The Winslow mail., 1899-08-17
SILVER.
The Worlds Price Level Depends
Upon the worlds Stock
of Money.

The question of what metals are used
in the coinage of a 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 mints will receive
and coin for the benefit of the owners
OF all such metal that may be offered
Tor that purpose, thereby leaving
money supply to be determined by the
productiveness of the mines. From
time immemorial down to 1878 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
tions struck their coins from one metal
exclusively while other nations struck
their coins from the other did not con-
stitute monometallism 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 not 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 ex-
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 busi-
ness world and changes the relation of
debtors to creditors, doing an injustice
to one or the other.
Honest money is money in which
debts can be paid without doing in
justice 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 its purchasing power between the
time that debt is incurred and the
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 gauged by the
judgment, industry and capacity of the
men themselves uninflueneed by raise
or fall in prices due to changes in the
value of money.
The supply of gold has fuctuated 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 eounteracting the evil in
huences 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
less violent effect upon prices than
would be the case if one metal 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 its 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
labor employed and with products
steadily going to premium while
money is going to discount the COM
petition for labor will be so sharp that
it will be employed at a srsiall margin
of profit to employers and the labor
ers will receive as wages a correspond
irlgly large share of the products of
their toll. When such conditions pre-
vail production reaches its maximum
and but few debts are created. The
money lender and lsurer at such times
are in but little demand.
On the other hand, when the money
volume IS diminishing and prices fall
ing boarding money III suieness 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. Thosv
engaged in production must anticipate
lower prices and reduce costs to meet
such prices. This means q reduction
of wages and a consequent curtailmenl
of both production and consumption.
Ii this condition continues a long time
the savings of the laborers are first
consumed On account of enforced idle
ness and the competition for an oppor-