The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1892-03-11
WHAT is AN HONEST DOLLAR.
ALsading Financial fAper Diso~rds the
,"IntrInsio Value" Theory.


The Financier of New York, one Of
the leading financial papers OF the
country, in an article showing the diff
ference between the intrinsic and the
money or fiat value OF gold and sill
yer coins says;
The two precious metals have an
intrinsic value and coin value which
are by no means necessarily identical
which in fact never are identical.
1.-The intrinsic value of an ounce OF
gold 10 its value as commodity for
use in the arts-for making iewelry,
for gliding, and to all the other uses
to which gold is put exclusive OF coin
age. 1t has this value whether it is
coined or not and the value Is not
affected by coinage, though the price is,
1.-The coinage of gold is the differ
ence between its intrinsic value, or
value for use in the arts, and its ex.
change value as money.
This difference is so material, that
if gold were demonetized-were not
coined or used as money-its price per
ounce would probably be less than
half its price at present We have no
means of determining this accurately
nor is it necessary. All that is neces-
sary to clear understanding OF the
fundamental question OF coinage is u
clear apprehension Of this difference
between the intrinsic value of the coin
age metal and its exchange value
when coined as money. Where gold
has been even partly demonetized this
difference has become manifest at
once Its price as bullion has fallen
toward the level OF its natural or in
trinsic value-the value it has for use
in the arts apart from use as a medium
of exchange. Demonetize the ounce
OF gold, and its price falls 5, TO- Is,
rs per cent no matter what The i'm
portant matter to be remem bered is,
that it will fall in direct ratio to the
extent OF the decentralization, and il
the demonstration is complete the
fall will only be checked when the
level OF natural or intrinsic value is
reached.
There is not a dollars worth of
wheat in gold dollar. Nor is there
in silver dollar
The intrinsic value of the wheat
given for either a gold or silver dol
lar is greater than the intrinsic value
of the metal in either The wheat is
not given for the metal. 1t Is given
for the coin as means of exchange
for other things OF equal intrinsic
value with the wheat Demonetize
the gold dollar which buys bushel OF
wheat reduce it to the intrinsic value
OF the metal in it, and the metal in
the gold dollar will not buy hall
bushel of wheat, because that amount
of wheat 10 more useful for bread
than that amount Of gold is for deco
rating wall paper or making jewelry.
IF silver is wholly or in part de-
monetized, its price falls toward its
intrinsic value in precisely the same
way The rule is invariable and 10 be
relied on at all times. 1t is the first
principle Of coinage, and those who
remember it and apply it will not be
lost in the bewildering confusion oil
statements about value OF this dollar
or that They will know though the
coin value OF gold dollar may be
double its intrinsic value it is not 6
80 cent dollar on that account Nc
matter what the dollar is the ex,
change value it has is given it by the
coinage stamp on it and this ex-
change value is not its intrinsic value
by any means 1t is always much
greater than the intrinsic value"
If this is true is there any differ
0nce in precious metal dollars ant
paper dollarsP In answer to this ques
ton the Financier admits that there II
not any difference, and only holds tC
the theory that the use of the precious
metals gives a natural means of con
trolling the supply OF money
The denominations of money are
fixed by law without regard TO the
material used to carry the money
stamp, which is very tersely expressed
by the United States supreme court
thus: The constitution does not or
dain what metals may be coined Oh
that the legal value shall correspond
with the intrinsic. Coin passes no
as intrinsic value but as q lega
value
With these authorities before us /
is very easy to determine What Is al
honest dollarP" All dollars issued BY
government authority that are made {
full legal tender" at their face value
without regard to the material used t
carry the money stamp are 'hones
dollars" What is Il dishonest dol
larP" A dollar issued and made
partial legal tender. Every dishoncs
dollar we ever had in this country wa.
the result OF dishonest robber legisla
ton in the interests OF the money
power Conceived in SIN and brought
forth in iniquity." the dishonest dol
lar" is true to its mission as a THE
among the people p. T. Boormen.
Times That Try Mems Souls,