Now our gold standard men are in the position of those who first refuse to look at anything beyond the two things, gold and silver, to see what has happened, and who, when it is finally demonstrated that all other things retain their former relations to silver, still persist that the law which makes gold an unchanging standard of measure is more immutable than that which holds the stars in their courses.  If they will compare gold and silver with commodities in general, to see how the metals have maintained their relations, not to one another but to all other things, they will find that instead of a fall having taken place in the value of silver, the change that has really taken place is a rise in the value of both gold and silver, the rise in silver being relatively slight, while that of gold has been ruinously great.  And those who do not shut their eyes to the truth must see that the change of relation between the metals has been effected by depriving silver of its legal-tender function, as the want of accord between the clocks was brought about by depriving the silver clock of a portion of its motive power—­the weights.  The only thing that has prevented a greater divergency between the metals is the limited coinage by the United States—­the single weight that, withheld from the gold clock, prevented its more ruinous gain.

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Everybody admits that the value of all other things is regulated by the play against each other of the forces of supply and demand.  No reason has been or can be given why the value of the unit of money is not subject to this law.

The demand for money is equivalent to the sum of the demands for all other things whatsoever, for it is through a demand first made on money that all the wants of man are satisfied.  The demand for money is instant, constant, and unceasing, and is always at a maximum.  If any man wants a pair of shoes, or a suit of clothes, he does not make his demand first on the shoemaker, or clothier.  No man, except a beggar, makes a demand directly for food, clothes, or any other article.  Whether it be to obtain clothing, food, or shelter—­whether the simplest necessity or the greatest luxury of life—­it is on money that the demand is first made.  As this rule operates throughout the entire range of commodities it is manifest that the demand for money equals at least the united demands for all other things.

While population remains stationary, the demand for money will remain the same.  As the demand for one article becomes less, the demand for some other which shall take its place becomes greater.  The demand for money, therefore, must ever be as pressing and urgent as the needs of man are varied, incessant, and importunate.

Such being the demand for money, what is the supply?  It is the total number of units of money in circulation (actual or potential) in any country.