The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-11-17

/, was 91,o4o, l5l,JoU. In WndL l nave
said heretofore | have treated all this
as if it were in law debt paying money,
and on this assumption have shown
/ that the increase of it, since 1896, has
been no increase at all. but an abso-.
lutte contraction when compared with
debts. The entire general stock of gold
in the United States was, ON November
| l, 81, 363, 047 ,081. If we are going to~a
gold standard of payment this is the
goal. When every creditor is able, un-
der the law, to demand gold coin for
his debts. this is the amount OF debt
paying money We will have; to which
will be added, of course, whatever in
crease of gold there may be from year
to year. During the last eight years
the increase has been less Il an $780,
100000 in each year. 1t is to the
volume of money available to pay
debts, and the demands made by the
debts, that the quantitative theory
must be applied. In debt paying
sense nothing is money except stand
ard OF payment-legal tender. Gre liz
tors do not always demand legal en-
der, and this fact may vary somewhat
the demand Occasioned by the increas-
| ing volume of debts. The general
proposition, however, remains true. Ii
So the cumulative theory, when so
applied, will not explain any increase
of prices and business activity we may
have had since 1896. According to the
| theory, the facts upon which Mr. Bry-
an predicates his conclusions, exactly
opposite results would &c expected to
follow.
1t is the most falacious method of
economic investigation to take two
facts-the reported increase of money
land increase of business activity-ig-
more every thing else, and conclude that.
one fact is the result of the other. A
student of conditions, as well as Of
theories, is compelled by the additional
facts to which | call attention to con-
clude, that never before has the oil
ume of money reported been so small
| in proportion to the demands for it. I'll
this is true, then the increase of money
reported does not explain the admitted
increase of business activity, and we
must look elsewhere for aAvindicatiOn
of the quantitative theory.
The relation Of the volume of debt
paying money to the volume of debts
to be paid; the supply of the one to
the demand occasioned by the other is
only one side Of the money question:
] one aspect OF the appllcatiQn OF the
quantitatlve theory. Can there be any
doubt that on this side of the question
there has been. not only since 1896,
but for many years, influences con-
stantly tending to contraction, to re-
duction of the volume Of the standard
of payment? In the application of the
''quantitatiye theory on this side of
1.-The question, can there be any doubt
about results That must come from the
ever widening separation of supply
and demand going in opposite direc-
lions?
On this side of the question it is i'm
portant, and there is no decrease in
the Importance" that the scheme and
purpose of the financial influences to
reduce the volume of the legal stand
ard of payment should be met and
thwarted. The volume of debt paying
money should be increased beyond any
possible volume of silver and gold; be-
You'd the volume of all Kinds of money
reported by the department And ev-
cry dollar should be STANDARD of pay
ment' without limitation, restriction OF
discrimination, and issued by the gov
! eminent.
If this could be accomplished, il
: would still not be a complete soi:l-
ton of the financial question, nor q
: cure for all the evils of our financial
system and of our financial conditions
1t would be very long step in the
right direction. but it would not be
the ultimate goal to which every finan-
> cial reformer ought to press.
The other side of the question, tht
!. side on which-there is now the wild IS
l imitation, and for an increase of which
: the financial powers seem to me to bt
! planning, is quite as important.
With your permission | will consider
+. this in another article.