The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1899-11-10
CONDITIONS OF PROSPERITY.
when Prices Are Rising Indu = try nm Il
Production Are stimulated
The Money supply.

Inc money suPpiy'
The controlling condition of pros
perity is found in prices. When prices
are rising industry and production are
stimulated, giving employment and
wages to labor and profit 10 al legit-
innate enterprise. Under such condi-
ton production moves toward a max
imum, and il this condition be OF long
duration il brings the entire energies
OF nation and people into fun play
in the production and distribution OF
wealth. At such times money is never
found to be in idle boards at I he great
money centers, because money is losing
lis power TO command other things in
exchange and cannot be probably
boarded, while on the other hand a
profit is certain II money is prudently
invested in legitimate enterprise. But
IL prices are falling enterprise becomes
the unerring road to bankruptcy. If a
period of falling prices be Ions drawn
out, bankruptcies and failures will be-
come the rule and successful enter
prise the exception. Under these con-
ditions money will accumulate in vast
hordes in the bank vaults at the money
ccnters, and although the rates OF in
terest may rule low, the fall in prices
through an increase of the purchasing
power of money itself will defeat its
profitable use in productive enterprise
and general stagnaton of business Will
be the rule, with labor unemployed and
,,vsvarcar amnny all flaesas
except bond holders, money lenders ard
salaried officials. At such times mort
cages eat up the equities of debtors
while the burdens of TAXATION grow
more oppressive and burdensome.
There has never been in the world s
history period during which the hui
man race made advances in civilization
and wealth, and the masses of the pee
pie constantly rose from lower to
higher level. except when mon ely supply
was increasing. The productiveness oil
on-productiveness of the mines un
erringly mark the periods Of advance
ment or retrogression anon & all ma
tons and peoples as far back 5 we have
records.
I
expressed in numerals and fractions
OF the money unit. Price is a N express
sion of the relation of the money vol
ume to the articles bought and sold IL
the worlds markets. The II lumber o
money units that can be made Of gol,
is dependent upon the quantity of gol'
in existence. The number of additional
money units that can be add ed to tn
worlds volume OF money each year de
ponds upon the yearly output OF tn
gold mines. The same is true of silver
The only test of n sufiiciency @
money or an adequate annual incrcas
Of money supply is found in price le'
els. If in the absence of wars that sus
pend the production and disarranc
trade. or the absence OF famines O
pestilence that likewise create abnol
nal market conditions. the gener;
price level is falling, il is evidence tina
the money supply is inadequate an
insufficient. II. on the other hand, III
der normal conditions the general lev'
OF price is firm or advancing. no con
plants will be heard OF an in uflcienc
Of money or the inadequateness Of SUI
ply.
So great is the influence OF none
supply that IL all other conditions e,
ist favorable to the highest cfiicienc
in production and money supply is IL
sufficient, falling prices, curtailed PR
duction. enforced idleness on the pal
of labor, increased bankruptcies an
pf neral hard times will be he prevail
ing conditions.
, From time immemorial until 1873 a
all the gold and silver that could !
extracted from the min es went into un
versal use as money. The fact tn;
, some nations made their coins Of GO
. alone and others coined only silv'
, caused no disturbance whatever so Ion
as one or more commercial natior
freely coined both metals.
. At this point we desire TO lay e
pecial emphasis upon the fact that II
) controlling condition of prosperity
, the supply of money, not the colo
specific gravity or chemical tests. Ie
. low money will uphold prices. IL II
, supply be sufficient, and the world ca
, prosper using only yellow money
: there be a sufficient quaint ity of
E White money is just as potent asyello
1 money. AS money is not finality.
not used as an article of individual co
D sumption by anybody anywhere. b
: Is simply accepted in exchange 4
' other commodities or in payment 4
property or debts, the color, specii
!. gravity or chemical tests are imm
e terial. but the supply is all importa
: because upon this the exchange pow
I Of the money depends. and upon Z
Z supply depends the ability OF men
il procure II to pay debts and taxes.
4 Ancient civilization in Persia, As
j. Minor and Egypt fourished VIII
e money supply was abundant. but VIII
r the great leads OF gold and silver in I
i Olympian mountains became exhau
cd and the sands Of the Pactolas yiel
ed no more gold, decrease in mon
i supply and fall i'm prices cen tralized 7
;. wealth OF those nations into the han
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