Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-10-11
The Cresset on Finance.


fed that the Cresset nor anyone else
could answer our argument by way of
confutation, yet we are really sorry
that the time of our contemporary is
so extremely limited. We had hoped i,
after it had begun the discussion that it
would not bring its argument at once,
but it appears TO have done SO. The
only thing the Cresset says in answer
to our argument is that our position is
abnormal and that we are mistaken,
also giving half column of definitions
to the word money. 1t reprints our
rendering of Webster's definition and
goes on to give what it terms is the
correct one as given by that authority,
at the same time saying that our die
tionary is out of date. 1t is hard to con-
lecture where the Cresset gets its Web
ster definition of money, but we gave
correct synopsis of Noah Webster's
definition last week, as given by the
unabridged dictionary. Nothing what
ever is given in the definition to show
that shells or beads ever were money.
But that is merely point on the fact
that nothing is money until it receives
the government stamp, and we clearly
explained that last week.
The Cresset says absolutely nothing,
because it has nothing to say. If such
is the case, its course is quite a wise
one. Its definition of money amounts
to nothing more than to fill space, our
article of two weeks ago satisfactorily
covering the point. But the Cresset
devotes almost its entire editorial page
to the money question and in reading it
we encounter some astonishing state
ments. For instance:
No important nation has free coinage of sill
YER, and the United States would not be i'm
portant very long If she should adopt it.
Neither has 1.-THE debasement of silver among
leading nations anything to do with the fall Of
silver, but the fact that the worlds product
during the past twenty years has increased
from SO ,267, 900 to 1876 900 600 ounces per annum
tells the story.
In other words the Cresset means to
say that it is owing to an increased
production that silver has fallen in val
ne, and not its decentralization by lead
ing nations. Such position is one of
the most untenable we have seen on
this subject. 1t IS about the only effort
al answering free silver argument we
have seen attempted by the Cresset,
and is absolutely fallacious in theory as
we'll as IN fact. For two hundred years
preceding the demonstration of silver
in this country the ratio between the
metals averaged 15t to l, and now, i'll
one tenth of that time, the ratio has
gone up to % to l. Is there sudden
overprOductiOn Of silver dating instant
ly with the year 1873? 1t is all wind,
not line of truth in such statements
as the Cresset makes. Besides this,
there is 1927 ,O1S, 1863 in gold coin and
s., $40, ST. ,346 in silver coin in the world.
Only comparatively small difference
in the amounts, yet the Cresset is brazen
enough to assert that too much silver
has made it cheaper. If the above
shows too much silver there must GER
tainly also be too much gold, and why
has not that deprecated also? Simply
because it has not been demonetized by
legislation as silver has, and from no
other reason on earth. And again, in
regard to the Cresset's figures on the
worlds increase in production Of silver.
we wish to say that in 1874 the amount
of gold produced in the world was
$50, $50 900 while in 1892 it amounted to
$3.50, S17 900 and is still increasing.
Why doesn't it depreciate with IN
creased production, as silver does? For
no other reason than it's elevation by
legal DEGREES, making it the greatest
example of fiat money the world has
ever seen. And yet the Cresset pre-.
| tends to believe there is no such thing
as fiat money. The intrinsic qualities
Of gold are naturally less than those of
iron, and every particle of its exalted
price over the small intrinsic qualities
it possesses is nothing but the fat of
nations; pure, simple fiat.
A great argument of the Cresset's has
been that silver circulates at par be-
cause 1t is redeemable in gold, and it
evidently imagineS US very ignorant be-
cause we cannot agree with it on this
subject. We have quoted in previous
articles some ofits asseverations on this
point. Redeemable in gold, indeed.
What is gold redeemable in, that 50. %
worth of it circulates as ten dollar
piece when stamped by this govern
ment? According to the Cresset there
might as well be five cents worth of
gold in the eagle as $9.2S8. What is
that 7l.2 cents if it is not fiat, absolute
and pure? Perhaps the Cresset will
say that gold circulates at par because
it is redeemable in silver. There is
nothing sound about the theory of re-
demption in gold keeping other curren-
cy in ejaculation at par.
The inordInate stress laid by the
Cresset upon disproving the fiat theory
amounts to almost monomania. 1t
says there is no such thing as fat
money, when the fact is there could
not possibly be any money were it not
for the fiat Of nations. If the world
was to begin using Rluminum as mon
ey it would have to be done by fiat or
decree of the people. SO it is with any
money. The Cresset's idea of credit
value is allrightin domestic commerce,
aud demonstrates the very first of our
principles.
The credit ideas of the Cresset's do
not conform to their other theories,
and if they are made to do so, as is at
\tempted by that paper. strange anon
alyNpresents itself. Only SOB .000, 900 of
god inNAbe treasury with witch to re
deem $500 sOaQ geo of paper and over
500 ,0Oo,veo of ~s-Sgel money, yet the
Cresset says the wh5Te.- amount ciTcu,