The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-06-16

paper imitation have seized eagerly upon the
dicta OF Mr.. Roberts, Director OF the Mint, in
connection with the increasing supply of gold
In the February Forum Mr.. Roberts showed that
the output of gold, which in 1890 $IIS,S497oo in
1893 was $25 100000. He ascribes advance in prices
t. this increase in the volume OF the metal poten-
tial money His statement is: Much has been written
in recent years by gold standard advocates against the
quantitative theory of money. In far their ar
guments have gone to show that the quantity Of
money in circulation is but one element in prices, and
is usually so obscured by other influences that can
be scarcely traced, they good, but do not see
how it can be questioned that the quantity OF gold
available in the world affects its exchange relations to
other commodities
The Chronicle highly approves this and girds at
the gold standard men, using the quanttatve theory
OF money weapon 1t points to the rise in prices
as proof that the bmetallis free silver theory
right The quanttative theory has some warrant IN
the conclusions OF John Locke, but its modern ad
vccates have chosen to leave out OF the problem the
exchange value OF other products to each other,
Guiding money which is merely the medium that
effects the exchange.
In 1860 wheat ST "a bushel and cotton was
1919 cents pound, while the money in this country
was SI3 S. per capita Our money is about $27
per capita The quantity has doubled, but the same
issue OF the Chronicle quotes in its market report
wheat at Is cents and cotton at cents. II the guam
ttative theory OF money be good, wheat and cotton
should be double the price OF 1860. From 1927 to
IS47 wheat ranged above ST per bushel and in the
latter year it was 81 A. 1t did not reach the latter
price nor pass it, again until 1854, when it to
S. p, and the next year to s. 40, but fell in 1856
to ST 81 This was after the discovery of gold in
California and Australia and their great additions to
the volume of that metal But in 1896 wheat was
c. o. IN, CT az nd II
prices again after 1855. The for the rise and
fall in prices must be sought elsewhere than in the
quantitative theory of money. Ii it held good not
wheat alone but all prices would rise and fall evenly
with the fuctuaon in the volume of money, but they
do not
far more darling theory held by the double stan
dard advocates and by the Chronicle when it was
abroad in the land supporting 10 to I was that there
was an ndissouble relation between the price OF wheat
and that OF silver. But in IS4o wheat 81 90 when
silver was 81 81, and in 1892 wheat ST oS when
silver 81 cents.
II prices fuctuated evenly with the quantity of
money or the value of silver, the niatonists would
prove their argument by simply stating it, but they
dc not.
There are other factors in the problem High
wheat is usually associated with low wool and cotton
This fact has its in the simple primitive needs OF
man. Food is his first necessity, clothing is second
airy. When wheat is high he fills his belly the ex
pense OF his back. The demand for clothing fabrics
declines because earnings absorbed in getting
food. When food is cheap money be spared for
clothing current, again, affects these con-
dtons. AS science is applied to production and
economies in it appear the result OF human intelli
gence, it increases and the supply and demand get
nearer neck and neck.
The cotton gin effected economy in that fiber
to buSl he
OF that cereal.
The qualitative philosophers never cease to attack
the gold standard men for conclusions which they
claim are based sufficient data but at the same
time they cancel all data that may affect their own
pet theory and ascribe it wide range of material
neral and economic results to which it has no more
relation than polar bear sucking his paws under the
Arctic Circle has to the price of milk in Marin
County.