The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1900-08-31
THE CRIME OF 1900.
. Menace to Every interest
Of the Governmen

retirement OF money ohaH ~ Ut sHe
which is Americans: or the
banks. which are largely owned in Eng
land; or the spectators Of Wall street,
who may with no improperly be
termed OF cosmopolitan nationality! |
Which OF these authorities or bodies
Shall have the power 10 control the
volume OF money in this country? This |
is not a party question. 1t is ques-
ton of vital importance to the nation
and TO the myrads of industries COW
cred by its flag.
The volume of money is the measure
OF prices. The whole sum of money
and Of substitutes for money. when
multiplied by their various ratios OF
activity, must and does exactly equal
the whole sum of exchange. or pur-
chases and sales. during any given in
teryal Of time. One is the measure OF
the other.
The act Of 1900 declares that the unit
OF money shall be a certain piece OF gold
which II describes. This is physica,
mpossibilty. The unit Of money Is
not and cannot be any one piece OF
money. whether Of gold. silver or pa
per: il is the who.e sum OF money null
tiplied by its frequency OF use and re-
use As this the crux OF all none
tary questions, it needs some clab-
Grafton.
The United States treasury depart
ment reports that the sum OF coins and
paper notes which constitutes the cir
culation Of this country amounts TO
abut $4,000 100000. Though | believe
this to be an eXaggeration, | Will ac-
cept it for the purposes Of illustra-
ton. These coins and notes. as deter
mined by numerous observations. are
used and reused in payments. abou; 80
times year. Therefore. if considered
BY itself. the currency would. al pres
ent prices. represent exchanges
amounting TO 80 times $2,00O.CO0,O 0O,
in other words 100000. 100000. In ad.
dition to coins and notes. there is used
for the purposes of exchange a sum OF
credits represented by bank ch ecks and
other orders for. or promises Of. money
which amounts 10 20 times as much as
the total currency. but which neyerthe
less circn,ates 20 times slower.
To exhibit one part of this fac
and conceal the Other is the stock de
vice Of bankers The volume %
money j. unimportant (thcy cry
Behold the much superior function
discharged by credit Nineteen
twentieths Of the exchanges are ef
fcctcd with bank checks and onl.
onc-twenticth (say they). with mon
ey." On the surface this is quit
true: below the surface il is entirel.
unloading. The bank check. or bill
of exchange. can make only one pay
mcnt. when it is destroyed. Wills
coins and notes. after they have mad
one payment. are ready to make innu
merable Others Just as fast as hand
can count them out, or express train
can carry them. In short. money doe
20 times as much work in give
time rs checks. bills of exchange
felegraphic transfers. promissor
notes. or book credits combined
Without going further into detail tn
general result is this: that in thi
country coins and notes effect on
hundred thousand millions Of g,
changes. whilst credits effect anothe
one hundred thousand millions. NAL
ing altogether two hundred tbousan
millions OF exchanges per annum .
present prices.
, This sum represents two things
it represents the entire annual ba
ance of trade at present prices:
i, also represents the entire volume ,
money and credits multiplied by II
, various ratios of activity Of its cor
: ponent parts. One is the compl
mentary and the necessary compl
, mentary. of the other. II the none
i withdrawn from circulation or II
!. credits fail. one Of two results mu
, follow: either the exchanges will {
, minish in number and trade will In
= guish. or else prices will fall. uni
= the combined sum Of transactions
Q time exactly fits the combined su
4 of money and credits when multiple
, by their respective ratios OF activit
i The inevitable consequence of the
2 conditions is that whoever contrc
d the circulation. controls prices. co
O trolls trade, controls production al
v consumption controls the value
securities. the value Of real esta
n (both farm lands and city lots). CO
trolls wages. controls the purchasii
power of salaries, Of pensions. OF
! comes from securities or property.
] short. he controls the entire ind'
II trial affairs of the country; a
re through these he also largely &C
u trolls its administrative policy and
l. foreign relations. lie becomes the
irene arbiter OF its dcStinieS.
The act of 1900 takes what remai
!, OF such control out of the hands
: the government TO confer il upon I
- hanks: and as the banks are large
49, owned in Wall street. which in tn
- Is largely controlled by the Engl
Lombard street. this bill virtua
- bcstows the management OF our m'
ct etary system upon body OF forei'
"a ers. who will inevitably employ 1t
.1A Hos \