The Leon reporter., 1899-12-28
AS TO CHEAP MONEY,
GOLD MINES ARE coNsPlRlNo
AGAINST REPUBLICAN PARTY.

Tho Influx of Yellow NIetal, Though q
Mere Drop In the Bucket, Proves tho
Righteousness Of Democratic Stand
Taken In 1895.
From the remarks of correspondent
Of the Springfield ~ publican, we Judge
that the people are opening their eyes
to the true reason of our present pros
perity, and to the real relations which
the money question bears to the next
campaign.
The Democrats demanded more
money and higher commodity and la
Dor prices; the Republicans said, not
more money, but ne-hundred-cent
dollar; not higher prices, but stable
prices. But what has happened? God,
to defeat Satan's pet proposition,
cornered dollar, has directed men to
the bowels of the earth, where god
was on deposit, and they have brought
forth more yellow dirt in the last
three years than the Democrats hoped
to see come of both gold and silver, so
that in spite of Shylock's wish and de-
sign, we have had more money, and, as
was foretold, we have had rising prices
(not altogether due to the increase OF
the gold output, it is true, but largely
so), labor is more fully employed and
better paid. and the Republican po,iti-
clans are bowling, Behold our prom
ised prosperity But they fail to add,
made mainly on the Democratic formu
la of three years ago."
This is pretty straight talk, and 1t
means something. 1t cuts right down
into the bowels of the situation, as
you may say. If the correspondent
had felt inclined to go into particulars,
he might have added to his remarks
about the new supply of gold, the fact
that the war with Spain has put into
active and actual circulation vast
sum of money that has been boarded
in the banks or in the treasury, that
the increase in the price of wheat as
the result of European demand has
made large additions to the actual cir
culation, and that the gradual rise in
prices has added to the volume. Thus
While the money supply has not been
largely increased, the volume of circu-
lation has grown larger and larger,
the money coming out Of the bank
vaults as the result of the demand for
1t. This increase in the actual cir
culation has not only enhanced prices,
but the increase in prices has added
to the circulation, the movement be-
ing one In which cause and effect are
n ohor ola
No doubt our readers will remember
the ponderous essays devised and put
in circulation by our gold standard
friends in which they solemnly pre-
dicted that in the changed relations
and conditions of business we had seen
the last of high prices. Such conclu
sion was inevitable from their conten-
tion that the gold standard would give
us Sound and stable currency" This
phrase meant, If it means anything,
that the purchasing power of the dol
lar was to remain fixed and stable, an
invariable quantity in its measurement
of the value of commodities. A dol
lar, to be sound dollar, must have
fixed relations to the commodities for
which it is exchanged; these relations
must be invariable, otherwise the dol
lar is not sound" dollar, and the
currency which it stands for is not a
stable currency. If not soundness
and stability were mere meaningless
phrases when applied by the writing
contingent of our gold standard
| friends.
We think, however, that these writ
ers will admit, if they are pushed
closely, that they did mean that the
gold standard would result in fixed and
stable values and prices. and that the
purchasing power of money would
cease to huctuate as compared with
the value of commodities. Some Of
them will no doubt take refuge in the
have risen, the value of the gold
dollar has remained the same. But
the only real value that the gold dol
lar can have as piece of money, is
its purchasing power. One man buys
these gold dollars with cotton because
he wants to buy iron; another buys
| them with iron, because he wants to
secure cotton, or cotton cloths; the
wage-earner buys them with his labor
because he wants to purchase food and
clothing and comforts for himself and
his family; and so on through the
long and multifarious lists of human
wants, desires and ambitions.
When prices rise from any cause
whatever, the value of the dollar de-
creases in proportion. Three years
ago the owner of money could purchase
ton of iron for IS. Has he not lost
some advantage, has not his money
shrunk on his hands when he finds
that he must now give $23 or S24 for a
ton? Under such circumstances, we
think he would be glad to have the
5O-cent dollar which he protested SO
loudly against in 1896, for then he
would have to pay only SIG ton.
We are truly glad to see our gold
standard friends SO enthusiastic over
the present conditions of prosperity.
This enthusiasm we can enter into and
enjoy most heartily, and the more so
because prosperity has come as the
result of a more active circulation Of
money and higher prices. This re-
suit was predicted by the Democrats
as the outcome of just such conditions
as have recently prevailed. More
money in circulation, cheaper money,
higher prices and prosperity. These
i