Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-24

ence. All classes OF money may be a
medium OF exchange, but redemptlVe
or real money only is the measure OF
value. Credit money is a medium OF
exchange only. 1t does not measure
values. 10 referring TO the different
classes Of money ii is proper to say prl-
mary or redemptive money, ana IN
speaking generally OF other classes 10
call il credit money. There are TWO
kinds OF credit money. One is made oil
ps3er and includes all kinds OF govern
ment aud bank notes which are Issued
from time 10 time as authorized by law.
The other il token money. Token
money is made from some metal that
does not enjoy free coinage. Credit
money of all kin "lrculates
on account OF its being inter
changeable and redeemaO.~ -.1ectly or
Indirectly 10 real m0ney-in primary or
redemption money, property money.
Pauer and token money are promises OF
the government TO pay that much act
nal or real money. The money promised
is the primary or redemption money
When one has paper or credit money In
his possession the inference is that
there is an equal amount OF prl-
mary or redemption money 10 his
credit with the government or bank
Issuing It. In truth, IL is check to
bearer for money; therefore, 1t is called
credit money. Hence, 10 circulates on
the credit Of the government and the
faith OF the people that the government
will be able to redeem II on demand.
Prior 10 1873, under free coinage, gold
aud silver, at fixed ratio, was adopted
by nearly all the civilized govern
ments Of the world as primary or re-
demption money, or by a sufficient num-
Der OF them 10 maintain the eQua! com
mercial value OF the TWO metals In all
parts of the civilized world. This
was not done through any
international agreement but simp-
" by one government after
another from time immemorial fol-
lowing each others example. II Is i'm
possible for any one 10 obtain COM
prehensive knowledge OF our monetary
system, unless be understands thor
ouzhiy ana clearly the distinction be-
tween primary or real money aud credit
money. Actual money was too cum ber-
some TO handle In all business transac-
tiOns, and this gave rise TO issuing credit
money representing it, Like wheat 10
the elevators certificates are issued re-
presenting the wheat stored there,
certificates are bought and sold, and
every time Que is sold 10 is the same as
transferring the wheat itself Wheat is
at the bottom OF the certificates, but
the certificates do not increase the
number Of bushels in the elevators. One
can not carry farm around 10
his pocket, but he eau carry the
deed 10 il. Anyone having credit
money has a title 10 property Of that
commercial value. Ii Is not necessary
that the government should have an
equal amount OF actual money az all
times 10 the treasury 20 redeem the
credit money outstanding. Experience
has shown that when sufficient
amount of redemption money is in the
country the government can be relied
upon 70 obtain IL, but when the amount
OF credit money 10 the country exceeds
the redemDti money, then danger be-
comes imminent and a lack OF conf
dence is produced. II there are twelve
hundred million dollars OF redemption
money in the United States-tn the
treasury, In the banks, aud among the
people-then twelve hundred million
dollars OF credit money can be safely
used, and no more. The currency with
safety can only be Increased by inCTeas-
ing the redemption money, and for
every dollar added to the redemption
money one dollar Of credit money may
be safely added. Upon the contrary
the way % vitiate the currency is
10 increase the credit money be-
yond its normal amount, or take the
foundation from under il by reducing
the amount OF redemption money. The
decentralization OF silver destroyed one
half the primary or real money OF our
unit, and closing the mints to silver, IL
reduced the demand for silver and its
commercial value at once began 10 les
sen as compared with gold. When
previously silver aud gold were united
together as one mass OF primary money,
and all property had measured its value
in IL, now gold alone becomes the
measure OF value and silver becomes
credit money or token money. AS soon
as a new standard was adopted, CON-
posed of only One-half its former guam
tity, silver began to nuctuate. II then
had to be measured in the new stand
ard for measuring values, as it no long
or contained that fixed value
which free coinage had given
it. Il had changed its
position from redemption money
70 credit OF token money. The govern
ment has we'll been holding up the par
ity Of the silver already coined by re-
deeming 10 IN gold. Gold is now our
only redemption money, and our credit
money consists OF silver and all forms
of paper money, when before our re-
demptiOn money was composed OF both
silver and sOld, aud our credit money
consisted OF paper money and copper.
The law declares that all money shall
be maintained at par, and gold now be-
ing the most valuable Of all money,
therefore to maintain all money at par,
gold alone must do the work OF redemp-
ton money. All Of our money should
be at par. To round numbers we have
about 81, 600, 900, 600 OF all kinds OF
money, about One-third paper, One-third
silver and one-third gold. TwO-thirds
of our money Is credit money and one
third is redemption money. The only
remedy is TO remOnetize silver and there
by restore It's commercial value to an
equality with gold aud any subter-
fugs short OF free coinage
will have no appreciable
beneficial effect whatever. IL the gov
eminent were 70 issue more credit money
the tendency would be TO break down
our present weakened financial system
the sooner. The way to restore prices
to just and honest level is 10 remone-