Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-02-26

1t Is Not the rarln. l,ut Unvise Monetary
Legfilhtion.
New MART1NsvILLE, W. VA,
February p, 1894.

| 70tks Editor Of ths Register:
SIR:-It is remarkable the numerous
and varying opinions expressed In re-
gard to the cause and remedy for the
present financial and industrial trouble.
! Some endeavor to get as far away from
the truth as possible and ascribe OPP
probrious epithets to those who have
made study of the intricacies and In
| sist that the vicious monetary legisla'
/ ton of the past twenty years is
one OF the principal causes, If not
the principal cause. Necessity sooner
or later, will force the people 10 realize
this truth, and the proverbial American
honesty, when the question is properly
understood, will right this wrong In
| some way. The present trouble cannot
| truthfully be ascribed to any particular
local cause, for they exist in all coun-
tries the same, high and low protective,
as we'll as free trade countrie; there
| fore the troubles are universal, conse-
| ouentlY there must be universal cause.
What is IL? 1t is the absolute contrac-
ton Of the quantity OF the worlds money
base, or money of final payment, from
fraction less than $1,000, 100000 to
fraction less than $4,000, 0O0,0 900, by
reason of the decentralization OF silver,
which has gradually produced CORE
spending low level of general prices.
and wishout cheapening the cost OF
production. There is no money
in truth except the money base, Tor, IN
effect, irredeemable money or money
OF final payment, all other forms being
promises TO paw, or credit money, and
merely enlarges the efficiency Of the
rapidity or facility with which the
money base performs its Legitimate
work. Under present conditions all
forms Of money in the United States,
except gold, are promises TO pay or
credit money and must be interchange
able and redeemable ia gold on demand,
in order to keep them al
parity with gold. Money is that
which passes freely from hand to
hand throughout the community In
final discharge OF debts and full pay
ment. for commodities, being accepted
without reference to the character or
credit oil the person who offers it, and
without the intention OF the person who
receives it 10 consume il or enjoy II or
apply it TO any other use than IN turn
to tender it 70 others in discharge OF
debts or payment of commodities.
Money is the common medium by which
exchanges are rendered possible, the
common measure by which the COM
parative value of these exchanges are
estimated, and the standard by
which future obligations are de-
termined. The value OF a thing Is
what it will exchange for; the value OF
money is what money will exchange
for, or its purchasing power. II prices
are low, money will buy much Of other
things, and is OF high value; II prices
are high, it will buy little OF other
things, and is of low value. The value
of money is inverselV as general prices,
falling as they rise and rising as they
fall. In the general theory Of value 1t
appears that the proximate condition
which determines it is the question be-
tween supply and demand, and this Is
clearly the case with money. The value
of money varies inversely as its guam
tity multiplied by its efficiency. when
the coinage OF State is artl-
fcialiy limited, the value OF its money
plainly depends on supply ana
demand. Either the quantity or the
efficiency of money must be altered TO
change its value. This is, Of course, a
result OF its position as the circulating
medium" Under the law Of supply and
demand, if the quantity Of the money
base or its efficiency is increased or de-
creased. the value OF each unit Thereon
will be increased or decreased accord
inglv, as compared with commodities IN
property and labor. This rule, with
yery slight modification or explanation
in certain directions, is as true as that
the sun rises and sets. The lntrin-
sic value of gold and silver Is
their commercial value, ASIDE
from their money value. or
instance, il all the governments OF the
world were 10 demonetize both gold ana
silver, absolutely destroy them as money
and throw the metals upon the market,
then what the metals would exchange
for in the market, for commercial pur-
poses, would be their intrinsic value.
| The money value is the fiat or edlct OF
the government. The money value can
be given TO or taken from these metals
az the pleasure OF the governments,
| therefore, il cannot be an intrinsic
value, as Webster defines intrinsic 10
be "iuherent, internal, true, real
! In calculating this question properly,
! the money value must not be coniouhu-
! ed with the commercial or Intrinsic
| value of the metals, because the lntrln-
! sic value has nothing whatever 10 90
with determining the money value or
purchasing power Of gold and silver, as
conf pared with commodities, or, at least,
/ so long as the intrinsic value does not
exceed the money value. The regulator
| that determines the money value OF
money is the quantity and efficiency OF
money, and not the intrinsic value OF
| the metals. The existing disparity or
| inequality in the value OF gold and sill
YER bullion relatively TO each other)
] was caused solely by the continuance OF
| the moaey demand for gold and the dis
continuance OF the money demand for
silver. the effect OF which was 70 de-
! stroy silver as a money base, or money
/ Of final payment, aud reduce II 10 sec
/ ond place, or partially, and l might say
substantially 70 credit money. The re-
| moval of silver, in this way, as money
base causes each unit OF gold to rise Ia
| value or purchasing power as compared
with silver, property and labor. Gold
! gradually rising in this way, dating
from the characterization Of silver has
/ been one OF the principal causes of the
/ gradual reduction in general prices.
/ tits true many commodities have fallen,
owing partly 10 o reduction IN the cost
OF production, but it will be seen
that many commodities have fal-
| len. where the cost Of production
has not been lessened. Indisputable
evidence that the demand for gold is
/ Increasing, therefore rising in value, ia