The Indianapolis journal., 1896-07-28


Money" said one of the locally active
men in the silver movement. ''is what we
buy things with" There have been better
definitions given and many worse ones. 1t
is chiefly for the reason that we can buy
every commodity with money that ii is
so desirable. 1t is a measure of values in
everything else and medium of exchange;
but it is because it is a compact and di-
visible medium of exchange that all ra-
has a purse of coin of various denomina-
tions or its representatives in paper can
purchase whatever he desires to the limit
of his holding. If he had the same value
in bread. meat cloth. shoes or any one of
the thousand articles which are necessary
to satisfy the wants of civilized beings,
and desired to exchange his commodity
for that of another. he would find the ut
most difficulty in 50 doing. The man who
possesses the shoes which the owner of
the wheat desires may not want wheat, or
the man who has wheat may not need the
meat which the butcher is anxious to ex-
change for bread. But under ordinary
conditions there are always those who
need bread. meat. shoes. etc. even If the
man who has one OF these articles does
not desire the commodity the other.
AS peoples have risen in the scale of CIV
ilization and the wants and desires of the
individuals have become more numerous.
methods of exchange have been devised
and improved Barter through middlemen
was an early method of exchange. The
trader exchanged his stock of store goods
for the staples of the country, which he
took to the market and disposed of so as
TO pay for his merchandise. In the early
days of Indiana that was the system. but
the dollar always the measure of
value. The merchant took hogs and wheat
at given number of cents per pound or
bushel. and his store goods were charged
to him in the same common measure of
value.
AS the country was developed and d.
were planted. the barter system was
found cumbersome and generally unsats-
factory. A manufacturing company might
pay employees in general merchandise If
their wants were few but with good
wages their wants have become so numer-
Gus that no one retailing establishment
could supply the demand. Besides. there
being no opportunity for competition in
trade under such a system, employees came
to be charged more than a fair market
price for merchandise. The next move
ment was to secure the payment OF all
wages and for all commodities in money.
Its advantage Is that 1t is convenient
medium of exchange. 1t is convenient be-
cause. first. ii can be readily exchanged
for any commodity. and. second. because
of Its divisibility. If money consisted of
five-dollar notes or pieces it would be less
desirable because IL would not be "A con-
venient medium of exchange i'm the retail
trade but. being divided into cents FIVE
cent pieces. dimes. etc. ii can be ex-
changed for the smallest quantities OF
commodities in tie market
There Is a very generally and equally
false impression that an abundance of
money will insure a greater demand for
merchandise at better prices. So far as
the prices are concerned. a redundancy of
irredeemable paper will enhance prices. 1t
Is mistake. howfyer.s to assume that a
large volume OF hiohey in country VIII