The advocate., 1892-04-27
PAPER MONEY AND GOLD MONEY CON.
PARED,
To thA Editor Of TIE ADVOCATE.


and by the discovery of new gold mines
another billion Of gold money were Inn
medlately added to the money volume,
the effect would be to double the value
of all services and commodities. Appar-
emily the wealth of the nation would be
doubled. This doubling is only nominal.
There would actually be no increase OF
wealth without an increased production.
The increased volume of money would
cause more rapid and general exchange
of commodities and services; this would
stimulate industry and increase general
prosperity.
Since the productions of labor are the
only wealth a nation has, 1t follows that
if there had been no more wealth pro-
duced with the two billions Of money
than with the one billion, it would be
self evident that the increased volume Of
money had added no wealth to the ma
ton. But the increased volume OF money
was advantageous to the masses; 1t en-
sbled them to pay their debts, to procure
the comforts and necessaries of life, and
the country was made happier by the
more equitable distribution Of the pro-
ductlons OF labor. The additional one
billion of gold money aided to the circu-
lation would be no increase of wealth,
because the gold Is lost in the legal ten
der, and it ceases to be a commodity, or
wealth-it is money, mere ideal thing,
and gold adds no value to it.
Now, inasmuch as gold adds no value
to the legal creation called money, if the
one billion Of legal tender gold money
were replaced by one billion legal tender
paper mOney-for they are equal in law
the paper would perform the functions
Of money better, and there would be no
loss by sbrasions, and the liberation Of
the gold IN the $l,OOO,OOO,O0O gold circu-
lation would be to the country like the
discovery of so much gold In new mine,
for It would not be lost to the community
as money but 1t could be made to perform
a valuable utility In the arts, or shipped
abroad In exchange for more useful,
hence more valuable commodities.
Now then, grant that there Is no money
in circulation but one billion full legal
tender paper money, and another billion
of full legal tender were added to it; it
would have the same effect upon services
aud commodities as the doubling Of the
gold money did; that is, all values would
be doubled, apparently the wealth of the
nation would be doubled; but this would
be only nominal, If the productions OF
lObor, the only wealth nation has, had
not been increased.
So it is seen that prices are Inflated by
an increase of the volume OF money, no
matter what substance Is used to carry
the sign of money. Men who live by
prostltutlng money from its sacred func-
tion of a medium of exchange into an
instrument to levy black mail, are always
ready to raise their voice in condemna-
ton of any substance that threatens to
become abundant, and thereby interfere
in their God condemned practice. So it
was that in the early sos these same
fellows who are now crying out against
the dishonest silver dollar cried out
against the dishonest gold dollar. The
usurers all over the world urged strongly
the demonstration of gold. California
and Australia were Initiating the money