The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1908-03-24
PANICS and THEIR CAUSE
(Ey A. J. Wil.pUD

expected lesseiling i'll the number
OF dollars that have been innncdi-
atcly preceding the occurrence 81
the panic, in currcncy circulation.
primarily for the purchase ri com
ml,ditics on the market fpr sale in
which the panic Occur7.
Neither political economy nor
common sense considers dollar,
locked in bank vaults a. currcn;
money any more than gold III the
rocks in the mountain
it is only current mDncy-mOncy
running to and fro through The
channels Of cOmmcrCc-a5 anxious
to buy commodities from the fields
and forests and factories on the
market for sale as the products o.!
the fields and forests and factories
on the market for sale are anxious
to buy money.
Money is commodity even as
cotton is "A cOnrmOditv-AiOncv Is
a supply even "a wheat j, d supply
Money Is as necessary to com
mcrcial health "a bread j, 10 phys
ical health
All the money III circulation in
a community is the vaIuc Of all the
prOpcrty-cDttOn. wheat etc. etc
on the market for sale in the com
munity.
If an annual crop Of cotton IS
10000, 900 bales and the supply Of
currency on the market To buy it
is such as pays 10 cents d pound
for it--,hOuld the crop be i'll
creased to 10000. 900 bales and the
money supply Of currency remain
the same on the market To buy it
the price Of cotton would be re
duccd to s cents a pound.
But should such annual crop Of
cotton be reduced to 5000, 900
bales the currency wanting to buy
it remaining the same in number Of
dollars the price OF cotton would be
20 cents a pound, because Of the
universal economic law-tlat the
money i'll circulation remaining the
same in number Of dollars the
price of any universally used COM
modify advances in a ration OF per-
ccntagc correspondent to the per-
centagc of the lcssened quantity Of
ii ON the market for sale.
These proportions are sustained
by writer's on political economy ami
by commercial experience and by
common sense.
This fact is $50 universally con-
coded among men of any degree of
business intelligence as renders any
calculating comment superfluous.
But it may be with propriety and
profit remarked to even proficient
economists that the reduction OF
currency in circ,1lation-other
commodities on the market for sale
remaining the same in quantity
impartS to the remainder of cur
rcncy in circulation All incalculabls
larger increase of power in con
trolling the prices of other comma
ditieS than correspondent rcduC'
ton of any other commodity on the
market for sale has i'll controlling
the purchasing power of money
This supremacy Of power of none,
over other commodities primaril,
and chiefly results from the law
that makes it 4 legal tender in pay
nient OF dcbts-as no other com
modify is bv state or national stat
ute legal tender i'll payment o
debts.
Another reason of its superio
power over other commodities /
that money is coined and stampe'
into pieces small and large-mctal
into pennies and dimes and dollar
and paper into dollar. hundre'
dollar and thousand dollar bills
therefore easily cxchanSeablc for
dozen eggs or a dozen million bale
of cotton or other wcighty mer
chandiSe. a few ounces OF it ma
.enfold i'll aggregate value the com
mercial value of hundreds OF ton