The advocate., 1892-01-20

An article 10 determined 20 De money b!
reason of the performance by it of certain
functions without regard to its form or sub
stance.-Appleton's Cyclopedia.
The intrinsic value of money has beer
abandoned by the best writer's and thinkers
Coin is not safe basis for money. The
basis is too smsll.-Cyclopedia Britannica.
Metallic money, while acting as coin, is
identical with paper money in respect to its
being destitute of intrinsic value.-NOrth
British Review.
The gold dollar is not commodity hav.
ing an intrinsic value, but money, having a
statutory value. And every doll Al
has the same value without regard to the
material. The gold dollar has not
intrinsic value.-Supreme Court of Iowa.
The attorney general Of the United
States, speaking Of the legal tender act
12 Wallace, United States Supreme Court
Reports, page 5l9) says:
This legislation assumes that, in contem-
plation of law, money of every species has
the value which the law fixes on it; that
Congress has the constitution al power to
say that ten pennyweights of silver shall
henceforth be the dollar, and do the same
Office heretofore done by sixteen penny.
weights and four and one-half grains.
The American Cyclopedis also says
upon the subject of money:
Aristotle says of it that sit exists
not by nature, but by law" How true is
this doorine, or at least how potent is the
law under a civilized government in impart-
ing the quality Of acceptability for the pay.
ment of debts and the purchase of commo.
dities to that which it recognizes as money,
is clearly proved by the operations of the
bank of Venice during several centuries:
throughout which time its deposits were
never payable, but only transferable on the
books of the bank, were at premium over
coins, because they were the standard Of
payment furnished by the state, and used
for all large transactions; indeed, this bank
money was that which establ shed the mon
ey of account, and in which the value of all
coins was expressed.
The American Cyclopedia says further
upon the subject of money:
Further on the testimony of Thomas Bar
ing, we are assured that it was found i'm
possible during the crises of 1897 in London
to raise any amount of money whatever on
a sum of 100000 of silver. During similar
crisis in Calcutta in 1864 twas equally i'm.
nossble to raise single rupee on 100000 OF
gold. The former was not not legal ten.
der above 40 shillings, while the latter wa
not so for any sum whatever.
Mr.. w. sneerlngly dlsmisses this idea
by saying:
This argument requires but a passing
glance to explode it. The money lender
does not care whether the collateral offered
rs security is legal tender or not 80 long a.
it has an inherent value, upon which he can
realize when thrown upon the market to pay
the debt for which it is securiDty. Farm
lands are not legal tender, yet the farmer
has no trouble to borrow money on them as
collateral.
And yet, If Mr.. W. possesses the finau-
cial wisdom his position would seem t.
demand, he knows that In times of panic
and disaater, not only is it impossible t.
borrow legal tender on commodity, but
that 1t is useless to try to sell outright In
order to raise money to pay debts. It i.
curious to note the fact that in 1864.
when not one dollar could be borrowed In
India upon 100000 in gold, that that
metal was at big premium in the United
States.
Rnk Mr. w fnPthar|aava.