The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-02-04

J. p
n notes The small change OF the ledger. Ii
large cite, not fiftietfi part Of the Bushes
10 transacted BIZ, the actual use Of money,
an,l there, except In dealings with the tJo
vern ,ueut, for the retail trade, for the pay
ment ,fslabor and tlxes, the purchase 0
products at first hands, and for the banker
re-. erye. money Is hardly necessity. Every
where bank credits and bills OF excnanse
nerform the office of currency TO nuc,
preoter extent than in former years. IN VI
The cities and considerable towns Throughout
the country checks upon credits 10 panhs
and bills of exchange have Largely taheh Tue
place of the circulating note. .,s...
IN al, this we find further aud very
s,rn,r condemnation of the entire correct
,,ass of the fundamental general Drinci-
,,es regarding exchanges OF every descrip-
Ton. that whatever promotes, snstains, and
COMPLETES them In the most rapid and use
ful manner to q needed extent is neceSSa-
ri,v best adapted to secure the purposes Of
exchanges. Accepting this proposition as
true, we reach the conclusion that it is
mistake to suppose that thing to perform
successfully the functions Of money, must
possess intrinsic value. Money at present,
whatever may have been the case In olden
times, measures the relative value Of things,
and is benefcial!y used as medium OF
efiecting exchanges, not because OF its In-
trinsc value, but simply because it IS uni
versally accepted in exchange for oil thugs.
Intrinsic value is the fundamental idea OF
barter, and it was but natural that this idea
should attach TO the first instruments OF
exchange, since, in the primitive days, ln-
security of person and property was the
rule, rather than the exception, as now, ana
common prudence required that both parts
of the exchange should embody actual value
in the things themselves. But ln the pre-
sent are tie infinite division OF labor,
with the neyer-ceasing protection accorded
to individual rights, has given such i'm.
mense Importance TO the exchanges OF oil
things that money, as mere Instrument !or
facilitating these exchanges, is incomparaoiy
more useful to humanity than any commo'
dity whatever, as the possession OF current
money places all things at our command.
But to this end the thing used as money
must be universally received at all times IN
exchange for commodities and services ana
this cannot be. unless the commodities
themselves, and the persons able to render
the services desired, exist. On desert
island, or in be>ieged town, money at
all times is nearly useless, because the
things desired do not exist there. 1t IS
evident, therefore, that paper money, 10
perform successfully the functions OF
money, should never be issued except against
a pledge, direct or indirect, of a greater value
of useful commodities, applicable to the re-
demption of the circulating notes issued.
Such rule, strictly adhered to, would make
paper money q perfect instrument OF eX-
changes, because the redemption Of circula-
ting notes in commodities and services is
preferable to their redemption in coin; for
commodities and services are useful per Sc,
while the only use of coin as money Is as
a means OF obtaining those very COM
modities and services. If gold and
silver we're TO lose all value indepen.
dent of their character as money, would
they be stripped of their character as money
Under such system rs that indicated paper
money becomes a mere certificate of services
rendered, for which the holder has not been
remunerated. Each holder, by transferring
the certificate, transfers his claim to any
party or parties that render him equivalent
services. In this sense of paper money the
banking institution becomes, Us it were, one
of the clearing houses of the industry OF the
world; nor, to hold this position, need it be
an issuer of circulating notes or anything
more than public depositary of the spare
money Of the community and discouater o:
commercial paper.