Show I The N New cv Era I In economic theory there are three factors in the production of wealth viz land labor capitol Man in his early savage state was wasI entirely dependent upon land and I labor His life was sustained by consuming from day to day whatever whatever whatever what what- ever was Vas natively produced upon the land He saved nothing for forr future need until taught by tempestuous tem tem- tempestuous experience the advantage advantage advantage advant advant- tem tem-I age of garnering the produce of summer for consumption in wint wint- er The grains and the berries and the meats and skins of wold animals were his earliest probable accumulation of capital His lif life life was then no longer imperiled by bythe bythe bythe I And the barren fields of winter he was no longer compelled to occupy occupy occupy oc oc- cupy his whole time in search of food He turned to his larder to satisfy his hunger Life became I easier Moved instinctively in an I I I attempt to satisfy his inherent curiosity he exploited new fields which afforded new stimuli for new wan wants s and provoked new attempts at attempts tempts to satiate them This continuous continuous continuous con con- I exploitation of the field of the unknown has directly led to the creation of our great variety of weal wealth tho Family tribal pastoral and communal organized social orders were successively invoked to gain the mutual advantage of every members member's individual genius Inthe In Inthe Inthe the communal state each person became a specialist pursuing a particular task Each became an efficient producer and soon discovered discovered discovered ered that in his field he could produce produce pro pro- duce a surplus beyond individual need These surpluses were exchanged ex exchanged exchanged ex ex- changed directly and thus each member received the benefit of his neighbors neighbor's skill and its it's resultant creations Barter was the earliest I form of exchange It had many inconveniences It was cumbersome cumbersome cumbersome cumber cumber- some and limited the exchange of commodities to a very small terri terri- tory The inherent desire of man manto manto manto to obtain the products of remote communities provoked the use use- of some commodity that would be generally accepted relatively scarce hence something of small volume that could be traded foran for foran foran an immense amount of other goods Oxen wampum silver and gold are among the most important commodities successively used The political sovereign in an at attempt attempt attempt tempt to banish fraud and confusion confusion confusion ion from his realm provided provide by bylaw bylaw bylaw law that a piece of silver or gold of certain weight and fineness should be a standard by which the value of all other goods and se services services vices v- v ices should be measured Thus the precious metals which became automatically became a medium of exchange were coined at fixed weight and fineness as standard measures of the value of all other I commodities A momentous blunder blUnder blunder blun blUn- der was then We have inherited that blunder It has provided provided provided pro pro- vided a haven for greed and power pow pow- er er It has permitted the shrewd speculator to exploit the innocent toiler and investor It is a cardinal cardinal cardinal cardi cardi- nal cause of these baneful depres It is the direct cause of ot what Professor Irving Fisher calls the money Illusion The grave fallacy of minting coins at a fixed metallic content is that the supply and demand of gold does not always vary directly direct direct- ly with the supply and demand for other commodities and vitiates them as a measuring device Thus during a period when confidence In profitable Investments wanes loans are not renewed credit In Instruments instruments instruments in- in which circulate as money under our financial system diminishes in volume and bank deposits deposits deposits de de- deI I posits shrink and demand for gold cash and currency is greater than its supply The gold dollar I Increases in value It purchasing I II I power Is then greatly increased I II resulting In a general lowering of th the price level This Is exactly I what occurred during the panic of 1893 to 1896 To alleviate the J I I strain placed u upon pen gold and thus I lessen the purchasing power of the dollar William Jennings Bryan Bry- Bry I an campaigned for free and unlimited unlimited un un- limited coinage of silver as a means of restoring this country I to prosperity Mr Bryan as a aI I presidential candidate was defeated defeat defeat- ed but good fortune came carne to the Republican an victors not so much from policy pursued as by acci acci- dent G Great neat reat deposits of gold were j I discovered shortly after the election election elec elec- tion of McKinley in the Rand district dis dis- district in South Africa in Australia AustralI Austral- Austral ia la in Alaska a and the Klondike I This gre great t increase in the supply of gold cheapened gold gola everywhere including that coined into dollars There was an immediate decrease I in the purchasing power of the dollar and a corresponding rise in commodity prices a prices a return of I confidence and an expansion of credit which led to a new era of prosperity The most vital question before the world and particularly before I I America at present is whether or not we are going to trust to fortune fortune fortune for for- tune again or utilize a means which is immediately available I There are three expedients which I are proposed to restore us to prosperity prosperity prosperity pros pros- Namely Expansion of the currency by fiat of ot silver and expansion of credit |