The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-07-12
WHAT Is MONEY?

Secretary Gage Expresses His Opt n
ion on the Subject.
1t is proposed devising some scheme
in the United States to keep the gold
in the country. Secretary Gage will
present a scheme to Congress in De-
cember. He has already given his
views on gold as follows: Gold is the
measurer of all commodities. This will
always be the case, in spite of any
contrary legislation. Legislation does
not create values any more than it ere
ates virtue. Legislation is the express
sion of opinion, the capitalization of
opinion, an opinion which may or may
not be enforced, or may or may not
endure, according to circumstances.
No opinion, and, therefore, no legisla-
ton, can alter the fact that gold is the
most precious of metals, and, in con-
sequence, the most stable of measur-
ers Because gold is the most stable, it
is the most convenient measurer.
Money" is the measurer of values.
The standard measurer of values is
gold. All values are measured by gold
even the value of silver is measured
by it, When the man in the street, on
the farm and in the workshop once
grasps that fact, he will cease to be
confused by the specious arguments of
persons who have not grasped it.
There are many persons who fatter
themselves on the possession of
knowledge superior to that Of the work
shop man, the farm hand and the man
in the street, who would do we'll to
roach this fact and cling TO III
Credit not cash. is the basis of all
business dealing. This is as true for
the wage Garner as it is for his en-
ployer for the clerk as well as for the
capitalist Whether a workman be
paid by the hour, the day, or the week,
or the month, then, then for that hour,
that day, week, or month, he credits
his employer with the ability and the
intention to pay the stipulated wage.
The man who draws his salary or his
dividend at stated periods credits the
person or the organization that he is
to draw from with the intention and
the ability to pay. When payment in
any of these cases is withheld or post
poned, the credit of the debtor. person
or organization is lessened in proper
ton to the delay.
We may not be accustomed to think
of the matter in this way-to think of
wage or salary being based on credit,
but if we are not so accustomed it is
only because we have not begun to
learn the financial alphabet. Whatever
we may think the fact remains that
the material welfare of everyone de-
ponds upon credit.
Credit is confidence. 1t is impossi-
BILE to the complex civilization in which
we live for business to be generally
and prosperously conducted without
confidence between all the parties con-
that the labor en-
gagged will be paid for, confidence that
the goods ordered or the personal serv-
ice rendered will be paid for; that the
capital invested will receive its due
reward 1t is on credit that the small
est as well as the largest business
are based-confidenc that
the act performed or the product or
property disposed of will, sooner or
later, return it's equivalent.
If you look at France and England
and Germany you will find no such tri-
umphs of legislative folly. You will
find those countries sprinkled with |
banks. and banks with many branches, |
and you will find that popular miscon- |
,eption with regard to the nature and |
functions of money" are, in conse- |
luence. far less deep and extensive |
han with u.s. You will find that credit |
Instruments are far more common than
with us. And you will find that Eng
and, well supplied as she is, contem-
plates a considerable extension of her
banking facilities. and that an inf1uen
ial movement for the establishment of
banks" is already afoot
here within her borders.
Then there is Canada our neXt-doOr
leighbor. Why, are we, with our
,oasted superior advantages. so often
n a condition of discomfort, of agita-
ion. so often unsettled by wars Of
oinages and currencies, so ready to
un after politicians who promise nos
runs?
The Canadians have no coinage
uestion.' they do not clamor for fiat
loney." They even lend to American
ankers. commercial firms and private
ersons. Some of our bankers resent
his. for bankers, be it understood, are