Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-04-26

the metals as money in parts OF the CIV
iliZed world. having been adopted by
nearly all the governments as money.
There are two kinds of credit money,
token and paper money; token money
is made OF some kind of metal which is
denied free coinage, just as silver IS
now, but both are credit money. The
token or credit money is limited in
its usefulness (as money! to the limits
of the government issuing it, but is
made interchangeable and redeemable
on demand in gold and silver, in order
to make il equal in exchange Gin prop
erty and labor value with the money
OF unlimited usefulness. AS long as
government will interchange and re-
deem on demand its credit money in
gold and silver the credit money will
continue TO be equal in exchange value
as money, as gold and silver, but when
a government fails TO do this, the gold
and silver money viii go to a premium
over the credit money, not because Of
any difference in the intrinsic value or
the material of which the money is
composed but because the credit mon
ey ceases to be equal in exchange value
as gold and silver money OF unlimited
usefulness. I am assuming for the the
sake of argument, that gold and silver
are on an equality in exchange value,
as prior to 1873 Let us have a prac-
tical Illustration OF the usefulness of
these different kinds Of mOney-money
Of unlimited and limited usefulness.
A exchanges $4,000 in United States
notes, being credit money, or money of
unlimited usefulness, but interchange
able and redeemable on demand in gold
and silver, money of unlimited useful
ness with b for property on Market
street, in the city of Wheeling. b eX-
changes the same $4,000 with c, for
property at any point within the limits
OF the Uuited States, for instance, Chi
cagO. e desires to exchange the same
$4,000 for property outside the limits
OF the Cuited States, for instance, IN
England. What does he dO2 eX-
changes at the Treasury, or elsewhere,
if more convenient. the $4,000 United
States notes for $4,000 of American
gold which gold he exchanges with
ID for property in England. Why does
/ ID accept the $4,000 in American gold
I dollars? Solely because he can pre-
sent the coin at the minis, under the
laws Of England, and have it coined in
TO the money of England, where il be-
comes a legal tender in the payment Of
debts and forms an exchange value in
the property and labor of England. d.
not desiring 10 pay the seignorage for
coming the gold, which mas on its face
the guarantee of the United States, as
TO it's weight and fneness; in fact,
/ there being no necessity for its re-
| coinage. ID exchanges the $4,000 OF
| American gold at the Bank of England,
| or elsewhere. if more convenient, for
I $4,000 i'm English credit, or paper
money. Interchangeable and redeema-
/ BILE on demand in English gold. ID eX-
| change the $4,000 of English credit, or
paper money with h for property in
! England. L desires TO exchange the
/ $4,000 of English credit money for
property in Germany. What does he
/ do? L exchanges the $4,000 English
credit money at the Bank OF England,
| or elsewhere III more convenient, for
I $4,000 in English gold. Z exchanges
/ the $4,000 of English gold with Y for
property i'm Germany. Why does + ac-
| cepC the English gold? Solely because
| he can present the English sold at the
minis. under the laws of Germany, and
have it coined into the money of Ger
many, the same as i'm England. + eX-
changes the $4,000 English gold, at
the Treasury Of Germany, or elsewhere
if more convenient, for $4,000 in the
/ credit. or paper money. of Germany,
| limited in usefulness to the German
! No
| credit money OF Germany with G. for
/ property in Germany G. desires to eX-
change the $4,000 credit money Of Ger
many for property in the United
States. What does he do? G. eX-
changes the $4,000 credit money of
Germany at the German treasury. or
elsewhere if more convenient for So
000 in German silver coin. and brings
/ the silver with him to the United
States. G. presents the German silver
coin at the mint, and has il coined into
the money of the United States.
! where il becomes a legal in the pay
ment of debts. The silver being bulky
he exchanges it for $4,000 United
States notes. and then G eX-
changes the $4,000 United States
notes with \ for the original
property on Market street. in
the city of Wheeling. thereby restor-
/ ing to a the original $4,000 United
States notes, ready to start on q SINH
lar round of exchange. and so on ad
fnitum. This illustration pre-supposes
that gold and silver both enjoy
free coinage as prior to 1873. This
| could not be done with silver now as
| between the nations, because silver
has been limited by law in its useful
ness, il could have been done prior TO
/ 1873. This seems fair Illustration of
| the usefulness of these two kinds of
/ money. but l would like for some gold
! mOnOmetallist. as he assumes to know
it an. to point out clearly wherein the
| intrinsic value of the material gold,
silver or paper, has entered into these
/ exchanges to the remotest degree. 1t
was the property exchanged the diff
/ feraut kinds of money being the instru-
/ ments, means or medium by which
/ the exchanges were accomplished.
/ an on an equality, in order to accom-
/ m0date the needs and desires of the
owners Of the property exchanged.
/ The intrinsic value of the material Of
/ which money is made has no place
whatever i'm the function, attribute,
or principle of money. it beins wholly
Irrelevant and a foreign element. The
| exchange value not the intrinsic
value of gold is maintained solely by
/ the laws. because the laws
| declare that when present
ed at the minis, % 2-10 grains OF
Of gold or on that basis, shall
be coined into a dollar, unlim-
! ited and as long as n gold dol