Iron County register., 1900-06-07
MANAGED CURRENCY.
Cwo Theories of Regulating Money
Supply-Currency Law Recently
Passed Not sound.

i Ll3t1Sy supply onC ID Id1lC0 t1iN ~uLO-
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
q 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-
tisept IS 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-
ciared for the most pernicious system
CT a managed currency that the world
! has ever known. The law which went
! into effect on the 18th of March confers
| upon the national banks absolute power
| to manage the currency and manipu-
late prices. and thus confers upon them
/ clespotic power over rallindustrialf forces.
! This currency law is the most reckless,
] Gnscientific and dangerous ever enacted
by any government in any age of the
world
! The demand on the part of the
F., 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-
tomatie 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-half.
Following the attack upon silver the
worlds money supply constantly di-
! minished for a 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
tie 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-
lafion 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 furfh ance of their scheme. This
has resulted, through period OF rs
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 whitening effect
of contracting money volume.
1t will be seen that the demand for a
liOhl OAC
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 leyeled 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 mongers and the success of
their plan of management, in 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 it's management be
not conferred upon bankers as 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 managed currency in the
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 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 |
it's 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 the production of the metals will |
be stimulated and the evil remedied, |
and that whenever money becomes |
abundant and prices high, affording |
greater returns to labor in other
fields, that the production of the pre-
cious metals viii adjust itself to the
new conditions, and that the plan of |
relying upon the supply thus automat-
ically furnished will be infinitely safer |
than relegating the matter of money
supply to the caprice of congresses