The times. [volume] (Richmond, Va.) 1890-1903, 1896-08-16
0Oy. CAN'T CREATE MONEY
Mr, j. 8. Moore Makes a Convincing Reply
to X. X. Il.
Editor OF Tho Times:

"a. 'R. Is. F." takes issue with me in
saving. "Goyernmenp cannot create
money" In reply. I beg to say mat
when the government can create money
then. indeed. will the mandate that went
,orth from God himself be revoked, that
''In the sweat OF thy face shat thou
eat thy bread, then truly will be realized
that deiusion of modern utopiamsW- ,he
dream Of tho Pcpulist-and man can i've
wfthou labor and we can cry Eureka
the philosophers stone will have been dis
covered, and we can all dwell each under
his own vine and hg-tree, In land how-
ing with milk and honey.
Whas Is money? II IL simply medium
OF exchange or a measure OF values-an
agent for the transfer Of products or com
modities. -.
In the early stages Of society cattle were
used lead was used as money ny the
Roman. tin by the Mexicans, iron by the
LacedacmOnians, and copper was used IN
the Middle Ages-these then pre-
cous" metals, were originally used
I'm bars which had 10 be
their values: hence this labor and incon-
venienco necessitated its being coined ana
stamped by some public authority. 10
make exchanges legitimate and convent
ent-money, then, Is the result. the es-
bv God and dug from the bowels or the
earth by man, TO be utilized as n medium
OF exchange for use IN the arts and ior
domestic purposes. Its use as money by
man is 10 facilitate exchanges fer such
commodities as his fancy suggests, or his
necessities may require. and the govern
rncnt simply stamps the value OF The
metal that custom, and not the mandate
OF authority. desIgnates as the specific
product that shall pass exclusively as
money. II is the privilege. the preroga-
tive. the duty. OF government 70 do this.
II government can create money by her
fiat, her ipse dixit,. she can make 10 dit
Of lead or paper as well as out or
silver and gold. II government can give
an epfrinsi0 value 10 that Wnlcn
possesses no value then II can
AM should create enough money
say a million per capita-and make all OF
her citizens wealthy. and drive poverty
and suffering from her borders. and the
problem or how 70 live without work
will have been successfully and happily
solvedl Lot US carefully confine ourselves
20 the economical aspects Of the question.
II is a well-established principle IN econo-
mic science that eX nihilo
nitril fit. and that involution
cannot exceed evolution: values
cannot impart an extrinsic worth 70 that
power alone abdes IN Deity. Government
cannot impart an intrinsic worth 10 that
which has no inherent value. "R. 3. F."
has COMPOUNDED create with coinage-one
Of them IS the prerogative OF Deity, the
other the function Of government.
IL IS true that. II YOU destroy the stamp
on gold coin, you can compel no one 70
take il IN n payment for debt" but II
money, or the substance that composes
money-the medium CT exchange, pos
sesses those intrinsic properties recog-
nized and sanctioned b. custom. Il will
circulate upon It's own merits. Voluntarily;
IN ounce OF gold has a standard value.
,oined or uncoined. and any one will will
ingly take 10 IN exchange for c0mmodf
ties he wishes 20 exchange fcr other
commodities. through this medium, or IN
liquidation Of debt.
The coinage and stamp 81 IS true, adds
n the value OF the metal coined, 70 this
extent: 4 nugget Of gold minted into dol
lars. IS better than an equal weight or
bullion. Of like standard because IL saves
the trouble 81 assaying and weighing y
by the owner. and IS more portable.
Tho "big difference. the stamp oi the
government makes" as only giving legal
sanction. 70 what custom and commercial
usage establishes and requires'
Does 'R. b. T." believe that If govern
mcnt. uusancti0ned by custom or COM
nercial value. were TO stamp d penny =
worth OF lead a dollar that the govern
uirut STAMP wouU thereby create q dOllarY
Does be imagine that the fiat of government
could impart this eXtrinsic value 10 TINS
metal. that possesses only inherent worth
of one hundredeth part Of thertisity, ana
that is stamped upon its facef TO ask
this question Is 20 answer 10. And, yet
II government has creative powers. She
fn d
Economy, states that money would Doe "a
mere sign or representative had 1t no
intrinsic value Of IT'S own; but. on the
contrary. whenever DO is employed IN
sale or purchase, its intrinsic value
alone IS considered" He says again that
"to cradle money 10 execute It's function
Il must OF necessity be- possessed or I'M
herent and positive value; for no man
will bo content 10 resign an object pos
sesscd Of value Tor another Of less value
ar none at all"
Professor Bowen says money is THAT
which measures value, and must have
value itself"
These are the elementary princples-the
functions of money. The elements OF
money must be OF such material as to be
generally acceptable. and Professor Wal
ker lays down this wise dicum. THAT
the perfect form OF money would be one
which the creditor would be as DESTROYS
OF using as the debtor could wish him
20 be- and thus the element OF comDui-
sion would become entirely inconsequen-
tial."
"R. u. r." is in error when he says
"the silver now I'm circulation was put
ont hy the Bland law in ISIS. and by the
Sherman law Of 1890" There has been
coinal by the government. since its foun-
fation. s59f5l3G-O silvcr-0f this sum S2Z2.
5Sj s2l. or over one third. was coined be-
fore ISIS without any Opposition from the
gold-men."
"R. j. +" says that from 1878 "a 1878
silver was only coined into subsidiary
money-1O q, and 5O-cent pieces.
The fourth edition OF the coinage laws
OF the government shows that IN 1873. In
addition 10 tho subsidiary coins. there
was coined also 1850 silver dollars, full
legalteudcrs, and IN 1875 22+95.E0 silver
d0'ars-full legal-tenders. OF the 500.
5sJ e2i coined before 1873 II Is safe 10 sa.
that half had been used in the arts and
was ont OF existence as circulating me-
dunn. so that from 1873 10 1896 the en0r-
nous sum OF Sfll .927.729 in silver was
coined. causing distrust and producing the
conditions that now exist-losa Of conf
dence etc II the coinage OF this sum has
been so disastrous. why want mere?
What will be the result. tho condition. n
we have free coinage2 n this Is the status
I'm the green leaf. what will IL be in the
dry?
"R p. F. SAYS Notwithstanding the