Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1899-03-17

The pith of this matter, as scien-
tific question, and one of statesman
ship in the broader sense, lies in the
primary inquiry whether we accept or
reject the cumulative theory of money
and the general price level.
We accept it as we define and IN
derstand it, as absolutely automatic
and decisive of the question before u.s.
1t is unfortunate that our opponents
do not agree among themselves as 70
whether they accept or reject 1t, OF
whether they accept it in part OF IN
any sense, or reject it altogether.
We undertake to say that no one
ever did reject it who ever really COM
prehend its meaning and import as
we define it. 1t relates solely to the
general price level of all property and
not to the price of particular articles
and their oscillations of price under
/ the influence of the special supply anu
demand for those particular articles
An illustration here may illustrate:
If one-half of all the waters OF the
seas should be absorbed into the rocks'
as we are told it may one day be, no
one can doubt that the general sea
level would fall, inevitably rail-, now
ever small oscillating waves might ap-
near on its surface then. 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 lever
would rise-inevitably rise-howeVer
some oscillating waves might appear
fuctuating above and below the new
general 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 as SIM
ple as this when it is rightly under
stood.
How, then, do we define and under
stand it?
In this way: 1.-The general price
level of property, bought and sold,
varies with the whole quantity OF
money and it's accepted substitutes
that is in unhindered circulation IN
the commercial world, other things re-
naming equal. The general price
level rises with more money and fails
with less money. This includes all
legal tender money and all it's accept
ed substitutes that perform the func-
lions of money in buying and selling
property"
We hold, with General Walker, that
that is money that does money S
work in trade" l add in "unhindcr-
ed circulation" for money boarded,
whether in war chests, treasury re-
serves, or otherwise, is as inert as
gold is before 1t is mined. 1t is him
dered in its circulation.
"Hindered circulation" is one Of the
greatest of all the causes of money
reduction and the fall Of prices.
The contraction of the money vol
ume, by the suppression Of silver coin
age by many great nations simultane-
ously was one great cause Of the fall
of prices.
The shrinkage Of the money volume
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, and the
world should have ceased to grow and
begun to decay.
Discerning business men then real
izing the coming fall in prices, with
drew from business when they could,
and locked up their money. They
declined to put money into new en-
terprises 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 mis-
cries of over-production!
But the great nations anticipating
sudden and destructive wars, guarded
themselves, by locking up large
amounts of gold in great war chests
and national reserves.
Now it 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
twenty-five years-caused it altogether
so far as it has been caused by scarce
| money.
I agree that abundance caused by
new machinery and cheap transporta
| ton, ETC., may cause a fall in prices
that is beneficent. But the fall of
| prices due to money made scarce by
governmental action, is a wholly Diff
ferent thing and is not beneficent. but
is destructive Of the interests of the
people, Is in violation of sound politi-
| cal economy as we'll as Of tho mora