The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1896-08-27
VALUE FOR VALUE.
The Basic Principles Uunderly-
ing the Uses of
Money.

The following paper was read by M
Hogan, at meeting Of the Sount
Club of this city on Tuesday evenini
OF last week.
Money having been m ade an issue il
the political campaign OF 1896 by rea.
son of the silver wing Of the Democratic
party at the Chicago convention having
declared for the free coinage Of silver al
(. the ratio Of 16 to 1. it wonld SEEM nee
essary for a full and intelligent under
standing of the subject, to inquire as tc
what is money, its functions, uses, and
the fundamental principles and laws
governing the coinage, use and circula
ton OF that medium.
The science OF money. like others, il
governed by certain established laws or
principles, in fact by natural laws
Many people remark that it is hard
matter to understand, but why should
it be once we get at the principles!
Money is mans own invention and it IS
saying little tor him that he cannot un'
derstand the work of his own hands
He has invented the harvester, mower,
reaper and many other things with
which to perform his work, so also he
has money. He has contrived and in
vented complicated machinery, which
now even the most unskilled can nnder-
stand and operate for the reason that
he makes himself acquainted with the
principles HTolved and the uses and
purposes for which it was made. So, in
order to understand the money or silver
question. it is only necessary that we
ascert ain what money is, and under
stand the principles which govern it and
the reasons for its existence at all. Hav-
ing done this we are then able to draw
our own conclusions as to what metal
is best adapted by nature as metallic
money for country and people.
1t is of the greater necessity to become
acquainted with and understand the
fundamental principles of this, or any
subject. which are, as rule, simple, and
not to allow them to escape us, that we
may not 60 astray as we approach the
intricacies of the question.
Naturally, i'll our investigation, we
will trst ask the question, What is
money? The answer will be, II is that
which, because OF its general acceptable
ity and stability has been selected by the
civilized world TO be a measure of value
and medium for the exchange Of COM
modities. There may be some, perhaps.
who will not be quite satisfied with the
above definition, but it is sim pie and
brief, sufficient for our present purpose,
although 1t could be more fully given, at
greater length, but we think not more
clearly.
The next important question will be:
What are the functions OF money! This
is partly answered in the definition OF
money above given, but we will be spe-
citIc; 1t is [ II medium of exchange, (2)
a common measure of value. 1t is with
the first named junction, however, that
we have to deal in this article.
In former times. before money came in to
general use, trade which which existed
before money, was carried on by means
of barter, one or more articles were ex-
changed for q ne or more articles of equal
value, as nearly as possible. In our
own day, and since money which is sirn-
ply the instrument of trade, came into
use, m oney takes the place and stead OF
the commodity on one side Of the trans
action formerly known as barter, and
instead OF an exchange of commodities,
one for the other, value for value, as fort
yuerly, people exchange articles of value
for money of equal value to the article
sold, purchased, or exchanged. It will.
therefore, Oe readily seen that money
supplies tine place ct one Of the commod-
tiles. which before was of the same value
as the commodity it bought. Now, the
principles flowing from thisstateof facts
are very evident. and are these: In the
exchange OF commodities, whether by
barter, as formerly, or by purchase for
money ~ at present, value must meet
value, must be given for value, and
equal value must pass between the IN
dividuals to the transaction, 1t it were
otherwise, the exchange would not be a
fair one ,anvthmg different Is 70 bbery and
Is destructive to commerce and honest
dealing. II there is any difference in the
values of The articles exchanged, some
one profits and some one loses. So in
the exchange OF commodities Tor money,
il the money given in exchange for the
article be not oil equal value to the arti
Gle exchanged or purchased, then the
transaction is not fair one. No man
will willingly exchange that which is Of
value unless it be for property or money
that IS OF equal value to him.
1t follows then, as natural and logi
cal conclusion. that money, taking the
pace oil the commodity III one side Of al
exchange. must possess intrinsic value
equal to the article which it buvs, either
OF itself or on it's ultimate redemption Il
it be paper money. In the language o
Locke "Men in their bargains contract
not tor denominations or sounds, bu
for the intrinsic value.
We have now established and mus
bear in mind the principle or law flow.
ing from the facts OF business trans
action, that value must meet value AM
be exchanged therefor. And it is mo-
enough. in the case of money, that i
possess value at the time OF the trans
action. It must be such that 1t will no
tiuc,uate, that it will retain tins valu
and have and hold stability of value sui
ficient until the person who receives i
hnds II necessary to use it, and exchang
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