The Maryville times. (Maryville, Tenn.) 1884-1944, 1899-05-06
VALUE OF GOOD CURRENCY.
That Which Represents an EIuiva-
lent In Cola Is Quickly
Obtninahlc.

The more money" advocates are
having lesson in the operation Ct the
law Of supply and demand BY which it
is hoped they will profit. They have al
ways put the cart before the horse
In times of business depression the de-
mand for currency is less than inactive
periods. AS consequence there is less
of it in circulation, and the surplus, for
which there is no need, is stored away
in banks, in the treasury vaults and in
other repositories where it remains idle
and unproductive.
The people who want cheap money
and lots of it, from ascent silver dollars
nodded in the holy ratio of sixteen to
one down to fat paper turned out by
the bale or carload, say this depression
is due to the scarcity of money in circu-
lation. The truth is the other way.
The depression causes the limited cir
culation of money. No more effective
demonstration of the principle that
commercial activity brings a lively de-
mand for currency could be afforded
than is to be seen every day in the reg
ular course of business transactions i'll
this country. Confidence has been fully
restored, prosperity is general and the
belief in the stability of our finances
for some time to come is firmly estab
lished. AS a consequence paper cur
rency is in great demand. The st. Louis
Globe Democrat puts'the matter clearly
when it says:
"As matter of fact the circulation has
been much larger recently than it ever was
before in the United States. Money is not
growing in volume constantly, but it is
growing more rapidly than population
The per capita circulation is now up to
the highest point ever touched 1t Is going
up every month. Yet there are complaints
that in ore of its elements it is rot ado
quate to the demand. There is not enough
just now of paper money to fully meet the
needs of commerce. This is the report from
the trade centers.
"All this is an evidence of great business
activity and financial confidence. There is
| apparently enough money in circulation in
| the aggregate metallic and paper, to meet
| the demands even in this period of I'M
| paralleled business expansion, but the
paper ingredient of it is not quite large
enough. When there is any sort of doubt
| about the governments disposition or
| ability to convert all its money into gold
| nobody wants to accept paper or silver
| when he can get gold. In conditions like
| the present, however, when the gold
standard is certain to be maintained, every
| other kind of money is more desirable in
| business than gold, but paper money is in
| 81 dow, md hlil ho mn q
| present there is an apparent scarcity OF
| greenbacks, national bank notes and other
| currency. This condition, of course, can
| only be temporary, for the volume of the
| circulating medium Is constantly increas-
| ing, while the use of checks, drafts and
| other cash econorl:zing devices is also
| growing. The dearth, or apparent dearth,
of paper money is not going to be a serious
| matter for business men. This fact how
ever, that even the present immense sup
| ply of money Is all in active circulation
and the further fact that ordinary persons
| prefer any sort of currency to gold, Is a
| very fine tribute to the intelligence and
| general financial sanity of the republican
| party, which has brought business conf
dence and an industrial expansion such as
| the country seldom saw, even in the mosl
prosperous days of the past"
The best currency in the world is that
which represents an equivalent in gold
quickly and conveniently obtainable
| That is what has been secured by the
wise financial course of the republican
administration, and the majority of re-
publicans in congress. Imagine where
the enormous commerce of the country
and the millions of wage-earners and
small producers, whose livelihood and
comfort would be so injuriously affected
by cheap or irredeemable dollars, would
have been with the fiat mania and six
teen to one foolishness in full force anC
effect. Troy Times.