The Louisiana populist., 1895-05-31
ABOUT SOUND MONEY.
J. w. MORTON, JR.. WRITES AN
ABLE ARTICLE.
He Makes His Views Unmistakably Plain
Upon the Sound and Honest Money
Theory, Showing How it Is and Why it
is as Described.

beg TO submit:
/. Sound money is that which rests
upon oundation strong and broad
enough to warrant and inspire i'm
plicit confidence among its users.
,. Honest money is that which is
at all times and continuously an
equitable common denominator
OF values, that will honestly
act as standard for de-
ferred payments, and that may
not become the play thing of specula-
tors the unite OF which shall remain
absolutely changeless in its purchas-
ing power or command over commod-
tiles.
3. There can be sound money
which does not rest on gold founda-
ton; furthermore, money that rests
on a gold foundation is inevitably un-
sound. This is true, also. as to
silver, or a combination OF gold and
silver; with this difference, that tho
use OF two metals broadens the foun-
dation, and to that extent increases
the stability of the monetary struc-
ture
A. A dollar that will grow either
greater or less in general purchasing
power with the lapse of time is dis
honest and unsound. No ""commodi-
ty' dollar can be otherwise.
3. Gold is not, never was, and can
never be a measure of values"
Science truly asserts that measure
must be homogeneous with the thing
measured How then can gold
measure" pig iron or corned beef?
6. Value is ratio or relation exis-
ting between two powers or objects.
Being a ratio it can be expressed only
by figures, which are immaterial and
deal with quantities; never by sub
stances which are material and deal
with qualities. Further, values or
ratios can be expressed, but never
measured" Again, value being
ratio between things it can never be
possessed by any one thing; hence,
the theory of intrinsic or inherent
value has now been discarded by
practically all economists.
z. IL is clear, therefore, that the
so-called standard OF value" is not
only an absurdity, but a nonentity,
whether it be assumed to be of gold
or silver, or both.
s. What we call a .'gold standard
is merely an arbitrary arrangement
whereby we attempt to conform the
exchange value OF our dollar OF ac-
count. e., its purchasing power
to the ratio of exchange currently
81
bullion and the general commodity
mass, which ratio is constantly shift
ing, and with it our dollar of
account. By this unnatural COM
plication we not only do not
secure for ourselves that first grand
requisite OF a sound aud honest cur
rency-a changeless monetary unit
but we actually make monetary
stability impossible. Take Prof. Je-
von's figures for proof: Between
1889 and 1909 the relative value of
gold fell 46 per cent; from 1909 to
1S49 it rose 145 per cent; from 1S49
TO 1874 it fell 90 per cent, and since
1874 it has appreciated not less than
20 per cent. Could anything be more
absurd than to speak of q STANDARD"
subject to such huctuationsP Arubber
tape-line would be equally reliable.
Q. s.Free silver" of the Stewart
Sibley variety would simply mean
silver monometallism until such time
as the immutable laws OF supply and
demand should restore the two metals
to natural parity of 16 to /. BIZ
Ill
eras OF monometallism, or the con-
tinuous single use of whichever metal
may remain the cheaper. Practically
free silver would add to the soundness
of our present inflated gold currency
by broadening its base. and to this
extent would restore confidence, raise
prices, and thereby stimulate trade.
10. Secretary Morton says in your
interview: .sThat money is the
soundest for which throughout the
commerce 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 worshipper
VI Tue tdst oSoOSlotCs " WOoucu lkudSo
with the occulent power it is thought
to represent The secretary ignores
the fact that money is q national, not
an international creation. When he
says money he undoubtedly means
..gold,'' and in grains commodity
not in the dollars. Ii SO, he is quite
right. The grain Of gold is the cur
rent international medium OF ex-
change, but not so as money; 1t 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 interna-
$ tional balances; but gold is not
money any more than baled hay, ex-
cert by the incident OF its use for
coinage, and in this respect paper is