The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-06-16
The Dollar and Its Power.

One OF the ablest Democratic papers In the
state is the Calais Times. Therefore we are
little surprised to find in its columns this
specious but entirely misleading statement
with regard to the currency question:
It beyond question that 1t is not the intrinsic
value OF the silver dollar that establishes It's
silver dollar is made of that fixes its money
value. IL don't matter what the intrinsic or COM
meTelal value OF the metal itself is worth, or
or not. 1t may be 20 or 80, or 50 cents; it is ali
the same. It's real value as money is unchanged,
eminent authority and stamp that makes IL a
dollar, and nothing else can appreciate or depre-
clate It. With this. no matter whether gold or
silver, both win purchase the same quantity Of
goods, go where you may.
Should there be in Calais merchant Of
undoubted credit, Mr.. A. we will call him,
his notes would be worth their face so long
as his credit should remain good. Any
where in Calais the note Of Mr.. A. would be
worth 100 cents on dollar. But should 1t
become known that Mr.. A. could pay but 70
cents of every dollar on his Indebtedness the
value OF his notes would be lbut 70 cents for
every dollar OF their face. Now the govern
ment differs in no respect from Mr.. A. So
long as Its credit is good its tokens of value
pass Tor their face value; when its credit is
not good its tokens depreclale. At present
the silver dollar is in its nature token of
value. 1t will buy hundred cents worth of
commodities because 1t is exchangeabe for a
gold dollar that is worth 100 cents. The sill
yer dollar is exchangeable for a gold dollar
because the government has store of gold
on hand and is always ready to make the ex-
change. just as 1t Is always ready to exchange
gold dollar for greenback. Just as Mr..
A. OF Calais, when his credit is good, stands
behind his notes with plenty of good money
to pay them off dollar for dollar, so the gov
eminent stands behind its silver and green
bach dollars with the gold. Thus IL happens
that. as the Calais Times says, the value of
the silver dollar may be 20 or so or So cents.
But 1t is not for the reason that the Times
suggests, because sit Is the 60 yernment au-
tnority and stamp that makes 1t dollar"
Ii the time should come when the limited
States treasury could meet the demands
upon 1t for gold only by paying ont silver
dollars worth 70 cents, the value of the dol
lar throughout the country would undoubted.
ly fall at once from loo cents to rs. when
measured by the commodities it would mn
chase. 1t would still be dollar. Init ~ a
different kind; still composed of 100 mite
called cents, but each cent would be dimin.
ished one quarter in purchasing power. The
Calais man would see no difference in the
money he would have in his pocket. If he
should rut out a silver dollar for 10 cent
cigar, he would still receive back 9Ocents. But
ne would soon find the grocer asking II or 10
cents ior 10 cent cigar, and IL he should
WISH 10 get gold dollar for any reason he
would hnd that the owner of it would want
Slzo OF ABOUT That In silver for it. Why?
because the government has begun to use
'he SILVER dollar exclusively 10 its payments.
ana has set the custom or rather established
the fact, that the dollar In the limited states
Is lump OF silver worth 70 cents. So tbo
holder OF gold says, "For my gold dollar r
can get In foreign country or in the minao
as much silver as there is In 81 25 NJ Tho
money the government is using. Therefore
do not propose to give it to you for dollar
OF that government money" If the holder
OF this gold dollar is Calais man he NAV
say, "Over in st. Stephen can get as MANY
cigars or as much flour or fish for this gold
dollar as you can get for $1.25 of your gov
eminent money"
The government stamp makes the dollar,
and under certain conditions it makes the
purchasing power Of the dollar also. But
under certain other conditions it does not
not make the purchasing power, that power
being determined by intrinsic value. 1t is |
the policy of the Republican party at the |
present time to manage the finances so that !