Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1900-07-05
THE PARAMOUNT QUESTION.
Some Advice for the Young Man who
Is About to Cast His First
Vote.

HOSNo IN - ~ wv aPoh - AANA
its of the questions of the hour rather
than as his father did, or on party
lines framed on bygone issues, and
asks what is meant by the none
question. Such a resolution, accord
ing to the National Rural, is COM
mendable. If more, both old and
| young, would follow his example and
make a careful, independent study of
~present-day problems and vote ac-
c~ordingly, without regard to previous
party utilization, the monopoly of
either money, transportation and in
dustries would not long remain en-
throned in a free country.
We win define real money as coined
metal or paper stamped or printed
with a certain face value by constitu-
tional authority, and made by law
the agent of valuation. measure of
price or basis of exchange, the me-
dunn of exchange and the legal in
strument for the payment of debt.
Any money o. alleged money which
does not possess these legal attributes
to the fullest degree is defective, and
to the extent hat it lacks these quail
f%cations is a mere substitute for
money. No money is wholly sound or
honest which is not a legal tender.
The money question as now in con
troversy may be divided into four CO.
related questions:
First. The question of the quantity
of real or basic money in relation to
the quantity of wealth, production and
the volume of m and debts.
$1,000 II III
it shall be made.
Third. The question of character or
legal tender, and,
Fourth. Whether the nation or ma
tional banks shall issue and control
the necessary volume of paper money.
The first is the all-important ques-
ton, and involves the second and
third; sixteen to one'' and free sill
ver," so often alluded to in the daily
press, are minor facts relating t o the
one great problem, how to expand
basic money to keep pace with our
ever-growing industries and COM
merce, so as to facilitate exchanges
and maintain stability of general
prices.
It is a well-established principle, &C
knowledged by all standard writer's
upon the subject and recognized by
banking, brokers and speculative cir
cles, that general prices are regulated
by the volume of basic money. In 9TH
er words, that the law of supply and
demand applies equally to money as
to other things. On this principle, if
money is increased to keep pace with
production, no matter how much pro-
duction may be cheapened as regards
labor by fabor-saving machinery or
other devices, general prices will
maintain the same level, with the re-
suit the producer will receive a fair
share of the wealth he creates.
If, on the contrary, money is not
supplied in proportion to production
and the demands of commerce., as I'M
fortunately at several periods during
the past 25 years it has not been,
prices will fall and commerce and in
dustry will be curtailed until one of
two things happen-either the def
cheney of money is supplied or general
prices will fall to the general level of
the quantity of money. A condition
of falling prices or relatively low
prices bears heavily upon the pro-
ducing classes, upon whose shoulders
lies the burden of payment of all
debt, fixed charges and incomes, be-
cause on account of the lower range
Of prices it takes more labor and
more of the wealth labor creates to
cancel such obligations.
AS there is $3.50 0 900 of secured in
terest-bearing debt resting upon the
shoulders of industry in this country,
a fall in prices becomes a serious mat
ter. It is apparent also that under
such circumstances what is lost to the
Industrious is transferred to the credit
Of the money lender, b~ondholder and
absorber of fixed charges and incomes.
If, on the other hand, money for
any reason, whether by natural
means, as by products of the mines,
or by acts of legislation, becomes in
creased in quantity in relation to the
demand for it, prices will rise until
the general level of prices, overtakes
the enlarged quantity of money. I'm
der such conditions industry and COM
merce are stimulated, and the indus
trial workers, receiving a larger share
of the wealth they create, are pros-
porous.
Substitute money, bank and other
credits also exert an influence on
prices, but it is uncertain, f~iuctuating
and speculative. Ultimately, and per-
haps we may say periodically, under
the imitation of credit substitutes for
money, panics ensue and the general
level of prices will seek the level of
the quantity of basic money. By
basic money is meant money possess
ing all the attributes of real money
without limitation, regardless of the
material out of which it is made.
In, view of this principle, it will be
readily seen why money owners, lend
ers and fixed income classes are seek
ing to confine legal tender to- gold. 1t
enhances the value of their incomes.
and when the periodical reaction
comes, as come it must, when prices
tumble to the level of the base, it
gives them a great advantage, in very
many cases resulting in the confisca-
ton of the property of the debtor.
B~imetallists, on the contrary, are
seeking to make the agent of valua-
ton of both metals, making gold and
silver on equal terms basic money. By
this means they seek 90 broaden the
base so as to maintain a higher gem
eral level of prices; also to create an
automatic base, which. on the princi-