Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-07-15
THE TRUE MONEY STANDARD.

The QuantItative Theory of Money-The
Value of Each Dollar Depends the
Number of Dollars Out.
Thus by the universal competition to
get it the value of dollar is made to
/ depend upon the number of dollars that
are out This is principle that lies at
the very foundation of the science of
money. The law, stated broadly, is
that the value of each unit of money
In any country at any given time de-
pends on the whole number of units in
circulation in that country. The larger
the number of units out, population re-
naming the same, the less must be the
value of each unit; the smaller the
number of units out, population re-
naming the same, the greater the value
of each.
Notwithstanding the variance some
times found between the premises and
the conclusions of economic writer's,
there is no economist of repute who
does not admit this to be fundamental
principle.
The true money standard of any coun-
try is not the material of which the
money is made The standard is not a
concrete object, but numerical rela-
ton. 1t is the relation between the
number Of units composing the none
tary circulation of the country and the
numbers of the population.
1t is the legal tender function that
constitutes money. 1t is the power
which the law imparts to any material
to pay debts and liquidate obligations.
1t cannot for a moment be doubted that
the money function, being conferred by
the supreme authority, is the all-suffi-
cient guarantee of the money value.
There is no necessity for reinforcing
that value with any inferior value that
may attach to the material on which
the money stamp is placed The money
function is immeasurably the most i'm
portant that cal be conferred by society
upon any material, and it is absurd to
urge that that function is not of itself
sufficient for the maintenance of the
value of money. All the value that
money can possibly have-the totality
of value that can exist in the shape of
money in any crountry-will attach to
anything upon which the sovereign au-
thoritv stamps it, whether the material
on which the stamp is PLACED be gold,
silver, paper or anything else. Leg
islators or executive officers of
the government by increasing or de-
creaSing the volume of money, corre-
spondingly decrease or increase the
value of each unit of that money. For
no matter how many or how few the
units may be, the total value of the
money of the country will be comprised
within the total number of those units.
A change in the numbe of the units
effects prOportionate change in the
value of each unit, and whatever the
value of the unit may be, it is of the
utmost Importance that that value
should remain undisturbed.
1t is absurd to maintain that a gold
unit, which, as time goes on, is con-
stantly increasing in purchasing power,
is better unit than a unit of any other
that maintains unchanging
value through time.
Whenever the business of the country
accommodates itself to a given number
of units, the only question for the gov
ernment to deal with is to maintain
that value as free from disturbance as
possible; and according to all authori-
ties on political economy that can onlv
10 OJ OT INCREASING
the number of units in circulation in
accordance with the demands of in
creasing or decreasing population.
If 1t be admitted that one of the most
important offices of government is to
see that the equities are preserved be-
tween its citizens land if this be not SO.
to what purpose are our courts of
equity instituted?), then it cannot be
denied that it is one of the highest
offices of government to see that money,
which measures all equities, and which
must for all time continue to be the
principal measure in the service of civ
ilized society, shall be of unchanging
value. 1t is impossible to secure this
characteristic of uniformity in the value
of money if we are to select as the ONLY
material on which to stamp the money
function substance whose yearly pro-
duction is becoming more and more
limited, and the prospect of whose
sufficient yield becomes less and less
encouraging. Senator John P. Jones,
in u. S. Senate