Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1898-09-16

try generally looked for a revival Oh
trade as the necessity and inevitable
outcome Of the war with Spain. To
say they are disappointed is to mildly
state the fact.
The expectation that war would dis
pei the condition of business s.agna-
ton, bordering on paralysis, that has
hung like pail, not alone over this
country, but over all gold standard
countries during the past five years,
did not take into account the control
ling factor in the case, says the Silver
knight Waterman; namely, that the
expenses of the war were to be met
through taxing production and en-
larging our Understanding debt,
without providing an increase OF
money supply to meet the increased de-
mand.
Remembering the tremendous impe-
tus that business received during the
civil war, many reasoned that favor
able trade conditions, better prices,
and better times would inevitably fol-
low the vast expenditure by the gov
eminent that war would necessitate.
This would be true if the extraordf-
nary conditions inseparable from war
were accompanied by an increase OF
money supply commensurate with the
increased demand for money OCCASION
cd by the war.
The withdrawal Of 225,00O able-bod-
led men from the field of competitive
to be fed, clothed, and paid
wages from the nations treasury, thus
being transferred to the field of con-
would naturally tend to i'm
prove the market. The equipping, pro-
and transportation OF an
army calls for vast expenditure OF
money and furnishes employment and
hence the ability to become consum-
ers to thousands aside from those
composing the army itself. All OF
which by drawing from the normal
labor supply and creating an enlarged
demand for the products Of labor Of
all kinds would, under conditions that
would permit Of it, cause wages to ad-
vance and advance the prices Of all
the products Of labor.
But when it is remembered that
prices are governed by money sup
ply 1t becomes evident that an addi-
tional demand for money, unaccom-
panied by corresponding additional
supply, makes condition under which
an advance Of prices is impossible
and fall of prices becomes inevitable.
The present war presents a case OF
this kind and hence has brought no
to the general business
of the country. The increased demand
for money, unaccompanied by CORE
spending increase in the supply, has
made business conditions harder than
before for all, except those having
contracts to furnish supplies to the
government, who have been exempt
from many of the conditions of the
general competitive market. Under
normal business conditions there would
not have been $780, 100000 offered to
the government in exchange for bonds
bearing only per cent interest. Such
an offering on the part of those having
capital shows a universal distrust of
business investments and disposition
to avoid investment in property. the
incomes of which are affected by the
general prosperity Of the country, and
to seek investment in bonds, which
are money features, the income from
which rests upon the taxing power of
the government.
The majority of the finance commit
tee of the United States senate pro-
posed, in addition to levying war tax,
that the government coin the $4,000
300 of silver seigniorage now lying idle
in the vaults of the treasury, and in
to this issue S1500O0,0 900, or
so much thereof as might be neces-
sary, of legal tender non-interest bear
ing notes of the government. Had this
plan been adopted we would have had
an increase of the supply Of money
which would have caused general re-
vival of business, with better prices
FOR products; the labor Of the country
would have found employment at fair
wages, and there would have been no
necessity to increase the interest
bearing debt Of the nation.
But the government Of the country
Is in the hands of an administration
committed to the gold standard and
under the influence of the gold con-
.ractionists. The administration is not
averse to the issuing of interest-bear-
ng bonds to be made the basis for the
of bank notes, because the
banks who furnished the campaign
funds in 1896 want an investment of
his kind that will return them a
iouble interest. But it is opposed to
he only policy that can restore pros
,erity to the labor and business inter-
ssts of the country, which is an in
,rease of the legal tender money nee