The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1881-11-10
WEALTH VI. MONEY.
from tho rrtah World |

SvA1nAh - wa IAVNAho
G. from tho Irish world.l
The true wealth OF nation mainly
consists in the quantity and quality Of
it, crops. A full grain market Is much
more important than an easy money
market. Bankers are beginning to
appreciate these facts. The reason why
We have plethora OF gold in this
country il because grain commanded il
% come here At the late Bankers
Convention Mr.. Tevis, mailing from CAL
ifornia, tho richest gold country in tho
world, said
Grain is becoming . much greater
md surer source Of wealth than ever
came from the Bonanzas, while gold ID
still produced.
The reason why grain Il superior TO
gold is obvious. The former il wealth,
the latter is only It's representative the
exchAngeable value Of the first il in.
herent, Of the second mainly conferred.
Let us explain this statement, for on
It We base the defence Of the justice and
policy Of issuing paper Gin place Of me-
tallic money. We mean absolute "pA.
per money! and not "paper curren-
cies," which latter, we maintain, no
Government Is justified in issuing for
public use. That there Is inherent
value, or wealth, in the precious metals
NIL must aamit, but, ~ political econ.
omists, recognising that mans fat has
greatly increased their exchangeable
values, We claim they cannot be recog-
nized - wealth, but Is its representa-.
tive--noney. Neither can this applica-
ton be properly restricted to coined
moneys, for the use Of gold and silver rs
the only admitted representatives Of
wealth have enhanced the exchangeablo
values Of the entire volume of those
metals in the possession Of mankind.
This being SO, we propose to regard
them rs moneys, aud to show N this
article the differences existing between
wealth and money.
The exchangeable values of wealth are
settled by the necessities, the vanities
and the vices Of mankind. Grain, cot
ton, flesh food, houses, ships and oil ar
ticlcs needed by man for existence, com.
tort or advancement come under the
first and highest form Of wealth. Under
the second may be ranged precious
stones, and all articles Of fancy or lux
ury, which are not absolutely necessary
FOR our use or service. The third and
lowest form Of wealth is found in sp.ritl-
Ons liquors, tobacco, ETC., which ere all
solutely detrimental to the welfare a
human beings. 1t must be observed
that in oil cases the exchangeahle value
Of wealth is recognized and permitted,
not given. This is readily perceived in
such articles as grain, coal or cotton,
but it is equally true as regards objects
OF which the prices are set by the vani-
ties or vices Of mankind. A careful ex-
animation of the subject will rea lily
prove this statement to he correct.
It is different with money. The ex.
changeable value Of that, no matter
whether It be mannfac ,ured Of metal or
paper, is, in all eases, conferred OH ii by
man. The intrinsic value Of bar OF
iron is greater than the intrinsic value Of
a bar Of gold Of equal weight, but the
fiat Of the civilized world, having given
to gold an artificial importance as money,
has so elevated its cxchangeable value
that pound OF the former will purchase
more than ton Of the latter. But
the same power that has conferred a
value on the precious metals can with
draw its fiat ut its will. Even the de-
monetizing of silver by Germany. Dem
mark, Sweden and the United States in
1928 caused the mercantile value az
that metal to fall 20 per cent. Mark, in
neither OF those countries were silver
coins withdrawn FROM circulation. They
were simply deprived Of certain powers
they previously possessed. Had the
use Of silver been discontinued as n base
Tor the manufacture Of money, there il
little doubt but that the mercantile
value Of that meta. would have exhibited
very much greater depression and it
Is certain that, were gold absolutely ,lc.
monetized, it also would fall in value, in
similar proportion.
II gold were not money it would re-
tain M intrinsic value proportionate TO
its uses and the cost Of obtaining it,
which would represent its value as
wealth. This would probably lie about
one-fourth Of its present conferred ex-
changeable value as money. To assert
that the Deity invested gold and silver
with their present mercantile values is
inter folly, as has lately been proven by
the fall that occurred when silver was
demonetized. 1t must also he remem-
bered that the use # gold and silver,
and. their elevation into recognized me-
dinms Ct exchange. affects the price Of
those metals regardless Of their being in
the forms of moneys When Germany
demone,ized silver, it not only lowered
the value Of the silver cons of that
country, but also reduced the price Of
shares in the silver mines of Colorado.
These facts are given ~ prove that all
money is fiat money, no matter whether
1t IS manufactured Of paper or of metal.
Greenhack-L Labor reformers viii ~
member, therefore, that the precious
metals, rs they are called, must in all
cases, whether coined or not, be regard
ed rs money, not rs wealth. Further,
that rs money, they are inferior to
wealth. for the exchangeahle value Of
tine former Is conferred ON il by man,
whereas, in tho case Of the latter, il is
lahesent, and only needs recognition.
Nothing could better instruct our peo-
lie with regard to the superiority Of
wealth over money than the events 81
the past three years. We have seen
American grain command European gold
u low hitherwarl. and have beheld the
latter exhibit willing obedience to its
mandates Seeing this. let us never for
get that, in the true order Of superiori-
T., wealth stands in advance, aud that
money, whether it be manufactured Of
paper or the metals, is simply aud mere.
" its man-made representative.
The Bank Of England.