The advocate., 1892-06-29
MONETARY COMMIss1ON.
Report OF the United States Monetary
Commission, Appointed by Act Of Con-
greSs August 10. 1876.

grOss August 10, 1876.
NO. III.
Money and commodities differ as much
In the nature Of the demand for them as
they do in the effect Of supply upon their
value. The demand for money ls uniVeE-
sal, constant and Unsuitable. Nobody eV-
or had 80 much as to feel loss OF even
diminutIon of the desire for more. In
business transactions it Is never Volun-
tarIly parted with except with the hope
Of its return and with profit. The effect
I've demand for 1t, or, In other words, that
demand which Is accompanied by an
ability to offer equivalents, is only limit
ed by the extent Of all the possessions OF
mankind, fixed and movable, and their
total capacity to render services.
And by thus understanding exactly
what supply and demand mean as ap-
piled to the metals used as money, the
reasons for the steadlness OF their value
become apparent. Their supply is the
accumulated stock of centuries, and the
demand for them Is measured by all the
wealth and all the productive forces Of
man.
What is known as the double standard
Of value Is a standard based upon the
two metals, gold and silver, by laws
which establish unit of value and &C.
count in each metal and declare the
weight of pure gold and silver, respect |
lively, which the unit shall contain, and |
which also establish unrestricted coinage
for both metals, and declare coins of
both metals, respectively, which repre-
sent the unit and multiples thereof, a
legal tender In the payment Of all debts,
public and private, at the option Of the
debtor. The legal relation of value be-
tween the mets) Owill be In inverse pro-
portion TO the Y hts Of pure metal In
the coined units of the two metals ret
gpeCtively. Thus, the weight of pure
silver, 37l.95 grains, in the demonetlzed
silver dollar or unit, was Is 1888 greater
than that of the pure gold, 232s grains,
In the gold dollar or unit, which was a
legal valuation of q given weight of pure
gold 15.9SSS times greater than of the
same weight of pure silver.
There can never be practically two
money standards whose units of account
differ in value in any country at the
same time. 1t is all-important that the
value of the standard should be un-
changing. II Ia not important that the
material which represents the value
should be unohanging. 1t is Of little
consequence Of what the material con-
SistS II it be portable, dlvisible and lnde-
Structible, or II destructlble that 1t can
be replaced with facility. There should
never be any hesitation in changing the
material Of money for the purpose of
maintaining its value undisturbed.
Whenever, under the double standard,
there Is a variance between the legal and
market relations Of the metals, the stand.
ard would be practically based on one
metal, and 1t the cheaper and more avail
able one. Whenever the legal and mar
ket relations Of the metals coincide there
would be duality In the material Of the
standard, but unity In its value, which
would make 1t in its all-lmportant fea-
ture a single standard.
The philosophy of the double standard
Is that q rise In the value of money and q
fall in general prices are the greatest
avila which ran baPall tho world and its