Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-01-31
The Money Question.


metal stamped by public authority aud used IS
4 medium of commerce. Bank notes issued by
authority and exchsngeable for COIN"
The currency OF the world consist Of various
metals and bills. but gold Is the standard Of val
ne generally recognized.
/ What is the use Of Money! II is medium OF
exchange. Ia primitive times business was
Transacted BY barter The farmer gave for
the tea Of the merchant, his corn. for the isbor
of the carpenter. hi, potatoes, aud In this way
exchanges were made between individuals Of
different occupations; but those direct ex-
changes were not always rony enient or desir-
able.
The blacksmith needs clothing. but the mer-
chant may not need iron work. aud hundreds
OF similar eases occur. hence n common med
ium OF exchange Is n necessity. Til, medium
must be something that will be taken by all
persons an equivalent for what they wish to
exchange. be it labor or the products Of labor
The medium must have an intrinsic value. -uch
a. is possessed by wheat, iro., gold. silver &c,
or it NAV be promise to psy value. o. the note
OF man Of property or The bill or bond of an
honest secure government. Wheat has intrin-
sic value, but il Is too bulky for medium OF
exchange. and the supply /. too variable for
standard OF value.
Gold, silver aud copper have Intrinsic value
because they are useful in the arts; but to be
used Il medium of exchange they must re-
ceiye the stamp OF authority, that people may
know what valae they possess.
A. copper and silver are bulky In proportion
10 Their value. II seems evident that they should
be legal tender for only limited amounts. What
metal should BE- The standard Of value, Several
things must be considered in answering this
question.
The supply must not bcj;oo abundant nor too
small. a. liz the first case too large quantity
Of metal would be needed 10 represent values.
a. with iron money, and in the second case too
small \ coin must Be used to represent small
values a. with diamonds for money. The sup
ply must not be liable 10 great fluctuations from
year TO year. that the prices OF goods. and wages
for labor may not greatly vary. The metal
should be one generally recognized by the com.
mercisl nations OF the earth, 10 facilitate inter
national trsde and tract. No other metal
seems TO answer these Requirement s so we'll as
gold-Coins Of small value should be made Of
silver, but these coins should be OF gold value.
otherwise the merchant and other people must
have two prices, one for things exchanged for
gold. and another for things sold for silver.
The source Of the gold and silver-used
money seem. not 10 be well understood by
many. Because ooin bears the stamp OF the
United States some seem 10 think thai the gov.
eminent owns mines and makes and distributes
money
Gold and silver are taken from the mines by
individual lsbor and enterprise, snd are worth
the cost OF obtaining item. Government coins
metal. that all may know the value OF tie coin.
sometimes from bullion which 1t ha. bought,
sometime from bullion owned by private in
dividuals. Government needs money to pay its
expenses, and a, 1t is the peoples executive It
obtains money by taxing the people whom 1t
serves, and 1t can have no more money than II
receives for services rendered. II has no mon
ey 10 give AWAY aud cannot make IL plenty, ex-
cept by employing great many people and
then taxing the people in turn TO pay for the
labor.
Taxes must be assessed only in proportion
Ia the actual financial necessities of the Gov
ernmeni. Not long since there was a great
demand for more "soft money. The Govern
ment printing presses could make money abun-
dant The 'greenback" was the dollar needed
/ for all purposes. What was the origin OF that
paper dollar so much desired, when II was
worth from a 10 - cents. but less appreciated
a. it approxim stes the gold dollar in vslue'
! Nesriy seventeen yesrs ago the Government
found Its existence in danger from armed re-
/ bellion. IL must have men ard munitions Of
war in order 10 ssye It's life; there was little
money in the Treasury and the people would
not bear taxation sufficient 10 meet the hfayy
/ future generations 10 pay the expenses; We
will give our notes and the patriotic people
VIII take them upon faith IN the nations
ctr myth and honor" The strength has been
proved shall the honor be found wanting,
/ Thus originated the "Greenback,- which. A.
IN. time " redemption draws near. approaches
the gold dollar in value. II has DO Intrinsic
value II l., a. lie honest face says, = prOpsise
10 pdH. During war time this money was
plenty because work. bloody work Wa. plenty
/ The producing population was decimated TO
/ nil the armies, food and manufactured article.
were needed In large quantities; lstorers were
scarce and their services commanded high
wages. II person had anything 10 sell, he
could get high price for IL. Real estate
seemed 10 advance. but the rise was fictitious.
| IL - doubtful II labor OF proIer would have
brought any higher price in gold, then, than
now. The unnatural demand caused over pro-
duction, and when the war vas over the mark
cts were giutied. factories stopped running
and operatives were out OF employ meUi. Grad
ually We have been settling down 10 = natur al
condition OF things. To-day depression in
business exists 10 many countries; distressing
poverty exists in this country mainly because
the population OF the cities is too large and that
| OF the country too small.
We want more producers snd less consum-
ers. Can Government make promises to
pay plenty again. Yes If its exis;en nee l. in
peril and future generations viii redeem the
promises in gold But plenty Of money, and
cheap money mean high prices for nil We buy :.
and uncertainty in all business transact ions.
Is il not evident that true money has intrinsic
value. and that the metal used as the standard
should be the one least liable to huctu a,ions
in value. and the one generally recognized by
| commercial nations:
| l. it not equally evident that Government
| cannot make money and cannot issue n. prom
Uses 10 pay, unless in great need with prospect
/ MI f s1ar ra.s. s.t.sfg. - >