, 1874-05-08
THE MATERIAL OF MONEY.

We print In another column tho defenae OF tho
editor of the Canton Register Of tih theory, that
the material Of which money Is made Ia Of no
Significance. Mr.. Magie's argument will seem
plausible to many, and it certainly ia ingenious.
But then 1t III neither more plausible nor ingon-
iouB than many m argument which might be
induced against the heliocenttio theory Of the
universe, or certain ll-established principles
of physics or chemistry. And when ne under-
our correspondents letter, wo feel very much as
we should wero We called upon to prove that tho
earth moved around the sun or tllAt
iron might be nado to float upon wator. Spite
Of Mr. Magio'a logic, VIC still believe that the
material OF which money ls made ia q matter Of
worry great Significance, and that Mr, Magios
viewB arc missionary, uneound, and e1trava-
gant." Wero Mr. Magic acquainted with tho
history Of money In Trance and tho United
States alone during the laBt century. he would
flud hiH viewa refuted. Lot him study tho his
tory Of American currency as written by Prof.
Sumner, Of Yale, the history Of Laws
Bank, Of the French assignats. and he will meet
with refutation Of his theory by tho logic OF
facts. He will, besides. be satisfied that when 10
wrote the lester Which no publish he did
not havo tue "aamo facts' before him as Bome
others, and waa not. therefore, in wny to give
an opinion on them "as good as anybody's."
Besides, even II We admit that Mr. Magio's
opinion ia as good Us auybody'e, we arc not will
ing to grant that It IL better than eyerybody's
which We would haye to coucedo we're We to ac-
copt his views Oh to tho material which should
enter into tho composition Of money, and which
are contradictod by the Vows Of every thinker or
Smith to Michel Choyales.
Indeed. a1r. Magio's argument ia fallacious
from beginning to end. lie starts with wrong
premises, and naturally enough reaches wrong
conclusions. Ho dolnes money to be simply \
medium Of oxcnhnge* which 1t undoubtedly is.
aud forgota practically TINT II, is also measure
Of value. We do not agree with him that all VIC
want money for is to eifoct exchanges. We want
It also to measure for uB how much OF one COM
modify We ahau exchange for another,-and to
QehhuI0 IL RCEl4ntoaJt ~ Aoaa1 ho A%oAA&+o49 ~
uosslble. This initial error Of Mr. Magic runa
through bis whole argument aud vitates 1t from
tho first line to the last. The essential quality ot
money, ho says, is confidence. -conadouce that
o.lors will take 1t from us at the value We have
allowed for It; and this quality OF confidence IL
to be impaired to 1t by the power and authority
Of Government. Had Mr.. Magio studied his
case botter, 10 would hayo found that govern
mental authority, or power, cannot impart conf
dence to tho public. Or make one take suot
money from another at the value he gave for it,
How comes 1t thAt Government authority la.
not been able to prevent the depreciation OF sh<
greonbaok? How concs It that it has nevo,
beon ablo, from day to day, to mako one per
son take It from another at tue yalu.
which that other gave for IT, Oul
own papor money ID now At discount Of, aay, Il
per cent. and what IL that but partial rejection
BY tie people Of the g1eenbaok,-A fsjecs4o1
xhleh III ths aovszuEasata III TIA world ssu,,