The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1891-02-26
WHAT rs MONEY!
And it's Proper Function.
Eostcy H,ooi,,s. il, Christian Union

The confusion Of ideas prevailing on
the subject of money, the irreconcilable
character Of opinions which are daily
uttered by the solons Of the daily press,
and the very serious results which the
mere utterance of those authoritative
views are likely to precipitate, if not
really produce, all demand that some
plain, intelligent exposition Of the char.
acter and requirements of true and ideal
money be laid before the public.
What is Money?
From the exceedingly valued and e1-
haustive Century Dictionary" ne learn
that money is:
~ Stamped metal that may be given
in exchange for commodities stamped
by public authority and accepted as
medium of exchange. ~ In wider
sense, any article of value which is gen.
orally accepted as medium ofexchange
also, by further extensions, ~ something
which, although possessing little or no
intrinsic value, is recognized and accept
ed az a substitute for money proper, such
as "psper" money; and(4) any circu-
lating medium of exchange.
In order to have clear sense Of these
distinctions, let us for moment look at
the expression intrinsic value" This
term simply declares that an article or
substance has "use" for mankind, and
hence demand fori it, which gives it a
"value." The greater the demand and
the smaller the supply, when combined,
the higher rises the value. And the re-
verse is equally true-the greater the
supply in excess of demand, the smaller
grows the value. Hence, nothing in
nature, aside from its usefulness and
demand by mankind, has any value
whatever,
The question before The public Of the
United States relates, at the moment,
particularly to the first definition of
money. It will be seen that the special
function of money is to fix values-that
is to furnish medium of absolutely
fixed value, wherewith to make an ex-
change when the relative values of the
articles to be exchanged are determined
by the parties to the trade. The first
and most important characteristic of
ideal money is, therefore, "6xed," non.
vacilliating value-a value which, once
being determined and accepted, must
forever remain unchanged.
The selection of metal involves also
two other considerations {: IL The quail.
ity of that metal in existence must be
ample to supply al! requirements for its
use as money, and ~ it must not be in
such excess as TO render its entire alb
sorption as money to be beyond the real
requirements of the world for the largest
volume of money atany time. 1t will be
seen that an ideal metal is very difficult
of attainment. Every metal which has 8
use in the arts and sciences is to that
degree Objectionable, inasmuch as in.
creasing demands for that metal for
other uses will sooner or later disturb
fixed values and compel new adjustment
Of its monetary standard /; and precisely
in similar manner, unless The supply
can be constantly increased by man to
keep pace with increased population and
the swelling tide Of the worlds necessi-
ties and desires, an undue appreciation
of that already in existence will take
place, to the disturbance of the relations
of mankind and positive injustice and
injury to the entire class of debtors all
over the world.
In order to still further insure this sta.
bility Of value, the metal selected should
have the quality of indestructibility,
non.corrosiveness, and be one upon which
mere lapse of time could by no operation
of natural causes create deterioration.
Suppose then, some metal has been
selacsed by general approval as having
the most of the desirable qualities of any
one natural metal, and the weight and
fneness of the respective coins fixed and
decreed, it is evident that the only means
whereby this standard could be estab.
lished would be to open the mints to its
entire and exclusive use for money. In
other words, the end to be attained being
that it shall not vary below the coin
value, all that is produced must be adj
mitted first to the right of coinage. This
insures that, whatever other use and
demand for that metal exists, it can only
be satisfied by purchase of the metal
at "a price fully equal to the coin value,
and never less. If any limit whatever
be placed upon the extent to which the
supply may have the right of coinage.
then all surplus becomes commodity to
be bought and sold in the market, and
varying daily with the huctuating de.
mands Of mankind for its other uses, aud
hence disturbing all transactions of every
nature and creating an intense longing
for that element of stability which il
would thus be deprived Of.
Let uB apply these principles. The
quantity of money of all kinds now in
use in the world may be approximately
stated as follows.
Gold.................... $500 millions.
Silver.................." $500 !"
Paper.................... 1900
Total..................10, 900 millions.
This demonstrates that not only has nc
one metal been found able at all to fill
the requirements of money, but thai
with even two metals sum nearly equal
to both metals together has been found
necessary, and paper money, redeemable
in coin, has been injected into use az