Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1898-06-17

it. The Illustration as given by Gov.
Shaw is not original with him. 1t has
been employed thousands of times, the
dollar being likened to the bushel
measure, the yardsticll, etc. 1t is as
sumed that the dollar measures things
in the same way that busnel or a
yardstick does, when, in fact, the dol
lar does not measure at all. 1t is simply
exchanged for what is bought, and
when mans dollars are gone, of course
the exchanges are at an end so far as he
is concerned, unless he can get credit,
and the credit he can secure depends
upon his supposed ability to ultimately
get money with which to pay. Never in
the discussion of any subject has there
been such senseless twaddle than gold
standard talk about enough money to
effect the exchanges" The amount of
money so needed depends upon two
things: The number of exchanges and
the price at which they are effected.
If the price of wheat be one dollar a
bushel, then one dollar will, as between
the owner of the wheat and the buyer,
effect the exchange of just one bushel.
If the price of wheat be cent per
bushel, then the dollar will buy 100
bushels of wheat, and, of course, effect
the exchange" of that quantity. A
half bushel will always hold the same
quantity. A yardstick will always
measure the same length, but dollar
is sometimes equal in exchange to one
bushel of grain, sometimes to more, and
sometimes to less This simple and
patent fact ought to make it clear to all
that there is no parallel or even similar
ity between the case of the half bushel,
as given by Gov. Shaw, and the question
of the supply of money. We will now
glance at his closing statements:
This currency must be elastic There
will be more half bushels needed on
thrashing day than will be needed on
seeding day."
Here, again, we have complete sur
render of Gov. Shaw's case. He con-
cludes that there must be more money
at some times than at others. Why?
Simply because there are more eN-
changes to be made some times than at
others. But if the volume of money
has nothing to do with the prices, why
do we need more to do big business
than small one? Simply because
every time goods are exchanged for
money there must be money exchanged
for the goods. If goods increase in
quantity while the money does not,
then of necessity given quantity of
goods must be exchanged for smaller
amount of money. or else some of the
goods must remain unsold. The theory
Of quantity in money is in perfect ac-
cord with the views of the most pro-
found economists; in fact, of all recog-
nized authorities of the age, aud it is
moreover in harmony with the plain
est principles OF common everyday
"horse sense" Another very simple IL
Illustration will show it so clearly that
anyone not actually predetermined can
see 1t. Suppose we were living in an age
of barter, exchanging one article di-
rectly for another, and with no money
in use. Suppose, again, that coin is to
be exchanged for gold-pure gold in a
crude form, just as it is taken from the
crucible. Will anyone be foolish enough
to assert that in determining how much
gold shall be given for certain guam
tity of corn, the quantity of gold in
the market makes no difference? We
think that even Gov, Shaw will admit
that the rate at which the two things
would exchange would be determined
by the quantity of gold, the quantity of
corn, and the relative demand for each.
Perhaps he will deny it, but we hope
not, for we want him to retain at least
vestige of self-respect. Next we will
suppose the governor to step in and
enact n law declaring that certain
weight of that gold fashioned into a
prescribed shape, and bearing certain
figures and emblems, should be called Il
dollar. In short, it is declared to be
money" Now, Gov. Shaw may believe
that the law of supply and demand
would instantly cease to have any eff
feet upon the exchange value of that
gold, and that thenceforth, whether
there was Il pound weight of it, or a
million tons, an ounce would exchange
for the same quantity of corn, OF any
thing else. Indeed, he must believe it
if his assertion that the volume of
money has no effect upon the prices,
is honestly made. We sincerely hope
that there is not a farmers wife or a
farmers son or daughter in all Iowa ig
norant enough to agree with him.