The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1900-01-13
The Monetary Problem.
A "STABLE" CURRENCY.
The New supply of Gold and It's Enec
in Bringing PrOsperity-GOld-
ties Fooled.

itts l.
From the remarks of a correspond
ent of the Springfield Republican, we
judge that the people are opening their
eyes to the true reason of our present
prosperity, and to the real relations
which the money question bears to the
next campaign.
The democrats demanded more money
and higher commodity and labor prices;l
the republicans said, not more money, but
a one-hundred cent dollar; not higher
prices, but stable prices. But what ha.
happened? God, to defeat Satan's pet
proposition. a cornered dollar, has direct,
ed men to the bowels of the earth, where
gold was on deposit, and they have brought,
forth more yellow dirt in the last three
years than the democrats have hoped to
&e come of both gold and silver, so that
In spite of Shylock's wish n design, we
have had more money, and. as was fore.
told. we nave had rising prices mot alto
gether due to the increase of the gold out.
put, it is true, but largely sol, labor il.
more fully employed and better paid, and
the republican politicians are howling.
Behold our promised prosperity" BUT
THEY FAIL TO ADD, MADE MAINLY
ON THE DEMOCRATIC FORMULA OF
THREE YEARS AGO.
This is pretty straight talk, and it
means something. 1t cuts right down
into the bowels of the situation, as
you may say. If the correspondent
had felt inclined to go into particulars,
he might have added to his remarks
about the new supply of gold, the fact
that the war with Spain has put into
active and actual circulation a vast
sum of money that has been boarded
in the banks or in the treasury, that
the increase in the price of wheat as
the result of European demand has
made large additions to the actual cir
culation, and that the gradual rise in
prices has added to the volume. Thus,
while the money supply has not been
largely increased, the volume of circu-
lation has grown larger and larger,
the money coming out of the bank
vaults as the result of the demand for
it. This increase in the actual cir
culation has not only enhanced prices,
but the increase in prices has added
10 the circulation, the movement be-
ing one in which cause and effect are
interchangeable and alternating.
No doubt our readers will remember
In OitN 49, ~ i0Ne III PdA
in circulation by our gold standard
friends in which they solemnly predict
ed that in the changed relations and
conditions of business we had seen the
last of high prices. Such 4 conclusion
was inevitable from their contention
that the gold standard would give us a
Sound and stable currency" This
phrase meant, if it means anything,
that the purchasing power of the dol
lar was to remain fixed and stable, an
invariable quality in its measurement
of the value Of commodities. A dol
lar, to be a sound dollar, must have
fixed relations to the commodities for
which it is exchanged; these relations
must be invariable, otherwise the dol
lar is not a sound dollar, and the
currency which it stands for is not a
stable" currency. If not soundness
and stability were mere meaningless
phrases when applied by the writing
contingent of our gold standard
+, friends.
We think, however, that these writ
ers will admit, if they are pushed
closely, that they did mean that the
, gold standard would result in fixed and
stable values and prices, and that the
purchasing power of money would
, cease to t1uctuate as compared with
!, the value of commodities. Some OF
them will no doubt take refuge in the
superficial statement that while prices
, have risen, the value of the gold
+ dollar has remained the same. But
, the only real value that the gold dol.
, lar can have as a piece of money, is
| its purchasing power.
! When prices rise from any cause
whatever, the value of the dollar de,
/, creases in proportion. Three years age
the owner of money could purchase {
, ton of iron for eight dollars. Has he
not lost some advantage, has not hi:
money shrunk on his hands when ht
E finds that he must now give $23 or 50
for a ton? Under such circumstances
we think we would be glad TO nave the
5O-cent dollar, which he protested 81
E loudly against in 1896. for then he would
. have to pay only SIG a ton.
We are truly glad to see our gol6
standard friends so enthusiastic over
, the present conditions of prosperity
This enthusiasm we can enter into and
enjoy most heartily, and the more Sc
because prosperity has come as tn.
result of a more active circulation O
money and higher prices. This re,
suit was predicted by the democrats a:
the outcome of just such condition:
: as have recently prevailed. More money
= in circulation, cheaper money, higher
: prices and prosperity. These thing:
{ go together. Under all the circum
stances, DO our gold standard friend,
, persist in claiming that we have
4 stable" currency?-Atlanta Constitu
{ ton.