The Lake County star. [volume] (Chase, Mich.) 1873-current, 1875-09-30
WHY Gold FluCtlateS

|
your columns, why gold Huctuatcs.
This | will indcavOr to do in as
precise and as short "a form as
| possible, will say, that do not
set myself up rs u grand "Magi;"
but poor Mossback, trying to exc
out living upon the Plains; and
after this will not answer or cry
and answer anything Ola political
nature.
Gold does not Huctuatc in value.
1t is the standard by which com
mcrcial transactions arc weighed in
this and other countries. An ounce
of gold is worth no more to-day
than it was twenty years ago. An
ounce of gold, when at its highest
point during the war, was worth no
more than it is now. 1t is not gold,
but the article used for the purchase
of gold, that fluctuatcs. Thus,
when corn is plenty and the people
have more than they can consume,
they are willing to sell great deal
of it for little money, or gold.
When corn is scarce, and famine
comes upon the land, it is not gold
that rises in value, but corn; or,
the article for which gold is given
in exchange. The premium on
gold is due to the fact that paper
money has no standard Of value.
In other words, the Government
of the United States is not solvent,
its notes, or bills, are not worth the
amount they call for upon their
face. TO illustrate: If Mr. A-who
may be worth $1,000, but whose
property is IN ,rtayol for $1,000
gives his note for $1,000, it is
not worth, and will not bring in
exchange foc labor, food or clothing,
at any Of our stores, value in
goods or products equal to the
promise made in the notes; or its
face. The party who sells the pro-
ducts judges the note by the ability
of its maker. So if it is worth
81 900, and his property is mort
gag. 1T M, TIN Il Gu sell it
for, his note of hand is good for
nothing. So, if the government
Of the United States was solvent,
and owed no more than it could
pay, its bonls, notes, obligations,
bankbills or bits of paper, which
which arc called money or currency,
would pass as II convenience from
one man to another at the par value
of gold. The promise to pay one
hundred cents would be as the
possession of one hundred cents.
The government does not stand ut
ar at the present time. Its
promises are not good for what
they profess to ply. a promise
made by the Bank of England to
pay II certain sum is held all over
the world equal to gold itself, be-
cause the Bank of England never
promises more th,n it his tn,
power to perform. But gold is
valuable rs IA possession between
men in their dealings. 1t is the
basis of commercial transactions,
because it is recognized all
over the world as the stand
ard of value. This gold can be
taken to England, France, Germany,
the West Indies, China, where it
is taken as compensation for labor
or the result of achievements, and
thus it is circulating medium.
Can the same be said Of our paper
currency! Again, a places $4,000
in gold in the bank: takes an order
from the banker for $4,000 i'll cur
rcncy, goes to II manufactures, buys
goods, tenders the order to the
manufacturer. The manufacturers
knows the amount on deposit, and
considers the order Tor draft to be
worth just one half its face, or
fifty cents on the dollar. There
upon currency appreciates; al
though politicians would say that
gold increases in value; which is
not the case.
At one time during the war,
(if my memory serves me Alright
for 81 900 in gold you could receive
$1,000 in grccnbacks, or currency.
Thcrcupon your subscribers should
bear in mind that it was not gold
that deprecated, but that paper
money huctuatcd in value exactly
in accordance with the honesty
and ability to pay of the one who
issues notes or other evidence of
Indebtedness in paper. Every bit
of paper, circulating, in the world
is nothing more or less than an
evidence against somebody. 1t is
not moncy; and no person or law
can make it moncy. But the Gov
eminent can lcgislatc that it shall
be taken in lieu of gold by all the
citizens of the country. proyidino