The Grenada sentinel., 1899-12-02
ROAD TO PROSPERITY.

|
Gold IL Inauhicient as q Monetary
| Basis - Prices Still Down on
| the Old Level.
As prices are still at the same ole
level enforced by the gold standard dur.
ing the last few years-although, il
anything, the downward tendency ap.
pears to be again at work-the failure
of increased supplies of gold to affect
the currency discussion is apparent
and the demand for remonetiza tion
consequently rests on grounds fully as
strong as obtained in 1896 and previous
ly; for it is susceptible of exact demon.
stration that price levels are deter.
mined by the ratio between the money
in circulation and the goods in circula-
tion. A single article may decrease
heavily in price because Of improved
machinery, but the resultant force set
in motion imperceptibly raises the
average prices of all other articles. As
an example, if 1000 articles are valued
at $1,000, and an article having value
of one one-thousandth of the totaiity of
values is lowered in price through ma
chinery by so cents; if the money VOL
ume stays unaltered, and the supply of
the merchandise is not permitted to in
crease, the isolated reduction issues in
the augmentation in prices of the 900
remaining articles of from 5000 to $780,
so, or from an average of one dollar
to an average of $1.00O5 per article.
Price-levels are altered no less certain
~ by the increase of the merchandise
awaiting money measure ment than by
a tampering with the money volume;
and it is quite conceivable-nay,p prob
abe-that the continuous reduction in
general prices mas been owing in con-
siderable degree to this cause. But as
it is the duty of government to furnish
enohgh currency, SO that the price,
levels may fuctuate no more than is
unavoidable, the demonstration of sill
YER would be no less reprehensible, even
though an intensifying pressure of mer-
chandise upon the money volume were
to be credited with the entire decrease.
Another proof that the new gold has
been powerless to ameliorate is the
fact that the depression of business
shows no signs of abatement, while we
know that there is not an historical in
stance of swelling currency circula-
tion concomitant with hard times.
When money is actually becoming re-
dundant business is sure to respond
favorably. When prosperity refuses
our solicitations the conclusion is in
that, whatever government
may proclaim, whatever
may be the prima facie purport of
things, the money that reaches the
people is nevertheless rather on the de-
slime than contrariwise.
Horace Greeley put the matter plain
ly in his remarks in the american
Yearbook and Register" for 1869, say
ing: "The circulating medium of ex-
change and payments being thus in
drawn away and not replaced,
the Roman empire languished under a
growing dearth of money and steady
decline of prices. The discovery Of
America by Columbus, and the conse-
quent rapid and vast increase of money,
great and sudden revolution.
The energies of civilized world received
an unwonted stimulus and wealth was
increased and comfort diffused as they
never before had BEEN"
People may rest assured that If it
were really the case that the gold late
ly thrown on the market had restored
to virtually what they were
in 1873, the annuitants and those who
profit out of traffic in the yellow metal
would emit such q cory rybantic chorus
Of disapproval as'to threaten the sta
bility of the nations credit. They have
not been silent in the past, when their
interests have been more or less
jeopardized.
The trouble of securing the passage
# the act of 1873, through the kind Of
ficers of Mr.. Sherman, Mr.. Boutwell, and
Director Linderman was it for
naught? If, as is now maintained, gold
has arrived at point where it alone is
an ample substitute for the silver cast
aside over rs years ago; and if, as is also
silver was then legislated
against on account of its supply being
100 great; is it not clear to even SUPER
fic.al observer that no logical alterna-
tive remains for the defenders of the
gold standard, but to begin propagan-
la looking toward the demonetization
Of their favorite metal? Is it not clear
hat, in their inmost consciousness, they
10 not believe gold to have filled the
gap formerly occupied by silver?
No guaranty or likelihood exists that
for any long time gold will continue rs
present prolficness in yield. All his.
tory is against such an assumption.
For thousands of years the precious
metals have been sought out in the
bowels Of the earth, and, despite the
scores Of sporadic spurts, lasting their |
brief day, every such spurt, often
thought sure to be permanent, has
been succeeded by relapse. To look
It q few rather recent illustrations: |
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