The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-03

establishing n standard Of value. 40 that
people would know how 10 compare one
article with another for purposes OF ex-
change, its only other possible function
would be to become itself a machine which
would operate TO exchange commodities
when the parties were not in position 70
make actual swaps OF them. For instance
The man with the wheat would want
some corn, but no man with corn might
be at hand man with gold dollars
might be at hand. however and the lat
ter might want wheat. The wheat man
would willingly. then, exchange bushei
OF his wheat for one of the dollars, De-
cause he would know that the dollar con-
tanned exactly the same labor In IL as
TWO bushels of corn contained, and there
fore that when he met with corn man
he would be willing 10 exchange two bush
els OF corn for the dollar. Its second
function, then, would be that OF a handy
and convenient embodiment OF carriage of
labor. or the same thing. value. which as
a substitute for commodities Just as val
liable as the commodities. by reason oil
the fact that 1t embodied the same amount
OF labor that they embodied. would ex-
change the commodities. on the principle
that when there are three separate things
each as valuable as the other, IT Is not
a matter OF much moment which one oil
the three any one has.
Now 1t is obvious that in this new So
ciety, where traffic would be very light'
there would be very few uses for TINS ma
chine 10 bring swaps and exchanges
about. Most of the exchanges would be
direct. as wheat for corn. What OCCASION
then, would there be for any more money
after the small quantity needed foT Ell
fec;ing their exchange was secured; Is
IL not obvious that If there were any
more it would make money something OF
q drug and that men would cease 10
nut as high value upon it as they ala
hefore2 II prices rose then. would 1T not
be because money had deprecated ana
not because commodities had appreciated.
This argument is addressed TO the origin
and start of values alone. OF course, as
societv advances and the affairs of lie
become more complex the relations of
commodities to coined money will be ac-
cordingly modified, and the whole case
will be governed by the law of supply
and demand. We are dealing with the
case in the abstract. and not in the con-
crete. The foundation Of the erroneous
ideas in mems minds in this matter Is
their failure to recognize the function OF
money as a mere means of exchange OF
commodities, and TO distinguish between
money and paper currency. Paper cur
rency is nor. and cannot be money III
consists OF promises TO pay money Paper
currency Ia a transfcrenCe each time 1t
GOES from one hand to another, or
credit which rests generally upon proper
". and not upon coin. The transactions
of the world are transferences OF their
credits. and not purchases settled by
money. Those settled by money are
scarcely one in one thousand. man
with a dwelling house on Franklin street
worth $4,000. borrows $4,000 at the First
National Bank of Richmond. Thoush
nothing is said about it. the understand"
ing is that that dwelling house is TO BACK
the credit which the bank gives him OF
$4,000. Whenever he checks on TINS cred-
IL he is substantially assigning away an
interest TO that extent in his dwelling
house. These are the transactions OF
life and not purchases and sales, ana
they cannot be made too free and simple
What men want then. is not more morey.
Money is no more than tokens ana couh'
tiers. What they want is all embargo 10
be taken off Of their power TO use ana
assign the credit that their property ana
character give them. They want that ten
per cent. tax repealed. Oh, that the
people could be made to understand the
fundamental idea and distinction.