The Winslow mail., 1900-07-12
MANAGED CURRENCY.
Two Theories OF Regulating Money
Supply-Currency Law Recently
Passed Not Sound.

There are two theories of regulating
money supply. One is called the auto
matte theory, which relegates the whole
matter to the productiyeness of the
mines, maintaining open mints and
coming all the gold and silver mined at
fixed ratio. Under this system the
amount of money, and consequently its
value or purchasing power, would de-
pend upon and vary from time to time
with the productiveness or nonproduc-
tiveness of the gold and silver mines OF
the world This system was in vogue
from time immemorial down to 1913,
when the movement to eliminate one
Of the metals by law was entered upon.
The republican party in recently de-
claring for the single gold standard
and unlimited bank imitation has de-
clared for the most pernicious system
of a managed currency that the world
has ever known. The law which went
into effect on the 14th of March confers
upon the national banks absolute power
to manage the currency and manipu-
late prices, and thus confers upon them
despotic power over all industrial forces.
This currency law is the most reckless,
unscientific and dangerous ever enacted
by any government in any age of the
world.
The demand on the part Of the
worlds creditors that silver be demon
cited and that gold alone remain a
money metal was a demand on their
part for the abandonment of the au-
tomato system and the substitution of
managed monetary system. 1t denied
the soundness of the system by which
money supply was furnished automat-
ically through the workings of the gold
and silver mines, and demanded that it
be managed by law so that only one
metal could be converted into money
instead of two. This destroyed one
half of the automatic system and re-
tanned one-haif.
Following the attack upon silver the
worlds money supply constantly di-
minished for quarter of century,
during which time the worlds price
level fell more than so per cent, there
by unduly and unjustly adding value
to the worlds debts, taxes, money obli-
cations and annuities of all kinds, and
correspondingly increasing the bur-
dens of debtors and taxpayers. This
move was promoted by, and clearly IN
the interest of, the worlds greatest
creditors and bondhOlders, who used
their influence to extend the gold stand
ard over additional states and nations
as fast as they were able to do so, and
whose work had reached alarming and
distressing proportions when the down
ward movement in prices was checked
by the contemporaneous discoveries of
large gold deposits, and the cyanide
process, which greatly reduced the cost
of its extraction.
The success of the bankers, money
mongers and jugglers in filching wealth
from the people through the manipu
lation of currency laws has tended to
make them stronger and bolder until
in all nations they have fortified their
extraordinary demands by vast eXpend-
itures of money to procure legislation
in furtheIance of their scheme. This
has resulted, through period of 25
years, in enabling the bankers and
money dealers to amass fortunes that
stagger the imagination, while the
great mass of mankind everywhere
have suffered under the withering effect
of contracting money volume.
1t will be seen that the demand for
managed currency" came from the
bankers and money lenders, who de
manded that they be allowed to man.
age it in the interest of their invest
ments. A managed currency, under The
laws leveled against silver, meant
contracting money volume and dear
gold 1t meant that dollars should con-
stantly grow larger, while the assets
of debtors and taxpayers should CORE
spondingly shrink.
The demands of the bondholders and
money mongsrs and the success of
their plan of management, iii enabling
them to unjustly gather into their cof-
fers the wealth of theworld, developed
another school who demanded that the
Currency should also be managed, but
be managed in the interests of the
whole people, so as to protect their in
terests, and that its management be
not conferred upon bankers as a means
of enabling them to plunder society.
The school who demand a managed cur
rency in the interest of general society
is represented in the-demands of the
populist platform as above recited.
In the United States to-day all three
of the schools are represented. The
republican party represents the de-
mand for a managed currency in the
interests of creditors and money lend
ers. The populists demand a managed
currency in the interests of general so
ciety. and the democratic party de-
mands return to the automatic sys-
tenn whereby the volume of currency is
dependent upon the yield of the gold
and silver mines, and that all supple
mentary paper money be issued under
the authority of the government, and
although il may be made a legal tender
its quality must be so restricted that
convertibility on demand into coin is
always possible.
The theory of those who hold to the
automatic system of money is that the
sources of supply, namely, access to the
mines of both gold and silver, shall al
ways remain open to the people, and
that when money becomes scarce and
dear tie production of the metals will
be stimulated and the evil reneolietI-
abundant and prices high. affordine
""'Ot'" s'i"""o 70 loPOn iD OtbOr
greater returns to labor in other