Martinsburg independent. [volume] (Martinsburg, W. Va.) 1875-1900, 1895-01-12
The Nature Of Monsy.
(ooMMUNIcATED.)

uic iOImS requiring CUusbsbHt CuduSc
of commodities. Individualities are
dependent on their fellow men for
everything except the particular pro-
Duct of their own labor. One class
furnishes food, another the material
for clothing, another builds houses,
ETC., etc., and each class is suscepti-
BILE of innumerable subdivisions.
When we came to individuals, each
one has to give his labor, or the pro-
duct of his labor, or the product of
the labor of others, for that which
he needs or desires. This exchange
is effected through the agency Of
money. 1t is necessary, therefore
that money should possess a legal
representative value. 1t must pos
sess representative value to be the
equivalent of the commodity or la
Dor for which it is exchanged, and
its representative value must be es.
tablished by law. Otherwise its &C.
ceptance by creditor would be OPP
tional, as the value and power of
law.
Duties which devolve upon the
Legislature or Governing Power of
nation; The adoption Of money
as medium of exchange was un-
doubtedly one of the first steps Of
civilization in simple state of So
ciety. As in newly settled countries
now, the exchange of commodities
took place by means of barter. But
the necessity of a medium of ex-
change becoming apparent, different
representative of value were adopt
ed, according to the wants, tastes
and possessions of the communities
or nations concerned. Thus the
Spartans adopted iron; the ancient
Romans bars Of copper and cattle !;
the North American Indians beads !;
and the East Indians and Africans
shells. At an early age gold and sill
yer came to be regarded as the most
suitable materials for the purposes
Of money for many reasons. Among
Others on account of their possessing
large value in small and compact
form. Coins or tokens made of these
metals next appeared, but originally
possessed no other power than that
which they derived from the intrin-
sic value Of the materials which they
were made, which was determined by
weight, as is the case now. When
used in commerce between two ma
tions, governments next assumed
the right to make and regulate the
value Of money, in consequence of
the necessity of establishing a COM
mon representative of value to be
used in the payment of debts and
taxes. As civilization progressed and
wealth increased, requiring a more
rapid and extensive exchange of
commodities 1t became necessary
that the medium Of exchange should
be increased in the same proportion.
It was impossible to obtain gold and
silver in sufficient quantities to an
swer the purposes of money, and it
would seemingly hayx been but tho
part of wisdom to have adopted new
systems of money! History gives
but one or two instances where any
thing of the kind was attempted.
The scarcity of money led to the use
of credit. which now plays such an
important part in the commerce of
the world. Bills Of exchange were
invented, it is believed, by the Jews
of Lombardy, in the It'll century. In
the 18th, 14th and 18th centuries the
greater part of the commerce of Eu-
rope was accomplished at periodical
markets or fairs with their accounts
or balances made out by transferring
debts and credits from one to anoth-
err. Settlement was made with the use
of no more money than was required
to settle balances. In many parts
of Europe these fairs are still held,
although they have lost mostoftheir
former importance. Various other
devices to increase the circu lating
medium of exchange have been re.
sorted to by different nations, such
as reducing the amount of bullion in
their coins from time to time until
now they contain but a fraction of
the value which their names origi-
nally called for, in the days of Will
liam, The Conqueror. The pound"
actually was pound weight OF sill
yer and shilling was the twenti-
eth part of a pound. But at the
present time a pound of silver is
coined into sixty-six shillings. The
legal money of England has been
regulated or altered in this way by
the English Government 1874 times.
The specie basis system of Great
Britain, which was adopted nearly
200 years ago, owes its origin to the
same cause.-the necessity of increas-
ing the medium of exchange. 1t has
enabled the aristocratIc and manag-
ed classes to acquire enormous
wealth, and has reduced the indus
trial classes to a condition of abject
poverty. In the U. S. it has had the
same tendency. The only people of
former times who seemed to fully
understand the nature money were
the Venetians. In the 18th century
they adopted system of money
based on the wealth andcredit ofthe
people, which lasted over 600 years.
Inscriptions on the books of bank
established by the State, which we're
divisible to any desired amount and
transferable on the books of the bank
from one to another formed the chief
medium of exchange during the per-
iod named. These Inscriptions of
credit were not redeemable in coin.
But notwithstanding that they COM
manded a high premium over gold
and silver. The Venetians were en-
abled principally through their en-
lightened system of money to attain
great prosperity which they enjoyed
for centuries. Commercial crashes
and money panics were unknown
amongst them.
The French people manage their
financial affairs with more wisdom
than any other nation of the present
day. When specie is scarce and ir-
redeemable, legal tender paper mon
&c ofa.I