The times. [volume] (Richmond, Va.) 1890-1903, 1895-09-20

check on a credit which the commission
merchant had In bank. and the farmer
| endorsed that check over TO his credi-
tor in payment OF what he owed him.
and that creditor passed the credit over
| to some one else to whom he owed mon
ov. and so the credit which the commits
sion INGREDIENT had had. paid debt after
debt. end cxtingushed many times its
own amount in liabilities. Thousands ane
thousands of other farmers have done
exactly the same thing. and almost all
OF them pay their debts by these trans
fcrs of credits without the use of money
at all Exactly the same thing is true OF
the merchants, OF the manufacturers OF
all sorts Of the lawyers, Of the doctors,
and OF all classes Of society. The huge
sum Of debts TO which Judge Hughes re-
fcrs is made up Of the obligations OF all
these people. and they all pay their debts
by transfers of credits. and not by the
delivery Of money. Money cuts little or
no figure in the business at all. The use
of money in 1t is TO establish stand
ard by which the value Of commodities
is measured. credits. arc then given on
the books of the banks to the amount
OF the value Of the commodities thus
determined. the commodities being sub
stanually placed as collateral security
for the credits. and these credits are
then transferred in payment Of the debts.
The all-important thing. then, 1t ought to
be easy to sec. IS. that the standard Of
value by which we determine the worth
Of the thing upon which the credit is
granted. shall be fixed and inviolable, so
that when a man takes an assignment
Of a thousand dollars. he shall know ox-
actly what he IS entitled TO receive If
he were to go TO bark and actually ask
for the dollars instead Of assigning the
credit over to some one else. Money
then. plays little or no part in business,
either by cffecting exchanges Of com
r.oditics. or FOR paying debts. Its fInc-
ton is TO furnish the STANDARD of values
for commodities by which we can pass
them from one person to another lin
subs;ance), by passing the credits grant
cd at bank upon them.
Judge HUGHES also shows b. his letter
that he is a victim Of the delusion OF
the Populists that the legal-tender quail
~ OF money is what makes it useful. We
have repeatedly exposed the fallacy OF
this idea. bat IT has such universal hold
upon Populstic minds that we feel jusu-
fed in 'xposir Ii again
Money must have the function Of legal
tender to settle controversies between
people who differ about their rights. \
says b owes him $500 while claims that
il is only 500. Now. If Il tenders 10 a the
800 that he admits he owes him. and II
should afterwards turn out in the suit
that takes place between them that 500
was all Il owed him. interest will have
stopped at the moment of the tender
and 4 Will have 10 pay the costs of the
suit and stand all losses that may have
grown out Of the transaction.
b will have been right all the time
and A will have been wrong all the time.
1t is absolutely necessary TO the peace
and order If society that the money of
the country shall be ordained and estab-
Hshed by law as legal tender for debt
in order that people who differ about
their rights and obligations may have
the means of bringing their disputes to
an authoritative settlement But this
legal-tender quality has no place what
ever in the part which money plays in
the affairs of business. The money or
the credit with which a man discharges
an obligation must be what the creditor
IS perfectly willing to receive If there
are 10 be further transactions between
the parties.
If a debtor forces a creditor by law
to receive in payment of the debt what
that creditor is unwilling to receive. mat
creditor will never have another transac-
ton with that debtor. You may pay off
all existing debts with paper money made
legal tender by act Of Congress and
worth only fifty cents on the dollar. but
you will end all business if you do. Men
will allow no other person TO owe them
money if they are to be treated in that
way The legal-tcnder quality in money.
therefore, is absolutely worthless to it
so far as its ability to successfully per-
form the part of money is concerned
If money performs that part ii must
be because men are as willing to receive
IL as other men are to pay il.