The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1894-05-16
True Character and Uses of
Money.


Simply stated, money is an arbitrari-
ly established measure, fixed by the
laws of each sovereign community.
wherewith its people legally determine
the relative valuation of all valuable
commodities ; hence, a means through
which exchanges Of property are readily
and equitably accomplished. Money is
not value: it merely represents
value, or. rather, exchange valuation.
1t is a mistake to confouod a gold
dollar with the gold contained in that
dollar !; the coin is money, but the gold
is not. The monetary attribute is
derived solely from the sovereign
authority of the Government, and is an
intangible attribute, which cannot be
inherent in any substance, and can be
conferred only by sovereign authority,
which authority is valid only within its
own jurisdiction.
Gold and silver are commodities
exactly as are wheat, corn and potatoes.
Only when, coined do they become
money, and then ouly within the juris-
diction in which such coinage for use as
money has been duly legallzed. We
may, roughly speaking, exchange 486
gold dollars for 100 English sovereigns,
because the number of grains Of gold
in the two are equal. and not because the
coins are ''money." The exchange is
one of gold as a commodity. and not a
transaction in money.
Coins and paper notes. made legal
tender by a sovereign government con-
stitute its currency" and have no
legal existence outside of its juris-
dictioo. The purchasing power, Goac-
curately termed %value) Of money, being
arbitrarily determined by Law, there is
no such thing as International currency
or money.
Gold is not money, but a gold dollar
is. Our silver dollar aud u paper
dollar are equal in efficiency to a gold
dollar, because in each case they are
money and not commodities.
The true function of money is to
represent in a convenient condensed,
and convertible form. that portion OF
the accumulated possessions of a peo-
pie which it is desirable to interchange
by the process Of trade and commerce.
You are accustomed to regard money as
an accumulation of portable value,
while III fact the value should
reside in the commodity for which
we may exchange the money.
The most common error existing among
our masses is blind belief in the
fallacious tradition that money must
contain io its own substance a coon
modify value equal to it face, or be
dishonest" or wildcat money. As
a matter Of fact. one of the attributes
Of good money ought to be the utter
worthlessness of the substance or fabric
of which it is composed.
This cry of ..honest dollar" ha:
turned the heads Of the unthinklng o.
patriotic America. TIE people fear
national financial %dishonor, and The
interested ones are playing upon then
patriotism and their ignorance. w
are told tina. gold is the money of thu
world - but the world has no money
Money is a continuance Of a nation, no
of the world. We are gravely assured
that our foreign commercial relations
would be utterly ruined if we sboult
not adhere to this s'universar' STANDARD
of "natural" money. Another pro
digious fallacy. Nations settle thel
accounts 10 merchandise their balances
10 bullion (Which also is merchandise
and not in money.-From Facts ant
Fallacies 10 Finance Blue and Gray
for May.