Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1895-07-24
HONEST MONEY.
THOSE WHO POSSESS IT ARE NEVER
CHEATED.
The Measuring Character Of Money
and Not Its Volume, the True
Test of It's Value as a Medium Oh
Exchange.

The Measuring Character Va 'Aoness
and Not Its Volume, the True
Test of It's Value as a Medium OF
Exchange.
Sound money is only another name
for honest money, inasmuch as 1t
never cheats ans n having It,. Inc
definition, then, of a sound dollar, Is
one that when melted OF broken into
small bits will have avalue practically
equal to that it claimed as coin. Ap-
piying this rule, 1t is easy to see that
the gold dollar of the United States
Is a sound and honest dollar, and, IN
trinsically, the silver dollar is both an
unsound and a dishonest coin, mas
much as its value when melted is but
fifty per cent. of its nominal legal
value. So long, however, as the Gov
eminent redeems the unsound silver
dollar in the sound gold dollar, with
out discount, it invests the silver dol
lar with the attribute of soundness
which belongs to the gold dollar. This
is true also of the representative
money, otherwise called paper money,
and at this time we may say truth
fully that all the money in circulation
in the United States is sound. The
important thing is to keep it sound.
We hear much about the volume OF
money in circulation. AS a matter OF
fact, the quantity of money in circu-
lation at any time is not of the slight
est consequence to anybody so long as
it is all sound money, for, unless in
terfered with by law, there will be at
all times a sufficient volume. The
evils of a short supply or the calam-
ity of a redundant supply of sound
money are readily overcome by the
rates of interest, which attract or re-
pel as they rise or fall, and the vol
ume Of trade is increased or dimin-
ished, the use OF money increasing or
diminishing accordingly.
1t is a favorite dea that a large
amount of money advances the price of
all commodities. This is only true to
such a triAing degree that it is not
worthy of notice. If confined to one
Nation-speaking, of course, only OF
sound money-it very soon adjusts it
self by distribution ver the whole
world, and the advance in prices IS
scarcely discernible. OF course, If
the volume of money I've the world
was doubled, profits would adjust
themselves, and on a level much high
err than that which they occupied be-
fore; the measuring character OF
money, therefore, is the all-important
thing its volume will take care of it
self. Money is rarely used in our
time as a medium of exchange, but in
every transaction it is a measure OF
value. In earlier times money passed
between tradersin settlement OF every
transaction, while now money is used
in perhaps not over n trade out OF
every twelve ; and in these coin is not
used in one transaction out of a dozen;
so that coin does not appear as an
agent OF exchange in more than l per
cent. of the business of the country.
But MS il is the measure of value in
every instance, it is a hundred times
more important that we have honest
(sound) money than that we under
take to control the volume by law. If
a buyer were uncertain as to whether
he would receive twenty-four, twenty
eight, or thirty-six inches for a yard,
business would be greatly restricted
at the establishment using the India
yard-sticks. For the same
reason, silver, having such a chang
ing, uncertain value, would be to-day
a worse currency for the United States
than a humber instrument having a
value. Gold has now its own
way, and has earned the right to be,
in every enlightened land, the sole,
unlimited unit of value, and because
the commodity value of gold changes
very little.
"But," says one, "why not have two
of value?" Why notP Simply
because under a system of legal tender
where the debtor has the choice
and the creditor has no right to dis
criminate in the material in which pay
is made, the debtor will ~invaria-
bly, pay in the dollar made from the
cheapest material. If, therefore, u
minis were thrown open to tho free
coinage Of legal-tender sill
yer, all our gold would disappear, and
business would go from a 100 to a
fifty per cent. basis, with silver as the
exclusive measure Of value. II we
then coined copper at the rate of fifty
or forty cents per dollar, copper coin
would take the place of silver.
If sound money secures us at all
times a proper supply of money, why
should we be disturbed about volume?
Nations that have the smallest volume
Of currency do the largest business. |
and accumulate the most wealth, and
are in every respect in the most pros
porous condition.
The duty of the hour il to stand by
and justice, and for the honor
and good faith of the Nation. The
number of honest men who are ignor-
ant, and of the ~rascals, has been vastly
over-estimated, and the fight for hon
est money will not be a long or hard
one. If the free coinage men we're
compelled to organize a party Of their
own, their numbers would prove ridi-
culously small--only tolerable, per-
haps, by comparison with Coxey's
army.-Hon. Michael D. Hsrter, of
Ohio.