The Portland daily press., 1875-02-05
History of $1,000.

10 the Editor Of the Press:
AS there seems to be some confusion in the
minds of managers as to the nature and use of
money, / have drawn out the following sup
posed history of $1,000, in the hope of contrib
uting something to the elucidation of the SUBJ
jeet.
Mr.. Thrifty was bound to thrive; and deeply
sensible that money was the bases of all thrift,
began early by industry and economy, to earn
and lay by small sums, till he had accumulated
a $1,000 He felt an honest pride in his sue
cess so far, and did not at all regret the toll
and parsimony which he had practced for two
years or more in order to secure this result.
This $1,000, then, on!his part, was the fruit of
the wear and tear of some six hundred days
labor, and of a systematic and continued alb
stinence during this time from the use of his
earnings in self-indulgence of any kind. His
reward was small in compass, making but an
Insignificant pile of shining pieces. Did he
pay too dear for it? Let us see Where did
this gold come from? 1t was not surely picked
up in the streets. Gold is one of. the rarest of
the metals found generally only in small guam
titles and in remote and nearly inaccessible
regions, and separable from the impurities with
which it is usually combined only by costly
and difficult processes. Now, taking into the
account the labor and hardships incurred in
discovering the gold, in obtaining, purifying,
transporting, and reducing il to its present
form, is it not probable that all this cost about
as many days labor and as much sacrifice and
abstinence as it has cost its present owner? If
this were not so, on the average, men would
devote themselves to procuring gold directly,
rather than to earniBg it indirectly through
other employments. Mr.. 7. then, in procuring
his gold, has only exchanged labor for labor
and abstinence for abstinence, which makes it
a fair trade.
What sort of an article now has he in his
possession, and why should ha prefer it to other
articles of value? Is it because il is beautiful?
No; because it is impershable? No; because he
can cat or drink it? Not at all, but simply
because he knows that il is an article in uni
versal demand. and that he can at any time ex-
change it for whatever he wants. Beside, as
it is everywhere recognized as representing the
cost and sacrifice of a certain number of days
work, it is susceptible of division into parts
which .shall represent any number of days
work whatever or any fraction of the same, he
can easily come TO an understanding with any
one who has an article which he wants, as to
the terms on which they may fairly trade. The
value of his article being universally known
the value of other articles, in days work, can
readily be compared with it. 1t is thus uni
versaly recognized measure Of value, as the
yardstick is of length, and at the same time an
eqligdleRt Of the value. While the yardstick
simply measures the length of the cloth, the
gold not only measures its value but pays for
it by transfer. 1t is now therefore in another
hand, but continues to be the same measure,
while the yard stick continues its functions in
the same hand.
Mr.. Thrifty finding his article available tor
any kind of business or exchange, first determ-
ined to go into trade. His cash he found the
best thing possible to purchase other articles
with, and soon filled his store ON the most fa-
vorable terms. The remainder of the $1,000
with the profits which he made, he deposited
in the bank for safe keeping, and as he wanted
to make payments for new purchases anywhere
in his vicinity, delivered to the seller checks
which he drew on his bank, and which the
bank paid when presented and charged to bis
account. In the meantime, his business in
creasng Mr.. 7. enlarged the sphere OF his pur-
ohases and obtained goods from distant cities
and foreign countries. As checks on his bank
would not pay for these, he drew his money
from the bank to purchase OF brokers, or others
who had claims on individuals in those cities or
countries drafts bills of exchange to discharge
his debts there; or if these could not be pur-
| chased on reasonable terms, he forwarded his
gold to discharge them. Thus we see his money
has served him, either to purchase other arti-
cles directly, or to obtain them indirectly, by
means of checks, drafts, bills OF exchange, etc.
| But money being so valuable, and so avaia-
BILE an article is in demand for its use. Many
| want to use it for longer or shorter period OF
| time and are willing to pay largely for the right
| of so doing, hoping thereby TO gain more OF it
| for themselves. Mr.. Thrifty therefore, gradu-
| ally turned his goods into money, and loaned
| it to others at the highest interest which he
| could obtain on good security. The money
| thus loaned. was used according to the wants
| and tastes of the borrowers, in supplying their
persona! needs, in paying the wages of labor
ers, in purchasing machinery or raw material,
/ in trade, or some other form OF exchange-for
| all business is but one or another form of ex-
| change. Thus the same money was constant
| ly passing through different hands, serving in
each as a measure and compensation of value.
Our thrifty man liked this business of loaning
his money much, it was at work when he was
asleep, as we'll as when he was awake, and
Sundays as well as week days Occasionally
| one of his customers was unable to return him
| all the dollars which he had loaned him but on
the whole, his money was rapidly increasing,
and he was very happy. His original thous-
| and dollars had become many thousands, and
for it he held the endored notes and collaterals
of the best men in the community. Now, pres
| to! changei the civil war has broken out and
Congress has passed the legal tender act. How
| does the case stand now? HETERosCIAN.
| ITO be continued1