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

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bonds are pursuant to this policy. The ef-
fort to fund the silver circulation in like
manner is in harmony with the same
/ vicious policy.
These two classes of money are to be
treated as a public debt payable on de-
mand for which deferred payments in the
form Of bonds are to be substituted
Were this accomplished, a great con-
traction in our money supply would re-
suit, with the consequent decline in prices
and the corresponding rise in the pur-
chasing power of gold and the value of
credits, including the bonds by which the
notes and silver had been funded.
Instead of this relieving the government
or the people who in reality constitute il,
from any BURDEN us debt would actually
be greatly increased and Its cre11L lIn-
paired because OF the greater sacrifice
which the government or its people would
nave to make to obtain money thus made
scarce
The promoters of this bill well under
stand the operations of this principle.
VINO are they? The chairman of the COM
mittee on finance has answered, He says:
IN considering the possibilities Of the
future We cannot overlook the fact that
that national debts of the world have
increased at an astonishing rate. In 1852
the aggregate Of the national debts OF the
world was about Sl5,Uo0,0OO0oo and IN 1892,
S3l 600 600. 00O.
The holders of these debts. this gigantic
worldwide syndicate. cold, impassive
greedy and TeInOrseless, have for years
steadily progressed in restricting the in
habitants Of the earth TO the use of gold
alone with which to meet this mighty ag-
gregate of obliga ton.
Let the senator from Rhode Island tel
how they are benefited. He says:
We offer the holder Of outstanding bonds
the inducement Of an obligation payable
coin and q security for a long term in
place Of one maturing in a short time.
And again:
In recent. years there has been q grad
uaI appreciation IN the prices of high
class securities throughout the world
This movement has been more marked in
tE8 United States than elsewhere. The
increasing demand for our bonds has
given to these securities an exceptionally
strong position in the worlds market
Take the fourS of 1907 as an example. The
prices at which they have sod I'm the past
five months have realized to investors the
following rates: August. 2.105 per cent;
September. 2Z22 per cent. October 2.25i
per cent; November. . 46 per cent; De
cember, 20t5 per cent.
A profit Of more than 2 per cent a
month. Their creed is more bonds and
less money.
Money holders cannot proftably invest
in commodities or property c. use their
money in productive Industry upon q fall
ing market. Sc long as the decline in
prices continues they may profit By hoard
ing the money or storing it away and
holding ii.
However. it is under precisely such con-
ditions that money may most probably
be invested in government securities,
which, IN addition to drawing interest,
appreciate with gold prOporuonately with
the decline in the values Of other kinds of
property.
BY treating a portion Of the money sup
ply as a debt and funding il in this class
Of securities their own appreciation in
value is greatly accelerated. and the cor
relative conditions Of declining values and
stagnant industries ensue.
Demand For Money.
It is true that there are other Things
which may affect the value or purchasing
power of money besides quantity. The
demand for money must always be taken
into the account.
In one Sense it may be truly said that
the demand for money is always at a
maximum. Whoever wants anything any
desirable object, first wants money, de-
mandS money.
Obtaining money. he at once transforms
it into the object Of his desire So the
demand for money equals the sum Of the
demand Of all the people for all other
things.
The demand for money has been con
si6ered as commensurate with the neCes-
sites. wants and desires Of the human
race
However. it must not be supposed that
this demand which. connected with SUP
ply. likes the value Of money or the prices
of Commodities or property. is the eouiva-
lent Of necessity, want or desire The
wants and Cesiros or people are ins2tiate.
iIimitabs The supply OF money neces-
sarily being limited, II its value were fixed
by demand in this sense 1t would logically
follow that such value would fast dp-
prOach the infinite.
Many A tramp is consumed with a desire
10 possess the mansion OF the millionaire.
Yet such desire does not add a penny TO
its exchangeable value.
The necessity, the want, the desire, be
fore it can have any influence upon values
or prices. must itself be capitalized, must
be possessed of desirable objects. things
OF utility to others, and TO obtain which
others are willing TO make 4 sacrifice.
One person being the owner of an object
of utility viii not part with il except in
exchange for another OBJECT or still great
er utility to him.
No trade viii take place when the sac
rifce to be made would exceed the bene-
fit TO be derived.
The demand for money. while great. Is
always COuntCrbalanced by the demand
for other things; and there ara some
things which are even more Necessary to
human existence than money
In the days of Job, skins seem to have
constituted the money OF the people. Still
that q man hath he will give for his life. %
In all climates food IS necessity; in
most. food. clothing and shelter are iudis-
perSable. Before being deprived of these
almost any sacrifice OF other things. in
Guiding money. viii be made Every
source of supply IS itself accompanied
with a demand which must Be satisfied
urron terms which wiz be satisfactory be-
fore the supply is surrendered.
A man presenting a horse and asking for
it 500 in money creates such a demand as
tends To fix the value Of money. lust as
q man with 500, gsilling to purchase a
horse presents q demand watch affects
the price of horses.
Thus qualified and explained the value
ar purchasing power of money depends
upon its quantity and the demand for il