414 T H E IMPENDING REVOLUTION. 



After the volume of money has begun to decrease 

 every dollar of credit extended at the old range of prices 

 aggravates the disaster -which must come sooner or later. 

 Stagnation and panic are nothing more nor less than the 

 results of a struggle to make prices express truly the rela- 

 tion between money and all other things." Report of 

 Silver Commission, page 38. 



" Whenever it becomes apparent that prices are rising 

 and money falling in value in consequence of an increase 

 of its volume, the greak . activity takes place in exchanges 

 and productive enterprises. Every one becomes anxious 

 to share in the advantages of rising markets. The induce- 

 ment to hoard money is taken away, and consequently the 

 disposition to hoard it ceases. Its circulation becomes 

 exceedingly active, and for the plain reason that there 

 could be no motive for holding or hoarding money when 

 it is falling in value, whilst there would be the strongest 

 possible motive for exchanging it for property, or for labor 

 which creates property, when prices are rising. Under 

 these circumstances labor comes into great demand and at 

 remunerative wages. This results in not only increased 

 production, but increased consumption. The wants and 

 expenditures of laborers increase with their earnings." 

 Report of Silver Commission, page 49. 



" While the volume of money is decreasing, even 

 although very slowly, the value of each unit of money is 

 increasing in corresponding ratio, and property is falling 

 in price. Those who have contracted to pay money find 

 that it is constantly becoming more difficult to meet their 

 engagements. The margins of securities melt rapidly 

 away, and the confiscation by the creditor of the property 

 on which they are based becomes only a question oi time. 

 All productive enterprises are discouraged and stagnate 

 because the cost of producing commodities to-day will not 

 be covered by the prices obtainable for them to-morrow. 



