The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1896-04-30
TIE MONEY QUESTION,


The present year will witness in
the United States the discussion Of
the money and currency question un-
exampled in our history since the
great contest between General lack
son and the banks. Undoubtedly by
the nominations to be made for Presi-
dent, and by the platform adopted by
National Conventions the question
whether our coin money shall have
an inherent or fictitious value, and
whether our paper currency shall re-
present real or debased money, will
be presented for popular judgment.
These questions can no longer be
kept in the back ground by political
parties. They must be met, and the
party that meets them frankly and
fairly, and presents sound reasons for
its position upon them, will be entitled
to win, and will deserve success.
1t is certain that many wild and
visionary views about currency are
afoat in the country, and that in diff
ferent sections opposing opinions
prevail nor is either one Of the great
parties free from discordant views.
We have therefore a case where
not only leading men, but all citizens
may adopt and act upon the senti-
ment Of DR.. Franklin embodied in
the Pennsylvania constitution in 1916
that "a frequent recurrence to funda-
mental principles is necessary to main
tain liberty and preserve the pros
perity Of the people" Now it is a
fundamental principle that money
must have an intrinsic value equal to
It's nominal face value not dependent
upon Government for its support, and
always to be relied upon whether in
smooth times, or in times Of convul-
sion and danger. Nor is the patent
fact to be over looked that paper cur
rency whether issued by government
or by banks is net money in any
proper sense, but only represents
money when and SO long only as it is
convertible by the holder into coin.
1t calls for money; it is payable in
money; but is not money itself. If
the government or bank which issues
it fails to pay it on demand, it is dis
credited, sinks to discount or in
case of bank or government insolvency
may be entirely lost. But paper cur
rency differs also from money in the
important fact that it is in itself of no
value it is simply public or corporate
credit in the form Of "a promise to pay.
That promise must be kept or the
bill, note or certificate in question is
worth no more than blank paper /;
IN other words it is worth nothing.
Another point to be observed is that
coined money, unlike paper currency,
has a double function it performs
two distinct Offices or duties it is not
only currency, passing from hand to
hand like bank or treasury notes in
the pecuniary transactions of society,
but 1t is also standard of value, price
and payment. In this latter capacity
1t is the balance wheel, the steadying
power Of all commerce and trade, and
measure of all pecuniary transaction.
1t must therefore have inherent or
intrinsic value in order to be mOney;
and such has been the doctrine of all
thinkers and writers entitled to atten-
tion, and the practice of civilized gov
ernment has been conformed to their
views. And if examination be made
OF exceptional example where this
doctrine has been departed from by
monarch or ruler in former times,
they will invariably be found examples
OF madness or folly producing bitter
fruits of calamity and distress. 1t fol-
lows from what has been said that we
should have single standard of
money resting in the intrinsic value
OF money coin, and that in its double
capacity of money standard and of
currency for popular use. The money
of the United States before 1878 was
made and issued upon sound princi-
pies which should be rigidly main
tanned by government, aud supported
by the people,