The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1897-08-07
IDEAL MONEY
AS He SEES IT
Professor Ross of Stanford
Gives His Opinion on
the Subject.
Paper Currency Governed by
Intelligence Is the Best hx-
change Medium.
Congressman Mcguire Took Issue
With the Professor and Preferred
Bimetallism.

Foremost among the college professors
who advocated the bimetallic cause dur
ing the last campaign was Professor Ed
ward A. Ross of Stanford University.
He delivered a thoughtful lecture last
night before the Iroquois Club on the
subject, why There Is Money Cues
ton" The remaT kabie thing aboutit was
tn fact that the professor did not advo-
cate bimetallism as the ideal money. but
presented a paper money as the ideal.
which, 10 be of practical value. should be
expanded and contracted by the Govern
ment as the supply OF and demand for the
things purchased varied.
The speaker did not take into account
drouths. use of labor-savlng machinery
the extension of areas of cultivation,
unfinished earnings of the consumers noI
any of the thousand and one causes which
affect the values OF products, but he con-
fined his vision solely to the converse,
namely, the increase and the decrease oil
the purchasing power of money, without
regard to any cause other than the vol
ume of money.
Money lie defined as the medium OF ex-
change aud the measure of the standard
OF vaiue. He said that there was enough
money in the country to transact the
business of the country, but not enough to
transact business at the former level OF
prices. The gold standard furnishes
sound money, but 1t does not possess the
requisite of being invariable. True money
should be invaria ole in value. The value
of com modities varies with supply and
demand. but the possible alteration in the
value OF money itself sh ould be taken in O
account. The volume of business measures
the demand for whatever is used for
money. Any commodity that has an in
dependent demand outsi lie of it's demand
for money cannot possibly be invaria bic.
Those who assert that gold is invarlable
in value would have to assert that there is
no other demand for gold than as money.
Its value depends upon the demand for IL
in the arts and in new mining discoveries.
The speaker then dweit upon the evil
effect of the insta bility in value OF money,
and argued that the appreciation in its
stroying its real value. There was also q
depreciation in the value of credit.
The supply OF gold has no reference to
the demand of 60 d in the arts, which has
increased. All the rich deposits of gold
that were easy to get within the civilized
belt have been explored and worked out.
So long as geology determines how much
gold we shall get it is impossible to have
an invaria BILE standard of value.
Then the speaker asserted that bimetal-
lism was not scientific, but that it was
better than the gold standard. The real
ideal money was paper money, issued by
the Government but the supply should
be regulated by intelligence. It's voIum e
should be contrac acted when it began to APP
preciate and it should be expanded when
values fell so as 10 preserve its equilib-
rum.
The Nation should inaugurate its money
reform without waiting for other nations.
Speeches were also made bv Judge Ma
guire, Max Pepper, United States Immi-
grafton Commissioner Stradley and
others. Congress man Mcguire took issue
with Professor Ross. He believed that
bimetallism should be tried first before
the better thIng-the ideal-should be put
into operation.
The Iroquois thought it was time to go
home after this kick at the ideal