The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-11-14

ing and talking and, writing letters to
the newspapers and asking questions
about money matters, so that the in
terest and attention attracted by this
campaign may not die out until pop
ular Information has been vastly ex-
tended and increased.
Not all Of Mr.. Hays questions admit
of an answer that can be phrased in a
few words, because several of them
touch upon the basic theory of money
and its uses AS far as possible within
the limits Of our space we cover the
questions in the following replies:
1. The Glob has several times
stated that there is no such thing as
intrinsic value The gold dollar is
worth 100 cents because it will ex-
change anywhere in the world for 100
cents worth of commodities.
2. This question is also vitiated by
the use of the word intrinsic. Of
course, gold cannot be used CONNER
cially or in the arts, or for any other
purpose than as money, without de-
stroying it's availability as coined
money.
8. This question is put too vaguely
Neither gold nor anything else, except
something like a rare work of art
which man wants for his personal
satisfaction and can afford to pay for,
would pass from hand to hand at a
given valuation, unless it were ex-
changeable for other things for which
the receiver might wish to give it out
again in the future. AS practically ev-
cry commodity in the world is a prod
uct Of labor, this is, Of course, only
saying that gold has exchange value
and that nothing which does not have
exchange value can be generally ex-
changed. The answer to the question
involves a truism.
4. This question involves the whole
scope Of fiat money. The catch is in
the word "redeemable' Who redeems
it, and how is the receiver to know
whether it will be redeemed or not? A
1lllO0l1I VI lO11llSSS " pay w III
circulate in any country, no matter of
what material made, as long as the
people believe that the promise will be
kept. This is nothing but the use of
credit, and the government stamp"
performs no miracle, but certifies that
the credit of the government is be-
hind the note or coin. In brief, a gov
eminent can borrow money by the use
Of promises to pay in the form Of cur
rency as we'll as in the form Of bonds
This is not making money, in a proper
sense of the term, nor is it creating
value" to the extent of a single mill.
5. We have no patience whatever
with the expression ultimate money
of redemption. It is utterly and alb
solutely meaningless. No man cares
anything about money" in itself con-
sidered. He wants commodities The
money is not the ultimate" thing, but
that for which the money will be paid
out. Money is the go-between. All
that is required of it is to perform
the purpose Of facilitating exchanges,
and not to lose or gain in value in the
process.
6. The silver dollar is worth 100
cents, because the faith of the govern
ment is pledged to make it so. A linn
tied quantity only being in existence,
people believe that the government can
make that promise good. The silver
dollar, therefore, exchanges back and
forth for 100 cents worth Of commodi-
ties. Since it does not contain 100
cents worth of silver, it is the 25S
grains of gold behind it that does the
business.
Z. The answer to this question is
contained in the foregoing.
8. Why should most people prefer
terrapin and roast duck to bologna
sausage and cold water? The selection
of gold as a money metal is a matter
of common consent, reached after a
great many centuries of development
Why the people Of the whole world
value gold and are ready to exchange
their products for it when they will not
do so for an equivalent amount Of some
other material is a question of meta.
| physics rather than of money. For the
practical financier the fact is sufficient
9. The first portion Of this question
has already been answered in the de-
NAL of intrinsic value. The function
of the government stamp cn any piece
of money is properly to certify that II
actually does contain the amount OF
metal that it processes 20, AMI that
! this metal is of standard f1neness. That
is all the Office that the government
| has any business to perform.
10. The intermediary commodity
known as money, by which Other
! commodities are exchanged back anC
| forth, has been selected during
the evolution of the human
race Any elementary treatise or
money will recite for our CORE.
spondent the qualities which it ought
| to possess, which gold does not pos
sess perfectly, but does exhibit more
satisfactorily than any other com
n1odities, and which have therefore
ruled in its selection. Obviously
there is no inherent necessity for any
"iutrinsic" value. but Commodity val