Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1876-05-04
Money of Account.

The phrase money of account figures
conspicuously in the Technology of the
paper-money infationists. Mr.. Henry
CAREY Baird, in his article on "Money
and its Substitutes" published in the
March number of the atlantic M0nthlu,
makes it nearly the whole burden Of his
song. He reasons as if the words :" of
account" being added to the word
"money," invested the latter with some
magic charm not otherwise possessed
The truth is that the addition does not
make the slightest change in the import or
power of the term.
Money is the article which the people, by
law or usage or by both, employ as the
medium of exchanging other articles and
as the means of expressing the ratios of
their exchangeability. All other articles
are, hence, as to their value, computed in
the terms of money; and these terms are
said to express their prices. A pound of
butter, for example, is worth fifty cents, or
a bushel of wheat is worth dollar. The
terms 6 dollar" and scents" are the terms
of money. They are monetary denomina-
tons or titles. What, then, is dollar"
as to the real thing which it signifies? 1t
is given quantity of gold, having a given
degree of purity and bearing the stamp of
the United States as a certificate to the
fact of quantity and purity Any other
piece of gold of equal quantity and fine
ness is worth just as much in the market,
less the small expense of coinage, show
ing that the commercial value of the
dollar depends upon the gold which it
contains, and not upon its form or the
stamp of the Government So also a
"cent,' as a minor coin, composed of in
ferior metal, has the hundredth part of the
value of the gold dollar. 1t has this value
because the quantity Of metal is assumed
to be equal in value to the gold in a gold
dollar. The ratio of value between the
two is not an arbitrary one and could not
be changed unless there is an actual
change in their relative value
Now, what is "money Of dcc0unt?"
Simply money, and nothing more It is
the thing in the terms of which other
values are expressed, whether the express
sion appears in the form of prOmissory
note, a bill of exchange, bank check,
Government bond, or the book accounts
of merchant. To add the words " of
| account adds nothing to the article or to
its functions, since the whole was en-
braced in the term money itself.
| The material question is whether the
money, considered in reference to all its
uses, is good money. If it be made legal
tender in the discharge of debts, then it is
good for that purpose. 1t may, however,
be good in this sense and yet be bad
money Of account" The general his
tory Of al so-called paper-money, made
legal-tender while not convertible into
gold at the option of the holder, is that it
is not only a deprecated but fiuctuating
standard Of value. Having practically no
value in the material of which it is COM
posed and being capable of production at
trit1ing cost, it rests on nothing but
credit, and indeed, is nothing but one of
the instruments of credit, unless it be
merely a piece of stamped paper,
making no promise of payment.
Such money, as compared with a UGJUe
currency, is always unstable in its
value; and this fact is expressed by cor
responding fiuctuation in prices, which
for all purposes connected with legitimate
trade is a most serious evil. 1t is like a
fiuctuating yard-stick or a fiuctUating
bushel measure-meaning one thing to-
day and another thing tomorrow.
What the people want is money Of
account = that has the highest attainable
stability in its exchangeable value. History
proves that paper money does not, and
that gold and silver money does possess
this attribute; and this is the reason for
the general use of the latter among the
great commercial nations of the world. 1t
is a reason founded on long and varied
experience, which it is stupidity foolish to
ignore or attempt to disregard.-N. 7.
Independent.