The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-10-17

would be less acceptable than either iron
or silver or gold as a standard OF value
or as a medium of exchange.
Such are some of the reasons why people
in general find gold the most convenient
medium of exchange. n to the extent
to which the wage Garner Is more directly
interested. either in that convenience CT
currency that shall secure the small profit
margin obtainable in modern business. or
in that stability of value that gives Sc
eurity and availability TO investments,
he is interested in having agood" money
that is, money Of which. other things
being equal, great value is contained in
small bulk-gold, as compared with silver,
copper, iron or potatoes.
VARIATION IN QUALITY.
But for him this Is not the main con-
sideration. 1t IS only in a limited n
incidental way that the wage Garner is
a capitalist or investor. The main use to
them each day or week what he needs
that day or week. And TO him con-
venience of bulk and stability of value
are of comparatively mall Importance.
much more Convenient for hin to get his
wages in gold than in either silver. or
copper or iron; If he is paid weekly,
though he might find it a little bulky
the extra weight OF the silver does no5
seriously Inconvenience him: while If paid
daily even copper could be gotten along
with. For the amount that he must
handle would be comparatively small; ana
as ne gets f1u Oh II III Inc IidiA, On LIE
same day or in the same week. he would
feel the inconvenience less than though
he had larger amounts to handle at any
one time. That is the reason why, for
people whose transactions are in the man
very small, and frequent, silver or even
copper maj be more convenient than
gold. &
Again, it is plain that permanency of
value, as such, IS OF little interest to the
wage Garner. To the extent that he spends
each day or week the wages he receives
for that day or week, it is perfectly i'm
material what those wages VIII puy az
some future time or would nave bought
at some other time. He is concerned only
in what they buy at the.time when ne
must spend them.
The wage Garner. therefore, has but
little direct interest ether in permanent
quality Of money or in the stability of
the standard of value. His main interest
is tha the wages he receives each day
shall buy the most possible that day. The
amount Of money he handles IS 50 small
thai its bulk is a matter of comparative
indifference to him.. He buys for cash,
hence cannot max his purchases before
hand; he practically spends all his money
the week or month in which he gets it:
hence he is not interested in what he
might get for 1t some other day or week
or month.
The inquiry has become very narrow.
We have left only to inquire what effect
the quality of the money standard will
nave upon the immediate e-xchangeabla
value of the wages the wage Garner IS
likely to receive from day to day. We
must admit at the outset that, whatever
the permanent quality of currency, wages,
prices, etc.. will tend to adjust themselves
to it. For money is, after all, a medium
of exchange, and only through this use
a standar of value; and trade constantly
tends to the point where equivalent SER
vices and values are exchanged; or. as we
say, trade adjusts itself to the medium
of exchange. In the long run, therefore,
~ +L-x 10 - - $500 L. 49,.
is apt to secure for its service about the
amount of return that, in view of other
social and political conditions, it would in
any case receive.
The inquiry is thus narrowed again. and
we ave at last to consider the compara-
lively simple problem; In case money is
not stable In value. under what conditions
will the wage Garner gain or lose most?
Is it to his advantage to have money get
better and better, that is, prices lower
and lower; or to have money get poorer
and poorer, that is, prices higher and
higher?
seems. If we could assume that wages
would remain at the same nominal
amount then, of course. every apprecia-
ton of the money in which they are paid
would multiply to a corresponding extent
the real compensation each receives. But
If wages increased or diminished in in
verse proportion TO the value Of the money
in which they are paid-as they unaues-
IlOidOly tSuQ 10 uQ-tficH tLlC1 purchasing
power would remain the same, and the
poorer his money was, just SO much the
more of it would the laborer get: SO that
he would not be specially interested in its
he has to buy change less or more
promptly than does the amount of the
wages he receives, it is plain that he is
most deeply interested, And here we have
the vital point Of this discussion.
THE NATURAL RESULT.
Everything in the world is affected by
inertia-that is, a tendency more or less
| strong to remain as 1t is, and which 1t
change the centre of gravity of a mass Of
quicksilver. 1t readjusts itself as quickly
as a fash; if we tilt, a measure of mo-
lasses, it slowly settles itself in accord
mately exactly conform to the laws OF
| gravity. One does 1t ~instanter, the other
| deliberately. Just SO with prices. Let
a spectator stand in the gallery of our
day. but every. hour, sometimes every
minute, the price of wheat fuctuates,
The report of an untimely frost
raises the price. a favorable gov
| ernmen report lowers it. The adj
| iustment of a railroad war may raise
or lower prices. The arrival OF tramp
shipping ready TO offer low tretgnts may
| bread stuffs, comparable to the ocean in
it's extent, Is seen to be as sensitive and
fuctuating as are the waves Of the sea
| on the other hand. They are readjusted
BY the slow progress Of legislation fet-
| tered by coils of red tape. and for years
! and frequently for decades-remain I'M
changed. II is too plain to need explana-
ton that the street laborer who receives
two dollar a day, no matter what is rhe
general price for labor and no matter
whether goods are high or low, and the
| Commissions at five thousand dollars
| a wear. are alike interested in having the
best money possible-that is, prices as low