The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1892-04-02
WHAT IS Al HONEST SOLAR.
A Leading Financial Paper Discards
the Intri1aie Value" Theory.

the Intrisaie value" Theory.
The Financief Of New y ork, one
of the leading financial papers OF
the country, in an article showing
the difference between the intrinsic
and the money or fiat OF
gold and silver coins, says:
The two precious metals have
an intrinsic value and j 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 commodity
for use in the arts-for making
jewelry, for gliding, and to al the
other uses to which gold is put ex-
elusive Of coinage. 1t 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 diff
ference between its intrinsic value.
or value for use in the arts, and its
exchange value as money.
"This difference 10 so material,
thatif gold were Observation-Disclosures
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 necessary toclear under
standing of the fundamental ques-
ton of coinage is clear apprehen-
sion OF this difference between the
intrinsic value of the coinage metal
and its exchange value when coined
as metal. 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 intrinsic
value-the value it has for use in
the arts apart from use as medium
of exchange. Demonetize the ounce
of gold and its value falls five, ten,
fifteen, twenty-five per cent, no mat
ter what. The important matter to
be remembered is, that it will fall
in direct ratio to the extent Of the
demonstration, and if the demone-
tization 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 silver dollar.
1.-The intrinsic value Of the wheat
given for either gold or silver
dollar is greater than the intrinsic
value of the metal in either. The
wheat is not given for the metal. II
is given for the coin as a means Of
exchange for other things of equal
intrinsic value with the wheat. De-
monetize the gold dollar which
buys bushel Of wheat, reduce it to
the intrinsic of the metal value 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 decorating
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 inyariable and to
be relied on at all times. It is the
first principle of coinage, and those
who remember it and apply it will
not be lost in the bewildering con-
fusion 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 fifty cent dollar on
that account. No matter what the
dollar is, the exchange value it has
is given it by the coinage stamp on
it, and this exchange value is not
its intrinsic value by any means. II
is always much greater than the
intrinsic value"
If this is true, is there any differ
ence in precious metal" dollars
and paper dollars9 In answer to
this question the financier admits
that there is not any difference, and
only holds to the theory that the
use of the precious metals gives q
natural means Of controlling 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 ex-
pressed by the United States sus
prsme court thus: "The constitu-
ton does not ordain what metals
may be coined or that the legal
value shall correspond with the IN
trinsic. Coin passes not as intrinsic
value but as a legal value.
With these authorities before us
it is very easy to determine what isy
an honest do1lar?" All dollars is-.
sued BY government authority that
IN Ao.~<|orV NJ