Page:Money by Lang, George S.djvu/11

 extent of the increase of population. The rate of increase has been more than three and a half per cent. per annum, but taking it at three per cent. there are persons living who will be living when the population will be two hundred and fifty millions, and the currency proportionate. To the individual the currency will then be of no more importance than now, but the aggregate interest involved will be vastly greater. Thus the importance of understanding the nature of money, in view of the possibilities of the country, is very great.

With true money imports will be met and balanced by exports with a regularity heretofore unknown; because, though waves of credit will continue to succeed each other–pulsation being inseparable from action–yet, commercial credit without the stimulus of money of credit, will never pulsate so that the general relations of industry will be seriously disturbed.

Commercial credit is anticipated demand, which, being necessarily in excess of existing demand, stimulates business to a corresponding excess; then, credit having exausted itself, business descends as far below the average of demand as it had risen above it. Commercial credit is represented by money of credit; consequently, the use of such money, in credit business, is equivalent to multiplying credit into itself. Under the influence of money of credit, therefore, business rises to a multiplied height, and sinks to a corresponding depth.