The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1899-04-08
VALUE OF GOOD CURRENCY.
fhnt which Represents an Equiva-
lent In Gold IL Quickly
ObtninabIe.

The ''more money" advocates are
having n lesson in the operation Of 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 il 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 ii remains idle
and unproductive.
The people who want cheap money
and lots of il, from ascent silver dollars
nodded in the holy ratio of sixteen to-
one down 10 fiat 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 in
this country Confidence has been fully
restored, prosperity Is general and tho
belief in the stability of our finances
for some time 10 come is firmly estab-
.ished. AS a consequence paper cur
rency is in great demand. The st. Louis
Globe-Dcmocrat putsthe matter clearly
when /; says:
"As a matter OF fact the circulation has
IA In IL glut,
before In the United States. Money is not
growing In volume constantly. but II IL
growing more rapidly than population.
The per capita circulation is now up to
the highest point ever touchedt IL Is going
up every month. Yet there are complaints
that I'm one OF It's elements IL IS not ado
quate 10 the demand. There Is not enough
just now OF paper money 10 fully meet the
needs OF commerce. This Ia 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, 10 meet
the demands even In this period OF un-
parallelcd business expansion, but tho
paper ingredient OF IL 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 10 accept paper or silver
when he can get gold In conditions like
the present. however, when the gold
standard Is certain 10 be maintained. every
other kind of money Is more desirable In
business than gold, but paper money Is in
especial demand. Thus Il happens that at
present there Is an apparent scarcity or
greenbaclls. national bank notes and other
urgency. This condition, OF course, can
narary. for the volume OF the
I'm Is constantly increas-
~ checks, drafts and
devices is also
parent dearth.
be serious
his fact, how
sent immense sup
al IN active circulation.
ler fact that ordinary persons
~ sort OF currency TO gold, is n
cry fine tribute TO the Intelligence and
general financial sanity OF the republican
party which has brought a business conf
dence and an industrial expansion such as
the country seldom saw, even In the most
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 irredecmable dollars, would
have been with the fiat mania and SIX
teen TO one foolishness in full force and
ffect!-Troy Times.