The midland journal. (Rising Sun, Md.) 1885-1947, 1896-04-17
New Light ON the Honey Question.

New Light ON Ine IlOney question:.
There is a principle coming to light on
the money question not heretofore detect
ed. That principle in finance is that
quality has nothing at all to do with
money but quantity everything. The fact
that the silver using countries are bring
ing their products to this and other gold
standard countries and selling them for
one-half their nominal price in gold, or
its equivalent, which they exchange for
silver, and by that exchange at once
double the number of dollars the articles
were sold for is revelation.
This practical demonstration of the
philosophy is casting new light on the
money question which knocks the bottom
entirely out ofthe gold basis sound money
philosophy which has been and is being
preached by the wealthy class and traders
in money. The fact that the Japanese
can sell bicycle in this country for $12
and that 81 is Immediately advanced in
Japan to $24 and that no American or
European manufacturer can possibly
compete with the Japanese manufacturer,
is evidence Strong as proofs from holy
writ" that the power of money as factor
in trade and industry is not derived from
its commercial value, but that business is
entirely influenced by the quantity of
money, the number of dollars actively
employed in conducting that business.
Our manufacturers cannot make a
bicycle for $I2 iu gold and sell it in
Japan for $24 in their money and live. II
the money action of gold was the same as
its commercial value they could. This
seems difficult to reconcile, but demon
strated facts bear down and override
every argument which can be produced
to sustain the contrary.
The Japanese could not exchange their
commodities in this country for any other
commodity than silver and succeed, be-
cause no other commodity is convertible
into money. Silver being convertible
into money in Japan, the price of their
bicycles or any other of their manufac-
value by the action of their mint convert
ing it into money.
During the rebellion and twelve years
after, when gold money was at premium
over greenbacks as high as one hundred
and fifty per cent sometimes, business
was more prosperous in all lines than it
has ever been since. People in produc-
tive industry would not use gold money.
They Immediately sold it as they sold
merchadise, for greenbacks. Why did
they do this and refuse to use gold money?
Simply because gold dollar has no more
power as tool of trade or productive
business than any other dollar, provided
the money is legal ten1er.
Bank credit is without legal tender
power and constantly breaks down, bursts
like bubble as soon as it reaches the
point of imitation. Government credit
would not break down because it would
possess legal tender power.
1t was the quantity of money from 1862
till the power of contraction was felt that
made business of all kinds so prosperous.
Our manufacturers did not complain of
foreign importations. They rose above
foreign competition because the hands of
industry were filled with cash and their
goods were purchased and consumed by
the people. A gold dollar will purchase
two or three times as much of their goods
now as the greenback would in its palny
days. Why are they not prospecting as
they were then if it is the great commod-
ity value, the Sound money" that has
the power to energise business?
1t is the "a silver dollars in Japan
which beaS the l. gold dollars in this and
every other gold standard country, as the
$2.5 so in greenbacks drove from use the
gold dollar in the COS. The effect on
commerce, trade, business was like har-
Messing FIVE horses to a load in place of
two. 1t was five dollars in greenbacks
against two in gold, and the five handled
two and a-half times more business. It is
the same at present in Japan. They can
conduct more business with "a silver dol
lars than the Americans can with IL of
gold. A gold dollar will not transact one
particle more business than silver dol
lar. If fair and repeated tests have ever
established fact this fact has been estab.
lished without single failure.