Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-12-24
THE MONEY PROBLEM.
Another Letter Devoted 90 this tnpor-
tans and Interesting subj OF.
New MARTINsvILLE, w. VA
Oscem0 Der %, 1894.


7otAs EGior ne Rsoistf-:
The ~. s Statistical Abstract
1s92," gives the commercial rates OF
silver, as compared with gold, from
1857 10 1898. La 1857 the commercial
ratio was l494 20 /, and 1873 was 1872
10 /, and during that lOhg period be-
tween those two dates the lowest ratio
al any period was l4.14 to 1 aad the
highest was 1926 TO 1, q variation OF
about DO MS. This difference Is a.
counted for By the difference In the
ratios fixed by the different govern
ments and the cost OK exchange. But
in 1878, when the governments with
drew the unlimited mining demand
for silver by demOnetiZing IT, the con-
mercial ratio or value OF gold and silver
began 70 separate. Cold began gradu-
ally to rise, as compared with silver,
until now the commercial ratio is about
! 70 80 or more. Ia the 200 years there
was, under free coinage, a varia-
tion OF about , points DOLLY; but 10 2l
years, since decentralization, there is
variation OF 10 or II points, and during
the latter period the production OF sill
YER has been growing less, as compared
with gold. This shows conclusively
how thoroughly and completely that
free coinage, or unlimited demand Tor
both metals st the ratios established,
maintained the commercial equality OF
the metals. In fact, they were in effect
one metal, and the difference 10 produc-
tiOn Of either metal could not aud did
not have the least influence. The law
OF free coinage maintained the equality
of the two metals. When free coinage
was taken away from silver and left on
gold a divergence was natural. Prior
20 1873, under free coinage, the ratio
in France was 15l{ % l, while with Us
il was 16 20 /. THIS difference in the
ratio was the only element of diScOrd,
causing only slight fluctuations To
tbs comparative value OF the two
metals whea measured In each other,
this depending on the direction 10
which the bullion was moving. As soon
as the silver was demOnetiZed, the de-
rangement 10 the value Of the metals aud
all property began. Prior 20 demonetiza-
sion gold and silver constituted the re-
demption money, Or money or hnal pay
ment or money base OF the world, and
there was about the same quantity or
each. There is now 10 the world, &C
cording 10 the statistics about SAIL
SIS, 900 in gold, and about So, 939, SIS, 600
in silver. Destroying the parity OF the
two metals by the Decentralization or
silver, and the attempt 20 maintain our
credit in gold, has contracted the re-
demptiOn money OF the world from
IS, G51. 423, 600 TO 50, III, S45, 600, or a
little less than one-haf the original
quantity. Many do not seem TO think
that silver has been demOnetlzed, be-
cause the silver already coined con-
tinues to circulate as before. We
have already seen how the com
mercial value Of the two metals
we're separated, and by the same
laws that produced this result, silver
was made redeemabe Ia gold and
ceased to be redemption money, or
money OF final payment Silver now
circulates the same as paper money,
both redeemabie In gold. 10 has been
reduced TO subsidiary coin or token
money. To be accurate nothing is
money but redemption money; all other
forms of so-called money are credit
money and must be paid o redemption
money In order 70 make a. good. Silver
IS money now, Ia the same sense as
\ nickel and G )er are money, but they
Norm no pM of redemption money.
EeA, a now treated, has no place 10
E6rrency that could not be filed
paper or other metals. What is
Meant by demonstration is that silver
Dhas been destroyed as primary money,
redemption money, money Of final pay
ment or money base. We are now on a
single gold standard, and the process by
which we arrived 1t this point, the gold
monometalists call making money
sound.
The science OF money Is an exact
science, the same as mathematics.
The primary value Of sll property is its
exchange value. III there was no money,
one kind Of property would be eX-
changed for another. A sort OF eX-
change value would be placed on all
kinds OF property. A bushel Of pota-
toes would buy so many pounds OF
coffee, and so on. This Is what is meant
by the exchange value Of property.
Money Is the medium of exchange 10
facilitate the exchange OF property. II
we had TO depend exclusively on eX-
changing property for property, we
could possibly manage TO subsist, but
re would not have our present civilizl-
Non, or anything TO compare with it,
Commerce would virtually cease, and
civilization would retrograde II the
absence Of money would produce such
results, then the question assumes vast
proportions. AS stagnation, eontrac-
sion and depression 20 commerce be-
ynnd Communication would result from
she absence OF money, tlen q part Of
these evils can DO produced By having
money insufficient in either quantity or
quality. In the beginning il
was thought best to select something to
be used as money which had intrinsic
hVslue, or value within itself. Then
ASs~sWhO exchanged property for it,
had AQmething which was itself valu-
able. stamping 10 as money and making
il legal tender In payment OF all debts,
g then became money and possessed two
separate and distinct qualities. 1t had
value within itself. il the government
failed that stamped the money, it would
still have an exchange value. When
stamped as money, it became a common
medium Of exchange and took the place
Of barter and trade. The government
stamp was a certificate OF It's quantity
aud quality. Experience and wisdom
taught the people to adopt silver and
sold as money. There were several
sound reasons why these two metals
were finally selected as money, not
necessary 20 name here. One was the
money Of the rich, the other
OF the people. II was thought
the gold and silver would be