The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-28

Utah Senator'S Mastery Speech the Financial Questionable
Argument in Support of BnetaIfsm.

In considering the question of the in
huence Of money upon prices it is neces-
. sary to keep in mind the different uses
/ 10 which money is applied.
10y that portion Of the money supply
/ which for the time being is seeking ex-
Z change for commodities, or other proper
/ ", and so performing It's function as a
4 medium or exchange, operates In fact as
] eral level Of prices.
Money boarded or used simply as a store
OF value, while possessing a potential in
huence, a latent energy, can have but lit
we eUecJ upon values or productive in
duStry- While prives are on a decline
sucn money has no inducement to leave
It's hiding place; because, in the hands OF
ITS holder its command Of commodities
ana otner property increases day by day
as long as such decline in values con-
tlnUes. Such a situation is an encourage
nent TO the withdrawal of money from
active circulation
Thus the proportion of money employed
simply as a store Of value is augmented
That which seeks exchange for other
property and helps to sustain the level
OF prices IS diminished. So the speed Of
railing prices is accelerated as the with
draWal and boarding Of money proceeds.
Finally the necessities of the people
holding the money for food for clothing
ana Sneluer, or the cravings OF pride and
ambition force money from its hiding
pace to seek exchange for the things
WITH which such necessity or desire may
be gratified This affords an impetus to
higher level of prices. AS values of
{ property other than money proceed in an
descending and that Of money in a down.
ward scale It becomes more profitable to
/ store wealth in property than in money;
and so the money Is put into circula ton
stimulating trade and vivifying industry
1t has been noticed and remarked by
some Of the ablest writer's on finance that
4 a decrease Of money in circulation has a
much greater prOpOrtiOnate effect in de-
/ pressing the level Of prices than an in
/ crease IN the money supply has in raising
! such prices.
Effect of Raising Prices.
With the level of prices at a certain
stage, a given quantity of money may
I effect so many exchanges against COM
moqitleS. Now raise the level Of prices
/ ana II VIII require greater quantity Of
money TO erect the same exchanges
/ Every transaction requires more money
/ This increased demand for money always
/ ATTENDS any increase Of the quantity OF il
put into circulation, and tends to pre-
vent a dimimlatiOn Of its purchasing
4 power and to retaTd the upward tendency
Of prices
Besides, under the stimulus Of growing
prices new industries might be establish
cd, new fields for enterprise and new
channels Of trade are opened in which
money may be prOfitably employed.
Again, as wealth increases more people
wealth, thus freeing themselves from the
labor and responsibility of looking after
the use ana preservation of other kinds
OF property
/ All these causes cooperate to prevent a
{ depreciation in the value of money whose
! volume IS increased. The added incre-
; ment gives an impulse to the welfare and
advancement OF the race; and instead Of
becoming competitor Of the existing
/ money supply creates q new and added
/ demand for its own use.
HfuEaIWH
passing notice of the fact that not only
! the quantity OF money but also the
/ rapidly of its circulation affects prices.
4 The level Of prices varies IS the supply
of money multiplied by the number Of
exchanges which it accomplishes. This
Is but . cOTOiiary TO the proposition that
only the money which is seeking ex-
cEaT g'elS measures value.
Credit also has been regarded as ex-
erting an influence in this direction. A
man with credit of a thousand dollars
Snd an equal amount OF money who buys
a farm for 1900 creates a demand with
hfS credit as well as with his money
Whlch tenus TO enhance the price Of
farms.
1t is said that the perfection of the
I credit system dispenses with the neces-
slty of money. It is true that in times
/ or buOEancy and confidence prices NAV
/ be raised and business conducted simply
/ by an extension or exchange of credit.
/ However, il is a foundation of sand. Such
prices are fuctuating and unstable. Such
/ business has insolvency ever staring it in
( the face.
/ Credit is a good substitute for money
until confidence is impaired and HQuida-
( ton is demanded. II is then found to be
worthless. The essential quality of being
lawful tender in payment of debts is
lacking.
/ Example From History.
Some examples taken from history,
! may be given of the erect of an lncreas-
ing or diminishing supply Of money upon
/ prices, trade, and business.
In King SOlOmOn'S time the navy of
Tarslnsh brought gold and silver from
the Tartessus and the navy of Hiram
brought gold from Ophir, and the king
made silver to be in Jerusalem as
/ stones q Kings Y, ~
And the King made silver and gold in
( Jerusalem as plentsOus as stones III
/ Chronicles, T. ID
Such superabundance Of money
ought, according to some modern finan-
ciers. to have brought the people Of
Israel 10 the very depths of financial
abaSament and misery,
Not so. IT is said that these people at
tanned their acme Of prosperity in the
So King Solomon exceeded all the kings
Of the earth in riches and wisdom IL
Jerusalem was most glorious. Trade
and commerce iOurished. All other ma
tons. were proud to do her homage and
pay her tribute.
Z
her people We're pre-eminent for their
advancement in ali the arts of peace and
war for their civilization. prosperity, and
wisdom.
ma greatest e5ory Of Egypt seems to
have been coineident with il not caused
by, the great output Of gold from the
plains Of Nubia.
It is remarkable how the commercial
prestige and glory of the nations of
antiquity seem to have syncnroniZed with
the possession Of the great gold and silver
mines Of Spain.
King SO!OmOn's navy Of TaTsish, which
returned after periodical voyages Of three
years each, bearing gold and silver, visit
ed the river ia Spain anci6uuy known as
TarJsssus, but nov known as the Qua
dalquivir
These mines rext came into the posses
sion Of the PhOenicians. Carthage next
succeeded to and held them for two
centuries, until 200 -. c., during which
time she was mistress of the seas and
presided over the deSJines Of commerce
Rome followed and held them while she
retained the mastery of the world.
The Mining Of gold and silver at ancient
Attica was at flood tide in the age of
PgTicieS. The smelling works were at
ErgaSteTia, forty miles from Athens.
The sCOria from these ancient works
has recently (since 1870 yielded more
than 100000 to a company of French
and Italians working it over under a
lease from the GTectaB government.
Jacob. in his History of the Precious
Metals estimates that the amount Of
gold and silver in Rome in the Augustan
period was 81 S00C0 000: that afSer that
time il dwindled Until 500 years later IL
amounted to but one eleventh Of that
quantity.
A Mighty Agent.
The distinguished historian, Sir Alex
andar Alison, very justly observes; That
two leading events which have occurred
in the history Of mankind have been di-
rectly brought about by a successive con-
traction and expansion Of the circulating
medium Of society