The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1897-07-09

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been upheld not so much by reasoning
in its belief as by cunningly stimulated
doubts as to the efficacy OF the substi-
tute proposed, and by lurid representa-
tons of ruin as sure to follow the rem
edy. Undoubtedly, with large num-
bers Of men, these aroused suspicious
and Fictitious fears viii avail to cause
submission to the existing system I'M
til such time as its rigors shall have
become so intolerable that its victims
are ready to seek relief in what it win
no longer terrorize them to hear called
an experiment"
The believer in the adequacy of the
international treatment must, Of
course, eschew the common adages Of
the gold standard cult, such as: "You
cannot change value by law" you
can't make so cents worth of silver
into a 1OO-cent dollar" 'The value of
gold is independent of statute" etc.
For they are as valid against the BIZ
metallism brought about by interna-
tionaI cooperation as against that
brought about by independent action.
If law per Sc is powerless to affect value,
the law of many nations would be as i'm
potent as the law Of one nation.
Law can, and does daily, affect value
It affects value by getting in operation
forces that act upon the equation of
supply and demand. This principle
essentially true of commodities, is alb
solutely true of basic substances. The
cost of production of bullion bears an
infnitesimal relation to the value of
the full-money coins made out of it..
The sole determinant of the value Of
such money units is the ratio between
the number there is of them and the
demand there is for them. No sophis-
try can elude the demonstration of
this truth. A piece Of money is worth
what 1t costs to get it, not what it costs
to make it. 1t will call for more things
in exchange in proportion as it grows
scarce; and it may grow scarce from
either of two causes: Lessening the
supply Of it while the exchanges to be
performed by it remain the same, or
increasing the exchanges it must per-
form while its supply remains IN
changed. The purchasing power Of
gold has been enhanced by both of
these processes, one operating natural
| ly and the other artifciaily. The
increase In the worlds population,
and the relatively much greater
increase of its exchanges, have
together furnished a natural ex-
/ pansion of the demand for gold out Of
all proportion to its increase in supply;
while contemporaneously Herewith
the nations have been guilty of the in
excusable and unreasonable folly of
artifcially, that is by statute, adding
vastly to that demand by taking away,
in gradual but growing increments,
the power of silver to respond TO the
practically Hmitless money demand,
and imposing this magnifed burden
on the gold alone. Prior to 1873 not
100000 of people were using gold
alone for fuIl-power money. To-day, to
use Bismarek's expressive metaphor,
the number engaged in Juggling at the
gold blanket and trying to make it
cover them is more than 4OO,0OO,OOG.
That gold and silver are in some of
their forms commodities and subject to
a demand for use as such, has occa-
stoned much of the muddy thinking on
monetary matters. The fact is that in
considering these metals when used as
money, we must practically neglect
their commodity aspect. As commodi-
ties. gold and silver are fitted by their
/ physical and chemical properties for
certain purposes, and are necessary
thereto, and win be so employed no mat
ter what they may cost. There are
some other uses where their cost un-
donbtedly qualities the extent of their
4 consumption. In the great field Of or
Gamentation, decoration and display,
however, it is safe to say that their en-
/ ployment viii rather increase than
otherwise in proportion as they become
costlier. There their dearness is their
chief charm. If gold were as plentiful
as iron, a very few rich mems tables
| would groan under the weight Of gold
service and watches and bracelets Of
| gold would be replaced with objects Of
more precious material. Take away
from gold to-day its use as money, and
a man would not have to be a moral
/ philosopher to hold it as "drOss." With
at least 20 years supply. for all other
/ purposes, on hand it would become
veritable drug in the market.
The demand for money has some
/ times been called an "unlimitsd de
mand,n an expression that mas come il
! for no small share ef the ridicule Of tn,
/ advocates Of gold. And yet the phrase
enb0dies an almost literal truth. Sine'
/ the economic demand for any com
modify is a desire for it by some oa'
J ready tc exchange an equivalent, ans
sincs the instrument Of exchanging
/ commodities IS money, we nag truly
+ say thas the demand for money is pFae
tieailY equal TO the demand Tor ali othei
things togethers and since eoH1aoet
ties wiz always be exchanged rs iont
Is human wants reEsain lEsatisfel, an.
the imagination can set pe bounds Z
human necessities and desires, i lslas
BE Claimed sEish close zppfo1ca Z
Eeienti55 sSsc5sess tnes the de-aa.5l. e.