Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1895-08-06
rHs MONEY QUESTION.

Benat0r John II. Jones Gives the Key to the
Financial situation--The Value of Doll
Lara. W
Political economy has been called
"the dismal science" The most dis.
NAL branch of 1t, if men are to endeavor
TO force conclusions to fit some pre-
conceived theory without reference to
principles, is that which relates to
money. The persistent determination
to make the whole science subordinate
to the absurdities of the gold standard
has operated like a Westinghouse
brake on the progress of the civilized
world
But there is one principle of none
tary science that, If held steadfastly in
view, will constitute an unerring guide
through what would otherwise be a
path of inextricable difficulty.
That principle is that, the value OF
the unit of money in any country Is de-
termined by the number of units in cir
culation. In other words, the value of
every dollar depends on the number OF
dollars out.
The greater the number of dollars
out, other things being equal, the less
will be the value of each dollar; the
fewer the number out, other things re-
manning the same, the greater the
value of each, and this without any re-
gard whatever to the material of which
the dollars are composed. This is the
key TO the financial situation in the
United States. Much more, IL Is the
key to the financial situation in every
land Without this key it is in vain
that the student attempts to unlock the
door leading to the arcanum of none
tary knowledge. Unlike many of the
locks made by man, the lock on that
door is unpickable The household of
science is one that thieves cannot break
through and steal He who would en-
ter must first find the key, With this
key in hand, the most secret recesses
may be explored with confidence. With
out it, the student travels in circle,
returning after much labor to the point
from which he started upon his jour.
ney Like one in maze, when most
confidently expecting to find his way
out, he but sees himself coming up
against impossible barriers
If money were unlimited in quantity,
1t would have no value whatever.
Nothing has value which is unlimited
in quantity. If instead of sand the
ocean beach were strewn with gold
dust, it would have no value whatever
as a commodity. Yet if that gold dust
were taken up and coined into pieces
of money, the number of such pieces
being limited, they would have value
precisely as gold pieces have value to-
he hay A lovv
Smith says, If gold should reach GER
tain degree of scarcity, the slightest
bit of it might become as valuable as
diamond.
So absolutely clear are the leading
writer's that the value of money unit is
in every case, other things being equal,
determined by the number of units out
and does not depend on the material
of which the money may be composed
that they have not the slightest hest
tation in asserting that the rule APP
plies even to uncovered paper money,
SO that the value of every dollar of
gold and silver in circulation is dimin-
ished or increased according as the
quantity of paper money is increased
or diminished, and, reciprocally as to
all of these, the increase in the num-
Der of dollars of either kind diminish
ing the value of each dollar of the 9TH
ers, while the decrease in the nu mi Der of
either increases the value of each of
the others, without the slightest re-
gard whatever to the material of whicl,
either of the dollars is composed.
If this be So if the value of the unit
of money depends not on the material
of the dollars, but on their quantity,
If this be so, inasmuch as silver has
been utilized as money since the dawn
of creation, why abandon it now, I'M
less senators are prepared to abandon
the automatic system altogether? II
we must by legislation compel a
change in the value of money, why !
iegislate 50 that i can change in one
direction only, and that the direction. /
which is always favorable to tho
classes that lend money and live idly
on their incomes, the direction most
injurious to society, most fatal to in.
dustry, most narcotizing to energyP
The idea that the value of treasury
note issued by a government such as
ours is not based on the number issued,
but on something behind the note, or
upon the credit of the government, de-
forms the whole idea of money. 1t is
chung to because people have been &C.
eustomed to look upon money as some
thing of ''intrinsic" value, and on that
theory they have been at a loss to &C
count for the fact that uncovered paper
dollars, when sufficiently restricted in
number, have precisely the same pur-
chasing power as gold money, guam
tity for quantity. There is no question
of credit about it. No man takes
piece OF money of any kind, whether
gold or silver or PAPER, as piece OF
credit. If it is not legal tender, it is
not, in the true and full sense, money
at all: if a full legal tender it needs