The times. [volume] (Richmond, Va.) 1890-1903, 1895-10-02
WEDNESDAY. OCTOBER 2. 1895.
THE sTARINsIsTs UPON AN ANSWER

THE STAR INSISTS UPON AN ANSWER.
We have told the Richmond Star there
could be no profitable financial discussion
between IL and The Times until it learn
ell that with trinng exceptions, moneys
only use in business IL TO furnish a SIAN
dard by which commodities value them
selves FOR the purposes of exchange ana
that the business of the world Is not
sales for money. but exchange OF com
inodities. effected through swaps OF iner-
camille credits that rest upon these com
modit.es We have told 1t that untli IL
learns this foundation fact, and so lons
as il holds on 10 Harvey's absurd notion
that there is a primary and a 'seconc-
airy" money. discussion between us was
wholly useless, because IT talked Of one
thing. WI lie we talked OF a totally DIFF
fsrent thing. Nevertheless. the Star in
sisis that we shall deal with a case which
it puts TO us. and out Of respect Tor
It. We will do So The Star states It's
Csc thCs:
W.. do not blame our neighbor for re-
sorting 10 ridicule and sarcasm, Tor ne
evidently has an antlpathy to under.
taking to wrcstle with nSures. we placed
heforS him a table Of figures six montns
ago which showed that the states Oi
this Union had depreciation Of 'heT
assessed values Of SJvDWv0l. ana thal
but twelve states OF the forty-four had
gained Ia values and that among these
twelve States. three Statesmen YORK,
Massachusetts and PennsylVania-na
raiucd ever $500 100000, and that New
York alone had gained about ono-ht.f
what the rest of the country had lOSt.
We showed. moreover, that previous to
1873 the assessed values or New 1oIh
rad deprecated at an enormous rate
cf these figures or explain why TINS con-
d!tion existed If IL was not due TO the
appreciation of gold. This question re
mains unanswered by The Times and all
other goldbug papers. The New YORK
Herald, the New York Post. and nu
merous others OF the leading single-stan-
dard papers. have had this conundrum
given them, but one ana all refuse 10
answer. and. in fact. totally ignore the
question
We know nothing whatever OF the ac-
curacy of the stars figures 1'hey were,
40 doubt. taken from some publication
OF W II. Harvey. or Stewart, OF Nevada.
or some other wild humbug of that sort,
and are as liable TO he erroneous as every
thing else that comes from those wor-
thies. But we are perfectly willing to
concede their correctness for the purposes
OF the argument.
The reason why such changes have
taken place. II they have taken place, is
that the environments and circumstances
OF business have brought advantages TO
one locality that were denied in the same
degree TO other localities. Forty years
ago. 1t was most profitable to raise wheat
Ilftt in
years the fertile territory Of the West
has all been brought into cultivation, COM
pet.nc railroads have grldironed all OF II.
freights are reduced to an astoundingiy
low point. the country Is adapted 10 the
use of machinery for cultivation. and the
result Is that the West sends wheat ana
corn TO the seacoast, and sells ii so low
that much of Virginia Is unable to COM
pete with st. This has caused great
less In the value Of many Virginia lands.
Does the Star imagine that the money
OF the country Tad anything TO 40 WIN
this depreciation
Now. causes of exactly the same ma
ture produced the loss Of values at one
OF the places named by the star. ana
increase Of values at another II any
When there is enough money in a ooun-
try for the small uses for money under
the modern conditions OF quick trans
missicn Of intelligence and commodities,
any more money is energy thrown aNay.
Great Britain. doing the bulk OF the
worlds CON merce, has only seven hun
dred millions Of dollars of all kinds Of
money and currency. The United States
have now one thousand. eight hundred
millions cf dollars Of II. Moneys func-
tion is 70 furnish a standard OF value.
and settle balances, and make change.
But business Is an exchange or cOmmo-
dities, the exchange being made upon
the basis furnished by the standard OF
value. The exchanges are made By
swapping credits granted upon the ,om-
mcditios as collateral security. The mer-
camille credits Of q country are there
fore the real money Of that cJdutry Tor
the purposes OF business. As those crcI-
SIS are ms de free. the ability OF that
country to DO business is increased. AS
those credits are hampeIed and shackled,
the ability OF that country 10 DO business
Is restricted.
But this must never be forgotten. The
life OF credit IS confidence. There is no
credit Il confidence Is impaired If the
credit IS stated in dollars. and tGcre ere
two dollars. one worth nl;y cents and
the other worth one hundred cents. cred
II will shrivd up and depart. C"cdit VIII
take no chances Of being satisfied with
dollar worth only half Of what was eX-
pected. When credit is interferred with,
the life OF a people ,s,taken.