The herald., 1896-06-21

such withdrawal to be effected by the
offer in exchange for it of interest-bear-
ing government bonds at rates of inter-
est sufficiently high to withdraw from
circulation enough to restore tospar that
remaining in circulation.
s. Make such other provision for keep
ing this paper money at par as shall be
found necessary, If any.
The above rests on the following pro-
portions:
Flrst-The true theory of money is
this: Value in money consists of the
value of the uses that can be made Of 1t
as money. These uses are created not
by law but by business which the COM
munity creates. After the community
has, by creating business, created these
uses or need for money. the law or
usage amounting to a law designates
what substances shall be money, and
by virtue of this designat ton by law
these chosen substances have at once
those uses as money that were created
by the business community. The uses
for money must exist first, created by
the people by their business; then by
common consent shown by universal
usage, or by a statute law it is agreed
what substances shall have these uses
and be money. That is, money like
everything else. is valuable solely for
the uses that can be made of it. Prim-
tive mankind had no business, and
therefore, no money. Gold and silver
had then no value whatever as money
because there was no use for them as
money.
Second-The increased population and
business Of this country create uses for
more money than are afforded by gold
and silver. Hence, paper money to sup
ply the deficiency; and in creating it the
aim is to give 1t all the excess of money
uses not absorbed by gold and silver
Gold and silver are the worlds money,
made such by usage so general and
so long continued as to amount to a
law. This country as one of the family
of nations in which this usage prevails
owes no duty to gold and silver except
to recognize them as money by coming
them ready for use, leaving their values
to be determined by the uses which the
worlds law shall secure to them But
to paper money, its own creation, this
country owes the duty of giving it by
its own statutes uses so numerous and
so valuable that these uses will make
it worth as much to it's holder as the
uses given to coin by the worlds law
make coin worth to the holder Of that
THE RESULTS.
/. The volume of currency would at all
times be regulated and determined by
the demands of business. Business
would have all the paper money 1t would
need, and could absorb at par with coin
and no more.
g. Paper money would at all times
be at par in market with the most val
liable coin money, whether gold or sill
YER. If the volume of paper issued
We're properly managed it's coin value
would never vary. Nothing but gross
mismanagement by those in control
would ever bring it below par, and in
such case the duty and means of its
restoration to par being instantaneous
it would at once resume it's value.
3. AS no coin would be kept for re-
demption of paper, all gold and silver
money would be in circulation.
4. AS the government assumes no re-
sponsibilty for gold or silver, except
to coin them on the same terms for each,
the silver question would be settled;
or, rather it would be RENTED for
settlement to the nations of the whole
world the proper authorities seeing that
gold and silver are the universal money
OF the world
| ). A uniform system of coinage
| throughout the world would soon fol-
low.
6. Money panics would cease.
The fact that the plan Is known and
known to be practicable; that the gov
! ernment has pledged itself to keep its
paper at par, and that it has at COM
| nand adequate means of keeping Its
pledge, would go long way in inspiring
| and maintaining that public confidence
| in its paper that alone would keep 1t at
| par, provided a reasonable prudence Is
!. exercised as to the amount of paper
issued.