The Democrat. (Scotland Neck, Halifax Co., N.C.) 1884-1896, 1896-04-23

vent their serving all the requirements
Of exchange. a money of superior con-
venience IL a greater necessity to com
rnerce than money of absolute infrln-
sic value
Primary money or money Of intrinsic
value j. comparatively little used The
business IF the world IS practically done
ca paper Banks are but corporations, +
their drafts being based as much upon F
the checks If individuals, firms and
manufacturing and mercantile corpora
tons as Oh currency.
The check Of an individual firm or
corporation passes current not 50 much +.
upon general knowledge q the bank ac-
count az up0n the knowledge of the
whole wealth Of the issuing party,
which in morals and law is guarantee
Of the payment Of the check.
The fiat dollars Of the government
are not taken nhesitatin2ly at par be-
cause Of a knowledge that there IS IN
the treasury gold, dollar for dollar Ev-
erv one knows that there IS not 81 III
gold III the treasury for every SO Of the
governments promises to pay. All
know, however, that there Is behind ev-
cry fiat dollar Of the government the Ell
tire wealth Of the nation.
The powers Of taxation Of the govern
ment are unlimited. 1t can take from
one and all within its territory their last
atom Of property, if necessary to re
deem its promises TO pay. That tact,
and not the comparative paltry amount
Of gold and silver stored IN the treasury,
is what keeps the government s promises
to pay at par. In this respect 1t Is no
different from an individual A man s
checks and pronissory notes remain at
par so long as it is known that his total
wealth, not his bank account merely,
exceeds them IL amount.
AS to the actual value Of paper money,
! it makes no difference whether it is sus-
tanned by individual or governmental
4 fiat The test is the real wealth that Is
/ its guarantee. That the government fiat
i is the better and more desirable IS be-
/ cause the governments wealth IS the
greater and its amount is more accurate
~ and universally known. This latter
is what inspires the necessary confidence
that makes 1t acceptable.
This matter Of confidence is the weak
feature in all fiat money systems. Be
fore postofflces and post roads, ships and
railways, tclagraphs and telephones, the
means Of communication were go SLOW
that dynasties We're overturned weeks
before the remote portions of the empire
knew that new emperors ruled. Banks
failed, and it was months afterward be-
fore their bills became worthless III dis
tant provinces Hardness in the dis
semination Of intelligence created mis-
trust III the value Of all money that did
not carry its real value within itself.
Coin consequently has attained firm
position IN the commercial world as the
only safe money. It's inconvenience,
however, prevents its becoming the only
money It is, III truth, but final money.
1t is not Il circulating medium in the
large or the popular transactions OF COM
merce. The subsidiary silver, nickel and
copper coins are the only mintings that
freely circulate Silver dollars arc too
large and heavy. Gold coins are too
scarce.
Final settlements between large fDan-
cial houses and between governments
are effected in bullion. You deposit III
any Of the large banks or with the
treasury OF any nation a quantity of gold
coin, and you are credited with its
weight value only. This was once true
Of silver coin also 1t would still be tue
had not the fat in a silver dollar become
50 large portion Of its stamped value
that any deficiency in weight is now Of
no more consequence than would be a
deficiency ii the weight OF paper in d
treasury note.
Nov, if coin is bat final money, and
g, such it is treated only as bullion,
what is the sense Of coming it? Why not
have the government stamp each brick,
pig or ingot presented with its weight
and purity simply? # the party present
ing the bullion desires to store it with
the government and wants a ulating
medium CT certificate of deposit in ex-
change, give it to him. The government
treasury, as far as gold is concerned, is
but q warehouse, for 1t takes it III and
pays it out as bullion value.
The governments gold warehouse
certificate would pass as current as the
bullion itself, as the bullion could al
ways be secured when it was desired.
Treat silver the same as gold. Accept
all that Is offered, stamp its weight anc
fineness upon it, and issue warehouse
certificates against it.
Make one class of these certificates
legal tender. 1t makes no particular
difference which. This would change
) the money nomenclature, but names arc
only COnyenl2nces. We would not have
dollars and fractions thereon, but The
unit would be q grain and its IN ultlpliers
Hence transactions would be made il
grains Of gold, or according to tn,
metric weight system. An individual
) promissorv note would read "Thirty
! days from date | promise TO pay JOIN
Doe 1000 grains of gold Cor 500, OOl
grains Of silver, if silver is made TIL,
standard), with interest at 6 per cen
: per annum. Value received. : Prices O
( all articles would be reckoned in grain
i instead of cents
, The fluctuation III the market valu,
Of the metals is as we'll provided for il
this proposed system as now and a
F., we'll as 1t is possible for man to pro
9 vide When you agree to pay s. now
S yon really agree to pay SO many grain
: Of gold or Of silver, and the paymen
5 IS 50 made for if you liGuidate the in
5 debtedness with a treasury bill tn
3 payee can step into the nearest bank ane
5 secure his gold or silver coin which con
Q talns the requisite grains Of bullion.
The unlimited use of each metal AM