The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-11-10


ishing things have been said in the
discussion Of political questions during
the last few months, but nothing lis
more calculated to astonish students
of economies and financial conditions
than the utterances of Mr.. Towne in his
last Indianapolis speech, and the edi-
tOrial Of Mr.. Bryan in the Commoler
of October % last. under the head of
Silver Democrats indicated"
In this editorial it is said that the
money question has decreased in inn
portance only because an unexpected
increase in the volume of money has
raised prices and brought in part what
bi-metallism would have brought in
large measure" From these same
sources have come repeated declara-
tons that this unexpected increase"
in the money volume has been caused
by the increase in production Of gold,
and that this is sufficient explanation
of conditions OF business.
1t may be regarded as audacious fo:
me to call in question the economic
correctness o. these statements from
!,
and who have been accented as lead
ers in the economic discussions of the
last eight years. but | am compelled
to say that such declarations do not
indicate such study Of either the ,prin-
ciples OF financial economics Or such
knowledge of financial facts, or OF ex
listing business conditions, as intelli-
Of hi Of q 11ic.1.,
had a right to expect 1t is said in
the editorial that since the election CT
1896 there has been an increase OF so
per cent in money volume
On page $40 Of No. 5, series of 1896
81 OF the Monthly Summary of FL
nance and Commerce. it is reported
that on December I, 1SS6.4..he .gener-
al stock Of money was $2301, 160, r.
The circulation statement for October,
1904, reports the general stock" to
be $685., 333, 734. This is less than
Is per cent increase since 1896 This
can not be regarded as correct on ac-
count OF the different methods oil, MAX
ing UP the reports at the different
dates | call attention to these re-
ports but desire to say that it is
wholly immaterial whether the edi-
-tcriaI or the face Of these reports show
the Correct increase of the general
s ock', Ct money. Let it be admitted
that there has been 80 per cent in
crease in the stock Of money in the
United States. it is economically in
correct, in the face Of existing facts,
to conclude that the business. activity
and increase of prices during the last
eight years, admitting them to be all
that is claimed. are to be accounted
for entirely or to any considerable
extent even. by the increase of gold, |
or, in fact, by the increase of any OF
the different kinds Of money enume-
rated in the treasury department cir
culation statement.
The actual increase reported is as
follows:
Gold coin Gncluding bull
lion in the treasury. IS 717158811
Standard silver dollars. 1884, 1897 |
Subsidiary silver ....... 34,496,7G8
National bank notes. -. 222680,51S |
Total lncfy11senaaass. ,oS9, 730, 1884
From this should be taken. -
Treasury notes of 1890
cancelled .............s 109,711 $50 |
Net increase .......>s 9S0,019,70t |
Increase in circulation
all money outside treas
ury-during time ..~.s 915,704,743
Net increase general stock
not in circulation, but
retained in treasury IS G4,314,9 G1 |
It gives no light to talk about per-
centum of increase or about per capita
circulation The statements and illus
trations upon which the editorial prac-
tically rests and the whole money |
question are imperfect and misleading. |
The basis is not sufficient for The
claims made or the conclusions
reached, and are damaging in the pub
lie mind to the cause they are intended |
to sustain. In the face of facts and |
conditions it is not possible to predi- |
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