The times. [volume] (Richmond, Va.) 1890-1903, 1894-08-18
CRITIC OF THE TINES ANSWERED.

EI,cvhere we print in this mornings
Times a letter from a Mr.. n. NJ, Eustis,
at Fortress Monroe. reviewing our ar
ticle OF the 1ith-a mistaken idea that
more standard money is needed. There
II absolutely nothing in the letter OF
Mr.. Eustis that is worth answering, but
AS he is evidently sincere man. and as
his erroneous views are the views of
very large body OF the southern people,
we feel called upon to expose the fall
lacies Of them Mr.. Eustis says:
IF money is increased in a country. the
tendency is TO lessen its value, and
thus increase the price Of things: or. If
money is decreased In quantity 1t tends
to increase its value and lessen the price
of things" And, following his doctrine
20 its logical conclusion, he adds: THE
people Of the South and West who are
poor, want plenty Of money-want II
cheap, easy to get and want things dear;
dear cotton, dear rice, dear horses
h;.,.ses and lots" The condition OF things
IN the Confederate States during the war
would suit Mr.. Eustis exactly, and this
remark Is a sufficient answer TO all he
has said.
There can be no question that mis-
guided as Mr. Eustis Is, he has put his
finger exactly upon the raw spot when he
says: "If money Is Increased In n coun-
try the tendency is TO lessen its value.
and thus Increase the price of things"
III they are t6>be paid for in that money!
But Mr.. Eustls discoses his utter mis-
understanding of the case when he adds:
'Or. II money is decreased in quantity.
II tends TO increase its value and lessen"
the value OF things. for that is what he
means by lessen the price Of things"
Mr.. Eustis is perfectly right in saying
that money cheapens as its quantity in
creases. Everything becomes cheaper as
its quantity increases. and money is no
exception 10 the rule. One dollar an
swers for determining the exchangeable
values OF commodities, and all the money
that exists over and above that dollar
Is only useful to answer the calls of tim
I'd people. who are not satisfied with
paper promises TO pay dollars. When
sufficient number of dollars exists to
meet the demands of people of this sort.
all that are then added to the stock are
a superfiuity. and tend only 10 diminish
tHt ltbdiu III NiiNu lnOiitS IL itiu. anu
10 produce a case in which men become
Indifferent TO it, Why should any man
want such a state of affairs unless he
wants TO see a condition of things like
that which existed under the Confedera-
cy? We hardly think this side Of the case
worth pursuing.
But Mr.. Eustis' and the common error
IS In his second proposition, that If
money decreases values decrease
Money has nothing to do with the
values OF commodities II takes a days
labor, we will suppose. to dig Is $40
grains OF gold. which we certainly call
q dollar. out OF the earth. II takes the
same labor we will suppose. to raise a
bushel OF wheat. Therefore. we say a
bushel Of wheat Is worth dollar. The
word dollars" then, is only a conve-
nient way Of stating the terms upon
which given pile OF wheat Will exchange
with given pile of corn. Instead OF
saying a pile of wheat is worth one
hundred days labor we say il is worth
one hundred dollars. because one hundred
dollars and one hundred days labor are
the same. bushel Of corn is produced
We VIII say, by a half days labor Then
we say bushel Of corn is worth a half
dollar. or half days labor which is
the same thing Accordingly, when we
md there are one hundred bushels of
wheat In pile, we know IL is worth one
hundred days labor. or one hundred dol
lars. and wien we find that a pile Of
corn has two hundred bushels. we know
II Is worth one hundred days labor. or
one hundred dollars; and we have there
by determined the basis upon which the
Two are to be exchanged IL Is nlain
then, that the value OF the wheat is total.
~ independent OF the dollar IL denends
upon the labor necessary to produce /,
ana the dollar has nothing to do with
'he business, except 10 define and de-
bcripe the basis upon which II is 10 he
eAohahged Tor other commodities.
NOW moneys FIRST use. that of estah-
nshihs scale for exchanging commodities
sNr. Eus'is calls 1t establishing values,
having been subseved its only use after
that Is 70 work the actual EXCHANGES ~,
them. Va
n u az Northern, and he wants ons
\ hundred bushels Of wheat on his farm a,
sou'hefn' one hundred miles away. He
mas no two hundred bushels OF corn thers
70 exchange for the wheat. but he ma .
TWO hundred bushels OF corn at Northern
fas exchanges them for one hundred ao,.
lars, which he can carry IA his noch q,
goss ~ the cars to Southern. and there