Vermont farmer. [volume] (Newport, Orleans County, Vt.) 1870-1877, 1875-11-05
The Science of Wealth, No. o.

Gold and silver are the acknowledged
standard of e1changeable currency, the
world over. Aud they have been Of nearly
uniform value in the commercial world.
during all these ages. There has been but
little change in thousand years. The dis.
covery of the new mines in Mexico aud
South America by the Europeans, and the
later discovery of the "precious metals" in
California and Australia, have reduced their
value little, but no other metals have ever
been 80 stable and uniformly attractive.
These metals are comparatively scarce,
and hence have great value in small bulk,
and can be easily transported from one place
to another. If they are found in super
abundance in one country, and are liable, on
this account, to lose portion of this value,
the excess is at once removed, and the equi.
librium restored. These exports and i'm.
ports between the United States and other
countries amount to many millions every
year. This is a gold-bearing country but
the tendency to depreciate in consequence of
an increase Of quantity is checked, not only
by expectation, but also by a decreased
activity at the mines. If gold is worth more
this year than last, more will be produced,
and this increase of quantity will tend to
diminish its value, and hence the next year
less will be produced, SO this value regulates
itself and remains nearly uniform.
Again, gold and silver being universally
desired, naturally become the basis of the
currency in every nation. Government has
no power to change this fact-it can only
sanction. Whenever Congress has attempted
to fix the relative value of gold and silver,
it has proved failure. No law of the mint
can over-rule natures law. If the arbi-
trary standard attempted to be fixed by law
is too low, it will not circulate at home, but
seek foreign market; if too high, it is still
used at its real value. Self-regulating and
uniform, these metals are admirably adapted
to the purposes of money, and must forever
be regarded as the only basis of secured cur
rency, Butler, Phillips & Go, to the contrary
Notwithstanding,
But what is the value Of money! We az
swer, it has no intrinsic value. Though most
admired and sought after of all material
things, it is in itself for its own sake, the
most worthless The old miser who prayed
that everything he touched might become
gold, was made to realize this truth as the
story reads. His pra yer was answered, and
he reached out his hand for cup Of cold
water, and it became gold, his meat and
bread became gold, and the very air he
breatbod ratified upon his lungs as gold sand
How many have virtually offered the same
prayer, and realized their disappointment il
its answer.
"Of all that sold eternity for time
None bargained on 50 easy terms with death"
But money has an eXshangeable value
Its power to purchase what has real value t.
the purchaser, and its convenience as a me
dunn of exchange gives it a nominal value
and a real utility.
When we borrow 81 900 of our neighbor
or Of the bank, we do not borrow it as money
but as a representative Of capital. We de
sire it TOR its purchasing power. This is thu
only measure Of the value of money, anC
this is the reason it is said to have value.
And upon what does its purchasing power
depend ? We answer, Oh demand and sup
ply. We really buy and sell money as Otter
as any commodity. The merchant who SELL
corn, wheat, sugar, dry goods or furniture
buys money. If he buys bread, clothes OF
books, he sells money to the dealer in these ar
ticles. The demand for money is measure,
by the goods offered for sale, and is Unite,
. only by the means Of the purchaser. Tn
| dealer always wants to sell, twill sell cheap 70
cash, because cash will purchase anything h
F: wants. The supply of money is the amour
0 in circulation at any given time. All tn
7 goods in market constitute the deman
E for money, and all the money in eli
a culatiOn constitutes the demand for good
4 Now If the volume of money
Q doubled, while the amount Of goods remain