The New York herald., 1867-02-26
FINANCIAL THEORIES.
What is Money.

TO THE EDITOR OF THE HERALD.
We have adopted theory Of money devised by Great
Britain for her own aggnndzensnt and inculcated and
enforced upon weak dependent nations keep thom
poor subserviont and tributary to her II is theory
Of political economy which Is taught In schools and
colleges aud largely controls tn, public mind Its false
principles and assumptions advanced with confidence
and authority il they true and unqusstionable
1t was taught when colonies and when we be-
came nation and poor II has kept compare
lively poor aud cxhausted-debtors and borrowers
while 1t has enriched her aud mado her the deJostay
and focus q she commercial exchanges and payments
On or present subject IL is taught, among the frss
faIse principles and assumptions. that nothing money
but the precious metals coined and stamped; that
nothing else has the inherent value required; that
tne stamp On eon csprcsscs us uneen. vauc, .as ~
ing and coming 1t for circulation. The nature
Of things thus determines its intrinsic and
uniform value the law only declares the amount Of that
value In different coins and iegnizes its money.
This IL sheer assumption and hclion. Ia baroarous
countries they might have attempted something like Il,
II the price of days' works had been xed and the differ.
amounts OF labor required at different mines 10 pro-
duce gwen quantity Of metal had been determined
They might at least have guessed how much gold or s
days work would, on an average, produce.
But In civilized and commercial countries no such
mode OF fixing standard by which 70 reckon and deter
mine the value Of other things has any place effect
such countries have In fact from time 70 time enhanced
Owing 10 the scarcity OF the nietais and
the necessity OF more coin they have arbitrarily
assumed and fixed uniform standard or value by law,
and this II its legal value as currency.
That these metals have Intrinsic value various and
nuctuang, Tor different purposes Of art mnnufacture
and ornament we'll az for circulation rs an nsrumont
and faciiisy in making exchanges and nay.
nents is granted; bus for the inst class Of
objects L s0,a [ ss %ercaandse a,a = IKE IKE iron and
OF supply 10 demand. But wncn coined and used ~
money requiring fixed, permanent and uniform value
things, the law assumes and must assume, 20 nx NE
vaius u which n shall pass and be receved-wheher
with paper The law makes paper money equivasst 70
coin by eRalzing ana stamping on II the value which
u represents = currency:
god but y q too plenty and common g Be- made CIR
cuIating medium Gold portable and enduring
and the Law takes portions OF out Of the sphere Oh
merchandise and iranic coins fixes and stamps on
legal and uniform value and prescrioes that snan 80
and e = a. that = s.s ss 4.
or exchangeabe price OF other thinea Tho law aDs
trariy assumes prescrbs and enacts tne nxed ana
form legal value from the necessity of providne and
haviua Iera measure of commercial values, - u pro-
scribes and enforces fixed and uniform msssures or
length weight &c The law means and intends TINS Or
il means nothing and % sell, excss9%gs % Or gsy =
Discount below prcc above this legal standard
sas raw a. paac violate ana
the law aside II n 20 use false ana uouscns - ps0
L Of legal and established weights and measures:
The subect will admit but scauty illustration within
the limits OF brief essay. Sulce II 70 ny that the
government has enacted laws and penalties almost with
out number and both government and people have set
them A. uaught We have legaized gold and silver coin
a. money and legazed Treasury notes and national hank
notes ss money equivalent In all respects 10 coIn We
treat them both II they were merchandise, commodi.
ties OF traffic. one above, tho other below their equa
legal value; one at . premium because u e1pcrssnls
ana cannot DO exported. We are drifting and tossine
about without any standard but that Of 6hv0ck and the
SPECTATORS We feel that something must be done,
talk Of returning TO law and resuming payments in coin
We dream and deceive tho public By visions Of what
the prevailing theory and system, not able u
effect Calling in and suppressing our present currency
may utterly ruin us but will not for the present tbt
next generation, reestabllsh specie payments for day
NICHOLAS kNICKERBOCKER,
Stock Exchange Buildlnss