The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-22
CURRENCY CATECHISM
QUESTIONS AND ANSWERS THAT
KNOCK OUT FINANCIAL aUACKs.
"Cofn's- Numerous FalIncies Exposed
and Many Questions Answered
which His Lectures Ignored.


r. W. Knott, In Louisville Post.
A tired newspaper man sought amuse-
ment in an idle hour, and began work of
fiction pure and simple. AS he progressed
he decided to change it's purpose and make
ii satire on current political discussion.
Then it occurred to him to enliven his text
with diagrams, to stir in few statistics, to
add q foot note or two. to tack on an APP
pendix, and to send it out as a popular
treatise on political economy, which he did,
and he called ii COINS Financial School"
1T is one of the most amusing Of recent
publications, but the most amusing thing
about IL is that some persons are inclined
to take the book seriously.
The writer quotes a statute and clips it off
in the middle; he jumbles his figures like
prestidigateur. and then tells the spectators
they will find the answer in their hats. He
makes his comparison of value by dia-
grams of weight; he asks If you divide the
wheat crop by given number of ounces of
gold how many apples will England buy of
America. He insists that though the gold
product of the world in 1895 is as large as
the gold and silver product of the world in
1873 yet the refusal any longer to coin the
silver dollar accounts for the decline in
prices twenty years after the crime of 1873.
He asks If it is not plain that we cannot
pay the debts of the world in gold when the
debts are twenty times great as the gold.
Altogether his conundrums are as marvel
ously constructed as his statutes, and they
are fearfully and wonderfully made. But
as he answers his conundrums himself his
kindergartners are satisfied and they have
Coin as great financial authority.
Unfortunately his auditors or readers are
sincere, however much the author may be
given to chalatanry and humbug, and he
finds himself a king for day as Bellamy
did.
1t is only another Illustration of the neces-
sity of teaching the rudiments of political
knowledge in our public schools. Coin has
not the first conception of money, of indus
try, or of commerce. There is not in this
book the least indication this teacher
has ever studied either the history of COM
merce or the first principles of political
economy. The book is so lacking in the first
nest hesitate to refer to 1t at all, and when
they do do not know where to begin.
The following catechism is designed to
present clearly the first principles in the
currency question; to show the relation of
money to wealth; Of coin to money; and to
from its first stage of barter 1t is believed
that II one has distinctly in mind few his
founded on these facts, one cannot be inn
posed on by financial charlatans or eco
nomic quacks.
"a few additions have been made for the
sake of clearness.-Ed.}
Q.-What is the object of mans industry?
A.-The necessaries, conveniences and
amusements of life.
Q.-.Can man by his own industry produce
.A.-By his own industry he satisfies a por-
ton of his desires and exchanges portion
of his product for the product of the labor
Q.-What is the basis of this exchange?
labor is the real measure Of the ex-
changeabIe value of all commodities.
Q.-Is one mans labor the equal of an
A.-The value of mems labor varies. There
may be more value produced in one hour s
hard work than in two hours easy business,
more value in production in an hours appli-
years to learn than in weeks industry in
all ordinary occupation.
Q.-By what means is one mans labor
compared with the labor of another?
A.-By comparison of what each pro-
serves as common denomination.
Q.-For the purpose of comparison, what
'o M.mGold and afs si fisns'any usea
Q.-What qualities make these metals de-
A.-They are the least perishable, most
portable easily hidden, easily divided; when
pure, always of the same quality and of all
value, though gold is forty times less bulky
and clumsy and heavy to handle than silver
per dollars value.
Q.-How long have these metals been used
as common measures of value?
A.-From the earliest periods Of history.
Q.-HIOw is their value determined.
weighed Ephron the sifver'-and BY weight
to-day in China.
Q.-Upon what does their value depend?
A.-The quantity of labor which any par
mana or fhe m Of otner goods or
1t will exchange for depends upon the fertil-
ity or barrenness of the mines which happen
changes are made.-Adam Smith.
Q.-What has been done to obviate the ne
cessity Of weighing and assaying as Abra-
A.-First. commercial guilds, silversmiths.
and others began to stfsnp on the metals Al
and quality. After that the sovereigns, and
then the governments of the nations most
civilized began to mint or coin the metals
Q.-What is meant by coming metal?
A-Putting mark upon it which Is a
guarantee that it contains given quantity
of specified fineness.
Q.-Does coinage add to the value of either
Alt adds nothing to it's value. 1t simply
makes it more convenient to and thus
Q.-Then gold and silver are mere COM
modities after coinage as before?
A.-The same as before.
Q.-Can you give any illustration to sus-
tain this assertion?
A.-When the coinage is free the coins are
only of the value of the bullion each con-
tains- Their legal tender quality adds moth
Ing to their INTRINSIC g., worth Melt up gold
lar in any free-coinage country it is still
worth SO cents. sane as the silver dollar
was
Q.-What is the origin of the word IDOL
lar?"
Ain 1915 in Joachim's valley, Bohemia.
Count Schlick began to coin silver pieces of
an ounce weight. They were uniform in
merous. Traders in want of some interna-
tional standard, fixed by common honesty
as measure of value for other coins, grad
ually adopted these coins and they were in
good repute all over Europe, and under the
name of Schlicken thalers. Joachim 8
thalers, became synonyms for honest coins
of full weight and value. After time the
name was abbreviated to Enthusiastically
s'valleyer'-thence to Low German dahler
Swedish dalers, Italian tollero. and finally
dollar. 1t was no government stamp, but
the mere trade mark of an honest man.
Q.-Why, then, does society go to the ex-
pense of establishing minis and forming in
tricate codes of laws relating to coinage if
no additional value Is given to the metals?
Att is done simply for the purpose of
Facilitating exchange. Barter is the first
crude form of commerce. but il is costly,
subject to delay, to loss in the search for
customers. and prevents that complete di-
vision of labor which is essential to the
highest production.
Q.-How does a common measure of value
lead to a better division of labor?
A.-By enlarging the markets. When the
market is narrow no one is encouraged to
devote himself to the production of one arti-
Gle, for he may have most of his product on
his hands or be able to exchange it only for
something he does not need. By enlarging
his market he has more possible and actual
customers. They may have. nothing he