The commonwealth. (Greenwood, Miss.) 1896-1923, 1899-12-01
ROAD TO PROSPERITY.
Gold Ia Insufficient MS n Monetary
Basis - Prices Stiil Down ON
the Old Level.

ieNSI enforced ny tHt gplu standard UNr
ing the last few years-although, j
anything, the downward tendency ap
pears to be again at Work-thc faiiur
of increased supplies OF gold to aifec
the currency discussion is apparent
and the demand for reconciliation
consequently rests on grounds fully a
strong AS obtained in 1876 and previous
~; for il is susceptible of exact demon
stration that price levels are deter
mined by the ratio between the moneN
in circulation and the goods in circula
ton. A single article may decreas,
heavily in price because of improved
machinery, but the resultant force Sc
in motion imperceptibly raises the
average prices OF all other articles. As
an example, if 1000 articles are valued
at 81 900, and an article having a value
of one o~ne-thousandth OF the t"olaiity of
values is lowered in price through ma
chinery by so cents; il the money vol
ume stays unaltered, and the supply of
the merchandise is o permitted to in
crease, the isolated reduction issues in
the augmentation in prices of the 500
remaining articles of from 1899 to $780,
so, or from an average of one dollar
to an average of $l.0oO5 per arHcle.
Pric3-levels are altered no less certain
~ by the increase of the merchandise
awaiting money measurement than by
a tamperlng with the money volume;
and il is quite conceivable-nay. prob
abie-that the continuous reduction in
general prices has been owing in con
siderable degree to this cause. But as
it is the duty of government to furnish
enough currency, so that the price
levels may tinctuate no more than is
unavoidable, the demonstration of sill
yer would be no less reprehensiblc, ever
though an intensifying pressure OF mcr-
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 a swelling currency circuia-
ton 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
disputab!e that. whatever government
statisticians may proclaim, whatever
may be the prima facie purport of
things, the money that reaches the
people is nevertheless rather ON the de-
cline 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 naNaaents beinr- thus In
sensibiy drawn away and no replaced,
the Roman empire languishcd under a
growing dearth of money and n steady
decline of prices. The discovery of
America by Columbus, and the cOnse-
quent rapid and vast increased of money,
wrought a great and sudden revolution.
The energies Of civilized world received
an nnwonted stimulus and wealth was
increased and comfort diffused as they
never before had been"
People may rest assured that II il
were really the case that the gold late
~ thrown OF the market had restored
conditions to virtually what they were
in 1873, the annuitants and those who
profit out of traffic in the yellow metal
would emit such a corybantic chorus
Of disapproval as TO threaten the sta
bility Of the nations credit. They have
not been silent in the past. when their
have been more or less
.jeopardized.
The trouble of securing the passape
If the act of 1873, through the kind Of.
fcers of Mr., Sherman, Mr.. Boutwell, and
Linderman was it for
naught? If, as IL O maintained, gold
laS arrived at a point where ii alone is
IN ample substitute for the silver cas-.
aside over rs years ago; and II, as is also
maintained, silver was then Iegislated
on account of its supply being 7,
90 great; is it not clear to even super
iciai observer that no logical alterna-
i've remains for the defenders of the :
gold standard, but to begin a propagan-
la looking toward the characterization
If their favorite metal? Is it not clear =.
their inmos consciousness, they
o not believe gold to have filled the ,
zap formerly occupied by silver? ;
No guaranty or likelihood exists that y
or any long time gold will continue its J
prolificness in yield. All his !
DRY is against such an assumption. ;
thousands of years the precious u
have been sought out In the 2
'owels of the earth, and, despite the y
cores of sporadic spur's, lasting their
.rief day, every such squirt, often
hought sure to be permanent, has o
cen succeeded by a relapse. To look 9
I a few rather recent illustrations: C
he production Of gold, after an err of /,
figures, attained to sl1s,12,- a
90 for the ten years 1sO1-'1O; but A
his fell of to S76,063, 900 for the ten q
ears 1sl1-'30, and 50. $4,000 for 1921 +,
70. In ls49 came the great gold dis v
overies and production increased TO e.
nch an extent that the annual yield for $,
ne decade ending with 1860 amounted C,
} nearly sI50,000.0 900. This latter fig. p
underwent a gradual diminntion in G,
he following years, until in 1874 the II
.eld was only 800. 100000. Another in "
and another falling of: and now al
e OF the last years OF the last decade II
this century are wont to congratu- h,
tie ourselves, in u short-sightedness D,
nd egotism, that II was reserved for us ST
live in a period marking that time ci
ter which gold never manifested any n,