The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1894-09-26
Max s It SO BY Its Stamp Upon It
The Value of Money in Every
Country
Is Determined BY the Amount Exist
ing. As the Population Increases
Money Ought to Increase.
A CHANCE FOR AN ARGUMENT.

PADuCAH, KY, Sept. Is, 1894 -EDIToR
NEws.-As you seem to be very fair and
generous in permitting an expression Of
opinion by your readers through the
columns OF your paper, l ask the indulg-
ence of a small space in which to say a
few words on money. l believe the
money question to be the most import
ant, the most vital question engaging the
attention of the people of the United
States to-day. l believe with Hume, the
historian, that a shrinking volume of
money, falling prices and misery and
destitution are inseparable companions
What is money? Money is a legal tend
er for the payment OF debts created by
the act of a government OF competent
jurisdiction. Money is medium of ex-
change, but a medium of exchange need
not necessarily be money. Money is a
measure OF all values for it is in terms OF
money that the value Of all the products
of labor and all property is measured.
Money is certificate issued by govern
ment and certifes that the holder is en-
titled to its face value in any Of the pro-
ducts of labor anywhere for sale within
the jurisdiction of such government
Money is the creation of sovereignty.
All money on whatever material stamp
ed is fiat money. There is not now in
existence on earth, never was, nor can
there be dollar or any other unit OF
money that is not fiat money. Gold is
not money; silver is not money. Moth
ing is money till it receives the stamp of
government by lawful authority.
Money has no intrinsic value. The be-
lief that money must possess intrinsic
value as held by many honest Democrats
and Republicans is a bighting supersti-
ton instilled into the minds of the
masses of mankind by the designing and
,scheming few who profit by having the
people believe it.
Money has legal or UNCONVENTIONAL
value expressed ON its face in units.
The legal value of money is fixed and
arbitrary, and measured in ITSELF it new
er changes. But the real value OF money,
its purchasing power, varies inversely as
the number of units OF money in circula-
ton in any country increases or dimin-
ishes. AS the number OF units OF money
in circulation increases, the purchasing
power of the unit de creases, and as the
number of units of money or volume of
currency decreases, it purchasing power
increases.
John Stuart Mill, the great English |
economist, says, "The value OF money,
other things being the same, varies in
versely as its quantity; every increase Of
quantity lowering the value and every |
diminution raising it IN ratio exactly |
equivalent"
Ricards, than whom, perhaps, no
greater economist lived in his day says,
"The value OF money in every country is |
determined by the amount existing.
That commodities would rise or fall in |
price, in proportion to the increase or
diminution OF money assume as a
fact that is incontrovertible." The |
above, as TO the value of money is called |
the quantitive law of money. This
quantitive law of money is as true as the |
laws OF nature or mathematics and as un-
changeable. If the volume OF money be
doubled in any country, prices will be
doubled. II the volume OF money be in
creased one-fourth, prices will rise one
fourth. Again, il the volume OF currency
be contracted one half, prices will fall
one-half. II the volume of currency be
contracted one-fourth, prices will fall
one-fourth. Under governmental
policy OF contracting the volume OF cur
reney the debtor is compelled to pay
more than he agreed to pay and the
creditor is given more than he agreed to
receive. Under shrinking volume of
money or a policy OF contraction all
debtors and taxpayers are compelled to
make greater sacrifice, to part with a
greater quantity of their labor products
10 obtain the m )ney with which TO dis
charge their debts and obligations than
before the Inauguration OF such policy
OF contraction. II the volume of money
is contracted 20 per cent it will require
OF the farmer 20 per cent. more wheat,
25 per cent more tobacco or 20 per cent.
more OF whatever the farmer has to sell
TO secure the money with which to dis
charge his debts and obligations. Where
100 bushels Of wheat or corn, or 100
pounds OF tobacco would have been
sufficient before to secure the money,
il will now require l25 bushels OF wheat
or corn or 1926 pounds OF tobacco TO OBJ
tain the necessary sum.