MONOPOLY OF EXCHANGE. 413 



with prices; that the law of supply and demand (which 

 we will notice in its proper place), fixes the price of the 

 products of labor. As these self-constituted political econ- 

 omists and advisors of the people appear to be so obtuse 

 that nothing short of a cyclone of facts and an avalanche 

 of authorities will convince them of their error, we take 

 pleasure in devoting several pages of this work to their 

 special benefit. 



The following extracts are taken from the report of 

 the silver commission, a committee appointed by Congress 

 on account of their peculiar ability, to inquire into the 

 causes of the industrial depression in the United States. 



"The effects of a decrease of the volume of money in 

 a particular country arising from its abnormal outflow or 

 withdrawal from the channels of circulation through the 

 distrust which prevails, when unsound and speculative 

 undertakings are breaking down, or when the country is 

 convulsed by political disturbances, are the same as the 

 effects of a general decrease in the volume of money. 

 The result in both cases is a fall in prices. But in the 

 first case the equilibrium is restored by a quickly-return- 

 ing wave of prosperity, and the evils resulting are confined 

 to individuals and to special localities; and those dealers 

 are fortunate who purchase in the first stages of decline. 

 But in the second place the cause of the fall in prices is 

 radical, and must continue until prices go out of existence, 

 unless the decrease in the volume of money is arrested. 

 In the whole history of the world every great and general 

 fall of prices has been preceded by a decrease in the vol- 

 ume of money. There never has been a decrease in the 

 volume of money, unless accompanied by a stationary pop- 

 ulation and commerce, which has not sooner or later 

 resulted in a general fall of prices, and there has never 

 been a reqovery therefrom except through a preceding 

 increase in the volume of money. 



