Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1878-08-16

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and then collect back or per cent. 10 taxstion
II saves IN the rate of interest about the amount
It would collect in taxes aud the cost of collecting
the tax.
While money invested in bonds exempt from
taxation pays nothing in local taxes, 1t contributes
directly to the National Government in the re-
duced rate of interest and money IN other invest
ments but while II Is subject to local taxation
contributes nothing directly to the National Gov
/ eminent. One kind OF investment contributes TO
! the State, the other 10 the Nation; but neither
one contributes directly to both State and Nation,
yet lth kinds subject alike to all the laws for
raising revenue by the United States, whether II
be income tax, tariff, or internal revenue.
! The exemption of Government bonds from
local taxation, has been decided and reatfrmed by
! the highest court to be inherent in the iunda-
mental organization of the Government. so il cam
not be changed without u change of the Constitu-
| ton.
PAPER AND CoIN.
But to return to the discussion of the question
! of cure ncy from this depression into which have
been led by this brief reference to the history Of
the war legislation pertaining to It. The cost Of
papei-that Is. Its Intrinsic valHe-ls comparative
! ~ nothing. Ii costs no more to make a 50 GOD
bill than IS one. The printing press changes
the amount of the promise simply by changing the
mineral that mark II. Here Is gold CON-
whi,h reads on its face twenty dollars. II prom
isrs nothing, and nothing, about egal-tende
4 Yet the law that authorized its coinage-that is
changed it into this shape from huilion-says it is
| LEGAL tender TO the amount of $50 for all claims
and demands whatsoever. Inc bullion out of
! which this Is taken is not a legal tender, yet the
same weight of II has the same market value. So
! legal tender creates real value, II simply de
clsres what shall pay debt. This coin is not $40
! IN value because the law says rs. Without toe
law it would be the same in value, or nearly SO.
Without the law this piece of paper in value is
| nothing. The law makes either pay the same
debt, bnt cannot fix the value Of either for trade
or commerce.
! When YOU receive r paper dollar in psyment of
a debt due YOU, the debt itself is not paid You
have only changed debtors. Instead of the IN
dIyidual of whom yoa received II owing you. il is
| n " the maker OF the paper who owes the debt,
and that continues to he the till the persou
who holds the paper promise receives lis amount
! in coin some kind of real property
| Why is pay ment in coin any more the paw
mcnt OF a debt than a payment 10 paper The
coin represents the actual labor necessary and in
di pen-ahle for its production first, ia taking the
ore from the earth and all the subsequent labor
necessary to convert il INTO bullion or coin, and
| the world consents and agrees what that amou ut
! OF labor is wUrih and that II could not be pro
| cured at mnch, # any less cost than the amount
stamped upon the coin. So through the civilized
world II has that real intrinsic value for the rea
son that it is impossible for it TO be produced
for less sum. And besides, it has the same
value, nearly so, for in the mechanical arts
that il has for coin. 1t is ndestructble by fire or
| floods, or any agency known to the ingenuity of
it is little liable TO loss aud is incapable OF destruc
ton.
The paper reads it. face, promise to pay
real value; the coin declares on its face, am real
value. The coin dollar needs no ind0rser. The
paper one is worthless without it. The coin dol
! lar runs through the commercial world by its own
inherent strength, and bears upon its face its real
value. The paper dollar has not strength to stand
alone, and bears upon its face only promise
which. If its fulhment is TO be indefinitely post
poned, is as worthless as the rags of which 1t is
made.
| a coin dollar represents certain weight of
metal and that same weight of metal you can
exchange in the commercial world, anywhere for
an equal weight of the same metal, in the coin of
any country and it i, not subjected to ruinous de-
| probation. 1t may be worth a little more in one
county than in another, by reason Of cost of trans
| portatlon, but the difference is triflng and it is
really worth ITS value weight for weight the world
| over. Hence 1t has been made in the CONNIE rel al
nations of the world the currency to represent real
values, and is ca lied the money of the world for it
| Is the standard or measure Of real values rccog-
| nlzed such by all commercial nations. The
great essential of a standard measure of value
is that it shall be recognized alike by all the deal
ers in the comm 1dltes Of real values for which
/ the standard OF measure Is exchanged.
For instance, you have horse for which you
| have no present need and you sell him, taking in
exchange the standard or measure Of value in
! But should you at any subsequent time want a
horse, If the measure OF value you received for
| yours will not buy one of like value-;uch a one
as the parties themselves owning the two horses
would be willing to exchange one for the other,
then you are the loser by taking a representative
| of value for your horse when you sold him that
will not buy one of the same or equal value when
you wish TO purchase. SO the standard of value
which is exchanged for property must be recog-
nized alike by all the dealers 10 it, some of
| them must be losers by its
The MEASURE OF REAL VALUES.
A standard or measure of anything, to he cor
rect, must partake of the nature of the thing of
which it is the standard. If it is the standard Of
real values it must itself be of real value. If a
| andard of length, then it need possess only
length like the ysid-stck. If of bulk or contents
| then it need possess only cubic space like a quart
or bushel measure. So Of weight. 10 al these
cases value has nothing to do with the transactions
The yardstick itself worthless, measures the yard
of a commodity worth cents or dollars lust the
same, for length is all that Is required. So
weights, worth comparatively nothing, weigh the
most precious and costly values. But in the
measure of real values, how is it to be done ex-
| cept by the use of real value
| Legislation can neiiEer make nor unmake real
values. Money in It's real value is the creature of
trade and commerce, not of Governments. Gov
elnments can fix the debt paying value of money
for its own citizens by legal tender lsws-but not
its value for trade and commerce. That is fixed
| by the dealers themselves ID the commodities for
which money is exchanged. Aud the rate of ex-
change is adjusted to variation of value in the
market, OF either the commodities or money,
based upon the cost, the demand aud supply of
| the articles exchanged.
| The promise to deliver a thing is not the thing
ITSELF aud thing Of intrinsic value is not the
equiv TALENT of labor, and no legislative enactment
can make it such Thev may be used as such
temporarily under the stress Of some overriding
necessity, but if continued any length of time,
Will ny the inev table expansion and contraction
that must follow, end in bankruptcy and financial
ruin like the evil spirits the times of our Savior,
they only rend and destroy their possessor.
Intrinsic values have their equivalents, and may
therefore properly be used as mediums of ex-
| change. But mere promises unless convertible at
will into intrinsic value, have equivalent in
real values. Hence they must rest wholly upon
confidence; and when that is shaken the entire
fabnc falls, and we call it a crash in business.
REAL USES OF MONEY.
! What are the real uses of money and how are
we to judge whether its volume at any particular
| time is sufficient for the wants of trade in the
transaction of business money is required only
| for the settlement of balances. 10 all the bust
ness of people it is estimated that only about 5
| to per cent of this is done with money Ninety
three to IS per cent of it is in notes, drafts,
checks, bills of exchange, clearing house certif-
Gates, etc, and money is required ouly for the fl
nal balance
| TO illustrate A million Of men owe 81 each.