The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-06-13
WHAT is MONEY?

Some Sensible Views OF Aon. S. E. Carey.
The pregnant question Of what is
money. lies at the bottom of all dis
cuSSlons OF the currency question. l
nave now neither leisure nor inclina-
ton to go into philosophical discus
sion OF the subject. The best and
ablest article upon that subject which
L have met, will be found in part of Il
work on the theory of money and
currency. by 4. B. Pullan, published
by Solomon & Chapman, of Wash
lngton City" While l say this, do
not indorse all his views, but invite
ID. Jr. and others to examine them.
Such an examination will at least sat-
1Sfy them that no man can do justice
to this subject in brief newspaper
correspondence. NY friend may
come to the conclusion by thorough
investigation that he is mistaken in
saying that ''nOw nearly the whole
business OF the world is transacted in
paper eridences Of debt > but rather of
paper than is in itself money. The
money of Il country consists of the
legal tenders the government issues,
and whatever credits they represent,
used in the transaction of business.
The tsco Mousand millions Of deposits
to-day III our national, savings, state
and private banks are as really money
as the three hundred and fifty mil
lions of greenbacks.
What we want is more of the real
representative of these credits-iegdi
Understand less Of the paper evil
dences of debt issued by banking cor
porations. Give US plenty Of the
former and Danish all the latter and
prosperity Will abound throughout
our wide domain!
ID. Jr., says The purchasing power
of any legal tender currency is de-
termined by the price of gold-that is
by the amount of currency 1t takes
to buy a standard ounce of gold
If ID. j., will examine the elaborate
reports of Secretary Chase he will
find the fact demonstrated by the
prices of the leading products OF the
country during the war, that they did
not rise and fall with the rise and
fall of gold. When the premium on
gold was the greatest, there was no
corresponding change in the price OF
leading articles Of consumption, and
no change but such as could be ac-
counted for by other causes than the
rise and fall of gold. The facts given
by Mr.. Chase cannot be questioned,
rs the historical records Of the times
demonstrate. Yet these facts only
prove one side of the question. 1t is
only of domestic production the
statement is true. Articles brought
from other countries were affected in
price by the rise and fall Of gold, and
this is plainly discernible in all arti-
Giles OF prime necessity. from foreign
lands which could not be obtainable
by exchanging our home product.
Take for example the articles of coffee
and quinine which could only be pur-
chased with gold They sympathize
with gold in its ups and downs. We
mention these things to show that
neither Secretary Chase nor ID. Jr.,
are correct in their conclusions.
maintain that gold and silver are
invaluable commodities TO settle bal
ances in barter between this and
other countries. When we cannot
exchange our farm product, nor the
products of our manufactures and
workshops for what we need from
other countries, then gold and silver
being held in such high esteem III
other lands, are Of great Importance,
and having no other use for it our
selves we can part with 1t safely and
cheerfullv. Barter is an exchange OF
valuable commodities, and this is the
traffic between the peoples of differ
ent nations, and between barbarians
among themselves and with others.
In civilized states business and trade
consist mostly in exchanging real
values for the legal representatives
of value--money-w which may be legal
tenders. or their representatives in
the form of bills e exchange or bank
credits. The larger the volume
of real legal tender money. the less
necessity there will be for bank cred
it's. and the fewer the opportunities
for bankers and money rings to get
up corners. produce panics and rOt
the people. These legal tenders it is
the office and duty of the general gov
eminent alone to furnish. and in
such quantity or volume as the bust
ness wants of the country require.
Finally. | again insist that ours is
not contest between hard money
and soft. but between u legal tender
Government. issue and bank promises
TO pay legal tenders. l want no mid
dlemen to dole out at their discretion
their promissory notes AS money.