Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1899-07-06
SILVER.
The Worlds Price Level Depends
Upon the Worlds Stock
of Money.

The question of what metals are used
in the coinage of nation is matter OF
no consequence other than as they af-
feet money supply. The terms free and
unlimited coinage applied to gold or sill
yer mean that the minis will receive
and coin for the benefit of the owners
of all such metal that may be offered
for that purpose, thereby leaving
| money supply to be determined by the
productiyeness 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 ma
/ tons struck their coins from one metal
! exclusively while other nations struck
their coins from the other did not con-
! stitute recommendation in any sense so
| long as the entire output of both met
! ais was coined and entered into the
money mass that fixed the worlds price
level. Money supply could rot be cur
| tailed by England making her coins of
| gold alone, while Germany coined only
| silver and France coined both metals in
| discriminatory. The fact that England
refused to coin silver simply left a
| larger stock of that metal to be coined
| in Germany, Austria, Russia and
France. While the fact that Germany,
Austria and Russia struck their coins
| from silver alone enabled England to
secure larger amount of gold.
Indiscriminate coinage of both met
ais in France at the ratio of fifteen and
| one-half to one fixed the relative value
of gold and silver coins at the French
coinage ratio wheresoever coined and
made the result, so far as money sup
ply was concerned, the same as though
all nations coined both metals.
The worlds price level depends upon
the worlds stock of money. When the
stock is large prices are high, when it
is scant prices are low. Price is an eN-
preston of the relation existing be
tween money and other things. As
money is only 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
it causes great disturbances in the bust
ness world and changes the relation Of
debtors to creditors, doing an il Justice
to ore or the other.
Honest money is money in which
debts can be paid without doing II
justice to either debtor or creditor. In
order to be such, the money voiume
must increase from year to year in the
same proportion that population ana
demand increases, because any change
in its purchasing power between the
hot i, iTcI,rraI
payment of the same involves the trans-
fer of property from one of the parties
to the other without compensation.
When money supply keeps even pace
with demand the success of men en-
gagged in business will be gagged by the
Judgment, industry and capacity of the
men themselves unintluenced by raise
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 it 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
larger money volume the variations
from time to time in the supply had
less violent effect upon prices than
would be the case &c one meta, only
was coined and the volume of money
was smaller.
The effect upon business and produc-
ton of an increasing or diminishing
money volume is widely different aside
from the injustice that accrues to debt
ors or creditors. An increasing volume
of money and rising prices tempts all
money into active circulation, starts all
the wheels of industry into motion,
furnishes employment for all labor,
and, if continued through period of
years, gives to labor larger share of
the wealth it produces than it would
receive under any other conditions, be-
cause under such circumstances money
is constantly losing its power over
other things, so that to hold it idle
causes loss to it's owner, while under
rising prices an investment always
means to part with that which is grow
ing cheap in exchange for that which |
is growing dear.
Under such circumstances with all |
steadily going to a premium while |
money is going to discount the COM |
petition for labor will be so sharp that |
it will be employed at small margin |
of profit to employers and the labor |
ers will receive as wages correspond |
ingly large share of the products of |
their toll. When such conditions pre- |
vail production reaches it's maximum |
and but few debts are created. The |
money lender and Insurer at such times |
are in but little demand.
On the other hand, when the money |
volume is diminishing and prices fall
ing boarding money i'll idleness is the
only sure road to wealth. The judg- |
ment, industry and capacity that would |
win fortune under normal conditions |
can now only court bankruptcy. Those |
engaged in production must anticipate |
lower prices and reduce costs to meet |
such prices. This means a reduction
of wages and a consequent curtailment |
of both production and consumption.
Ii this condition continues long time |
the savings of the laborers are first |
en- account of enforced idle
ness and the competition for an oppor-
tunit& TO earn daily bread becomes SO
severe that the laborers have no voice
in regulating the share of their prod
uct that they shall receive as wages.
During such periods III the worlds
history when the mines were produc
tive civilization advanced by leaps and |
bounds, slaves disappeared and free
men multiplied upon the earth. But I