The Green Forest tribune., 1896-05-14


Currency Primer 1t discusses the
fundamental principles underlying
money in plain language. We quote the
following:
The whole matter of money, a meas
TIRE of value, q means of exchange, cir
culating medium, is one of necessity,
convenience, adaptation to the end. tits
a question of the fitness and effective
ness of the material substance Of which
the instrument is made.
Manifestly that fitness, the convent
ence and effectiveness of the thing, must
be determined by the Judgment OF those
who use the instrument, those who do
tie business, the labor and exchange of
the world.
Law should attempt to follow that
Judgment and not attempt to form it,
force it or control it. Experience has
determined several points as to fitness,
convenience and efficiency. Silver is
found too precious, too concentrated, to
be conveniently used to represent very
small values. Something more bulky
that is, of less value by weight-is need
ed Hence for smallest values copper
coins, for slightly larger nickel or some
equivalent, and for still larger silver.
But silver is too bully-that is, Of
too little value by weight-tor represent
very large values. Hence gold is used
for these. But even gold IS too heavy
and bulky to be used by actual count or
by actual weighing, and passing from
hand to hand at every turn in large
transactions, especially between dealers
at a distance.
Hence come into use bank notes, and
FAR more largely still checks and bills
of exchange. By means of these q given
quantity of money will rapidly, though
only in legal sense, pass from hand to
hand, from owner to owner, by mere
entries on books of account, no money
being actually counted nor even seen
by the banker who keeps it locked up in
his valuts. Checks and bills of exchange
are simply additional facilities, con-
veniences, multiplying the rapidity of
circulation-more rapidly changing
ownership. Ent the money they repre-
sent must be behind them.
we HOW SEE tl1S IQStSoll WHY RONCiH-
ment cannot make anything money
which it chooses to call money, nor
make it money, current with the mer-
chant" nor current with the laborer,
by simply calling tia legal tender. Gov
eminent can no more do this than 1t
can say what your days wages shall be
or what shall be the price of q bushel Of
,i,,rr
do these things would soon be reformed,
or If need be revolutionized by force.
Having seen the function of money,
and the materials of which it should be
and seeing that government
cannot make money of iron or leather or
pasteboard, simply because intelligent,
free people of great commercial inter-
ests and activities will not use these
substances as money, the question
arises: What is the function Of govern
nent in regard to money? Here again
the answer is. simply to increase the
and effectiveness OF the
Or materials which the peo-
pie have already found most convenient
and effective as standards Of value In
crease it how?
The old time method Of use was to
weigh the metal. phat is slow and
cumbrous. and inexact, unless part at
least of the amount be divided into very
small pieces-in case of gold, too small
for either safety or convenience. Hence
the art of coinage, each piece of copper,
silver or gold being composed of given
iSrbf Rt1t if Hn; 1,o iaf4 To ;r,I
viduals fraud will creep IN. Alloys,
mixtures, debase1nent would be prac-
ticed. Hence the convenience, the ef-
fecti7eness. the fitness of metal coined
into money are immensely increased by
confidence in it's purity and in the full
ness of it's weight. Therefore the only
duty and province Of government IL re-
gard to coin is by it's stamp, to certify
that a given piece of metal is OF given
weight and Of a given fineness or purity.
There the interference OF government
should stop, unless to declare what is
legal tender, and in what sums, as to
each metal
1t is now doubted by some whether
should go further ard make
a legal tender. for debts, and
whether It would not be better to leave
very raa.n TO make fiais contract to be
paid IN the money Of his choice. IF this
were done, and the Nmints of the whole
world were thrown open for free and
coinage of all metals now
used as money, the owners Of the cola
u ould soon lind which would circulate
and which would not. But I pass no
opinion whether government should de-
fne or establish legal terders.
~--1>,,,x.1,,
Hood's rs the Best
Medicine all the year around, because it puri.
hes, vltalizes and enriches the blood. and