The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-03-04
WHAT IS AN HONEST DOLLAR.
A Leading Financial Paper Discnrds the


A Leading Financial Paper Discards the
s"Intrlnsic 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
THE intrinsic value of an ounce of
gold IS its value as a commodity for
use in the arts-for making jewelry,
for gliding. and to all the other uses
to which gold is put exclusive of coin
age. It has this value whether it is
coined or not, and the value is not
affected by coinage though the price is.
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 a
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 medium
of exchange. Demonetize the ounce
of gold and its price falls 5, 10. Is,
20 per cent no matter what The i'm
portant matter to be remem bered is,
that it will fall in a direct ratio to the
extent OF the demonstration, and if
the demonstration is complete the
fall will only be checked when the
level of natural or intrinsic value is
reached.
There is not dollars worth of
wheat in gold dollar. Nor is there
in a 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. It is given
for the coin as a 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 half
bushel of wheat because that amount
OF wheat is 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 it's
intrinsic value in precisely the same
way. The rule is invariable and to 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 of
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 a
80 cent dollar on that account No
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 It is always much
greater than the intrinsic value"
If this is true, is there any differ
once in precious metar' dollars and
paper dollars? In answer to this cues
ton the Financier admits that there is
not any difference and only holds to
the theory that the use OF the precious
metals gives 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 or
that the legal value shall correspond
with the intrinsic. Coin passes not
as intrinsic value but as a legal
value"
With these authorities before us il
is very easy to determine What IS an
honest dollar?" All dollars issued by
government authority that are made q
full legal tender at their face value
without regard to the material used to
carry the money stamp are honest
dollars" "What is a dishonest dol
lar?" A dollar issued and made 8
partial legal tender Every dishonest
dollar we ever had in this country was
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 it's mission as thiel
among tho people. p. I. Poormen.
Tines That Try Mems Souls.
Pros ic rporo ,o,-1,