The sea coast echo. [volume] (Bay Saint Louis, Miss.) 1892-current, 1895-08-03
JONES "QUANTiTY''
THEORY OF THE VALUE
or MONEY.

| nc SllNoIlIc anu LOpuilSO pa
pers are republishing as a cam
paign document a speech by Sem
ator John p. Jones, of Nevada,
in which that eminent Populist
expounds the we'll known theory
that the value of all money de-
pends on the quantity of money
in any country. Senator Jones
claims that the key which opens
the door of the financial situa-
tion is the principle that "the val
ue of every dollar depends on the
number of dollars out" and in-
sists that the value of money
does not in any case depend on
the value of the material of which
it is composed"
/ On their face these statements
are so positively untrue and absurd
that the proper way to treat them
is with ridicule. But coming as
they do from a United States
Senator who is believed by many
people to be an authority on the
money question, 1t is necessary
that their fallacies should be ex-
posed, especially as they serve as
q basis for the various cheap
money schemes nov being agita-
ted.
The delusion that it Is the guam
tity of money, no matter of what
kind, that fixes values, is an old
one, but one entirely withou ut
foundation. The value of money
depends on the cost of producing
the metals of which it is made,
real money being nothing else
IN IN fixed quantity of certain
II etals stamped by Government
with a certificate of its weight and
fineness. Paper currency, which
is a promise to pay so much of
these metals, may serve as money
in business transactions, but its
value in all cases depends upon
the metal in which it can be re-
deemed at the will of the holder.
Now it is evident that the value
of gold and silver, IN relation to
other commodities, does not de-
pend on the amount of money
which may happen to be coined
from those metals, bnt on their
cost of production. That this is
SO can be seen by the commercial
value of gold bullion, which is
practically the same in all parts
of the world as the same weights
of gold in coins. The Govern
ment's stamp adds nothing to it's
real value. The same proof is
furnished by the bullion value of
silver in Mexico, where in spite
of the Government of that coun-
try stamping zone dollar" on all
silver taken to its nnnts the real
value of the silver remains at
fifty-two cents. With these facts
before him it is only possible to
admire the Populist Senator's i'm
pudence in claiming that it is the
number of dollars in circulation
which fixes the value of the met
ais of which they are made.
IL there were any basis for Sem
ator Jones statement that "the
value of the money unit does not
depend on the material of which
the money is composed" it would
follow that if the money unit
were copper, lead, iron, or even
paper, its value would remain the
same as long as the number of
units was the same. In fact.
Senator Jones asserts that this is
the case, saying: "The rule an
plies to even uncovered paper
money" Against such stupidity
it Is impossible to argue. This is
the crowning folly of fiatism in
which free silver logic naturally
ends. But it at least furnishes n
convincing argument against free
lver. since it would be far eas-
ier for the Government to make
oil our currency uncovered pa
per money" thus doing away
with the necessity of even fifty
cents worth of metal in the dol
lar. Senator Jones adds himself
to the list of Populists who are
wo king for fat money in the
guIse OF the free silyerite. Even
ability to make eight-day speeches
In Congress will not in the future
convince anyone that he is really
IN favor OF sound money and an
honest dollar.