The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-05-09
MONEY is A COMMODITY,
Not Medium-SOme Clear Views
Well Put,

144 KING PLACE, CHICAGO, ILL.,, May
L-Edtor Representative: Il am voice
crying in the wilderness" 1t is in no
pretentious spirit that I write to call atten-
ton to the very common use of terms which
do not apply to the real world in Which we
live. They have been used for century
as the foundation stones of political econo-
my; therefore, it is no reflection upon the
intelligence of Populists if l call attention
to them
There is one term used which does
conform to actual facts, and, if we ex-
anime we will find that other terms do not
conform to facts in this manner. That one
term is Supply and Demand" Various
causes affect the supply and various
causes affect the demand, but in the end
supply and demand determine the value
and the value is simply the market price of
everything. In common words over
flowing supply means low value, and a
scarce supply, means high value. That is
the general rule From this rule we can
say, with moral certainty, even when value
does not clearly appear to have gone up
with scarce supply, it ought to be lower
than it is but for the artificial scarcity.
Thus, although wheat might naturally fall
in value, compared with gold, because wheat
has been produced in greatly increased
quantities, still we say, with moral Ger
tainty, that it would not fall so low and
gold would not rise so high relatively but
argument applies to live stock and other
products. But the farmer has to obtain
what he wants by the exchange of his
products for money. in the ultimate analy-
sis. And gold being the only ultimate money,
as gold goes up, he has to give more and
more of his products for what he wants
and for rent and taxes and interest.
Now we come to the erroneous terms
Money is called "a medium of exchange =
mat Is one OF the most common and the
most stupid of the terms used by the gold
press for a century and it ought not to be
repeated by the people.
1t is hard to shout on the seashore in q
raging gale, but ] keep at it.
Money is not a medium of exchange
or circulating medium or medium
to facilitate transactions. Money is not a
medium of any sort or kind OF all
things on earth, always and everywhere
money is the most exchanged thing, in the
ultimate analysis i@7
To exchange crops, for gold, is just as
much barter, as to exchange crops for
cattle or for iron or for skins and furs
and ivory.
change. And to exchange crops directly
for money is just much barter as, to
exchange crops for any of those other
things
1t is only when crops are not exchanged
directly, for money by two men meeting on
change comes in. Adam Smith thought
he made a great discovery. He discovered
himself to be an ass
POstoffice banks would be "mediums'' for
exchanging crops for money and money for
crops, but neither the crops nor the money
would be mediums, they would be the
all important things exchanged.
In plain barter we see that money and
crops are things exchanged, manifestly be-
fore our very eyes, and our eyes see no
medium. But in commerce our eyes see
the mediums called banks, and clearing
'houses, and bills of exchange, and the
mail, and the railroads, and our eyes see
that these mediums are never exchanged
Or passed from hand to hand. Then, our
thoughts see, in the ultimate analysis, that
through all the various mediums" ntri-
cate ramfications, and vast volume of
commerce, money one hand, and COM
modities the other hand, are the things
exchanged.
Our modern commerce could not be car
ried on if We had to barter money for COM
modities. 1t is because money and COM
modities are exchanged through the various
mediums that the enormous commerce is
possible. The goods which come into and
go out from a country are not EXCHANGED
for one another They are exchanged for
money both ways, by independent individ-
uals.
Then another error. They say gold is
exported to pay. balance of trade" That
is not true. There is no such thing as
balance of trade" The balance of trade
is never ascertained
The balance of trade could not be ascer-
tanned. Gold is exported, for a fact, solely
and entirely for the individual profit of Mr.
t-per-shent-gold- shipper-shylock For
absolutely nothing else
There are not many foos-whatcver may
be said about rogues-ramong bankers, gold
shippers, merchants. etc. There. is not one
fool among them who iwOuld pay a balance
of trade for the nation amounting to 5
cents Then they say that gold is demanded
by foreign nations. - Come! 1 challenge
"aH-fired' liars to show their mail with
such demand, and then we can talk more
to them Yours sincerely,
MICHAEL CORCORAN.