The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1878-07-17

OF late years everybody discusses the
money question. No subject relating to
business affairs has been so thoroughly in
vestigated, and, strange to say, the more it is
discussed the more antagonlstic become the
views of those who have assumed the pre-
rOgative of enllghtening the people. 1t
seems quite impracticable to obtain an agree
ment as to the functions of money, what
should be its quality, or the quantity
quired TO meet business exigencies. 1t may
be asserted, however, that the difference of
opinions is not so sharply defined
as it was some years since. The
popular mind has laid hold upon certain
fundamental truths, evidencing purpose to
discard fine+pun theories injected into the
discussion for the purpose of obscuring the
real issues and of misleading the people. A
paper published in the July and August
number of the Western" by Robert Moore,
takes the right view of the functions of
money. Starting out with the declaration
of Adam Smith that the division OF labor is
one of the chief causes of national wealth,
Mr.. Moore proceeds to discuss the necessity
of exchanging the products of labor, and
of the necessity of advancing from the
simplest form of exchange, that of barter, to
the intervention of some middle thing"
some object of universal desire, 'for which
every other thing could be obtained in ex-
change" This middle thing" says the
writer, sis what we mean by money, and it
may be any commodity whatever of univer-
sal desire. Thus we are told by Adam
Smith that in early Greece and Rome cattle
and sheep were used as money. He also
mentions, as different kinds of money, salt
in Abysinia, shells in some parts of India,
dried cod in Newfoundland, and
tobacco in Virginia. 1t Will be
seen, therefore, that the prime func tion
of money is always the same, namely to
facilitate exchange of commodities and over
come the difficulties of barter" From the
prime function of being medium of ex-
change money becomes a common measure
of value, all things being exchangeable
for money come to have price, or money
value, which then becomes the most con-
'venient method of comparing things with
each other" We might further draw upon
the writer IN the "WesteTn" with regard to
the functions of money, such as being a
standard for deferred payments" store of
value" ETC., but the prime function
of money being to facilitate the exchange of
all commodities we pass to notice the quail
ity of money and the quantity desirable to
effect exchanges in this country. AS TO
quality, we now have gold, silver, nickel,
copper and paper. OF these we have vastly
more of paper than of all other descriptions
combined. In fact, the paper money of the
/ United States as a medium of exchange has
quite displaced all other descriptions of
money, and this, too, while it
has been irredeemable. 1t would be a
waste of time to discuss here the
intrinsic value of paper money as compared
metallic money. 1t is admitted that as mere
commodities, gold and silver, nickel and
copper, possess value that does not belong
to paper, but when the nat of the govern
ment stamps paper as money, and makes 1t
legal-tender for all debts. it becomes at
once the most desirable medium of ex-
change, and business goes forward prosper
ously, though every dollar of metallic money
may be locked out of circulation. Such has
been the history of paper money in the
United States for the past sixteen years,
and the people fully comprehend the fact.
When the United States had the largest vol
ume of paper money business was the most
prosperous. The people were employed and
the division Of labor had the widest possible
range. As a consequence national wealth
steadily augmented. With the reduction of
the quantity Of paper money there was less
division of labor, and national wealth. in
stead of increasing, decreased at rate that
brought about wide spread bankruptcy and
such a decentralization of labor as was never
known in any country. The quantity
of money required has. therefore, become
a leading question of discussion throughout
the country. 1t is well understood by the
advocates of metallic money that a sufficient
quantity OF gold and silver can not be had
to perform the exchanges of the country.
| They know also that If the quantity of paper
money simply duplicates the cointhere
will still be such an insuficiency as viii en-