The herald., 1897-11-23
TUESDAY, NOVEMBER 23, 1907.
NICKELS VERSUS GOLD

"A correspondent Of the Evening Ex-
press. signing himself 1T. S. d." seems
to be somewhat perturbed over an edi-
torial article that appeared in The Herald
the other day under the caption What
Makes Money!" This correspondent
frankly admits that he does not attempt
to. answer our article, "for surely no
man can do that" he says; but he wants
to know what manner of belief they
have around at the Herald office. He
thinks it must be a mixture Of Chicago
democracy and greenbackism. Then he
takes up the case Of the humble nickel
previously discussed in our articlel and
shows that it passes current only be-
cause it is redeemable in sums Of % cents
and ultimately convertible into gold.
. We need trace his argument no fur
ther. 1t is the argument of all the single
standard people, that gold is the ultima
Thule Of worth--the sole refuge of all the
nations when they want to trace thing
to it's real intrinsic value. People who
argue in this way get the horse,
Cause, hitched behind the cart, Effect,
and they drive in so small a circle that
they never can tell which goes first.
Why are nickels and all forms of SUBJ
sidiary and representative money re-
deemable ultimately in gold? Simply
because by law gold is given a fixed
standard of value and an unlimited coin
age at that value. Gold enjoys this pres
tige as the result of fiat-the fiat Of
practically al the commercial nations
of the earth.
1t is within the memory of the pres
ent generation that silver enjoyed the
same prestige as gold. the only differ
ence being in ratio. During that epoch
"T. S. D." nickels and all other forms of
representative money We're finally re-
deemable in either silver or gold COIN
But silver has been thrown down from
its commanding position as a redemp-
ton metal. And what does this prove?
Simply that it's coinage value was not
intrinsic but arbitrary. 1t was the re-
suit Of general fiat. The nations gave
and the nations could and did take
away
Suppose the same thing should hap
pen to gold. No man can foresee the de-
velopment of the future. Children now
living may see diamonds going at four
bits the peck. Many Of our artificial, val
ues sanctified by the customs of ages are
liable to be swept away once they get
started. And the downfall of silver has
started them.
Intrinscally-for its use in the arts
for actual service in the domestic life
of man-gold probably has no higher
value than silver; certainly not so high
as iron.
Thus, il this matter of a REDEMPTION
coin is to be reduced to real intrinsic
value sold may have to go by the board,
and take it's place alongside of silver.
nickel and iron. The one thing that
would hasten this result more than any,
thing else would be the discovery of gold
In vast quantities-so vast as to make
gold cheap and plentiful. No man can
say with absolute certainty that we are
not now on the verge of such discoveries.
Then, if the whirligig of time should
bring about the decentralization of gold,
what would the world do for a redemp-
tion medium? Why it would simply
be forced back upon the primary idea of
money. If we go to the political econ
mists they tell us that money is a rep
,regentativc Of vuuc a medium of eX-
change" Money is not defined as val
ne in itself or an exchange in itself, but
the medium Of one. the representative Of
the other.