The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-19
WHAT CONSTITUTES cuRRENcYs
Hon. j. b. CheadIe Tries to Prove that
Gold and Silver Are Not Part of 1t.

To the Editor of the indianapolis Journal:
You say editorialIy in the Journal of the
18th inst. that I am in error in declaring
that gold and silver money is not cur
rency in the general meaning of that term
What is the general meaning of currency?
Zells cyclopedia defines currency to be
from the Latin (curro, rum: 1.-THE notes,
bills or other paper money, issued by the
government authority, and which are con-
tinually passing current The same author
says of money that it is from the Latin
'moneta,' and is ''the portable and stand
ard equivalent for commodities, labor and
values transferred and consists of coins,
paper money, or moneys of account He
says: Paper money is called paper cur
rency to distinguish it from specie, metallic
currency or cash; it comprenenos notes of
hand, bills of exchange, checks, ETC." The
general meaning of currency never included
specie legal tender money, neither does it
mean that now. The terms are not synony-
nous, the pne being a generic term, includ-
ing all forms of equivalents for commodi-
ties. while the other refers to a special
class of equivalents that, in the language
of all the authors, passes for money!"
I would define the gold and silver money
to be the substance. the physical entity and
currency to be the standard, or a thing
which passes for the substance by consent.
1 would call greenback bill currency, be-
cause it is a promise of the government to
redeem in coin money the bill ON demand
of its holder. 1 would call a five-dollar
silver certificate bill currency, because on
its face it certifes to the fact that there
have been deposited in the treasury of the
United States five silver dollars payable
to the bearer on demand" l would not
call the silver dollars currency, Real money
that is, primary coin legal tender money
is very different from currency in all its
original elements. The one is the standard
equivalent for values. the other merely
passes for money by consent. The one
must be accepted in payment of debts. The
other may or may not be, as the creditor
may elect, hence 4 reaffirm that Greshams
law can have no relation to our legal stand
ard gold and silver money.
The Journal forgot that the prime fact
is the unit of value, in our money system.
The American dollar-this is the central
thought The Constitution makes both gold
and silver legal standard money and When
Congress defined. by law. the amount OF
gold and of silver that should be a dollar.
Congress fixed the status of both coins.
They are equal. the. one with the other
The silver dollar is just as much dollar
as the gold dollars can be; so is the gold
silver dollar can be. Therefore, to
measure. or try to measure. all values in
of the standards would be in plain vio-
lation of both Constitution and law. There
cannot be advanced one reason. either in
law or morals for measuring values in
one of the coins that will not apply with
equal force at law and in morals to the 9TH
er coin. There is no escape from this con-
clrrion.
The money use of these coins Is the prin-
clpai element that fixes and maintains their
value. To restrict the money use OF either
is to more or less destroy its value. because
the inexorable law of supply and demand
in coins as in all other things fixes their
value. TO give TO either coin free coinage
is to create for that coin an unlimited de-
mand at It's legal ratio. To take away from
+ the other coin free coinage is to destroy the
unlimited demand at its legal ratio and
reduce Ii to the status of merchandise in
comparison with the coin that retains It's
full money use.
Silver has been demonetized. The legal
ratio has been broken and the supreme