Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1899-03-09
MONEY AND PRICES.
ON THE QUANTITY OF ONE
THE OTHER DEPENDS.
Clear aud Convincing Illustrations on tho
Dependence OF Prices ON tho Volume
of Money Presented by Joseph Shell
don OF New Haven.


debate proceeding with such fairness
and courtesy on all sides,
Tho subject OF tho debate hns DIM
culties and complexities peculiarly III
own. IL Ia complicated with private
interests party and political interests
which tend TO obscure the fundamen
tal points on which the whole discus
sion must turn.
The plth OF this muttcr, us q sclen
tilic question, and one OF statesman
ship In the broader sense, lies In the
primary inquiry whether we accept OF
reject tho cumulative theory Of mon
ey and the general price level
We accept II us wo define and under
stand II, MS absolutely automatic and
decisive OF the question before u.s.
IL Is unfortunate that our opponents
do not agree among themselves as Ia
whether they accept or reject IT, oil
whether they accept 1t In part or in
any sense, or reject 1t altogether.
We undertake to say that no one
ever did reject II who ever really com
pretended It's meaning and import rs
wc define II, II relates solely to the
general price level OF all property and
not to tho price of particular articles
and their oscillations Of price under
the influence Of the special supply and
demanded for those particular arti-
Giles.
An illustration here may illustrate;
II one-half OF all che waters Of the
sens should be absorbed into the rocks,
as we are told IL may one day be, NO
one can doubt that the general len
level would fall, inevitably fall, how
ever great oscilating waves might APP
pear on Its surface again, And II some
Noah's food were to double the guam
tity Of the waters OF the sea, can any
one doubt that the general sea level
would rise-inevitably rise-however
some oscillating waves might appear
fluctuating above and below the gem
eral sea level?
This might be called the quantita-
tive theory OF sea water and of the
general sea level.
The cumulative theory Of money and
the general price level is us simple as
this when 1t is rightly understood.
How, then, do we define and under
stand it2
In this why; 1.-THE general price lev
81 OF property, bought and sold, varies
with the whole quantity OF money and
Its accepted substitute that is In un-
hindered circulation in the commercial
world, other things remaining equal.
The general price level rises with more
money and falls with less money. This
Includes oil legal tender money and all
It's accepted substitutes that perform
The functions of money in buying and
ceiling property"
We hold, with General Walker,
that that is money that does moneys
work in trade" l add in "unhindered
sirculation," for money boarded,
whether in war chests, treasury re-
serves, or otherwise, is as inert as gold
Is before 1t is mined 1t is hindered in
ts circulation.
\ "Hindered circulation" is one Of the
greatest Of all the causes Of money re-
luction and the fall Of prices.
The contraction OF the money vol
lme, by the suppression of silver coin
Age by many great nations simultan-
eously was one great cause of the fall
Of prices
The shrinlage Of the money vulume
and the fall of general prices began
and has continued since, not because
that shrinkage was at FIRST great, but
because 1t was certain to come, and
was sure to increase with advancing
time, till gold and its substitutes
should be the only money, aud the
world should have csased to grow, and
begun to decay.
Discerning business men then realiz-
ing the coming fall in prices, with
drew from business when they could,
and locked up their money. They de-
clined to put money into new enter
prisos not protected by legal or other
monopoly.
The very tramp ceased to put into
circulation money he did not earn and
couldn't get He periodically with
drew from the mad scramble to hoard
money, and from adding to the nlser-
les Of oyer-production
But the great nations anticipating
sudden and destructive wars, guarded
themselves, by locking up large
amounts Of gold in the great war chests
and national reserves
Now IL is also from the aggregate
Of all these forms Of boarded money, |
that the volume of money in use has
declined, and has in part caused the
great fall in prices during the last