The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-01-16
A New Monetary System,
SECTION I.-CoNTrNuED.
BY EDW ARD KELLOGG.
CHAPTER III.
MoNEY-TRE MEDIUM or DISTRIBUTION.


The following is another example Of -defe-
gated or representative power: A man
gives . note Tor a thousand dollars. He
thus delegates to the paper on which the
note is drawn power that increases its
legal value millions Of times. Before, the
drawing of the note, the paper possessed
small amount Of actual value, but was not
legal representative of other property Cor,
as paper only, its worth depended upon its
inherent qualities. But when the note is
drawn, the paper becomes a representative,
and has, according to law, q delegated con-
troll of a thousand dollars worth of the prop-
erty of the drawer. The drawing q the
note does not add a fraction to the SEXUAL
worth Of the paper ; its value in holding the
property is legal, and superadded to its in
herent qualities the same value might be
superadded by law to q plate Of steel, or Of
any metal. The note and the property are
distinct existences but the legal vaiile Of
the note depends on the actual value 1f the
property. The paper material of a note
good for thousand dollars, is not as yalua-
BILE as an ounce OF -four; but it has legal
power which makes it capable of berg ex-
changed for two hundred barrels of -four,
worth five dollars each trihng labor
will provide the representa- note but q
great amount OF labor is rec to produce
such quantity Of -four, OF v .uaI wealth.
All individual notes are, however, payable
not 10 -four, nor in actual products OF prop
erty, but 10 money, the legal representative
OF all commodities and property.
According to law, the owner Of az estate
represents the value Of the estate in bis
own person but BY simple power Of at
&C. 1ey, he can give to another the entire
control Of his property during his lifetime.
Inc receiver o. the power may not be worth
. dollar. but the power Of attorney nav
make him the representative and controller
q millions Of dollars worth Of property
The paper that secures to him hecontrOI
Of the property has no greater iaherent
value after the writing Of the instrument
than 1t had before ID Is rnere'- lsade t
REPRESENT tne props 81 aud couiFgl its use
h5 aciuA| value when the paper rsEFesents
exists IA ne property, ana, .i9out thS
property tie paper ggD'1 he eSrtbloss
Tbs lower Of s.t0rDay i ocrHusA 10 an in.
divaas' but II nan, Isl Y ~ making
-ssl---ppe<GSz 70 single person, shouH make
1t to beaAer W66ever held the papet would
have power over the property controlled by
it. The negotiable power Of monsk is in
separable from it, otherwise it would not be
money. The holder OF money haA power
over a certain amount Of property flor psle,
and can appropriate it to himself. Money
has legal power or value as much superior
to the natural value of it's material, as q
paper which secures authority over property
has value superior to blank paper
Money Is, then, o legal existence, being
constituted national representative of prop
erty; consequently it is public lien on al
property for sale in the nation, public me-
dunn for the exchange Of products, and q
tender in payments of debts. If slsoneY be
made q representative of the earth and it's
prOduot24s, it cannot fail to be permanent
ly valuable, for the earth and its products
are necessary to the existence of pan and
anything which legally represents them, and
car be exchanged for them, must be vaIua-
bic to its holders.
1t Is popular error that the value of mon
ey depends upon the material of which it is
made. &As this misconception of the nature
Of money Is of long standing, we shall en-
deavor TO point out itG Inconsistency, in
connection with each property If money.
The value of money perpetually depends
upon ita power to represent Value, and rot
upon its material, because moisey never
reaches1a point at which it can De used as
an article Of actual value. Suppose twenty
six individuals owe 800 each, payable Oh
the Same day - "A. owes B., B. owes c., and
20 On through the alphabet to n In the
morning, A. borTows from q bauk bank
note fof 800 and pays it to B., B. pays it
to o., o. q d., aud % on, untili 1t passes
down to r., who Uwec and pays It to the
bank from which A. borrowed it. The same
hank-bih pays twenty-six debts, and in the
evening 10 in the ownership, aid posses
son of the same bank as Ia thel morning.
Suppose that, instead of money each Of
the twenty-six persons owes "A khe same
order q loaf of bread, and each must have
ths loaf to use on the specified dag or suffer
from hunger In the morning Az goes to a
baker, borrows a loaf aad pays II to B., B.
paws It to c., @. to D., ss.d. 30 oh, through
the alphabet to O., who pays it over TO the
baker. The money in passing tttough this
routine answers every madPs purpose. and
In meeting the contract fulfils TIE function
for which money ID designed, bpk Che bread
does not fnlfl the r rpose for Which bread
10 designed, nor can single loSfchort Of
twenty-six answer the purpose. But one
bank-note pays the tV 1nty-six ds5ts, and ia
ready to fulfl- rs many contracts more the
next day, whereas twenty-six nsw sloaves |
would be, rnQnired to meet an eQual numher |
Of contrnctss Il may be objecteA that the !
il not fair one, beslAuse bread
Il consumed by use and money ID not take
then any other article valuable TT its mste-
nal and not consumed ia the uses Twenty
SIX Individuals have land 10 2lAw on the !
same day ytcan they borrow one slough and |
make it answer the purpose Of tSenty-six !
The value Of lands and Of goss]s, wares
md merchandise, does not depen6lupcs any
Act OF legislation, upon any powGs TO repre-
sene and exchange, but upon tbsir utility 7
or 1904 clothing, etc, If the g0is or silver
OF money be naed for any other L
purposes than to IT present and exchange
II ID be used for spooCs, or-orna-
neAtsrit AtOpce ceases to be nEney: It ia
20 longer q legal representative of value.
me hndS 1ts Level rs aoomuodity1 Bat a. 1,
nhereats ppohsrtiss Of all Articlsa of actual n
Ialue, areytheir only valuable properties.
However gsriQna the employmeusiof articles 4
" ActHs. eNMlne, their pFopertsHa do not |
mango, or bcu0mes useless. F0s exMmple. II
'lckhh uaAfni 10 make . garment and when |
made, 10 o glDtA garment. Thea nature of
he cloth dOea not change; 10 iscaiy applied |
spec,hc purp0ss, and the etsth retains
q PsopeRhas Of durability, etc. -Malnl but
INA ars qsqtupon the gHrmeut4 end eearit
lans. e.be metal hatAons. Bat OLIVER mon-
= epnkee4 mt0N' spoop, mAkF8 silver 4
poem 4noney spoon. The silver 1
no .oEser aE1ssAl HepEssentaties Of actual !
Aius; Is ID no longer money, Tor It has '
II