The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1896-10-16
The Functions of Money.

In discussing the question Of unlimited
coinage of silver il is well TO keep clearly
In mind the true character and office of
money.
Money is a tool Of exchange, measure
Of values
uses of money as three in number, viz:
To furnish:
First-The common medium by which ex-
changes are rendered possible.
Second-The common measure by which
the comparative values Of exchanges can
be measured
Third-The standard by which future OBJ
legations are u be determined.
TIE necessity for 2 tool Of exchange
grew out Of the advancing civilization of
the race, the division of labor, and the
consequent necessity for exchanges of
the products OF labor. Barter, that is. the
exchange of one labor product for another,
was an announcement and costly method Of
conducting commercial transactions, and
Ii became necessary TO provide some COM
mon measure Of values for which one pro-
ducer of labor products could exchange
his products. AMI which he could in turn
exchange for such labor products as ne
needed
This tool of exchange adopted, whatever
It might be, was money. The value of mon
ey in one sense is the rate CT interest it
viii bring: in another sense. il is the
amount of labor products it will purchase
The choice Of metals for money and of
gold and silver among the metals has
been matter Of growth. keeping pace
with the advancement Of the race in civil
ization.
Gold and silver today constitute the prin-
cipal currency of civilized nations by rea-
son of their adapta ton for use as money.
The natural requirements OF money OF
~ <r>,1 of -l1r -x-rfr .,l,-
when they are stated
The requirements of good money are.
ETrst-It must be valuable
Second-It must be Of great value IL
proportion to its weight and bulk
Third-It must be Of uniform value
Fourth-It must be Invisible without loss
Fifth-It must be durable.
SiKth-It must be easily distinguisha Bile
Gold and silver possess these qualities
and SO have survived in civilized countries
the use Of other metals as money.
Gold possesses some of these cualitie:
to a greater degree than silver and Sc
there has been a tendency among com
mercial nations 10 adopt gold as theil
standard.
Gold and silver If used in the form O,
dust or bars would be inconvenient, a:
when they were passed from hand {,
hand they must be weighed and assayet
or examined in some manner to ascertain
their weight and fineness. to deteruain,
their value Hence the necessity FOL
coinage.
Coinage. believe. was first adopted b,
Greece. and then spread to italy. and !
now practiced by all civilized countries.
At first only the quality or fineness O
the metal was stamped upon it
Afterward its weight or value was ;n6i
Gated
When coinage became a government
function the charge for coinage was caIlet
seigniorage- When the government as
sumed the duty of coinage came the temp
tation to 6enreciate the value Of coins. Il
put more alloy with the gold and silver
or to diminish the weight of the coins 70
the purpose Of providing public revenue
But from the time when the first none,
was coined and put in circulation ever
attempt by law 70 create value, TO max
q lightweight coin equal 10 a fuli-weish
coin or to pnt in circulation paper cur
reacy not redeemable IN coin of fun valu
On demand has been failure and disas
trous- These requisites OF good money ar
% self-eyident that I shall discuss onl