The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1905-09-24
Money in Circulation
Determines Prosperity.

L Is not likely that the money Ques-
tion win again. or at least for years
10 come. form a leading issue in
American politics The great fight
for free silver which eliminated IN
the campaign of 1856 was the result
of the then growing shortage in the
circulation Of money which had
wrought business depression on al.
sides. and what was known as the.
"silver issue" was simply a plan to
supply the circulation medium which
the country at that time so badly
needed.
Free silver itself was defeated. but
as che result Of circumstances which
could not be forseen az that time, the
correctness of the cumulative money
theory on which the free silver peo-|
pie made their fight has now been am
ply proven. We do no, think We have
seen a better statement OF the case
than the one made by the Birming-
ham Ledger as follows:
Without regard to gold or silver orr
paper il is the amount OF money IN
circulation that makes prosperity, or
depression in any country. In the
great money campaig gas of a dozen
years ago, under the guise of free sill
yer coinage. the Bryan wing Of the
democratic party fought Tor more cur
reucv. That was the whole battle.
Since those memorable struggles
the currency has increased consider
ably and therefore as q direct result
prosperity has increased consider
ably. That is q complete story.
We are told by the figure makers
that In 1885 the circulation of money
per capita in the United States was
S2l10. That since then the oircula-|
ton has risen TO S31.40. The prosper 1
fly Of che country has also increased /
by so per cent since then. There
can be no. prosperity without a circu-l
lating medium in reasonable abund-
auce
Since the Bryan campaigns there
has been an unexpected increase in /
the production OF gold. New gold has
come en- from Alaska and from South /
Africa, and Australia has increased its
output That accounts for large
part Of the Increase in money.
There have been many new banks I
which have put out notes under thel
banking law and that has increased n
the amount of money ln circulation. /
The main point is that there has
been an Increase I'm circulation and
The prosperity Of the nation has KEEP
pace with g. SO much money is now /
En- circulation that prosperity Is as-I
sured Tor a long time It requires /
wears % drain a country Of it's money. /
All through the cotton belt and theI
wheat bch and the mineral belt there
has been so much money that the peO-
pie who have Dc very lGrgely own Z
and 90 not have TO send It east as IN
the years some by. The prosperity
has in o measure. become permanent
Mortgages have been PAID and loans
have been repaid and some money re-
mains as surplus
'fhe quantity Of money IS what
makes prosperity and only that can
make H.
Ii Is true. free silver. as an IS
sue. rs desd, but the theory on which
a was based could not be more enec-
lively proven than by the events
which have followed us defeat The
great outpouring Of sold from newly
discovered mines has done exactly
what the silver advocates hoped 10
accomplish and the result Is seen by
the unprecedented prosperity which
has come TO the country since the in
crease in its circulating medium be
San.
When the increase in money fails
to keep pace with the business de-
mands OF the country, then the money
question win again become a vital is
sue. but until that time comes there
win De no occasion for reviving il.
when, however, n does come the
cumulative theory Of money viii be