Those who contracted monetary obligations last week find that they are
now paying more for the use of that money than it was worth when the
debt was made.
This is a hardship on the borrower, and can be prevented by increasing
the amount of money in circulation.
This is the very essence of what is claimed by those who are for
increasing the volume of money in circulation. Money has changed in
value, and those who are mortgaged, or otherwise under interest-paying
obligations, have found that money is scarcer, in this instance through
contraction of the currency, and therefore harder to get.
There should certainly be enough money issued for the smooth carrying on
of the country's business, and when they determine the amount necessary,
it should be put in circulation at once. But stopping money from
fluctuating value is another thing.
The man who buys a barrel of flour one day for $4.00 may find that it is
worth only $3.50 the day after. The man who borrows money at 7 per cent.
one day may find it worth only 6 1/2 the day after.
To prevent these fluctuations in the value of either money or
commodities is a legislative feat beyond the power of mortal man.
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