New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-12

for il is the standard or measure OF real Value'
recognized as such by all commercial nations. I'M
great essential of standard or measure of value II
that il shall be recognized alike by all the DEALER
in the commodities or real values for which the
standard or measure is exchanged
For instance. Won have horse for which you have
no present need and you sell him, taking IN e1
change the standard or measure of value IN use
But should You at any Subsequent time WahI
horse if the measure of value yOu received 1Ol
yours will not buy one OF like yalue-such one 2,
the parties themselves owning 1.-TWO horses WOMB
be willing tn exchange one for the other, then you
arc the loser by taking a representative or value
for your horse when you sold him that VIII nov Duy
one Of the same or equal value when you WISH 70
purchase. So the standard OF value Wncn Is tA-
changed for property must be recognized ailke Dy
all the dealers IN it, some Of them must DC losers
by Its use.
TIE MEASURE OF REAL VALUES.
A standard or measure of anything, 20 be correct,
must parake of the nature OF the thing OF when II
rs the standard. If it is the standard OF real values
IL must itself be Of real value. III q stanoaru OF
length then it need possess only length like the yard
stick If of bulk or contents, then u need possess
only cubc space like quart or bushel measure. 80
of weight In all these cases value has nothing 70
do with the transaction. The yardstick, ITSELF
worthless, measures the yard OF commodity worm
cents or dollars just the same, for length IL All tnat
is required. So weights, worth comparatively nom p
ing weigh the most precious and costly values. but
i'm the of real values how Is IT TO be Done
cept by the use of real valuei
Legislation can neither make nor unmake real val
ues Money its real valuels the creature OF trade
and commerce not of Governments. Goyernments can
fix the debt paying value of money for its own cru
zens by legal-tender laws-but not IT'S alue Tor
trade and commerce. That is fixed by the dealers
themselves in the commodities Tor which money ls
exchanged. And the rate OF exchange ls ADJUSTED %
n variation of value in the market, OF either tbe
commodities or money! based upon the cost, the de-
mand and supply of the articles exchanged.
The promise to deliver thing IS not
the thing itself; and n thing OF no intrinsic
value is not the equivalent of labor and no
legislative enactment eau make it such. Ihey
may be used as such temporarily under the stress
of some oYerruhng necessity, but II continued any
length of time will by the inevitable expansion ana
contraction that must follow, end III bankruptcy
and financial ruin like the evil spirits IN the
times of our Savior, they only rend and destroy
intrinsic values have their equivalents, and may
therefore properly be used as mediums OF exchange
But mere promises unless con'ertiDie AZ WIN ra
intrinsic value, can have no equivalent III real
values. Hence they must rest wholly upon con-
hdeuce; and when that is shaken the entire fabric
falls and we call il 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 trader In the tIdhsac
ton of business money is required only Tor the set-
Element of balances. In all the business OF people
il is estimated that only about 10 z per cent OF
this is done with money. Nmetythree to0 per cent
Of it is in notes. drafts, checks, bills OF exchange
clearinghouse certificates, etc., ana money Is IT,
quired only for the final balance
To illustrates A million of men owe 81 each;
check for a dollar is given by one OF them ana
last one and then the dollar itself is pad. let
million dollars of indebtedness has been discharged
with this single dollar. Such result requires Only
time and confidence. Without the confidence that
the dollar would be paid on the check whcn pre-,
scented, the dollar itself would have 70 be uehNeitu
each time instead of the check. Yet IN the ehd IL
would discharge the same amount Oh ihu9D,cuiySis
So in times of Ordinary confidence all that money
wanted for is 10 settle the balance IN the exchange
of commodities whether in trade ut homo or IN COM
mcrce with the nations.
No act If
ment, or the stamping OF engraved paper Dy hs
printing presses, matter 10 what extent, docs hol
thereby make money plenty OF hoNtt'd -. niu ,s
the Government may have IN It's vaults, " can paw
out or put into circulation only the amount OF lts
actual expenses. II its annual expenses are
81 900 600 that Is all NJ pay out, and " cOerts
in taxes and returns 10 ITS Treasury during the year
that same amount. SO u Is mpoSslbir for TO put
into circulation an amount exceeding us ahhuai
expenses.
whether issued by the Government or bY lLcOr-
porated institutions, called baIksI lbe bnNerh-
ment Is limited, have stated, to IT'S actual eN'
penses. The banks, il they adhere 90 ther lcglt-
innate business 90 not into che mars OF trade 10 buY
property. They furnish the money Tor dong mat
by others, and for tue risk and use charge ceftih
per cent, called interest. They deal IN interest
bearing paper alone and II IS from the interest on
the money furnished Tor others 90 make exchanges
that they derive their profits II money u not
wanted for business, that Is for buying aud selling
commodities or for investment IN some prospective
development, 10 remains with those VINO are nIthoi
1Led 10 Issue III. IN iuai tdoo - -
no matter how great the amount II would be scarce
in circulation.
Flush times as they are called, come not from in
creased coinage or additional printing, but from IN
creased demand and consumption OF the products
of labor. The flush business tunes Of the war were
not because the Government issued greenbacks, but
because II paid annually over a thousand millions
of dollars for labor and ts products instead OF as
now, less than three hundred millions. The sudden
demand caused by the war FOR almost everything
increased the consumption, and thereby enhanced
the price. War prices be continued only by con-
tInulug the war that produces them.
REAL CAUSE OF HARD TINES.
In the multiplicity Of discussion rs to the volume
of money necessary Tor trade and 10 It's effect IN
nroducinR the depression IN business cOmmenCngln
1873 the substantial facts and producing causes
seem 70 be almost wholly overlooked. What were
the real of the crash, as ~ Is called OF 1878,
Of industry, and its effects filled the land with
unemployed labor
lis real cause could not have boon the fixing OF def
mite time Tor the resumption of specie payments, Tor
that was not done until 1875, two years after the
crash Nor could lis real cause have been lack OF
sufficient circulating medium (callcd money! for the
volume OF that was greater IN 1924 than ut any
former period excluding the bearing notes
issued by the Government for one or two years,
IN 1862, the paper circulation lucarly all state
bank was two hundred and tllrty-eight millions,
six hundred and seventy-One thousand two hundred
and eighteen (23S, 07l,2lS) dollars. Adding the
gold and silver coin IN the country at that time.
circulating medium for the whole country IN 1862,
In round numbers, $3i0.O00,OOO.
The circulating medium, consisting OF legal-tend-
eTs fractional currency and National bank notes,
was as follows:
Tecai- Fr5ctOuql National