The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1868-12-12
COR RESPONDENCE.-
FROM AEW JERSEY.

JERskY CIrv, Dec 8, 1868.
To the Editor Of the woaKIsanAss ABvocAsn
= From time immemoriAl there has been q
great deal written upon money, and the
dawn 81 every morn sdcs to in value. Each
writer has treated the subjec. from HE own
standpoint Of thought, but no one seems to
have been attracted 10 the importance OF In
vestigating its constitution and its functions.
hence perpiexity and vexAtion pervade all
money Questions. There are two schools Of
money philosophers /; one asserts, that no
thing bat precious metal can BE- money, the
other that government can create money out
Of its own ideal.
Are either Of these right, and, II 90,
which The question resolves itself into
the phenomenon what is money! Il 1t .
tangibllity or an abstraction, Has it value
or merely an ideals Is it useless thing
made useful by labor? II it be, il Is q
commodity and possesses relative value and
exchangeability, or is it 40 abstraction, II
il be, its value lies in supposition and not
in relatively. To which category does mo-
ney belong? To the abstrac'ive. IL 10
a delegated power, created by legisla-
ton. II possesses power TO hquidate
debts, it is counter by which values
are computed, it is q standard Of pay
ment. Government is the only author
ICED power to create money, which it does
by delegating power 10 something 10 iqui-
date debts, but il fails in the ability to dele
gate purchasing power, consequently Il
connot endow relative value. II has value
in its power to pay for goods sold, but il has
no power to attract goods TO market, except
il be 10 gain its possession to lqnidate debts.
A money, to meet the demands Of commerce,
must possess relative value which the en-
dowment Of the power to liquid late debts
will not effect.
A money, to be adequate to the purpose
for which it is created must possess powers
which are as follow the power to represent
value, the power to measure value, the pow
er to exchange value, and the power TO ac
a commercial people that paper ID oney, con-
vertible into gold demand is the best yet
devised, but q PAPER money based upon debt
produces a disarrangement of values, COM
mercial ealamities and depression.
Both these are paper money and are evil
dences OF debt but differ in security +; the
one, being upOD a supposahle existence and
the other upon a future real ration. debt
which depends upon future production for
liquidation must De effected IN value BY IN
ei0ents which cannot be foreseen nor col
lected. 1t will appreciate or depreciate 10
value, according to the pressure Of hespirit
of speculation The relative yalne Of golt
10 tested 10 ..quidating foreign balances.
The baianee 10 adjusted with tLst which he
cheapest, whether il be gold or commodities.
IL may be to some paradox that gold
changes q value with the pressure OF the
market a. Is subjected to the laws OF con-
merce, but such is the fact, the obscurity
lice IN the value of gold being calculated
in money. The truth of this can be best
illustrated by the laws of England. The
government of Great Britain has established
that the Bank Of England must redeem iss
notes in goldat the rate of e It's. l04d. per
ounce. The question resolves itself into
the phenomenon WuuI 10 u pound
A specific amount Of gold, established by
statute. Diminish or increase the weight Of
the sovereign, its relative value or purchas-
ing power would be Effected 10 spite Of leg
islation. il is gold measured BY itself. The
price Of f3 It's. l0id. per ounce for gold
being established BY Law does not prove
te@t ne value Of gold 10 stable and not
ebangesble, it only asserts that an ounce OF
gold costs 90 much in coin which is gold.
When we talk about dolIai, b. ,acitly
10 our mind what 1t will commanL n pur-
chase and nothing more. Legislation has
power to cWate money but IL has not that OF
value. II can destroy It. l. can designate
what shall be money but it cannot endow il
with purchasing power. What are we to
infer from the foregoing analysis? First,
that money is delegated power. Second,
that il has no relative value created by leg
islation It has power to cancel jebts, II
has conventional purchasing power based
upon confidence. Third, money based upon
gold has purchasing power and relative
value. Fourth, money based upon debt lie
inadequate to commercial wants. Now, for
the conclusion, endow gTeenbacks with the
power 10 meet all government dues compel
the national banks to redeem their notes in
greenbacks on demand. Let the govern
meat receive coupons a. money and refuse
all national currency, greenbacks would APP
preciate and the demand for gold would be
almost destroyed except 10 adjust foreign
balances.
Greenbacks should, on demand, be con-
vertible into gold or into securities bearing
en- interest of four per cent. With a compu-
ted table upon their backs, showing the
daily increased value These issaes shoula
be received BY the government for all does
or be converted into greenbacks or gold on
demand. The demand for gold to adjust
foreign balances would be regulated by the
price Of commodities. Should the prices
OF commodities be high, importation ~vuld
increase and gold would Gov out until the
amount Of greeubacks Withdrawn from cir
culatiop had reduced the price Of c0mmodi-
ties, when Influx Of gold would take place.
Should the gold market press hard upon the
government AM force il to purchase gold,
greenbacks would be withdrawn from circu-
lstion, and the power Of the national banks
TO redeem would be curtailed; loans would
have to be withheld, prices would tend
downWards and commodities would be ex-
ported, and gold return. The workingman
70 not benefited BY high money prices, but
By the quantity Of product received for la
Dor. The 1 -andard Of living ia mot enhanced
By the volume Of moaey but BY The increase
OF power to procure comforts.
Many writers fail 20 make these distinct
ions, hence so much perplexisy upon the Ia
Dor question. Should any reader OF this
article wish an explanation Of any of the
propositions, the writer will willingly furn-
ish il BY addressing letter 10
HEkKY T. CALLo,
Jersey City, New jersey.
from lllinols.
nnasnwnon Wns IL ~ "A fano