The Louisiana populist., 1895-08-02
THE MONEY QUESTION
VIEWS OF SENATOR J. p. JONES
OF NEVADA.
pends on the Number In Circulation.
The Material In the Dollar Has Moth
Ing to Do With 1t.


''the dismal science" The most dis
NAL branch of it, il men are to en-
deavor to force conclusions to fit some
preconceived theory without refer
'ence to principle, is that which re-
lates to money. The persistent de-
Termination to make the whole
science subordinate to the absurdities
of the gold standard has operated like
Westinghouse brake on the pro-
gress of the civilized world.
But there is one system of monetary
science that il held sted fastly in view
will constitute an unerring guide
through that which would otherwise
be a path of inextricable difficulty.
That principle is that the value of
the unit of money in any country is
determined by the number of units in
circulation. In other words, the val
ue 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
remaining the sameA the greater the
value of each. and this without any
regard whatever to the material of
which the dollars are composed. This
is the key to the financial situation in
the United States. Much more is the
key to the financial situation in every
land. Without this key it is in vain
that the student attempts to un-
lock the door leading to the
'arcanum of monetary knowl-
edge. Unlike many of the
locks made by man, the locks on this
door are unpickable. The house
hold of science is one that thieves
cannot break through and steal. He
key. With this key in hand, the
most secret recesses may be explored
with confidence. Without it the
student travels in circle, returning
after much, labor to the point from
which he started upon his journey.
Like one in a maze, when most con-
fidently expecting to find his way out
he sees himself coming up against
impossible barriers.
II money were unlimited in quanti-
ty 1t would have no value whatever.
Nothing has value that is unlimited
in quantity. II instead of sand the
ocean beach were strewn with gold
dust, it would have no value whatever
as 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-day. And, on the other hand, as
Adam Smith says, 'If gold should
reach a certain degree Of scarcity the
slightest bit OF it might become as
valuable as q diamond"
So absolutely clear are leading
writer's that the value OF the money
unit in every case, other things being
equal, is determined by the number of
units out, and does not depend upon
the material Of which the money may
be composed, that they have not the
slightest hesitation in asserting that
the rule applies even to uncovered
paper money, 80 that tho value of
every dollar of gold and silver in
circulation is diminished or increased
according as the quantity of paper
money Is increased or diminished,
and, reciprocally as to all OF these,
the increase as to the number Of dol
lars of either kind diminishes the
value of each other, while the de-
crease in the number of either in
creases the value of each of the others
without the slightest regard whatever
to the material Of which either of the
dollars is composed.
II this be 30, II the value of the unit
OF money depends not on the ma
terial of the dollars, but on their
quantity, what becomes Of the gold
stand ardp II this be so, inasmuch as
silver has been utilized as money
since the dawn of creation, why aban-
don it now, unless senators are pre-
pared to abandon the automatic sys-
tenn altogether? II we must by legis-
lation compel q change in the value Of
money, why legislate so that 1t can
change only in one direction. which is
always favorable to the classes that
lend money and live idly on their In
comes, the direction most injurious to
society. most fatal to industry, most
depressing to energy?
The idea that the value OF . treas
ury note issued by agovernment . such
as ours is not based on the number
issued but on something behind the
note, or upon the credit OF the gov
ernment, deforms the whole idea OF
money. 1t is clung to because peo-
pie have been accustomed to look
upon money as something of .intriu-
sic'' value, and on that theory they
have been At loss to account for the
fact that uncovered paper dollars.
when sufficiently restricted in num-
bers. have precisely the same pur-
chasing power as gold money. guam
tity for quantity. There is no ques-
tion of credit aboutit No man takes
Q riece OF money Of any Kind. whether
Il -