The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-08-10
MONEY.
To the Editor OF the Eagle.

! To the Editor OF the Eagle
In answer to my inquiry of recent
date, your correspondent, sc. P. NJ"
gives III your issue of the 9Th instant
Webster's definition of money" With
/ this, however, he seems himself not
quite satisfied, for he proceeds: II be-
lieve that the distinctive characteristic
of money is "a legal tender for debts. 81
That will do, for that is indeed the
/ fact
The truth then, is that money is a
quality, conveyed to any substance by
force of law. 1t is signiied by the
stamp of sovereign power upon such
substance, and is not inherent in the
substance itself. 1t is limited absolutely
to the boundaries of the nations by
which it is issued. When the substance
upon which it is stamped passes beyond
those limits its money quality ceases
and it is only the commercial value of
the substance which passes.
Therefore, gold is not money; silver is
not, copper Is not, nor is paper. Neither
of these things is in itself money, but
either OF them, and enc as well
as the other, may be used as the counter
or check which carries the stamp in
which lies the quality called money.
Which of these shall carry the stamp is
purely an incident and not at all essen
cial as conveying value. 1t is matter
CT convenience, of custom, or of convlc-
ton. The associated banks of New York
UP to the latest notice which | have
seen have issued some &35, 600, 600 of
clearing house certificates which are
among themselves money-or if E. 7. VI.
prefers flat money" This is for conve-
nience and by convention or agreement
among themselves. But other people
need not take them and as matter of
fact do not. If they were government
issue made legal tender all of our people
would have to accept them ana they
would be money.
Gold ami silver have been used for
money for many ages. a custom brought
down by the Jews from most ancient
times. 1t is SIMPLY matter of custom
and as such Is by many regarded with
superStItiOuS reverence. But the en-
poyment OF these metals as a medium
for money is open t. many most grave
objections, which takes the question into
the field of broadcast craftsmanship and
therefore beyond the limits of this dis
cussion. l think, however, we have
gone into its merits far enough to def
niteIy determine some thlngs-that
money is purely creature Of law, that
it is the fiat of sovereign power consti-
tuting some certain thing a legal ten
der for debt; that all money therefore is
fiat money, that each nation employs
this power purely for the benefit of its
own people and for none other and that
the money quality drops dead at the
limits of states that issue it. That this is
a most fortunate circumstance for the
people of the earth / have no doubt and
as | think for reasons of the highest
order, as may be plainly seen when those
reasons are pointed out.
4 money of the world" of which
people talk without thinking, instead of
being desirable thing would be, in my
opinion, the most subtle device for the
ensavement of men that could be in
vented.
Now the value of money as such is en-
tireiy apart from the value of the SUBJ
stance upon which it is impressed. Its
value is wholly according to volume i'll
active circulation and 1t is upon this
point. which is one in appearance but
not so IN fact, that all the Juggling of
standards is employed by which people
are robbed without being aware of it.
S. L. J.