Marshall County independent. (Plymouth, Marshall County, Ind.) 1894-1895, 1895-05-17
Intrinsic Values.

looking TO the adjustment 0fditferences,
for the establishment of new forms
affecting the circulating medium. much
is said about intrinsic values. The con-
clusiOn is jumped at, or rather it Is ac-
cepted as Il self-eyident fact, that gold
has certain intrinsic value and that
silver has also Il certain intrinsic value.
These, however. vary relatively ac-
cording to certain laws of trade known
as supply and demand.
But what is it that gives to gold an
inherent. Interchangeable. and, therefore.
an intrinsic value? Chiefly the fact
that it has been adopted by the COM
mercial world, we may say, directly in
most eases, and indirectly in other
cases, as the standard by which the
value of interchangeable commodities
is measured. Therefore, a certain num-
Der of grains of fine gold is coined,
stamped by the government, called
dollar. and made Il legal tender. This
is what gives TO gold an intrinsic-that
is to say. an inherent and unchange-
able-value. But, if all the nations
should abolish gold as money metal.
what then would be its real value?
The supply would exceed the demand
for its use in the arts, and it would fall
in price in consequence. Where, them
would its intrinsic. or inherent, or I'M
changeable value be found? 1t would
be ascertained precisely as is the value
Of iron, coal or lumber ascertained;
namely. from the uses to which it would
be put.
1t is unquestiOnably true that iron
and coal and copper and lumber are
Immensely more important rs the basis
of manufacture than what are called
the precious metals. Abolish the for
mer, and there will be no ships to sail
the ocean, no railroads to span the con-
tinent. no modern houses in which to
live, no modern streets on which to
walk or drive; civilization would be
retarded. and chaos would largely pre-
vail These commodities, therefore,
possess Il real value; they are essential
10 everything that goes to make up Il
world of trade, of commerce and of
progress.
Inherently considered. therefore, how
comparatively insignificant are the So
called precious metals compared with
the greater metals: with the coal taken
ont of the mines, and with the stone
out of the mines, and with the stone
that lies in the hills. The former
might be dispensed with, while the
latter could not be. But gold and sill
YER were chosen by government as
Il oto Il
as such, and it is these stamps that
give to them an intrinsic value. Other
wise gold and silver would be worth
less except for the purposes of orna-
mentS. A watch case constructed of
iron would be as useful as n watch
case constructed of gold or silver. 1t
is not the case that keep time, but the
works, and these are constructed of
brass and steel
Gold and silver. therefore, are useful
to a very limited extent, only except
rs they are coined by governments into
money. For this reason the word in
trinsic, as applied to the metals, is mis-
leading.
Buc the main point in this direction
is that the government stamp gives
value to the metals, and yet we are
told that the same government can not
through stamp make out of anything
else than gold and silver an honest dol
lar: yet more than two-thirds of the
circulating medium of the world is
composed of paper. AT the same time
paper, in itself, has little intrinsic
value, and in this it differs only in de-
gree from gold or silver. Paper repre-
sents credit, and SO per cent. Of the
business of all commercial nations is
transacted on credit, while the OK
changes are based ON the recognized
metallic currency, and this is the Great
ure of the government. An eminent
speaker, discussing this money cues
ton, took the ground that there was
no honest dollar except gold. Silver
was not equal to gold because of its
lower bullion value. He said. if Won
would melt Il gold dollar in the Dot.
the bullion would still be worth dol
lar, while if you melted Il silver dollar
in the pot the bullion would be worth
only 80 cents, as measured by gold.
But suppose the government should
cease to recognize gold, and the dollars
should be melted into bullion. where
would that bullion find market ex-
cept in the arts? Would it not. there
fore, fall as silver has fallen, and
would it not cease to pay a profit to
those who mine it? 1t is mainly valu-
able now because of the uses to which
it is put and because OF the fictitious
value impaired to it through the minis
by governments. In this line of reas-
oning different conclusions are sure to
be reached from those which writer's
attach to the value of the precious
metals. There is gold enough now i'm
existence to supply the arts for one or
TWO hundred years; silver also; while
there is not iron, coal, copper or tim
Der enough in readiness to supply the
markets for six months. Fictitious
values are given to gold and silver as
given also to paper by the governments
Every dollar, therefore. issued by a