The mirror. (Stillwater, Minn.) 1894-1925, 1908-03-12

lDer0 is now HICeen CnOuSauO mllllOu
dollars of gold in the world The
figures are startling and because of
this very fact, the situation is more
notable than many man cares to
recognize. At the rate of increase
now upon us the stock of gold in the
world will double every twelve years.
Science and clever. nature are doing it |
ALL The former now makes low grade
ore valuable and worth smelling, the
latter uncOvers new veins almost
every day. We can't stop either. Do
we want to do SO? by no means,
say, for gold is needed in the arts and
will continue to be coined into money.
Yet because of the enormous quanti-
ties now produced it is no longer re-
liable standard against whisN to op-
pose all the money of the universe.
Then this great supply of gold which
is the monetary standard of all the ma
tions today, is getting so cheap that
money is relatively cheap. Then. too,
this gold product is permanent addi-
tion to the worlds former stock. Un-
like the yield of wheat and corn which
are consumed, thus automatically
creating market for each years har-
vest, gold of former ages is all practi-
cally with us. This you see makes
money cheap. Or should say lessons
its potentiality. The dollar of today
does not buy as much as the same dol
lar would have bought few years ago.
Some articles of daily need which
could have been yours for this dollar
20 years ago, now require two such dol
| lars to buy. Only few articles which
tShave not advanced from 20 to 80 per
cent. Or as I see it the gold dollar
has deprecated to coincide with this
apparent advance in values. This de-
probation strikes the creditor with
greater force than it does the debtor.
and the great creditor class will first
observe this unique movement of gold
value. In fact, they have already OBJ
served it, 1 believe.
, Now let me explain. He who bor-
rows pays the principal with,the inter
est named and he is paying in cheap
ened currency. The creditor must ac-
cept. He cannot successfully insist on
, the debtor paying him the deprecia-
, ton of from one-half to one and one
half per cent per annum. Another
, phase, not often thought of-90 per
, cent (some say 95) of bank deposits is
. not money. 1t is q creation of the law
: merchant and Is called money capital
: tho it possesses only slight feature OF
Q real money. An example. A rural
8 stock buyer goes to his local bank and
q deposits draft on some commission
r house, say in Chicago. The banker
r credits the draft and pays for the cat
+ tie and hogs which are marked, paying
= out currency deposited by other peo
i ple-merchsnts, small capitalists anG
y others. might follow this transac
ftion to its close, but time is limited
d and the matter is understood by all m,
# hearers. introduce it as an example
b to show that really no wealth is re
ls quired in such important matters
t, then why must the government tie NJ
70 every dollar to depreciating standard
d which only disturbs and does not pro
II mote the commerce it seeks to support
ls There was q time when silver was
,r standard equal to gold. Our leading
G. statesmen were twenty years ago ad
te vocating double standard, both s'gol'
10 and silver" Harvests continued boun
N tiful, factories continued to produc
q close to their limits, and still bot
- farm and factory productions advanct
z, Why? ! claim that neither wheat
GO mutton, beef. pork, coats, shoes nor any
al thing else under such conditions ad
H. vance, but the medium of exchaug,
II, the gold back Of our dollar, is unstsbl
~ and the dollar is not worth what
k was before gold became 80 abundan
It does not make any difference whetf
Sc or it is gold, silver, corn, wheat, q
ne coffee that ear government holds q
be reserve against ito circulation. Coz
n tinued over production Of either woul
n result in lessened values and hene
n what they stand for becomes cheape
On and because worth less, cannot be 81
I'd pected 70 buy ~ amount Of any con