interest; they can find
out what their wages will cost; they
can tell what their market will be,
aud therefore, they can forecast their
profit, and that makes business.
And therefore, when money Is not
more valuable than the things that
can be made with maney-when in
other words, money is not rising as
with things; when, in other
words, prices are not falling-then
money goes TO work; and when money
goes TO work 1t employs workmen;
md the workmen OF the world know
hat when money is seeking invest
nent in the making OF things, the
a6Orer is sought by two jobs, but
hat, when money is running away
rom work, two laborers are looking
or one job, and they are not able to
ind it. Cheers and applause.
And this leads me TO observe, my
friends, that specious plea is made
% the wOrkingmen in favor of this So
.alled "honest" system of money.
Why, then, have they not convinced
,he laborers OF the world I? There is
lot, telieye, single organized as
ociation of labor in the world that