The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-03
\. DISTINCTION OF TaE LAST I'M
PORTANCE.

~ popular error of the day the error
that hs3e Brought on the country It's pres
ent state Of depression and disaster, is
the idea that prices depend upon the
ouantity of money. The erroneous idea
is that If there Is a great deal OF money
wheat, &C.. will sell for more money per
bushcl, and that when money is scarce
IL must sell for less money per bushei
BY money we mean coined money anu
/, nsfe sSsredeemable paper. We nave very
recently discussed this error, and have
shown that when a country has any more
than that quantity OF standard money
which Is necessary for it's business 'and
The quantity is far less than the average
man imagines). If there is sufficient
addition TO this quantity TO cause prices
to rise the prices OF all articles Will rise
Mt the same ratio. and the case will,
therefore, be one OF money depreciating
in value and not OF commodities appre-
clating in value. But the error is so
widespread and so firmly rooted that we
feel we can never expose it too often,
and We present the matter. therefore,
again this morning in a somwhat different
Light
Let ms, imagine that one of our great
steamships carrying thousand persons
were wrecked near desert island, the
passengers saving from the wreck enough
food for a year. and such implements as
were necessary TO cultivate crops, but
not one dollar of money. How would that
"a. 10
OF them would raise corn, some wheat.
some vegetables. &C. When the first crop
was gathered commerce and trade would
at once begin. One man who had corn
would want wheat and another man who
had watermelons would want corn. Upon
what basis would the exchanges be made?
obviously it would start upon the basis
Of the labor involved in producing each
If one man labofing the whole year pro-
duced 100 bushels Of wheat, while another
laboring for the same period produced
200 bushels OF corn. 1t IS plain that the
whcat-ggower would think one bushel of
his wheat was worth two bushels OF corn.
Their traffic. then. would commence at the
point OF the labor required 10 produce
each article.
But suppose after a year or two gold
mine was discovered upon the island and
men commcnced TO dig out gold. We
feel sure the passion for ornamentation
would BE- just as strong in that new colo
ny as IL has ever beer found in man
wherever he lived. We may assume.
therefore, that gold would at once take
its place as tho money of that colony.
But upon what basis would ii commence
its career? II is certain that it would
be required TO fall under the rule that
had been previously applied 10 wheat and
corn. II a man by digging in the gold
mine a whole year produced 100 gold dol
lars. We may feel sure that the man who
had spent whole year in raising leo
bushels Of wheat would think that il he
gave IL for the gold. he onght to get a
dollar for each bushel. He would say
10 the gold digger that he could himself
dig out a gold dollar for the same labor
spent Oh a bashei Of wheat, and therefore
that he should demand dollar for his
wheat. So that the money of that island
would be estimated according 10 the labor
which was required in producing it, just
as tho wheat and the corn were. ana
through this principle It would become
the standard ty which the value OF all
the other things would be measured. IL
would be used 10 determine the amount
OF labor involved In producing any com
modify.
Now. II is obvious that small ana new
community. starting under these condi-
tons. would not want much money, be.
cause the need OF II for its intrinsic value.
that OF orpamentaiion. would be soon fill
ed. and there would be no other need for
" At ell. Having performed Its part. Of