Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1891-04-16

pleased 10 call stable currency. What
thcy mean by the phrase doubtless is
currency which shall at all times have
the same value, so that its purchasing
power will always be upon the standard
Of hundred cenis for a dollar, and that
in sucn relation there shall be NJ hnct-
uating tendency in our money. Let us
understand a little fartb.r what this
really means. IL is assumed upon the |
part OF the friends Of a stable currency. |
that Is 10 say those particular friends |
OF whom this is written, that gold has |
n fixed value, and that, therefore, |
gold Is the proper standard on which |
10 base q stable currency The truth |
is, however, that gold is less stable
in its intrinsic value than corn. Political /
economists have long conceded that fact. |
Take any considerable period OF years
20 make the comparison, and IL will be |
found that the rise and fall in value OF /
corn as compared with other commodi- |
ties In general is not as extreme as the |
rise and fall OF gold in the same compar-
ison: 50 that Ia truth the argument |
based upon gold as n basis for stable |
currency Is utterly fallacious. In 1867, |
Just after our great war closed. when !
we he'd nearly $1,000, 100000 OF paper
money ahoat In this country, our farmers |
produced l, 300, 900, 900 bushels OF the GER
eals-corn, wheat, rye, oats, barley and
buckwhest, and the value OF that crop |
was J., ,2S4, 100000. Twenty years later, |
In 1887. the crop OF the same grains
amounted TO twice as much as that OF |
'67, or 1900, 10000 bushels, and the I
value OF IL was only 81, 200, ,000, 900, or
1900, 900 less than one-half as much |
twenty years before. These values, be
II remembered, were based upon the
gold standard The question, then, Is |
proper, was this difference between the
price OF grain in i67 and 's7 because OF
difference in the grains themselves, or
was IL because OF difference in value OF
gold? Let us think about that a mo-
ment. As stated above, the amount OF
money In circulation among the
people in the beginning OF the year '67
was certainly as much as 81 600 900, 600,
when We had a population Of only about
81 100000 whereas in 1887, the amount
OF money circulated among the people
was not TO exceed $500, 100000, when
our population was upwards OF 60,OO0,-
COO, and the business OF the people had
increased perhaps rs much as 100 per
cent in the meantime. IL is a well
understood principle In economy that a
large volume OF circulating money Is
invariably attended with high prices
and active business. While, on the
other hand, a small volume OF circulat-
ing money among the people is quite
as invariably attended by low prices for
products in general and universal stag 4
nation In trade. Taking that well es-
tabII|hed principle as our rule in this
casa Il must be evident TO every OBJ
server that the cause OF the difference
between the values Of grain in twenty
years, amounting 10 a fall OF 80 per
cent, was not occasioned by reason oS /.
any difference in the actual value OF
grain, but from difference OF the actual
value of the metal upon which we {
based our currency-gold.
How, the hall we obtain stable \
currency? here any such thing? S
Can we find "a substance out OF which to
make money, or can we devise any sya-
tenn OF finance by which we can procure c
an invariable standard OF monl.y, and !
establish the currency which win make :
no 1uctuation in the money market?
Let US see: Suppose, for example, that {
instead OF using as a basis OF our cur y
rency metal which, as we all know, t
huctuates In value from time 70 time, v
and is constantly giving rise TO trouble, r
eqnfnsIon, seares and panios at the Q
itx.s z1a1Nre. NC try the use OF an lc
I. n I.I/ d. Account oi its pecilihr4 4
ohArA<ttt 1nd the. RnioiIff Used Ia Alb
piod1'of money. has no in y
trinsic value whateror-say paper. such e
pa we now use for our treasury notes, RI
our gold and silver certificates and our p
United States notes. While the amount
OF gold in an eagle is worth in the
market something in the neighborhood
oi twenty dollars always, without refer d
ence TO its relative value as compared d
with other commodities, the amount OF a
paper in a twenfy-dollar United States e
note Is worth not more than the o
amount OF paper in one-dollar note. d
the intrinsic value OF the II
paper in note of any face value. n
whether 10 be one dollar or one thousand Il
dollars, is not worth talking about; IL Is "
loo small TO be computed in any busi- v
ness transacted. 1t could not be sold v
even 10 the rag-picker, or TO the paper v
maker, because OF its infnitesimal value. "
then, we use this kind OF ma Ii
Ierial out OF which 10 make our money; b
then, in addition to that, suppose we Q
reduce the rate OF interest for the use n
)f money either TO such a reasonable ii
standard as all classes Of business in d
general could 6ford 10 pay: or, suppose e
Y
interest TO what IL actually costs TO Il
issue money directly TO the people; in v
either OF these two cases, more par v
Iicularly the last one, we would have y
established principle and practice sl
which, when adopted and put into ope- G
ration, would take away from money G
lis interestbearing function, ana aside II
from that money has no value whatever d
outside OF the Intrinsic valne OF the h
metal in It. With gold, II Interest
rates we're per cent. or below that,
there would be no more inducement for
owners Of money 10 lend il to their
neighbors than there would be TO lend .
as much paper money under similar = !
but there would be this a
difference: that the gold money, al /
though IL could not be used for the pur- d
pose OF drawing other money by the
way Of usury, still the coins themselves &
would have intrinsic value, either as
bullion TO be sold 10 people OF other
nations, Or 10 be sold 10 the goldsmith =
Tor use In the arts, whereas In the case u
of paper, there Is no value whatever. r
Hence we find that in the use OF paper c
money VIC have come 10 basis that Is
positively, absolutely and relatively un-
and this comes from the
act that the material out OF which the
money 10 made has no intrinsic value "
n the reader will study this question II
'or himself he will soon discoyer that
The reason, and the only reason, why L
we have an unstable currency Is that I
our system Is based upon a metal
whose value functuates In the markets. a
Now, doubtless, we shall be asked, q
will not our paper money plan de- ii
,troy values, win II not derange busi-
ness. will II not change conditions In
Tho financial world, will Il not upset all =
10 occur In the future y
based upon past conditions? In answer !"
et it be said. this cannot be 30, and for
Ihe reason that, as our supreme court y
wisely and very neatly decided In "a, a.
Ihe "yalue Of dollar is an ideal thing II
Il Will be found upon investigation that