Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-05-16
WHAT IS SOUND MONEY!

editor OF the Washington Blue and
Gray magazine, has published the fols
lowing article in the Washington Post:
Replying to your editorial inquiries
Of to-day under the caption, thine for
Plain Talk" beg to submit:
l. Sound money is that which rests
upon foundation strong and broad
enough TO warrant and inspire implicit
confidence among It's users.
Q. Honest money is that which is at
all times and continuously an equi-
table common denominator of values,
that will honestly act as standard for
deferred payments, and that may not
become the plaything Of spectators;
the unit Of which shall remain abso-
lutely changeless in its purchasing
power or command over commodities.
8. There can DO sound" money
which does not rest on a gold founda-
ton; furthermore, money that rests ON
q gold foundation is inevitably un-
sound. This is true, also, as to silver,
or combination of gold and silver;
with this difference, that the use of
two metals broadens the foundation,
and to that extent increases the sta
bility Of the monetary structure.
4. A dollar that will grow either
greater or less in general purchasing
power with the lapse OF time is dis
honest and unsound. No commodity"
dollar can be otherwise.
s. Gold Is not. never was, and can
never be measure Of values" Sci
ence truly asserts that "a measure
must be homogeneous with the thing
measured" How, then, can gold
measure" pig iron or corned beef?
6. Value Is a ratio or relation exist
ing between two powers or objects.
Being ratio 1t can be expressed only
by figures. which are immaterial and
deal with quantities; never by
substances which are material
and deal with qualities. Further,
values or ratios can be expressed.
but never measured" Again, value
being q ratio between two things 1t
can never be possessed by any one
thing; hence, the theory of intrinsic
or inherent value has now been dis
carded by practically all economists.
z. 1t is clear, therefore, that the So
called standard of value" is not only
an absurdity but nonentity, whether
it be assumed to be of gold or silver,
or both.
6 What we call a gold standard" Is
merely an arbitrary arrangement
whereby we attempt to conform the
exchange value of our dollar OF account
ii. e., its purchasing power-to the
ratio of exchange currently existing
between the worlds gold bullion and
the general commodity mass, which
ratio is constantly shifting, and with
it our dollar of account. By this un.
natural complication we not only do
not secure for ourselves that first
grand requisite Of a sound and honest
currency--a changelesS monetary unit
but we actually make monetary sta
bility impossible. Take Prof. Jevon's
figures for proof: Between 1889 and
1909 the relative value OF gold fell 40
per cent from 1909 to 1s49 it rose las
per cent; from 1s4O to 1874 it again fell
20 per cent, and since 1874 it has APP
preciated not less than IS per cent
Could anything be more absurd than to
speak of a standard" subject to such
fuctuations9 A rubber tape-line would
be equally reliable.
9. "Free silver" of the Stewardship
ley variety would simply mean silver
recommendation until such time as the
immutable laws Of supply and demand
should restore the two metals to a
natural parity Of Is to |. Bimetallism
means, in fact, alternate eras of mono
metallisn, or the continuous use of
whichever metal may remain the
cheaper Practically, free silver would
add to the soundness of our present in
fiated gold currency by broadening its
base, and to this extent would restore
confidence, raise prices and thereby
stimulate trade.
TO- Secretary Morton says in your
interview: That money is the sound
est for which throughout the COM
MERGE of the civilized world there is
the most universal demand" The
honorable gentleman here falls into
the common error of confounding the
monetary function with its physical
existence, just as the idol worshiper
of the east associates wooden image
with the occult power it is thought to
represent. The secretary ignores the
fact that money is national, not an
international, creation. When he says
money" he undou btedly means
gold" and in grains Commodity not
in dollars. If so, he is quite right.
The grain of gold is the current inter-
national medium of exchange, but not
as money; it may remain so forever,
and will unless some international
money system shall be hereafter
adopted. Gold is, perhaps, of all
commodities, the best adapted to the
settlement of international balances;
but gold is not money any more than
baled hay, except by the incident of
its use for coinage, and in this respect
paper is its equal. Gold can never be
a measure" or standard" ofvalues,
nor can it be money" except within
the jurisdiction indicated by the stamp
it bears and even then it is the stamp
and not the bullion that endows it
with the monetary function.
IL. Finally, that money is the most
sound and honest (D which most per-