The Canton times. (Canton, Miss.) 1893-1906, 1894-08-10
HONEST MONEY.
TEcsE WHO POSSESS TT ARE NEVER
CHEATED
The Measuring Character of Money,
and Not Its Volume, the True
Test of Its Value as Medium of
Exchange.

Sound money Is only another name
for honest money, inasmuch as it
never cheats any one having it. The
definition, then, of sound dollar, is
one that when melted or broken into
small bits will have avalue practically
equal to that it claimed as coin. APP
plying this rule, 1t is easy to see that
the gold dollar OF the United States
Is sound and honest dollar, and, in
trinsically, the silver dollar is both an
unsound and dishonest coin, mas.
much as its value when melted is but
fifty per cent. of its nominal legal
value. So long, however, as the Gov
eminent redeems the unsound silver
dollar in Che sound gold dollar, with
out discount, it invests the silver dol
lar with the attribute of soundness
which belongs to the gold dollar. This
is true also of the representative
money, otherwise called paper money,
and at this time we may say truth
fully that all the money in circulation
in the United States is sound. The
important thing is to keep it sound.
We hear much about the volume of
money in circulation. As matter of
| fact, the quantity of money in circu-
lation at any time is not of the slight
est consequence to anybody SO long as
it is all sound money, for, unless in
terfered with by law, there will be at
all times sufficient volume. The
evils of short supply or the calam-
lty of redundant supply of sound
money are readily overcome by the
rates of interest, which attract or re-
pei as they rise or fall, and the vol
ume OF trade is increased or dimin-
ished, the use of money increasing or
diminishing accordingly.
1t is favorite idea that large
amount of money advances the price of
all commodities. This is only true to
such triding degree that it is not
worthy of notice. If confined to one
Nation-speaking, of course, only of
sound money-it very soon adjusts it
self by distribution over the whole
world, and the advance in prices is
scarcely discernible. OF course, if
the volume of money over the world
was doubled, profits would adjust
themselves, and on level much high
er than that which they occupied be-
fore; the measuring character OF
money, therefore, is the all-important
thing; its volume will take care of it.
self. Money is rarely used in our
time as a medium of exchange, but in
every transaction it is a measure of
value. In earlier times money passed
between traders in settlement of every
transaction, while now money is used
in perhaps not over one trade out of
every twelve; and in these coin is not
used in one transaction out of a dozen;
so that coin does not appear as an
agent of exchange in more than l per
cent. of the business of the country.
But as it is the measure of value in
every instance, it is hundred times
more important that we have honest
(sound) money than that we under
take to control the volume by law. If
a buyer were uncertain as to whether
he would receive twenty-four, twenty
eight, or thlrty-six inches for yard,
business would be greatly restricted
at the establishment using the India
rubber yard-sticks. For the same
reason, silver, having such a chang
ing, uncertain value, would be to-day
a worse currency for the United States
than humber instrument having a
fixed value. Gold has now its own
way, and has earned the right to be,
in every enlightened land, the sole,
unlimited unit of value, and because
the commodity value of gold changes
very little.
'iBut," says one, "why not have two
units of valued" Why not? Simply
because under system of legal tender
values, where the debtor has the choice
and the creditor has no right to dis
criminate in the material in which pay
ment is made, the debtor will invaria-
bly, pay in the dollar made from the
cheapest material. If, therefore, our
minis were thrown open to tho free
unlimited coinage of legal-tender sill
yer, all our gold would disappear, and
business would go from a 100 to q
fifty per cent. basis, with silver the
exclusive measure Of value. If we
then coined copper at the rate of fifty
or forty cents per dollar, copper coin
would take the place of silver.
If sound money secures us st all
times proper supply of money, why
should we be disturbed about volume?
Nations that have the smallest volums
Of currency do the largest business.
md accumulate the most wealth, and
ire in every respect in the most pros
porous condition.
The duty of the hour is 70 stand
light and justice, and for the b
md good faith of the Nation
number OF honest men who o.