Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1899-08-02

The question of what metals are used
in the coinage of Il nation is Il matter of
no consequence other than as they af-
feet money supply. The terms free
alSl unlimited coinage applied to gold
or silver mean that the minis will re-
ceive and coin for the benefit of the
owners of all such metal that may be
offered for that purpose, thereby leav-
ing money supply to be determined by
the productiveness of the mines. From
time immemorial down to 1873 money
supply was fixed by the joint product
of the gold and silver mines of the
earth without any attempt on the part
of man to in any way limit the coinage
of either metal. The fact that some
nations struck their coins from one
struck their coins from the other did
not constitute recommendation in any
sense so long as the entire output of
both metals was coined and entered
into the money mass that fixed the
worlds price level. Money supply
could not be curtailed by England
making her coins of gold alone, while
Germany coined only silver and France
coined both metals Unfortunately.
The fact that England refused TO coin
silver simply left larger stock Of that
metal to be coined in Germany, Aus
tria, Russia and France. While the
fact that Germany, Russia and Austria
struck their coins from silver alone
enabled England to secure u larger
amount Of gold. Indiscriminate coin
age of both metals in France at the
ratio of 15E to fixed the relative val
ue of gold and silver coins at the
French coinage ratio wheresoever
coined and made the result, so far as
money supply was concerned, the same
as though all nations coined both
metals.
The world price level depends upon
the worlds stock of money. When the
stock is large prices are high, when 1t
is scant prices are low. Price is an
expression of the relation existing be-
tween money and other things. AS
money is only n means to an end and
not an end itself, when fluctuations in
money supply are so violent that price
levels suddenly or rapidly rise or fall 1t
causes great disturbances in the bust
ness world and changes the relation of
debtors to creditors, doing an iujus-
tice to one or the other. Honest money
Is money In which debts can be paid
without doing injustice to either debtor
or creditor. In order to be such, the
money volume must increase from
year to year in the same proportion
that population and demand increases,
because any change in it's purchasing
power between the time that debt is
incurred and the payment of the same
involves the transfer of property from
one of the parties to the other without
compensation. When money supply
keeps even pace with demand the sue
cess Of men engaged in business will
be gagged by the Judgment, industry
and capacity of The men themselves
uninfuenced by rise or fall in prices
due to changes in the value of money.
The supply Of gold has fiuctuated vio-
lently from time to time throughout all
history. The same is true of the. sup
ply of silver, but 1t has usually SO hap
pened that the supply Of one was large
when that of the other was small, thus
each in turn counteracting the evil in
f1uences of the other. Besides, with
both metals in use and consequently a
larger money volume the variations
from time to time in the supply had n
less violent effect upon prices than
would be the case IL one metal only
was coined and the volume of money
was smaller. The effect upon business
and production Of an increasing or d.
minishing money volume is widely diff
ferent aside from the injustice that
accrues to debtors or creditors. An In
creasing volume of money and rising
prices tempts all money into active cir.
culation, starts all the wheels of indus
try into motion, furnishes employment
for all labor, and, If continued through
period Of years, gives to labor a
larger share of the wealth it produces
than 1t would receive under any condi-
tons, because under such circum-
stances money is constantly losing its
power over other things, so that to hold
1t idle causes loss to its owner, while
under rising prices an Investment al
ways means to part with that which is
growing cheap in exchange for that
which is growing dear.
Under such circumstances with all
labor employed and with products
steadily going to a premium while
money is going to discount, the COM
petition for labor will be so sharp that
1t will be employed Mt small margin
of profit to employers and the laborers
will receive as wages n corresponding
ly large share of the products of their
toll. When such conditions prevail
production reaches its maximum and
but few debts arc created. The money
lender and usurer at such times are in
but little demand On the other hand,
when the money volume is diminishing
and prices falling boarding money in
idleness is the only sure road to wealth.
The judgment, industry and capacity
that would win fortune under normal
conditions can now only court bank
ruptcy.
Those engaged in production must
anticipate lower prices and reduce
costs to meet such prices. This means
reduction of wages and consequent
currailment of both production and
consumption. If this condition contin-
ues long time the savings of the la
borers are first consumed on account
of enforced idleness and the competi-
ton for an opportunity to earn daily
bread becomes so severe that the la
borers have no voice in regulating the
share of their product that they shall
receive as cages. During such periods
In the worlds history when the mines
We're productive civilization advanced
by leaps and bounds, slaves disappear
ed and freemen multiplied upon the
earth. But during those other periods
whom the mines We're not productive
and prices continued to fall laborers
lost first their savings, then their lib
critics and finally the money changers
destroyed all other classes and civiliZa-