Money Expansion

Pacific Press Publishing Company · Oakland, California · Jan 21, 1903

The Springfield Republican points out that monetary circulation has increased thirty-five per cent in five years; it increased $60,000,000 in the month of October alone, and it declares it to be “the greatest monetary inflation or expansion known since the Civil War.” Yet it quotes a financier as saying our currency system must be changed; that “there is not enough money to supply the legitimate demands, and unless the administration sees fit to enact legislation to relieve the situation, there must be a tremendous amount of liquidation. President Roosevelt has been told this plainly, and Mr. Morgan’s words have made a deep impression.” John W. Gates and James J. Hill are calling for more money. The Republican says: “Great as has been the currency inflation of the past five years, the expansion of speculative venture has been greater, and in the consequent exhaustion of available money supplies arises the cry for more inflation. It is a disease that grows rather than subsides by such feeding, as has always been noted in times of fiat money creation. The more money is put out, the greater is the apparent need of more money to keep up the fires of speculation that have been started.” The fruit of the folly will soon be manifest. It is a time now to be wise men.