The times. [volume] (Richmond, Va.) 1890-1903, 1896-09-04
SOME QUESTIONS ANSWERED,


We print elsewhere a letter signed
plain Citizens" which puts TO Us rins
questions. which We shall answer IN the
order Ia which they are asked:
First What is mesnt by the per capt.
IA Of money may DO one thing with one
man and another with smother. The
usual sense ia which the term is used
includes all the CON and circulating
notes in a country. whether part Of them
are locked up in banks Of other vaults, or
whether they are not.
Second IL is not true that the amount
in this country than there ever were IN
contrary. from 1890 10 this time. there
has been moro coin and circulating nole s
in this country than there were oven In
any six years before, and there is about
as much to-day as in any of-the last six
years.
Third. plain Citizens" have totally
1nisapprehauded the source Of moneys
value. A money metal IS not valuable
because men have agreed amongst them
selves that they Will take # according
to the value that has been stamped upoa
IL. This view OF the case puts the cart
before the horse.
The value OF the money metal depends
upon exactly tho same influences as the
value of the shoes The value Of the shoes
depcnds upon the labor required 10 pro-
duce them. as affected by the demand for
shoes. The value OF the money metal
depends upon the labor necessary 10
dig fl out Of the earth as affected by the
demand for il. The demand for both
shoes and gold being good, If it takes
workman one day TO produce par cI
shoes and another workman one day u
dig out TWO gold dollars, the shoes Will
be worth the two gold dollars and the
two gold dollars will be worth the shoes.
The only advantage Of the governments
, stamp on the coin is to be conclusive
proof to all men that given coin con
tains a certain amount OF pure metal
Fourth. plain Ciuzens' overiooks what
Is the eist of this whole matter The
businss Of the day is not done by ex-
changing money for commodities. 1t Is
done by transferring upon the books OF the
banks the credit values Of commodities.
1t has been asccrtaned that more than
% per cent of the tran.actions Of bust
re,s are done 10y transfers OF credits upon
Ia. books OF banks and less than pr
cent: by delivering money in exchange
for goods.
A very small sum Of actual money VIII
serve as the basis for an indefinite sum
Of their credits Great Britain, for in
stance. has less than SS,0o000oo OF gold
CON and no silver except a small 'r.o>nt
for change. and all her money coin and
circulating notes. amounts to less than
500 ooO 600. while ours amounts 70 nearly
g 500 100000 Yet Great Britain owns T.
900 600 tons Of the shipping Of the world
ont n a ooO. 900 OF tons. and she does more
than half the business done ~ the whole
world. She does II by the use Of credits
that rests upon her :2OooooOoo Of gold such
&C checks and bills Of exchange and
notes
..taain citizens" ought 70 see. therefore,
that there may be very small coinage OF
those "conveniences, and yet the credit
substitutes Tor money with which busi-
ness IS now done may furnish an 2ound-
ance OF "conyeniences." What IS wanted
e. q fixed standard Of value and absolute
certainty that It will not be tempered
with by injecting into II fake standards
ike silver dollars that are worth only
nftv cents each. Confidence is the thing
wanted. aad when that Is complete the
banks and the merchants will furnish an
abundance OF The credit substitutes for
money. which are just as effective for
! business az coined money. This makes
the per pita whatever Is needed
Fifth. The foregoing answer is a com
plete answer 10 this question.
sixth. There is no necessity for another
metal. The gold that we have is sbund-
ant for all the Purposes OF nioney-rhat IS,
the backing for the credits with which
business is done and me-, thus have the
choice Of the money metal they will use.
IL takes thirty one times as much weight
OF silver to be as valuable as a given
piece OF rod. No man is going 20 carry
a piece OF meta, thrty-one times as heavy
as another piece II he can carry the same
value In the lighter piece. Blmetallsm
never has operated successfully yet, and
II never can. The cheaper metal always
has driven the other out Of circulation.
and II always viii.
Seventh. plain Citizens" assume a care
that does not and cannot exist. and 1t
need not therefore. be discussed
Eighth. We never have had bimets llis SIN
| In this country, The cheaper metal has