The midland journal. (Rising Sun, Md.) 1885-1947, 1890-07-11
Money.

proper understanding of the true nature OF
money. The intrinsic or commercial value
of the "precious metals" silver and gold,
has always been misleading when the source
whence money derives its value as money is
sought. Silver and gold have commercial
values the same as wheat and iron or any
other commodity which the daily wants Of
mankind require, but this value is distinct
from their value as money. The value of
the precious metals as money is always
above their value as commodities, or their
intrinsic value. This is necessarily so or
they would not circulate and transact the
business of money, which is TO measure
values of all other merchandise. The
metal of the coin is not its true money rep
resentatlve, but the government stamp
which DEGREES it il dollar or any other
denomination named. Gold and silver
coins hold the same value among nations
using these coins because the exigencies of
trade has forced this international value
upon them. Nations could not carry on
business with any degree Of accuracy and
dispatch without some standard measure Of
value accepted by all. Hence their coin
money, though composed Of different guam
titles Of metal, is evened up grain for grain
in value as measures of prices. Gold is the
same value as money in European nations
and the United States. Silver is The same
in Asiatic and silver money using nations.
The silver coins of the United States are
the same in value as gold in the United
States and so of all European nations.
Their silver change is the same in money
value as their gold coin because the several
governments say they shall be so. Silver
is not internationally of the same value, as
money, in those nations because it was re-
commercial value, but the moment those
nations say by act of their law making
powers it shall constitute legal tender n oney
and be used to discharge all debts, it will
that moment be raised TO a parity with gold,
and when the United States commences to
coin enough silver to absorb the surplus
not used in the arts and in commerce with
Asatic sations, bullion silver will rise in
commercial value to the side of coin, and
when it rises above that value for use in the
arts, coin will cease to circulate as it has
frequently heretofore.
These commercial values are very mis-
leading and confusing in studying the
nature and province of money, and if
metal money was entirely abolished except
small token coins, such as pennies, nickles
and dimes, and replaced by paper money,
business would be more stable and prices
less fluctuating. The intrinsic value in
coin is disturbing element in the measur-
ing value of money. Money in its simple
nature as money, diyest of every other pu!-
pose and value is the simple ipse dirh Of
government. The fiat of government is the
money, and money as such has no other
purpose than to measure values. 1t is not
wealth, any more than the merchants yard
stick, pound weight or pint cup constitute
the wealth of the merchant. These imple-
ments are indispensable to the merchant,
for without them he could not transact
business. He could not measure and weigh
his merchandise, and dispose of it in stated
quantities. The money received in return
is the measure of the value Ct the several
definite quantities of goods.
When the government stamps note with
a certain value and DEGREES that it shall be
receivable for all debts, the debtor is COM
PEELED to take it or forfeit his claim. This
being the case persons who have merchan-
disc OF kind more than they want for their
own use exchange il in stated quantities for
money, for whatever the government de-
crees shall be money.
The commerce Of the world is nearly all
barter. 1t is the exchange of one kind of
goods for another, and the party who gets
the most goods, evens up the deal or trade
by giving the other party an amount of
money that will exactly measure the value
of the difference between the commodities
exchanged. The party who has parted
with the largest or most valuable quartity
of merchandise is not loser He has the
measure of the difference IN his rocket in
the form of money anil can procure any
other kind Of merchandise he wants 10 the
full value of that he has originally parted
with. And this is the use of money and Its
sole use and only value. The intrinsic
value of gold and silver money becomes
confusing at this point by being COMPOUNDED
with the measuring quality of money which
is lis only valuable characteristic. Seeing
that the intrinsic value OF coin is in no
manner needful in money but only acts to
confuse and help 10 cause fluctuations in
business, it would be great gain to business
in all civilized and enlightened nations, if
coin money was entirely abolished, and The
metal placed among The worlds merchan-
disc, where it properly belongs.
The next question to be considered is
how shall the quantity of money be adjust
ed? If there is too little in circulation, as
at present in this country, TO transact bust
ness with, business will drag and prices fall.
If too much, business will ''lose its head"
and speculation will take the place of legit.
innate business. But if the amount is fixed
and continues uniform speculation will cease
aWnA Ia.