Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1873-02-26
MONEY As CURRENCY.

: consists in being measure OF value
is regarded by many as the embodi
ment of wealth itself. Thus we de
note men of wealth as being worth s
definite number of dollars. DOllar'
and cents contain the purchasing ca
paeitv of our wants and needs, and
therefore, a fictitious importance at
tends the coin of the precious metals
/, and its shadowy Tepresentatives-tht
United States and the national bank
currenev Nevertheless, the intrinsic
vaIne contained in gold and silver
coin or in the circulating currency,
constitutes only q small proportion OF
the national wealth.
In recent times the wOrkingman is
particuIarly imposed upon by ine
snun but to him incomprehensible.
theories, that most, If not all, his dis
advantage; are the results of the eX-
.istence of coined money as medium
of exchange. One theory is based
upon the assumption that money is
the sole source of wealth, instead of
chiefly the measure of its value; and
thereupOn it is argued that gold and
silver coin, which has an intrinsic val
ue, should be abandoned as currency,
and that the Government should man
ufacture whatever money might be
| wanted, and loan it too rich and poor
alike-st one. two, or three per cent.
interest-so that the mechanic may
possess the power to purchase tools,
machinery, &c, and so that all Ithe
denizens of the United States might
suddenly become rich, comfortable
and happy. Another theory is that
money is the root of all evil" the
creator and perpetuator of usury, mo-
nopolS, and OF numerous gigantic
stock companies, by whatever name
organized capital may be called, and
that, therefore, the abolition of money
and the substitution of q direct ex-
change of products, will alone enable
the producers to receive the full equiv
alent of their labor.
This so-ealled new theory is like
many other modern philOsOphies-eX
ceedIngly antiquated one that has
been tried for many ages, and which
still fingers at the outskirts of eiviliZa-
tiOn. That any article, even paving
stone, may take the place of coined
money, aud that many things have
hitherto served as such, is very tue
bat the question is, which is the most
economical in transportation, certain
in value, universal in acceptance, and
most durable and inexpensive. Cat
tie, among the ancient Germans; to-
bacco, among the Virginia colOnists
coon skins, among our Western pio-
neeTs New England rum, among the
Africans; iron, among the Spartans,
and legal tenGer or forced paper cur
rency, or tokens made of base metals,
among many nations whose immedi-
ate expenditures exceeded their pro-
duetive or borrowing power, have all
done duty for coined money, but we
have yet 10 learn that the poor or the
workingmen have been benefited
thereby.
An extensive, direct exchange of
productions, without the intervention |
of any equalizing or measuring medi- |
um, is utterly impossible. Let US take |
as an illustration one OF the most sim |
pie transactions of life that of a farm
er having q hundred bushels of wheat |
for sale; ne needs, perhaps, pair OF
boots, a plow, a barrel of salt, and /
twenty pounds of sugar. Is he to ped
die OUT his wheat-driving separate |
bargain as to quantity at each place
giving eight bushels 10 The shoemak
er,tWenty to the hardware merchant,
ten to the grocer, and return home
with the balance? Certainly not; but
if he is to effect an exchange satisfac-
tory to both parties, some common
measure of value must be agreed up
on: and the most Hecurate aud Java
riabie is gold and 81 liver eoiu.. -And
although IN the United Stafes. He Asve
is hoped only temporarily
the legal tender dollar as medium
of exchange among ourselves, the
gold dollar is the real basis, neverthe-
less, and all values are, IN reality, ad-
justed upon that basis, though the
amounts are paid in greenbaeks.
But it is not our intention 10 discuss
these theories at length, however in
viting the theme, and We proceeds
to the consideration of the
practical question Of great import, sis
the present medium Of eXchange-Lhe
United States and national bank cur
in quantity to per-
init The full and free interchange OF
Money is simply Tine
of trade; if the road is too
narrow, there will be stOppage and
SOhAuSiOn JUL ~ olAOuA4 ACNCA OC 4o4
gotten that, be the avenue ever so
wide, it viii not ineI ease the ordinary
and legitimate travel. u p ~
Coined money is but an insignifi-
can't portion of the wealth of nations
is only the accompaniment of
riches, but not wealth itself. The
value of the real and personal estate
exclusive of Government posses:
sions-of the United States is estimat
ed in the late census report at thirty
thousand millions of dollars. The
estate constitutes about one
fifth, or six thousand millions. The
amount of money available as eurren-
ey is as follows:
Legal tender L. S. notes -...-.S S450, ,000. 900
Fractional currency.-...........- p, 5,GOO.OOO
Z. S. national bank currency $50, ,O00, 600
Sold and silver on Pacific
coast (chiefiy) ....-..-. $1,000. 900
Coin certificates. 2O,O0O,OOO
Total S925, COO, 900
Less the legal reserve Us per
cent? required by law to be