The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-12

has led many people into the erroneous be-
lief that there was no need for legislation.
and that the best that the government
could do would be TO let the subject alone.
such people are not familiar with the fire.
quent pledges of the government to main
tain the parity of our money, declaring, by
congressional acts, the honest purpose Of
the government to faithfully and surely
guarantee the full parity of all money in
circulation The present parity depends en-
tirely upon such declarations and guara n
tees, but its maintenance and enforcement
rests with the judgment or caprice of the
secretary OF the treasury, who, by a single
order directing the use Of silver in the dis
charge OF our obligations. may completely
destroy the parity. and shift the standard
TO the metal so used. 1t seems far better to
attempt proper regulation OF the question
by a clear and permanent statute. rather
than depend upon occasional declarations
by the government of its intention. Ii is far
better to end the matter by a public law
which shall be plain and unequivocaI,
rather than rely upon proposals of what
may or shall be done at some future date
or leave so dangerous an option within the
control Of one man, whether he be the
President or his financial adviser.
FORMS OF MONEY.
"All of our money in the United States
is under federal control, and the laws au-
thorize ten QO different kinds viz: Gold
coins, gold certificates. standard silver dol
sued under the act of July H. 1890, subsid-
larry silver. United States notes green
backs, national bank notes, nickles and
coppers- Each kind is in circulation to-
day, all at parity, every dollar equal in
purchasing and debt-paying power Gold
coins. standard silver dollars and treasury
notes Issued under the act of July a. 1890
are full legal tender. United States notes
tgreenbacks) are full legal tender except
and f,fo 81.
public debt. Subsidiary silver Is legal ten
der Tor amounts not exceeding ten dollars
ana nickIes and coppers are legal tender to
the extent OF twenty-five cents. Gold GER
tincates. silver certificates and national
bank notes are not legal tender.
The legal tender quality adds no value
10 the money, but merely makes provision
whereby debts may be discharged by the
lender or specific kinds of money which
being good, the creditor is bound to accept
II Is Tor convenience and to avoid embar-
rassment which captious creditor might
cause by insisting upon any special char
acter OF payment, or which a captious
debtor night create by making payment
In character of money at the time greatly
1nconveDient to the creditor. 1 do not deny
but that there are those who claim that
legal tender adds value, nor that govern
ments nave repeatedly undertaken to sup
ply deficiency in money by giving IL the
legal tender quality and attempting to
force IL into circulation. The universal and
absolute failure of all such efforts is suf-
quality Of value. There is not a single in
stance in the history of finance where the
legal tender quality added to money has
enaoied IL TO circulate at a greater value
than It's intrinsic value. where it does not
possess equally the pledge of faith of the
government for it's full redemption The
history or government efforts to force legal
tender money into circulation. irrespective
OF Its Intrinsic value and without the gov
eminent pledge. Is a record of failures
without single exception. All of the va
Of H.
are based upon common standard of
value. in which each can be measured The
present standard OF value I'm this country
Is gold, and has been so recognized in
practice Tor more than half century.
THE STANDARD.
Money is a medium of exchange. and
where there are different varieties there
must be common measurement of value.
Whether this standard is sought to be con-
trolled by statute or left exclusively to the
laws governing trade and commerce never
theless there is, and always has been, In
every community dealing in trade a COM
mon method of measurement whereby ar
ticles Of value are exchanged. 1t is only
when effort Is made to control by statute
such measurement of value, different from
the method pursued in common trade, that
confusion arises.
There can be no proper and valid ex-
change unless the tool of measurement
regulating the exchange shall be equally
acceptable to both parties. The basic prin-
ciple of exchange is value. The question of
convenience, of immediate use, of human
need or desire may be involved, but, never
theless, the basic principle is value and
where there is not an absolute exchange
OF property for property the standard of
measurement or unit of value, which acts
as the common tool. of exchange, must in
itself contain the element of value The
element OF value Is just as essential to
standard of value as the element of weight
10 standard OF weight or Of length to a
standard of measurement. Firmness. sta
bilfty and constancy characteristics
which any standard must possess If ii shall
meet the demand upon II by universal use
for honest and true measurement, whether
OF value, weight or length; firmness in ad-
herence to a principle and purpose to
which 1t Is dedicated; stability in it's indi-
vidual strength and constancy In it's char
acter to preserve its integrity. ADAPTABLE
tty to the uses of trade; simplicity of terms
to meet the requirements Of small transac-
tons equally with large concerns, and uni
formfty OF reputation are qualities neces-
sary TO the successful operation of any
standard.
There can be but one standard of meas
urement at a given time. Any attempt to
couple two standards differing in any de-
gree In essential characteristics will shift