The herald., 1896-03-03
The Labor Exchange Money


Los Angeles, Feb %, 1896.
The Labor Exchange Money
| EDITOR HERALD: A few days ago a gen.
| tlenan whose name was blotted in my
copy of THE HERALD attacked the sound
ness of the Labor exchange money. Be-
| lieving him to be an honest critic, would
! like a few words further. Money is some-
| thing to represent values in commodities.
Il is but a convenience used by people in
| the interchange of products, something
similar to the square used in carpentry.
| That instrument derives it value and util-
| ity on account of the ideal principles indi-
rial upon which its figures are stamped.
Make the square of any material that will
stay straight and it will serve the same
! purpose. Money is but token, a marker
OF value, ticket for goods, payable any
where and at all times. Metal is not
money, though money may be made OF
metal; silver is not money, though it may
be made of silver; anything is money
that is agreed upon. If it can
| be seen that q thing, be it only chip, can
be exchanged at a fixed valuation for that
which we need, without loss or inconveni-
ence to us. that thing will circulate as mon
ey, to the interest of such recognition.
Gold derives its unnatural value from
the fact that it in almost universal de-
mand as a money metal. Supposing gold
to be demonetized by all leading nations,
it would then be simply metal and not
money, and its price would fall to the new
value fixed for it as q commodity by the
laws of trade. The fact that gold has SO
long and steadily maintained its high price
is regarded as proof by some indolent
minds that 1t has within itself the powers
and properties on par with it's exceptional
price. This is the basis for the plausible,
though really untenable theory of "intrin-
cir It,of ts,o mt al
ton affects the price of anything, either ia
vorably or unfavorably, then the founda-
ton will have been laid for the claim that
the present value of gold is legislative and
not intrinsic.
Prior to 1878, under free coinage. silver
from 1929 per ounce. Why? Because
one ounce of silver, according to
our coinage laws, would coin out
129 cents worth of money. Just as
a miller would say, "Your sack of corn will
make you 81 worth of meal" Now if an
to sell it, he will always do so on the most
advantageous terms to himself; hence, as
he can get it coined into 30 in money at
the mint, he will not dispose OF it for less.
This is why, with free coinage, the laws
regulating the weight and fineness remain
ing the same as now. silver bullion is al
ways worth $1.29 an ounce. How. then,
is this price maintained? BY legislation.
Proof Upon the demonetization of silver
in S73 silver bullion rapidly declined in
price. BY using any metal or anything
that is limited IN quantity, for money. we
create new demand for it, and thus is its
price raised. If we prohibit by law thu use
of anything, it's price will decline. No COM
modify or metal has enjoyed such extraor-
dnary legislative distinction and prefer
ence as has gold, and SO has its art flcial
value been created. II tin bullion were
now selling for ten cents an ounce and a
law passed making it money metal, one
ounce of which to be coined into a dollar,
coinage free, tin bullion would sell for
one dollar an ounce, no more and
no use. To recognize metal as money
legally or even primarily, is but to per-
petuate delusion of barbarous times. In
fact, money made of something that has a
purpose, that of representing value, as we'll
as though it had none. For see: If, as an
agent, intrude my own opinions into q
! transaction l do not so we'll represent any
principal as if l remained unassertive of
my own opinions. So the metal in money
may so tluctuate as to hinder the free
| operation OF its function of representing
value in commodities. A yard stick or
bushel measure cannot be considered fit
| instruments to represent ideal quantities
only on the supposition that their length or
size remains fixed. This rather long but
! seemingly necessary preface on the nature
and function of money brings us to the
main question, whether the labor exchange
money can be expected to pass current?
In starting depository amidst a wilder
ness of poverty and bedlam of financial
and economic fallaces, the Labor exchange
puts forth it's initial efforts under condi.
tions disadvantageous on account OF deep
rooted prejudices; nevertheless it boldly
announces itself competent to discharge
all its obligations. A works day and is
paid in labor checks; b ditto. The pro.
ducts of their labor are exchanged by
means of the check. Could gold do any
more than that?
The comparatively few things we need
which we are not now aOle to make will be
bought with legal tender money, secured
by members deposi,ing it and taking
checks in payment therefor as they would
hay or potatoes. The checks will buy as
much as that which they parted with
would, so they can be depended on to dc it,
a shoe factory, a tinware manufactory, q
tannery, a cannery and numerous other
industries now being organized here will
cause to circulate many thousands OF dol
lars i'll checks, making possible the creation
of wealth which would not otherwise be
done. In issuing labor check, we know
that the money goes to those who earn 1t
in no other way can it GO out. This cannot
be said of the present financial system.
Why should any one refuse to take a labor
check when IL will buy him as much goods
as legal tender money?
W. c. S. RANDOLPH,
Station D.