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About The Lincoln independent. (Lincoln, Neb.) 1895-1896 | View Entire Issue (Nov. 22, 1895)
"ft 4, HURRAH FOR HARVARD, She Allows Prof. Francis A. Walk er to Pound the Gold Bugs in Her Quarterly. MASTERLY STATEMENT OF THE QUANTITY THEORY OF MONEY. Men of Science Coming to tne Help of the People. The Quantity Theory of Money. The quantity theory of money is an expression, with reference to a special ease, of the general law that value is determined in relation between demand and supply. Trices beiHff nothing; more or less than values expressed in terms of money, those who hold the quantity theory merely point or.t a specific in stance for the application of a principle which has been established by compe tent induction, and the applicability of which is not challenged in any other instance within the view of the political economist. It is not therefore for those who hold this theory to prove their case. It rests upon the critics of that theory to show some reason why a principle, admitted to be otherwise of universal application, should be suspected of failing at this point. The cause of the incredulity which has attended the quantity theory is found in the ditliculty of defining the terms, demand and supply, when used with reference to money. The elements of the case are neces sarily complex and elusive. The de mand for money arises from the fact that there is a certain amount of money-work to be done; that is, exchanging lias, to a certain extent, to be ef fected in that community through the use of this agent. In the situation existing-the quantity of goods to be exchanged being such as it is, prices , ruling as they have done, producers and consumers living at such distance from ach other as may be the case, the hab y ts of the people as to carrying and us ;!'ing money, being what they are, the ;",v machinery of exchange being what it is there is occasion for a certain exercise , of the money-function in that com inumty. x THE M OX ICV f V NCT ION ipannot be exercised in a lower degree than is thus required without personal inconvenience and economic loss. Shall . we say that the demand for money is determined merely by the amount of goods exchanged? No. Many of these goods may conveniently be exchanged directly against each other in barter, or indirectly through the intervention of money. Such goods do not constitute a factor in the demand for money. 1'ven when we know the amount of goods which must be exchanged through the intervention of money, we have still to inquire how often each commodity may require to to thus ex- th hanged. On the other hand, the sup ply of money is not determined solely in the number of money-pieces of a certain denomination or denominations available to do the monej-work. We must also know the rapidity of circula tion. "The nimble sixpence does the work oi the slow shilling." In acorn muuity possessing in a high degree the agencies of transportation and transfer railroa'ls, parcel express, post and telegraph a given volume of money pieces might conceivably do two or three times as much of the money-work as in a community more backward in tho respects indicated. To resu me, tne demand for money and the supply of money are both quantities of two di mensions. it Mt vv i; mm-: run i. When the demand for uud the supply of money are thus stated und explained it is difficult to see how any economist an take exception to the proposition it ktlir jiinilit mnrf rtmi'tiiiintr Him "I 1 " " m i :.at. increase m the quantity of I ev Ml r i:i-K run l-s and a 1E-1 ." ' . .." ' '. ! '.' " .. I LOW r I. run r. .-on e iimiirjr i -,nlly exchange 1 for good?, since ,1., nit- f..rillli lt u'oi'll (I..V-I M,- v... Ki.v ........ - ...i j fr.ve earned by labor ami alMim-iiec uud r k, it 1st clear that prn -s - that is, th value of rmmry tiutt U" fixed by a fcrfiiilicH Lt caime. !t cannot he a mit'er of Mhim or nutter of accident. I line mut be noun n js,,u why I he pntbat r wlli'hH (5kU for m i luui'li inoiny. ami not f -r more u;id not f irb t-. Il.t r mit-l ! noun competent frc whuh IM!II'U hlUi l filVf M lll'll ll hi' ll which k1ni l.i hi frui tin' ivitv of emt'h' u r H an I. lb. What it thl lrtv 1 1. rrtmt l ult e luuin of gtt fof o d t k '.( lor nur uiidrf all coinhlioi, ut all , th aiiftmr itiMr4'ly nrptr. i, "lh inat.il uixl '). ' io Hcidil ii,iiii in ft l kltu I .r aiit.ifc' lint III) l tl.rf I'..' li'Vifll i i I ). it't 4 !' I 't k.iU i I f. f ItliMM ) , "I A.. la lU Mii. lt i. ..t.Uf . .f I'll), III I t !, l)f M 1. 1 I' hv .1. urn it . 11 1I1 I and hypothetical, and therefore requir ing, prior to accepance.to besubmitted to inductive verification. She calls it "an a pkioki law,"' a hypothetical de ductive law needing to be compared with "observed facts." and speaks of it as an instance of "pure abstraction." Starting with such a view of the theory m question, she linds it impossi ble to verify the theory inductively with any great degree of satisfaction. Xow, 1 must take issue on this point at the outset. The principle that value is de- termincd m th relation lui.ween sunnlv and demand- that is, the quantity the - ory in general has been aimnuanuy established by competent induction. The only hypothesis in the case of the quantity theory of money is that demand and supply have the same do minion and potency here which they have in all other cases of exchange. It is assumed that a principle admitted to be otherwise of universal application can safely be applied to this particular instance, no reason why it should not be so applied ever having been adduced. Since goods are sold for money, and money is echanged for goods, the udvo c ate of? that theory has a right, in the absence of any re son to the contrary, to take it for granted that the universal law of exchange governs here. This is all the hypothesis there is m the quantity theory of money; and that as sumption is no more violent than would be the. assumption of a learned and skilled physicist, making observations in a region never befoce visited, that the law of gravity reigned there as else where, and that the atmosphere of that place was composed of oxygen and nit rogen, with possibly a dash of argon. A SOl'MISM EXPOSED. Hut, while declining thus to concede that special iductive verification is nec essary to establish tho quantity theory of money in the absence of any ground for questioning the application here of the general principle governing ex change, one can have no reason for ob jecting to such an inquiry. What, then is the scope of Dr. Hardy's investiga tion V In certain tables and diagrams she places in comparison: (1) The "volume of currency each year, from 18t5t) to 18D2 inclusive: (2) prices for the same period, according to an index number; ('U the transactions of the New York clearing house; and (1), gold in United States currency. It is from such a comparison that conclusions are derived unfavorable to the quantity theory of money. A I'Ell CAPITA (TKCljr.A'IIOV. To begin with, it is to be regretted that Dr. Hardy has not made the cur rency table one of per capita, and not of aggregate currency in circulation, During the thirty-three yearsthe tra ditional life of a human generation covered by this table, population in the United States considerably more than doubled. Had the table given the fig ures of the per capita circulation, the effect upon the eje and the mind of the reader would have been very different. For instance, instead of the currercy of 18'JO stand standing to that of 1800 in the ratio to 100, the ratio would have been 1 1.8 to 100. 1 u other words the curren cy would have shown a per capita in crease of only i 1.8 per cent instead of 22S per cent., a notable change, indeed! It is true, as as. Dr. Hardy says, there is no absolutely necessary relation be tween an increase of population and in an increase in ttio.se trade transactions which require tho use of money; but it stands to reason most conspicuously, that, except for a revolution in other conditions, to double the population of the country is to require some increase, and a considerable increase, in the do mand for money, whether that increase shall be exactly 100 per cent or less or more. It is true that a comparative per capita table of monetary circulation u-milil vtill ntit.'iiri ilu nwii iti.mi.iiti! .if ....v. ....... - .. ... .... ..... V,. , doubt and ditliculty; but this s-ems no ' good reason for introducing an addi-, tmnal and altogether unnecssary eh-- . . ... I . I , '' ,,aruy a""w,u l"r U,B K"''"i popu- j hit ton. i he would manifestly come much i nearer I lie truth thanj'jy iritj allowing : for it. The assumption that a twofold popu ; while credit ugencies and inatrtiuietita j I. it ion would require a twofold cin uU- have been enormously improved and en jtioii, le irly may be, in its own degree, tirily new int-utit ( coinmuiitcatiou, I erroneinu; but the asst. mptioii that a like the telephone, have U-u intio I twofold population, .prea ocr u t atly I dueed, the oph- of the United Nates , gu-ater an a, Would tl require any j ure 100114 far luor-money ttuut they did luorw currency m ccM.Mii 1 1 contain j i, Kmi; ami ytt ll; -U Ht 'f ntU , larger miooiiit .f error, lu a quantita j l;'t iuii.l, riMng pM t dw not live inw-fcligatioii 1-1 tl, iiiterni .- I appear, Tl ' s inj le v mutton .. that iwren ai'.IH percent iiure.i aul a j t! multipli uti.-u t oiuii,i,dit.n dur ! J- I ts cel l II ere me ii Hot Hum in! f tn the luerr.nej ihtietof production, Yet rwn if w correct tl.e-r t ibli t v Hiiro iui iinl tl.r t aplU elerii-i.. it .tt:i M in 1111 true, 11 r. Ilanly ,u latrd, tt.at. In I'ei.rra!, wlnU ti.n' "olt.iiu' ff iiiriiii,)" tut OtniMil an,t ii.i te ie I ,it ly ,im m.ii, 1 rii e I ar ilei 111 ! J, r ,il U lt lta ' ' i..- l ml vi' tv '. D I 1 1 . r olt to bit h I- .-! r. It r!) I Ii v iu .ii. i,, I, it .it 1 d ..mi, 111 It t Hi i;i-r il li,ron.,(j f .fi, I I I appiii .l ie 1 .1 1 i I 1 ti 1 ..o ..( I t,i h i it 1 1 ii 1 u l 1 -.' 1 i.', ; I!, ,i 1 I ir a i' i. I .t a I id h i' i .."In tt ' r.tiotii;4 !' It i I !, 1 r ,, , ii I kf Ii in 1 ,1 , l 1 t t. , ; 11.1'iih e l J II.i' ',t f. 1,-m'oi I 1 t I ' 'I to r I ' e t 111 1 1, n i' in I 1 ('(r 1 ini i' in :, 11 ..i1 1' 1 .1 i,i, d oi l 1 ( In. ln-j to l.i, !, 1, i:,i u -.,) ' . it'll 11'iJ t'l- Jl'4i u -r 1 1 1 i u. 1.1 1 . 1 r N I t 1.1 iv Ju .1 l tl it , y, , , i, 111 Dr. Hardy's opinion, justifies conclu sions so important, what statistical evi dence is relied upon in thus cutting down the scope and validity of the quantity theory of money. She com pares the "volume of currency" with the average annual prices for a considerable term of years, in spite of a steady m crease in tne volume of currency, there has ben a decrease, more or less inter mittent and spasmodic, in prices, l.ut isit8iUhcient.tom.it together merely the volume of currency--that Lis. the supply of money and the ' corresponding puces, without even at- i rempung a quaniHuuve siaieuu-ui, oi the demand for money '( Dr. Hardy would appear to think that the quanti ty theory of money is in effect this: that, if the actual quantity of money is diminished, prices must fall. Xow no economist of reputation ever held such a theory, how ever loosely some may have written upon the subject. The quantity theory of money, by its very statement, takes into account both the supply of money and the demand for money. Dr. Hardy's tables and dia grams do not refer tothelatterelemeiit, even by so much as an interrogation point. We have already sewi that, in making the table of the "volume of currency' an aggregate and not a per capita ta ble. Dr. Hardy t'.;iew out of considera tion the influence of a population more than doubled during the period covered by the investigation. We now see that she does not even give so much as a blank column to the demand for money, although the demand for money is just as much a factor in determining prices as the supply of money. Such an Investigation can scarcely be deemed conclusive. Dr. Hardy shows that the volume of currency i. e., the supply of money increased steadily and largely from 18(10 to 181)2. She has not shown that the demand for money did not, during the same period, even more rapidly, thus completely justifying the quantity theory. According to that theory prices do not necessarily rise be cause the supply of money increaseses. I'RICKB ONLY lilSK. when the supply of money lncreas relatively to the demand. And right here let me bluntly take issue with the writers of the gold monometallist school generally, Mr. Wells, Mr. Horace White, Mr, Atkinson, Professor Lumner, and others, regarding their unverified as sumption that it is in the nature of an advancing industrial civilization to re quire smaller and still smaller amounts of "the circulating medium.'' These writers are never tired of di lating upon the function of the bank ami the clearing house in saving the use of money. They discount upon the statistics, partial, fragmentary, and un reliable as they are, which show the com paratively small proportion of cash pay ments; and they meet every statement or assumption as to the importance of the nianey supply with assertions that the money supply has really ceased to be of any practical consequence, as a result of the extension of credit agen cies and instruments. THE CHECK AM) UKAFT FALSITY Now, it is perfectly true that credit agencies and instruments, in any high state of industrial civilization, effect an enormous saving in the use of money. But it is at the same time true that, in spite of ull which credit agencies and instruments can do, after the efficiency of bunks and clearing houses is exausted, the whole tendency of modern civiliza tion has been to increase the demand for actual money. At the beginningof tlie present century, the people of the United States enjoyed a minimum of of credit agencies and instruments; and the volume of curruiicy was, so far as we can make out from the incomplete statistics of circulat ion, less than one half per capita, what it was sixty years later, m t.pite of the fact that, during tho interval, banks by the hundreds and clearing houses in a half score of cities had come into existence, transportation ! t . i IT '" iei grupn rmu wi n mirwiumi, aim in a hundred wavs the efliciencv of a given body of money had been increased and today, thirty Ihe years later Mill. t!n H,.i eliui tn trut ( l '4U, Mild cli iiji In the luUit i.f our jrop v W Itti H r, e. t In ('art)lli Uud Upt-lnll. (f ii. :), ( 1' .i i .on ill) rnahi'ii -i!it I r 4 l ii r ai d tui larger lill l' 1 t 41 tOl ID' lit J, III Mtfl.( till' I ff .1 lo te i.f -i,'t.4ti; and f iji.l It 11, ;,U j. I)ili in-.' Ion,, ill e( ttiti.t. I I . l , tilt t; 1 i- t r 1, u.ii t it) .ti nf 11 ii i.t I 1 1 i , 11 1. t .Ic.l '"V.. lit) Kimwi A Uo" t Thioi ! 1 used to readT. II. Tibbies and liright Kyes in Nonconformist that paper is not so good since they left it. We must circulate the Independent. Truly, D.McCai.i., Sup't and re elected by 102 majority. Gone Wholly MadT The Pioneer Press of Nov. 18, shows unmistakable syptoms of accuteinsani ty. It says: "Tho fact stated by the Pioneer Press yestertay that the city has full power to issue all the bonds necessary to erect an electric plant of its own.was a great surprise. It will prove in the end a much cheaper mode of lighting than can or will be furnished under any j contract that can be made. The city can get all the profit there is in it for the city and the public." Oh! you crank! You wikl-eved, long haired, lop eared populist! You you but we forget ull the pet names you called the populists when they were the first to propose municipal owner ship of electric and gas lighting fran chises at the Omaha convention; DIED. At Lincoln, Nebraska, Nov. 7, 1S!i"i, Mrs. Sarah wife of O. M. Gordon, in the 67th year of her age. Mrs, Gordon came to Lincoln frm her home in Seward county about the 1st of last September to superintend the education of her two youngest sons who were attending the ('otner medical in stttute and State University. About the 10th of November she was was taken down with pneumonia. The best medical aid in the city was secured and after all could be dono for her, pas sed quietly away on the 17th. Her remains were taken to her home at Jlee, Seward county, and her funeral preached by Uev. S. J. llerton after which she was laid to rest in t ie cime tery at Seward. Mrs. Gordan came with her husband from Indiana to Nebraska In 1875 and settled near where ho lived. She was a devoted mother and wife and a ehrist ian whose every day walk in life proved sincerity of her profession. She was a lady of large sympathy and always felt called upon to sacrafice her own pleasures for the benefit of her family and friends. She was an active worker it the ranks of the christian people of the commun ity. The establishing of the Christain church at Uee was largely duo to her personal efforts. That true christain spirit which characterized her walk in life drew near her a large concourse of friends whose sorrows and tears mingle with those of a devoted husband and children who are called upon to mourn her untimely end, II. JJKAll SIH: We are making an ef lie build up a strong ttate populist paper in Lincoln. 'Jo do this we need your aid. If you are already a subscrib er and in arrears on your paper, can you not make it convenient to pay a year s subscription? our list is gradually growing but we are carrying a heavier load of delinquents than we are able to do. In addition fo your own subscription can you not secure for us a few of your populist neighbors for three, six or twelve mouths. AVe know times are hard iu the country, but equally so in the city. A little from each will help us on to better times. A great cam paign will soon be on and yon will need this paper. Make a note of this and give us a lift. Our subscription lo 1 per year, l0 cents six months, 2.") cents three months. Tin: Indkpkndent is endorsed by chairman and secretary state committe, Gov. Holcomb, Senator Allen, Hon. W. A. McKeighun, Warden Leidigh, Supt Abbott and many leading populists. Write for terms to ageirs. Please let us bear from you. IIkmiy Ill CklXS Publisher Lincoln Independent. Lincoln, Neb., Nov. 15. If you cannot give us uny of your time can you not find us a live jvt,t iu your neighborhood? .. - .. -. ;?S jiairs of Woman' ami MiWs .lion feizeM 1 to 3J. Worth from KMN) to r..M) for l.yri. Ten tltyn nale, V. IS. tShoeCu, lOWOStrttt. Hair cut 10 cent-i, Co tier of IVntli ami O tmK r 11 & M. ticket iifhr, Antliint in barber lim fur teiMt i l. lUrU r m curlier nf Tenth urnl O. S ml ut ii from your cnunly m I'M I. li'inw A. rwuiky, 1-W Nrt!i IVntli tr- t luiioru-r ami a! r in Wine Mi'l l.itiuuM. I'abat . Milwaukee IU r. 1'tUtil tr.i'K 4 i' i kity. W rit i fit' Hive. P. J. STEPNEY'S Old Reliable 0. K. Barber Shop. Lincoln, Nebraska. CONSERVATORY OF MUSIC. The Best School for Musical Training in tho West. oiinl advise all tiioso desirinf? a first class mus'cal education to read their catftlogiio and rroHpectns for 18! )".(, (JiaduateM from tins school can enter the Great European Conservatories without ex aniiiiatioii You pet a thorough musical training. A beautiful home for ladies and gentlemen. CisT CATALOGUE address. A. A. IIadi.ev, 13ii8inesH Manngor. C. Mo? It s, Musical Director. MILLINERY. Palace of fashion. (Mrs. J. II. Jilair'B Old Stand.) The Place to buy the Most STYLISH HATS, And at very Reasonable Prices. 117 South Eleventh Street. Found Something at Last for the Babies The Unbreakable Doll at the Great 10 cent Store. The Great Ten Cent Stor lias received one of "the finest line of Dolls in the City. One particular doll I warrant from breaki'iir?. I is oue of the nicest dolls out and thev are iust us chean ns h common doll and I wish every lady would 'PI..... 1 inry itinuuw on wine. ,viso received a consignment lot ot Unina goods which are going to be sold tit very low figure. 118 S12th. Kennedy, Ik Photographer. 1029 0 St. Lincoln, Neb. Noble tudio. Is making the finest I'tot jgraphs iu the Cily. Cabinets 2.00 Per doz- Latest Style Small Photo3 $1 Per Doz. All other Sizes ejn ally low in Price. Satifaction guaranteed or money refunded. Keinember the place. KENNEDY'S. FURNISHED ROOMS, BY DAY OR WEEK. Nicely furnished room, from $1 to g:i IVr Week. mrs- CHESsiisra-Toisr, mi OiStkiet. LincijLh, Ni:h. 1 ' Now umn iriin tiiU f lh iifjt llllK' J'Ct'OUU' tl and TKOSPECTUS Sent FREK to any Mus L. P. Hrookh, Secretrry. call And inspect our line of dolls. 1 , t . m y-.. S. POLWOSK 1929 O Street. ISO TO Capital Cily MEAT CO. 10H V St rwt, for law I'lic . Choi.-f Vhi( Urd. t- ( lion Shoiilli-r Ntfk, ! in!oAMia, ,V Slt I'ork. r.tt. Diry UrtU riio, ''t! tot u Iri d. j Capital Cily iMsitCo. 1014 U!r5i. W. M. SMITH, Parlor liar bur thop. A i ! n'ilh n t 't ! 1111 iii i!iv ln miJ Hit tit mil j ih l iifiMK I (th AMI T Hf . oik Sntif.c-.rv t I n'l.f". i'lol-lon in .mi tl ir i It , No t, !' l rt lo u I. - U -n t tmr v et tvli hi Jur it Jr, w I i Ii m Hi n. Nil, . I :.. j Imiii M' m, I ;iutH', f. iii l m . l li I f I Ml t. I 4) p.j t t f i ( n i ii.i Ii I mi .(li li i, t f 'f i 'il, i H iii f t'lf l.tv I.I,'. i , ! SI CIlM'liH. f ( ONI. in , krk.tMHH HIM I'KU KS. UV2 O SUiTt, Ynnl Kith amlY. l.i an II .f l In i Tl.f t Vi ,itt ti ,t iii ar'o tiii.iixl Mm,, t ai d I i.. t l"'!, An !! ot.e M i-lt, m ! " h kli liki 1 1" ' ' II o i) ,,( llHlllf) , ft k ttil'cf '-r til' tM ' I l Dr. ll.r.J) ttaiUout wttti i, 11 k 1, f iilg ll.f ii:..tjr l),t,;y a, 4ir4t n ' I ii I' t, , : I ll , . 1 , I .'!" If ! i i, I ttlH ! k IO I t I" f f i r Un in . t t I I i t ulf i H, it lili1 J Ik. i 1l lir l t. !. tfn j iu ru , t v Ui'i' i 4 i .1 j, I. iir., Uif I'ul JjiVBU u f t ill. I I i. -L 0