The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1895-07-26
SOUND DEFINITIONS.

MIR. George u. Merrick, president OF
the timetable league of Colorado. I'M
der date of June 2sth has written an
open letter to President Cleveland,
from which we clip the following:
MIR. President: In the many COM
munications to the people which bear
your signature there is noticeable a
constant reiteration of a set of phrases
which need authoritative and precise
definitions. In your reply to the Chi
cago invitation you used the terms
sound money, cheap money de
based currency 'degenerated cur
rency,' safe currency sound cur
rency,' safe and sound currency safe
and prudent financial IDEAS whole
some financial doctrine. But nowhere
do you give, or attempt to give, clear,
unmistakable definition to any or all
of these words and phrases, which may
mean SO much or mean so little. The
time has come for accurate definitions
If by sound money you mean gold
coin only, you, as an honest man, deal
ing with the paramount question of
the day, and of the century, should
nave the courage to say what you
mban. And while you are defining
sound money do not forget to explain
the meaning of cheap money and to
aid you in these much-needed defini-
tions let me quote some aXioms in rela-
tions to money.
1--WE affirm that money is simply
function or power of exchange for
all commodities, all labor, and all
debts. And this function is the legal
tender quality conferred by the omuip-
otent power of the law upon the sub
stances of which money is made.
"'All money is, therefore, artificial.
1t is convenient expedient of civili-
cation. 1t is the equivalent of all
values, the solvent of all Its. of uni
versal desire, and of commanding util-
ity. The quantity of it's circulating
volume fixes the general level of all
prices, subject to the law of supply
and demand.
''' AS the law fixes the price of gold
at the unvarying value of S20.67 per
ounce, and therefore it is not COM
modify, SO should it fix the price of sill
yer at Sl.29 per ounce, SO that it may
be commodity no longer. and, like
gold, never vary in value.
1--we affirm that neither the cost of
production nor the commercial price or
intrinsic quality of the materials of
which money is made constitute any
faculty of money whatever.
The value of money is not in it's
substance, but in the legal force with
which it's substance is armed by posi-
tive law
The foregoing are taken from
'Steck's AXioms of Finance and are
the teachings of all the philosophers
from the days of Aristotle to the pres
emit Cernuschi says: Money can never
diminish in price, because money is
itself the material of which price is
composed
''All money is safe money, is honest
money, is sound money. If it is not
I'll these it is not sound money. A
currency of a limited legal tender is
not money-does not perform the mon
ey function. no matter of what mate
rial it is made, and 1 fully concur in
the often expressed idea that curren-
cy should be, SO far as possible, safe,
sound not 'debased' or 'degenerated.'
Here, again, it becomes of prime i'm
portance that clear and unmistaka BILE
definitions shall be given. and 1 sug-
gest that the following will be under
stood and appreciated by the great
body of the American people:
"A currency is that thing or things
which. in the form of semblance of
money, circulates, because of the con-
fidence of the people that it will be ac-
copied of the holder thereof, in pay
ment of debts or purchases; but which
the creditor may at any time, or place,
without notice, refuse to receive in
payment of a contract stated in terms
of money. National bank notes are a
form of currency.
1T We're infinitely wiser that all
coin and paper. intended to circulate
as money, should be money; that is,
full legal tender. 1t is by this method
alone that a currency, safe, sound and
relia BILE at all times, under all condi-
tions. can be secured; a currency which
cannot be discredited or deprecated in
the hands of the people. provided al
ways that the law by which it is ere
ated is just and wise, and shall be
faithfully executed, not abrogated in
whole or in part at the option of the
executive department. as has been
done with the coinage laws during
your administration.
You remind the farmer of this coun-
try that he must buy as we'll as sell,
and that he (the farmer) must neces-
sarily be left far behind in the race for
their enjoyment That is the benefits
arising from increasing prices of all
commodities by reason of a gradually
expanding volume of metallic money.
And something over one-half of the
population of the United States are in
some way directly connected with
the cultivation of the soil; and as it is
to that source that we look for all
prosperity, no prudent statesman, no
economist. no honest lawmaker, will
for a moment fail to recognize the
fact that, unless the farmers Of the
country receive remunerative prices
for their products, no other industry
in the nation can hope to prosper.
Now. as to the effect of rising prices
upon the farmer! The wheat crop of
1894 did not give to the producer so
cents bushel on the farm. But sup
pose the farmer realized so cents u
bushel. A crop of 1000 bushels gave
him in some form of currency, $500. OF
that $500, we will say that his family
expenses for the year were $3.50. leav-
ing $3.50 for payment of taxes, insur-
auce, interest and maintenance of
property.
s.SnDDOSe the general rance If nrices