Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1891-04-21

suppose, Ln0n We USE IIlS hluu VI LILO
terial out of which to make our money;
then, in addition to that, suppose we
reduce the rate Of interest for the use
of money either to such reasonable
standard as all classes OF business in
general could afford to pay; or. suppose
further, that we reduce the rate OF
interest to what it actually costs to
issue money directly to the people; in
either of these two cases, more par
ticularly the last one, we would have
established principle and practice
which, when adopted and put into ope-
ration would take away from money
its interest bearing function, and aside
from that money has no value whatever
outside of the intrinsic value of the
metal in it. With gold, if interest
rates were per cent. or below that,
there would be no more inducement for
owners of money to lend it to their
neighbors than there would be to lend
as much paper money under similar
circumstances; but there would be this
differences: that the gold money, al
though it could not be used for the pur-
pose of drawing other money by the
way of usury, still the coins themselves
would have intrinsic value, either as
bullion to be sold to people of other
nations, or to be sold to the goldsmith
for use in the arts, whereas in the case
of paper, there is no value whatever.
Hence we find that in the use of paper
money we have come to basis that is
positively, absolutely and relatively I'M
fuctuating, and this comes from the
fact that the material out of which the
money is made has no intrinsic value
If the reader will study this question
for himself he will soon discover that
the reason, and the only reason, why
we have an unstable currency is that
our system IS based upon metal
whose value hunctuates in the markets.
Now, doubtless, we shall be asked,
will not our paper money plan de-
stroy values, will it not derange bust
ness, will it not change conditions In
the financial world, will it not upset all
transactions to occur in the future
based upon past conditions? In answer
let it be said. this cannot be so, and for
the reason that, as our supreme court
wisely and very neatly decided in "a,
the "value of dollar is an ideal thing"
1t will be found upon investigation that
value is the commodity bought or sold,
and not in the medium by which the
exchange is effected. John has wheat
which he wishes to exchange with James
for clothing. The wheat is worth 800;
the clothing is worth an equBl sum, but
the clothier does not want the wheat.
The owner of the wheat then buys mon
ey with it, He sells it to Peter for 500
in money-paper money, we will say,
sort of money which has no intrinsic
value. He takes this 500 OF paper
money to the clothier and with it pays
for Tic S10Q worth of clothing. Now we
say in this transactson that the value is
the wheat and in the clothing, not In
the money. Money is made for several
different uses, but all of the same gen..
eral character. Money is as much an
instrument of commerce as wheelbar-
row, or wagon, or a railway car or q
ship on the cean. We could no more
conduct commercial affairs without
money than we conld without vehicles
with which to transport commodities.
So we see that money is an ao-
solute necessity in modern civilization.
We also see that it does not
matter a particle what 1.-THE material
is out of which money is made. All we
want to know is that the government
which issues the money is responsible
for it.
Now we come down to the final pro-
position. Let the people determine
amcag themselves that they will use
paper for money, whether based upon
gold or silver or not; but for the sake
of the argument, and in order to make
the point clear, suppose shat the people
agree to use paper, and nothing but
paper, as material out OF which to make
dollars, and half-dollars, and quarter
dollars and dimes and half-dimes. BY
restricting the amount of money to bel