The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-07-08
Ghe9ntelIi9e1ter,
Fluctuations in the Value Of Coin,

FIuCtuntlOnAl III tle NAllc Ol NOAu'
The Steubenvile Gasette Of yesterday
evening reviews at some length our re-
marks in regard to the difference between
coin and leather as a circulating medium
and finally makes the following point:
"The ISTELLIGENCER refers to the fact
that precious metals are The standard OI
value, and the only articles that are So
when, us every one knows, silver is from
s to 10 per cent cheaper, on gold basis
than it was two years ago, simply Occa'
stoned by an Over-productiOn within that
period Of that article. Might it not 50
happen with gold also? Ii so, where
would be our standard OF valueY'
Wcwcre free to admit, in what we said
in the article to which the Gazette refers
that no sort Of currency had ever yet sue
Ceeded in protecting the world from over
trading and consequently from panics.
We.a also Just Us ready to admit that
overtrading can be stimulated by an cx.
cessivc supply Of coin circulation. Both
gold and silver have had relatively in
creased and decreased purchasing power
at different times, owing to the amount in
circulation.
There can be no immutable standard Of
value Gold and silver have been found,
by actual experience, to approach more
nearly to that standard than other metals,
and hence have been adopted from very
early period US money. In the time OF
Abraham silver was recognized as money.
The old patriarch, when he wanted to
buy the cave OF Machpelah from Ephron,
the IIittite, said al will give thee
money for the field" And he did weigh
him ont four hundred shekels Of silver
for it. This shows that it was the weight
Of the coin in that day, as now, and not a
government stamp, that made the silver
valuable The silver that Abraham thus
weighed out was, We are told, "currcnt
money with the merchant" that Is, 1t
would pass among the seven nations Of
Canaan, or down in Egypt, or with the
Ishmaelitish traders, or with anybody in
that part Of the world.
This isan argument that men like Sam
Cary habitually overlook, They talk
about piece Of leather as being Of con.
vertible value with piece Of gold, for
getting that never yet has any nation
been able to make them Of convertible
value. A very small nugget Of gold'has
great deal Of value, even in its crude
state. A gold coin has great intrinsic
value irrespective OF the stamp upon il.
The government that stamps it may per-
ish among nations, but the gold coin lives
on. This il n radical and very essential
difference between coin and paper. An.
other important fact is that gold and sill
yer protect their own value to a certain
extent. There is natural wear and tear
going on, called sweating, and also great
losses at sea- that keep down the volume
OF circulation and help to maintain an
average equilibrium.
II is difficult in these days to speak in
telligently about the fluctuations in coin
as an isolated standard OF value. The
currency Of the world consists so largely
Of bills Of exchange and letters Of credit,
drawn against shipments Of merchandise,
that coin has ceased to be anything more
than nm ultimate resOlvCnt Of credit when
balances are to be struck and paid. II Is
only when there is to be a settlement that
the true office Of specie comes in. It Is
at times like these, however, when pieces
Of paper or leather will not perform the
functions Of money in the great clearing
houses Of the world. At such times
every nationality must walk up to the
captains office and settle in what Mr..
Charles Reade appropriately terms every
hard cash"