The times. [volume] (Richmond, Va.) 1890-1903, 1897-11-30
ONLY SOURCE OF VALUE
OFP4PER MONEY II THE PROPER
TY WHICH 1T REPRESENTS
Money Itself Merely An Instrument for
the Performance OF Business
Operations.

WASHINGTON. ID. c.. Nov. 2s.-Speciai.
4 clear-cut exposition OF the principles
unon which a sound currency should
rest is embodied in the communicate"
Of Mr.. Jacob L. Greene, president oil the
Connecticut Mutual Life Insurance COM
many of Hartford, Conn, to the None
tsrv Commission. The principles whlch
Mr.. Greene lays down are those "h'ch
are familiar to students of political econ
omv hut are often neglected by poliu-
cione and the public. They have at
tractod much attention from the mem
hers Of the Commission, because OF tno
ciearness and force with which they are
expressed. 20 n ,,,,,or
currency lies i'm the property Whlcn II
represents and that the present haIsohal
hank notes and greenbacl are ho' tmo
olrtgrOwth of trade, correspond 10 no,.
of its needs. and are not lrus Nicut'
currency. Mr.. Greene discusses ,"J sd
nor method of securing a currency pascu
ilnon the commercial credit or the CouIl-
trv and urges that the whole monetary
opestion should be taken out OF the 40
main Of partisan politics.
ONLY SOURCE OF VAIL r..
10 declares at the outset thdt the pr.
mary characteristic and only source OF
yaue OF a paper currency Is me pr
pertv which IL represents IN no Sen =,
can il be called money. Az the mus -
can only be said 10 represent hoil.S "''''
oftener IL represents no more than pi"p-
ertv This fact although Iamliat
everv one. is often forgotten, nut IT, -
the essential thing 10 be porhS IN ILL.,,
for nv reference TO IL may De ntl'i Hil.i1't
The three Doints upon which the eNl7tehOt
and management Of "a paper currency
must DEPEND that is TO say, the ques lioi ~
who should issue such currency wiz -
the proDerty upon when IL II pist" ~ ~,
how Is that property pledged 10 the h"su-
er ~ tho promise. 10 pay. in other WORDS
"a tho holder OF the currency hselI.
4 fact second only 10 the one Just re-
ferred TO is that not only currency WIZ
the functions just described, pul az" tS
money itself are merely instruments tor
thc performance of business operations
Tor the transfer and measurement OF .he
,,aIue OF goods. Hence II appears thal
rnonev or currency should be adapleu 70
the wants of those who are 10 use H.
Inc trading population OF the country.
And i'm 30 far as currency, which Is inc
nromise TO pay for money or properly II.
self does not rest upon sucn pIOP.isss -
* in vital disaccOrd win the piihtlplN'
upon Which all business dealings must
rest. -. to, i,,st
been said that the government OF couh-
try can i'm no wise be entrusted WIN tHH
Issuance OF currency or money. iud1
much as it's functions are poullcdl ulas
much as IL is the owner OF no properly
md inasmuch as 10 can obtain property
only by taking IL from citizens, II canhot
be suffered 10 carry on trdoo operallon9
for IL can be neither buyer nor seliei pa
have any relation TO the property upon
which credit rests. aud the mechanism Dy
which IL must be regulated. IL -
common error TO suppose ihat tosvili-
nent issues money. IL can 90 i" 49,
Thin. II certifes the quantity or metal
In a coin by It's stamp. IL throws SAFE
guards around the issuance ana use OF
money. and II can borrow inc caPilaI Oh
citizens for definite uses, but, under pres
cnt conditions, not as a basis Oh ouS'i''0'
operation.
THOSE WHO CAN BE TRUSTED
These must be conducted soiey oS
those i'm possession OF the properly upon
which business depend. They can De
trusted and they are the only individualS
who can be trusted, 10 issue ci.uil cui
rency. lust as they provide the mecidh-
ism through which their trade operations
are carried on. for they alone can ac-
curately Judge Of the character anu
amount OF such credit currency winch
IS needed. They alone can Iurhish NJ
wealth which is necessary 10 redeem III w.
nronnlss made by the issuance or crcdlI
currency for they alone are me owners
OF this wealth. The notion that "A gov
ernment currency Is secured by an inc
wealth of the nation Is an error, TOT gov
erumentS have no properly tNtfPN Nh"S
which they extort from citizens by taxa
ton. and this Is no more than the mar
rowest margin OF the total property OF
the world. .
If -,e examine the present currency OF
the United states in the light or these
fundamental principles we shall see that
neither our national bank notes nor the
ereenbacks represent trade. Ihey were
not demanded by trade. They cores
pond TO none OF It's needs Their amount
Il unregulated by any current demands
of commerce They were the outgrowth
OF financial exigencies OF the cl'il war
and mere no more than a forced loan
contracted under stress OF uhuSuai CIR
cumstances. Just as IN the ease OF
hank whose money ~ wanted more IMAM
it's credit must the government redeem
the greenbacks In gold whenever gold Is
wanted more than the credit or the gov
eminent. and lnasmuch as this credit.
SUPPOSED 10 be extended in me form or
ereenbacks. Is wholly extraneOus 10 the
demands of commerce. II Will be the first
10 suffer from such a demand for money.
In the same way the national banking
currency. originally devised 10 furnish Il
market for bonds. not based upon COM
merciai credits or assets Is wholly In
dependent Of business conditions.
Redeemablc only In greenbacks the vol
ume Of notes Is Unaffected by dangers In
commercial status and they glut and de-
moralize the market drive out gold when