The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-03-03
THE INTRINSIC VALUE OF GOLD.

THE INTRINSIC VALUE OF GOLD.
What is the real value Of a gold
dollar. It's actual value is two-fold:
First its intrinsic. inherent value as
measured by its use as a commodity;
second, its representative value, esti-
mated by its purchasing power. In
trinsic value, as defined by Webster,
is the value which is mate and in
herent-value within itself. This in
ate value is further defined as some
thing Of utility. 1t applies to an art
icle, the use Of which sustaiDs life or
contributes to our physical or mental
happiness. \ bushel OF wheat has in
trinsic value because il Will sustain
mans life for Il given time. Five
pounds of wool has intrinsic worth be-
cause it will cloth man. An ounce
it may be used in the manufacture
of watch, or, if you please, some art
icle of jewelry which contributes TO
our mental enjoyment, but here its in
herent, intrinsic value ceases.
The desireableness, otherwise of the
use of gold-aS also of silver-as money
arises from the fact OF the well defined
limitation of its supply, taken together
with the cost Of its production. If gold
was as plentiful as iron it would be
worth as much more, only, than lead
and zinc as it is more desirable for
manufacturing articles of utility.
The value OF this metal when used
as money has an altogether different
meaning. In this capacity it has an
exchange value only. The real value
of a gold dollar is not inherent in the
coin, but in the article it buys The
coin cannot be worn, nor does it di-
rectly supply food or shelter for any
one. 1t is simply used as the medium
through which, in reality, the farmer
converts his grain into furniture and
other merehadise. The merchant
converts his goods or profits into table
supplies, not directly, but by first ex-
changing the goods for cash and then
the cash for supplies. The actual
value then Of n gold coin depends en-
tirely upon what it will buy.
This coin has no other than a repre-
sentative value, that must be deter
mined by some responsible power
some individual or government whose
l. o. L. is good beyond question. In
the use Of all metals for money its
design, weight and finenesS is fixed by
government. The figures In pounds
and shillings or dollars and cents as
they relate to given weights are purely
arbitrary. The law says that 251h
grains of standard gold shall be mold
ed into coin which we call a dollar
in the United States. This law gives
it that purchasing value, and while the
government stands the dollar is good.
The law which gives this arbitrary
purchasing value to gold dollar can
do the same for silver dollar. In
either case the design and weight is
determined by an act of legislation.
II this is so why so much controversy
over ratios? Congress has the same
right 10 say that 411a grains of silver
shall be dollar as 251a grains of gold,
and, as a matter of fact, the parity at
this ratio can be maintained as we'll
as different one of the two metals
are given the same showing in law
1t was the decentralization of silver
which cut off its principal natural func-
tions,-its use as a money metal and
rendered it simple commodity, that
caused the decline in price. Let con-
gress pass a law that pork shall not
be used for food and see how long the
price will be sustained.
1t is the law, the authority and the
good faith Of q government that gives
any coin or paper promise its exchange
value. The stamp on the coin is as
much the fat of government as any
other promise. 1t is only evidence of
good intention, and an ironclad bond
cannot be more. The cheap talk about
gold being the only money Of final re-
demption is all rot. 1t is building
upon an assumption pure and simple,
and nobody knows it better than those
who teach it The aim of this school
of financiers is 10 reduce the reay
money of the world TO the minimum.
treat it as Il commodity by buying it
up, then turn the key on it till all
values are wiped out VIII it be done: