Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1896-08-14

other land. and is there doing money
duty. Il one metal goes out me otaer
comes ia until the level is reached again.
However much the proportions or TIE
two metals may change n any country
the total of both in all lands determines
the level cf prices. and is the measure OF
values. We had silver prior 10 1884
because our ratio W-s - 70 l, while that
Of France was 1872 to l. After we low
cred the ratio 10 is TO I. in 1894, silver
was worth more in France than 1t was
here. Bu, ;he silver that went 10
France relieved an equal quantity Of
sold from money day there. and we got
the gold. The total Of gold and silver
money was not changed by the opera
ton. B:metallsm, in this respect, has
b5en Ikened TO man who employs,
though he never rests equally on both.
B.metalliSm is like the compensatnS
MEAL pendulum; the contraction Of one
part is compensated by the expansion Of
the ot6er preserving the uniformity of
the whole.
The mistake Of surprising that gold
has intrinsic value is very common. and
leads to numerous wrong conclusions.
Tae intrinsic qualities Of gold may be
such as to make il h.ghly useful. but lis
value will depend upon the relation Of
the supply to The demand. Such a thing
rs intrinsic value Is impossible If the
value is intrinsic. Il must be at all times
The same. Value is q relation. and does
not reside in the commodity, hence can
not be intrinsic Upon this point the
authorities are agreed. Professor JevCns
says: "There is no such thinC as in
trinsic value According to Professor
Macleod: 1T is Of the first importance
unhappy phrase intrinsic value which
is clearly shown TO be q contradiction in
terms" Professor LaUChlir. OF the
University Of Chicago falls into this
error in Facts About Money" Tn his
condemnation Of The silver dollar he
credits it with hut Gfty-one cents in Gin
trinslc value" in 1895, though he else
where admits that il had more than one
hundred cents in Intrinsic value" n
1873. IS there had been absolutely no
change in the amount or quality Of s.l-
Yer in The dollar. If worth in.rinsicGly
one hundred cents in 1878. It could be
worth ntr.nsically no less in 1895.
The prevalent idea, therefore, that the
value % gold is Intrinsic and never
changes. has no founda on in fact. Gold
as a metal fuc-uates in value the same
rs other commodities. As money il is.
, Of course, always equal to itself. hence
the idea That Il does not change; but as
compared with che supply of ccmmodi-
ties agains, which IL is p.tced, it IS con-
sian.ly changing in ratio, and hence N
value. i mus be understood that the
stability Of the value Of money. that is.
uniformity in purchasing power. is de-
/ lerm'rod by the general level Of prices.
If prices change frequently. or tend for
long period in one direction. it is con-
elusive evidence that TIE value Cf money
is changing. The quantity Of money
should keep pace with the sun1lv Of
commodities, the ratio between them be-
inE at ell times the same. IF the uuan-
/ tity of money does no increase with
the Increasing demands UD0n r. by Ieo-
son o, growth Of population and ext5Q-
sion IN buinesS, the value of money an
preci2tes: IN other words. money COM
mand5 more commodities than before.
A like effect follows a decrease in .he
quantity Of money, the demand for It
remaining the same. The effec, is no.
TED in fall OF prices. 4 relative scar
city Of money cannot be seen and hlt as
can 2 scarcity Of a commodity. and f. IS
therefore overlooked. The coins being
always The same. it is assumed that Their
value is unchanged. Tt is this scarcity
of primary money. and the resulting FILL
of prices, OF which the opponents of the
gold standard complain. Tt IS. in fact.
tie ground Of their demand for The re-
mOnetzatiOn Of silver.