Show za Z I 1 4 W I 1 i I 1 1 v IS THE CURB CUBE TO REVIVE THE INDU industries OP OF THIS REPUBLIC I 1 rim I 1 mt no Dec deelva elv by free ard racial ot quantity ot of money in clr ra the baal question at ft 1 xua the question before the club was will the prosperity of the country be promo promoted ted by the free and unlimited coinage of silver at the ratio ati 0 of 16 t to 1 I prosperity depend the reward of production it if producers produced only those things which they consume prosperity would depend upon production itself but under our complex ays tern tera ever everything Ming is exchanged through the medium ot of money hence prosperity depends upon the reward of production or the value of products in exchange or stated in its simplest form upon the price drice of products the common reply to this is that price is immaterial as rising or falling prices are compensatory and if the producer receives a lower price he can buy a correspondingly larger am amount aunt and vice versa while this statement is apparently patently ly true there are two fallacies concealed in it which entirely destroy its value unfortunately our whole economic anomic system is based upon credit debt is universal debts are nominally fixed in dollars the value in exchange of dollars is determined by prices while a certain number of legal tender dollars will always liquidate any debt expressed in that number the amount of sacrifice and labor needed in exchange to obtain the dollars Is increased by lower and decreased by higher prices so in a country iti ih which debt is the universal condition prices instead of being immaterial and compensatory are really the vital factor in determining prosperity the second tolly folly is found in tilt the fact th atlow prices may wipe out the margin of profit in production when this Is i the case when what he produces costs the producer more in labor sacrifice or money than he can obtain for it in exchange though he may buy at continually lower and lower prices he must eventually go to the wall so it remains absolutely true that price is the vital factor that determines prosperity the law of supply and demand cleter determines ter mines price the old school of f economists this law consisting of only two factors the product and the need tor for the product assumed that where the need for or the product existed the ability to obtain it also existed me dhe later economists have discovered that the law of supply and demand consists of three factors and that the third is the controlling factor in fixing price viz the produce which is the supply the need for the product which is simply ineffective demand and the ability to purchase the product or money aich which transforms ineffective into effective demand though there may be never so great need money does not escape the controlling power of the law of supply and demand its value in exchange is determined by the law now money or some accepted substitute forloney tor for money enters into every commercial transaction every exchange hence it will be seen that the demand for money is at all times equal to the demand for all other things hence it must follow by inexorable logic that the total supply of money at any given time be it great or small must have a value in exchange equal to all other things from this fact is evolved the law of the quantitative power ot of money this law is an essential integral part of the law of supply and demand it inheres in it it in ii its controlling factor in its power to determine price formulated this law is and it is simply the law of supply and demand applied to money that it if the mass of money is increased it will exchange for less products in other words the quantity of money in relation to products determines prices this taw law is inherent and is as immutable in its ita operation as the law of gravitation lt it is also vitally impo important in consider ins ang the money question on and is the key jo a most of its intricacies and mysteries money is the creation of law and of law only its creation is a government monopoly law determines today approximately the amount of money that the people may have with which to effect their exchanges briefly formulated then my answers are as s follows prosperity rity Is determined by the reward of production or price price Is determined by the law of supply and demand finding its expression la in the relation of the volume of money to the volume of exchangeable products the volume of money is determined by law hence price or the reward of productions Is determined by bv law lav hence prosperity is determined by law my conclusion therefore is 18 that prosperity has been destroyed by a contraction of the volume of money moner resulting from the of silver and can be restored only by the restoration of silver to its former statum tatna fi I 1 |