The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-11
THE MONEY PROBLEM

THE MONEY PRObLE EN-
Simple things. SO simple indeed as
to be overlooked sby the analyzer who
expects to find q mysterious cause for
an effect not understood, often lie At
the bottom Of q great problem. This
is as true in finance as in practical
economics, politics or sociology. There
is always some simple reason why a
certain thing Is so. HE. ~ y.
For months the country has been
experiencing money shortage, a condi-
tion not bad enough to be called a
financial stringency or serious enough
to cripple business except at intervals,
in the speculative end Of Wall street.
There has been money. enough barely
to reach around, and the fact that
speculation was held in check. that the
treasury took >anticipatory action look
ing to relief, and that the money re-
quirements Of the west were in some
degree lessened by a delayed spring
wheat movement account for the pass.
ing Of the country thru the fall with.
out trouble. Nevertheless there is
scarcely enough money to do the bust
ness with. 'E1e,s..2- sss5as. &S5 VI
Speakers and writers have been busy
explaining why this lis. It is a fact
that the money supply has increased
enormously. In one month last SUM-
ner the government put out new addi-
tional money to the total Of $4,000, 900,
and the grand total has risen until
there is now very close to $4,000, 900 900
in money Of all kinds in circulation.
The population has Of course increased
greatly. To the natural increase has
been added the immigration at the rate
Of about a million a year until today
there is a population, figured to Nov.
!, Of very little under s5,O00,O00. On
Sept. it was by estimate Of the treas
ury department 84,897 900, and will
very shortly be above the s5,OOO,OOO
mark.
Lest we suppose that the government
has been remiss and has not Kept pace
with the: increasing demand natural to
go with SO great a population gain,
it is in order to- look at the per capita
circulation. A few years ago there was
a per capita figure Of under. 80. Ten
years ago, in 1895, it was as low as
21.41. Today it is 1855. For every
man, woman and child in the United
States there is $33.6s' in money in. cir.
culation. The government has not only
kept up, but has increased the per cap
tia by great advances, and today not
alone by actual measure, but relatively
as well, there is more money in the
country than ever before. @ts
" Reasons for money insufficiency are
evident. Increasing business, large
crops, active industry and manufactur-
ing production making new records are
contributing causes plainly visible.
These everyone knows about and every
speaker gor written has analyzeds them.
It reanained Ali Charles Is. Gonant,
the financial authority, to point out at
a meeting Of the New York chapter of
the American Bank Clerks association,
few days ago, that three important
factors have been overlooked in J the
general run Of comment. They are:
The general rise in prices by about 25
pei; cent, naturally involving the use
Of a larger sum Of money in retail
transactions; the necessity for cash in
great areas Of the west newly settled
and where the bank check is not SO
common, and the rise in wages which
has made the people prosperous and
finds the average man or woman with
more money in the purse or pocket than
was? formerly the case. ~. ].
There can be- little doubt that this
pros perity Of the people and the higher
plane of living generally adopted en-
tiers into the money supply situation
in an important. degree. There is more
money in the pockets of the men pass
ing on the street than ever before.
They are prosperous and they carry
more cash about them. -.
AS to the remedies for money scarcity
they are many. It takes pretty good
man to devise a plan that will stand
all criticism. The academic student
usually goes wrong thru his lack Of
knowledge and experience in a practical
way, and the practical man too often
sees the question from an environment
not likely to make him think clearly
for the people. e. is one of the biggest
and hardest questions statesman can
lay hold on. Such terms as an sselastic
currency slip easily. off the tongue,
but are not SO easy to beat into definite
form, and then are not always apple
able. z& s. 4 .@sss.