Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1897-07-30
What Determines the Value of
Monev2


more of other goods. When there is
a poor crop of wheat bushel Of
wheat will exchange for more of the
things farmer has to get because
there is the same demand as before
and less wheat to fill the demand.
Money is used for the purpose Of
exchanging one kind of goods fol-
that of another. Therefore there is
the same demand for money that
there is for all kinds of goods, besides
the demand for money to pay debts,
If farmer has bushel of wheat
and he wants money to buy nails, he
can find a man who wants wheat and
has the money, or he can find man
who wants wheat and has the nails.
He can possibly get on without the
money if he can find the latter. But
if he has bought the nails on time
/ and contracted debt he has nc
longer this option, but MUST FIND a
man who wants wheat and has the
money, because the debt calls tol
money. This proves that every debt
contracted increases the demand for
money.
A large proportion of the business
of this country is done on credit
which makes the principal demand for
money for the purpose of paying
debts. Every debt is contract to
deliver so much money at a given
time and affects the value of money
the same as q great many contracts
for the delivery of wheat at a given
time increases the value of wheat.
| Whenever the gambler on the board
of trade can corner the market on
anything it is done by lessening the
supply.
Now since the people do most OF
their business on credit which Gre
ates a great demand for money, ii
is evident that lessening the supply
of money Increases its value. A great
many people who are rich sell out
their property and go into the bust
ness of loaning money to supply this
demand. Every addition to the num-
Der of persons who do this withdraws
that much money from the supply
used in the markets. until they loan
it and when they have loaned it the
debt formed increases the demand
just equal to the amount of money
let free.
When legislation lessons the supply
by stopping coinage, the value of do
lars increase owing to the demand
for money to pay debts and the furth-
er fact that every line debt is paid
for borrowed money that much mon
ey passes out of circulation.
When the vaue of dollars increase
because legislation stops any further
supply every debt is increased in a
like proper tion. When dollars in
crease in value tho debtor must give
more goods or more labor TO get the
dollar.
Now our Republican friends tell us
that the people in general who pro
duce the wealth of the nation are
benefited by increasing the value of
dollars. They tell us it is dishonest
to make more money. They know the
amount of money made from gold is
not enough for the needs of the people
and can not be increased and they
say to make more silver dollars just
like the silver dollars we now have is
dishonest.
The value of dollar is the same
whether il be made of silver, gold or
copper, or paper promising them, il
it be legal tender, because it pays
debts and there as much demand fol
one kind ola dollar as the other, be
cause the principal demand tor money
is to pay debts, and any kind OF mon
ey supplies the want. The value o
money is always greater than the
value of ANY ONE THING of which j
is made, unless that thing has the
legal right of free coinage because
the demand for III oney is equal tt
the demand for all things besides the
demand for payment of debt.
| These facts make it plain that thu
difference between gold and silver in
value is simply the difference between
money and bullion. Gold has til,
legal right of free coinage, this make
J, GOLD BULLION THE VALUE OF MONEY
J not MONEY THE VALUE OF GOLD bul
! lion. Silver that is coined beip.
money has the value of money ant
, not the value of silver bullion. Civ
:, oliver free coinage and both gold ant
, silver bullion will have the valu
, OF money which is created by demand
for money and this value will gradual
, decrease with the increase in:quantit,
of money until it reaches the norma
value governed by the supply OF boil
metals and the demand for money
| Increasing the quantity OF money t.
, meet the demands Of trade will in
5 crease the value of goods and thei
3 debt paying power. This will leav
t the farmer large portion after pay
] ing his debts with which to purchas
9 goods and give labor a greater dc
Hand and business boom. VIVA
II we need is the FREE COINAGE O.
8 SILVER. NJ. II. DALEY.
RI
When You Take Your Vacation
the most necessary article to hav
with yon(after your pocket book).is