The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-12-22
The Question OF Money

1t is plain that money is the basis OF
business, but what is the basis of money?
The financiers of the world who are in
power say it is gold. But business de-
mands silver money also, as there is not
enough gold for the commercial transac-
tons of the world. We are told by men
that money is the medium of exchange;
it represents the value of commodities to
be exchanged and by means of which COM
merce is carried on. This is theory. In
pi actioe the position of money is contra
dictory; it was first coined by individuals,
and its basis was then personal property
and is so today.
When government deprives the people
of the privilege of making money to rep
resent their property what does 1t give IN
exchange TO the people? Does 1t insure to
business any substantial guarantee, or
pledge any security that business shall at
all times be provided with medium OF
exchange? No. And it is a long way
from miner; through speculi,tor and mid
dleman, to the United States mint, and
again, through another set of middlemen,
to the people. Money is still claimed to
be representative of real values.
The first property rights were vested in
flocks and herds; trading was the first bus
mess engaged in. 1t became inconvenient
to drive about the animals, giving horses
for sheep or cattle for goats. 1t was then
that people LOOK DlIb Oh ulotdl hLu IudSc a
picture of an animal to stand in place OF
the animal as pledge of redemption.
Two leading ideas or facts are herein
shown. First, the representative charac
ter of money, it's artificial value; second,
the honor of the one issuing it and usingit'
The redemption OF coin which has al.
ways been an underlying sentiment and
the use of money with no redemptiye fea-
ture. have largely caused the present state
of affairs.
There has grown to be tacit under
standing that gold embodies in itself all
that is requisite in money. Gold as a COM
modi y has intrinsic value but should not
have such value as money, and to consider
it the only commercial article that has
that value is to dismember society and
bankrupt our country. The commerce of
the world is the exchange of commodities
| through the medium of coin or its equiva-
| lent, which equivalent is credit. We have
then thrae elements: Value, money. credit.
| AS money is one step removed from real
| values, credit is second step. Money is
! of less value than its antec edents, so credit
| is of less value than money, is subject to
discount, and it's use must be paid for.
| The exaltation of gold to represent a
combination of the three factors in the
medium Of exchange-namely, real values,
money and credit, is the anomaly of the
present business condition. The present
| standard is saying to the people that about
one-sixteenth of an ounce of gold stamped,
| is the only basis OF credit and upon this
basis all our money and values rest.
| Credit of government is a promise to
! pay: our gold moues is then the credit or
! promise of the government TO pay, coupled
| with the immediate discharge OF the obli-
! CATION. The credit and its redemption are
| united; this transaction, this discharge OF
obligation is too rapid. There should be
! in every credit system the element of time
here wholly wanting. The thing of value,
| gold. is in itself valuable, and made to
represent itself, and when gold money is
Withdrawn from circulation, business is
chaos. and the credit of the government is
locked UP in safe deposit vaults. Gold
money is at once a pledge, and the flu fill
| IN ,nt of that pledge; originally when
| money came back for redemption. there
remained values in the possession of the
! issuer.
Our government makes the attempt
by a reserve fund of not less than $780,
OOO, 200 in gold. Has the government no
| ownership in anything of value but q mimi
mum sum of gold money!
If it has no basis, no possessions but gold
money for currency, 1t has outlived its
usefulness as a base of money supply for
the people. 1t would be safer for them to
buy their own gold and silver from the
miners and put their own stamp on the
| metal; this as representative OF the va!u-
able property of the individual, would be
an honest pledge. Metal money is after
all a remnant of barbarism. Our advanced
/ civilization requires simpler method OF
exchange, based upon the real values OF
our country, and the question for the
American people to ask is this: what are
real values? Until it is answered there
will be no safe adjustment of monetary
affairs.
Our laws denominate rs real property
the lands, real estate and movable goods
as personal property; yet our medium OF
exchange is based upon tie most fieetine
gold money, aud this property is limited