Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1900-06-20
The Monetary Problem.
MANAGED CURRENCY.

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 @uto-
matte theory, which relcgates the whole
matter to the productiveness of the
mines, maintaining open minis and
coming all the gold ani 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 Eonproduc-
tiveness of the gold and silver mines OF
the world. This system was in vogue
from time immemorial down to 1878,
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-
clarcd 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 ma tional 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,
unscientitic 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 demand on their
part for the abandonment of the au-
tomato system and the substitution of
a 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-half.
Following the attack upon silver the
worlds money supply constantly di-
unfinished for quarter of century.
| during which time the worlds price
level fell more than 50 per cent, there
by unduly and Injustly adding value
| to the worlds debts, taxes, money obi
| 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 it's 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 te
make them stronger and holder unit
in all nations they have fortified theil
extraordinary demands by vast eXpend
itures of money to procure Legislation
in furtherance of their scheme. This
has resulted, through "a period Of 2;
years, in enabling the bankers ano
| money dealers to amass fortunes that
stagger the imagination, while the
great mass of mankind everywhere
have suffered under the whitening effect
of contracting money volume.
1t will be seen that the demand for q
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 E
contracting money volume and deal
gold. It meant that dollars should con
stantly grow larger, while the assets
of debtors and taxpayers should CORE
spondingly shrink.
| The demands of the bondholders ani
money mongers and the success o.
their plan of management, in enabling
them to unjustly gather into their cot
fers the wealth of theworld, developed
another school who demanded that thu
Currency should also be managed, bu1
be managed in the interests of tn.
whole people, SO as to protect their in
terests, and that its management b.
not conferred upon bankers as a mean!
of enabling them to plumber society
The school who demand managed cur
rency in the Interest of general society
is represented in the demands of thu
populist platform as above recited.
In the United States to-day all three
of the schools are represented. TIL
republican party represents the de
mand for a managed currency in thu
interests of creditors and money lend
ers. The populists demand managed
currency in the interests of general so
ciety, and the democratic party de
mands a return to the automatic sys
TEN whereby the volume of currency il
dependent upon the yield of the golt
and silver mines, and that all supple
mentary paper money be issued under
the authority of the government, ant
although it may be made a legal tende7
it's quality must be so restricted tina
convertibility on demand into coin il
always possible.
The theory of those who hold to tn
automatic system of money is that tn
sources of supply, namely, access to tn
mines of both gold and silver, shall al
ways remain open to the people, an,
that when money becomes scarce an,