The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-02-26
THE PHILOSOPHY OF MONEY.
A Clear Presentation Of the Question.

cussing the question of money a per-
son has the right to resort to any of the
fundamental rules Of philosophy. They
seem to think that the term philosophy,
plainly considered, Is only to be used
in the law OF mechanics, or Is to be con-
fined strictly to the sciences Let us deny
this proposition aud discuss the money
question from a purely philosophers!
point Of view.
In the first place let us inquire into
the value Of money, and the several causes
which combine to make one form Of
money more valuable than another. l as
sert, and / am sure no one will dispute
the proposition that the demand for any
particular metal, whether it be in the
form Of money or not, IS what gives the
metal it's true value. Surprising that gold
is used exclusively in the arts, X is s!mp-
ly an object Of barter and trade, and it's
price will be controlled by the amount
required for such use. II there be sur
plus, Its price will be fixed at the lowest
point because the holders of the surplus
will be seeking market for their metal.
If there be not enough to supply the wants
Of trade the price will be greatly enhanced
because spectators will be found hoard
ing their product in anticipation of an adj
will wait for the lowest price when there
is a surplus Now, supposing the gov
eminent provides for the free and unlm-
tied coinage of gold, at fixed price, or
on a fixed basis, there is at once an unlim-
tied demand for the gold created, while
there is only a limited supply, and there
is an additional value of the gold Gre
ated, and we have now two values,
namely, the value Of the gold as a medium
OF use in the arts. as a value OF the metal
to that established by law.
Under the present conditions the mar
ket price of gold can never be affected by
the law of supply and demand, except
only in one way, and this will be cOnsid-
cred hereafter, because certain number
of grains of gold constitute dollar, and
this is the unit or measure of value.
Hence, it follows, that the value of the
gold is measured by itself, and such a
condition as gold at a premium Is prac-
t,cally impossible, unless we consider the
purchasing power of gold as controlled by
the law of supply and demand. Suppos-
ing that the supply of gold becomes en-
tirely exhausted, or that it becomes as
plentiful as lead what then?
We hear it often remarked, by the op-
ponents of free silver coinage, that it
would be crime to coin so cents worth of
silver into dollar and pass It off as an
honest dollar. This is because such OPP
ponents of silver do not understand the
first principles of philosophy. They do
not stop to consider that the free coinage
of gold is open to the same objection, or
they do not take into consideration the
process whereby the free coinage of gold
was brought about, and the two specific
demands for its use that combined to
give 1t its present value Let us see
what simple proposition is contained
in this suggestion of the free and unlim-
tied coinage of silver and gold.
In the first place silver is no longer
used for coinage purposes, and it's price
is controlled exclusively by the demand
for it's use in the arts. Now let us create
another demand for it, an unlimited de-
mand, and coin it into money on an exact
equality with gold, at "a fixed ratio with
gold; and we have right to assume that
this new demand for it's use will cause its
price to advance until it reaches the ratio
with gold which the law has established.
We reach this conclusion by suppos:ng
that it's demand as commodity, and its
demand as a medium of coinage. will
both combine to enhance it's price to that
fixed by law.
Let us consider the proposition, so Of
ten heard, of a cheap dollar. Surprising,
as l said before, that gold becomes as
plentiful as lead. We are still paying
the same price for it, there are still the
same number OF grains in dollar, and we
do not find the market price decreasing
in any way because the gold is measured
by itself and there can be no visible
change in the market price. Still, we
would find that the price had actually
fallen by observing the price of all COM
modit.es. Gold would become so plenti-
full that 1t would require several pounds
of 1t to buy a bushel Of wheat The value.
of all other commodities would be affected
In the same way and we would witness the
spectacle of five cent dollars. In other
words gold would become practically
worthless as a money metal In like
manner if the supply of gold became
scarce the price of commodities would
90 down, 0r the purchasing power of the
gold dollar would be increased.
BY following the plain rules Of philos-
ophy we may he enabled to point out
such objections to any single standard
that the very idea of it becomes obnox-
ious to intelligent men. In the first
place, this unnatural demand for gold
will, In time, stipulate its production to
such an extent that it will become prac-
tica[ly worthless as a money metal, un-
less the supply becomes exhausted. In
proof of this statement we need only
point to the increased production of gold
during the past two or three years. At
the present time this increased produc-
ton OF gold has not caused any alarm:
but as the supply increases, Gin the same
ratio as that of its present production,
the time will soon come when nations
will begin to regard it as cheap metal
and then we will witness the spectacle
of the money changers getting control
OF the silver, and when honest men
speak of coming both silver and gold on
fixed ratio the same Old crowd will be
found ridiculing the idea of putting fifty
cents woth of gold into dollar to cheat
the people with.
Bimetallism simply means that we
shall coin both metals on an exact equal
ity, and maintain them on parity with
each other. John G. Carlisle seems to
think that the only way to maintain both
metals on parity is to use gold exclu-
sively for redemption purposes, and let
silver take care of itself. A person with
an ounce Of brains, or I would say a.
grain of honesty. ought to know better.
BY making a favorite of one metal and
discriminating against the other, we can
never keep them on a parity. AS well
might we say that by keeping one child
in school and the other in the workshop.
their education ought to be complete.
and their fitness to combat with the
practical and scientific questions of life