The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-24
sIN\TOE DANIEL ON MONEY.

senator Daniels speech at the Acad-
c,ov shows that he does not understand
the principles OF finance. lie does
,.ot know what money IN the abstract
IT, and what part it performs in the
affairs of men. An actual gold "tl"r
docs no more than compare itself with
n commodity. and assertion Heat 1t con-
taius the same amount of stored labor
chat the dollar contains. and having
lone the same with another commodity
il has established basis upon when
the t,so may be exchanged. That IS
81 aecortains that there is the same stored
labor in bushol Of wheat as in itself
and in two bushels Of corn as I'm ITSELF
ana This being done. we thereafter OK
change ono bushol Of wheat for two BUSH
els Of corn by saying each is worth one
dollar. we do not do business by CIV
ing dollar for bushcl of wheat sell
,,., the wheat Tor a dollar, and BUY
,,,. two bushels Of corn for it. We OK
change the two commodities by swap
ring checks az bank for the credit values
~ tho two. That foundation idea has
never vet found a Judgment in Senator
Daniels mind, and so he goes on crop
inc from one error to- another, all based
,,.,o, fine foundation error mat tie
hne,ness Of the country is done with
r,rrcv instead Of by exchanging the
credit values Of commodities. lie SAID
for instance:
AS money is diminished its value Is
enhanced. and the quantity has peeh 80
much diminished that sufficient cannot
be obtained to pay off mortgages ana puy
the necessities of life
This was another form Of stating his
oponing proposition about the gold stand
ard being a case Of Europe and America
living on cot big enough for only one,
with a very narrow blanket over them.
When Europe got cold, she pulled the
blanket her way and left America 10
freeze.
But we don't pay mortgages OF with
gold dollars, and when Europe pulls
the blanket her way, no power under the
sun can prevent her leaving us all Of It
chat is necessary TO keep us under
cover.
We nav MORTGAGES by checks on credits.
II is true that II a farmer keeps no bank
account. and ne sells his wheat for actual
cash. ne can take that cash and pay of
his mortgage. But. as an actual fact,
not one mortgage i'm one hundred is paid
in that way. The farmer sends his
wheat TO a commission mere lant, who
soils it and is paid with a check; ne
deposits that check in bank, and sends
the farmer his check. and the farmer
endorses that check over to his creditor
in paynont Of the mortgage. Tic sub
stance Of this is that the farmer PAY 6
his debt with his wheat-the fruit of his
labor-which has been put into the form,
not Of money but Of those mercantile
credits with which the business Of the
country is done.
The same lire Of argument applies
TO the case Of the cot and the blanket.
| Europe and this country exchange labor
products, and when the balance is
struck we find we have taken more Of
hers than she has taken Of ours, and we
pay her the excess with actual gold
coin. But we are no poorer for this.
We have the coins worth that we took
from her in its place, which becomes a
basis for the mercantile credits with
which we do our business, and we have
q great surplus OF tho gold coin over
the comparatively small sum we sent
her that goes on serving as the basis
for all Of the mercantile credits we need
/ for our business.
But Senator Daniel has never admitted
this idea TO his mind. and he will so
or preaching his fallacics of business
being conducted with coin and circulat-
ing notes to the end. We suppose.