Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-05-20

REAL VALUE OF MONEY.
Gold and silver are said to
be instrinaically valuable. :. g.
they are worth as much lpracti-
cally) uncoincd rs when stamped Into
coins by the minis. At present. owing
10 the decentralization Of silver. this ~
true OF gold alone. FREQ coinage u gold
means that any owner Of gold can get
the same weight OF coined gold back
from the mint that he gives In a. gold
durt. nuggets. or In bar tcsa n very
small amount 10 pay FOR the expense of
colning the gold into pieccaD. Free
coinage OF silver only means that n per-
Hon could deposit silver with the treas
ury or tho mlnta and receive In return
the Same weight OF coined silver. Much
u the intrinsic value of both gold and
silver II due TO the use u these metals
~ money. their use M money Increases
the demand for them. Their real value
lies IN the fact that they can be cx-
changed for things which can be eaten
or worn or used In other ways. And
this fact IL what gives value. not only
10 bank checks II, all their forms. but
Ia paper money also, ana. ne has been
said. their use a. money metals accounts
Tor much OF the Intrinsic value" ~
aold and silver themselves. their high
relative value being due to their search
" and the cheapnesn u silver ~ CONE
rnrnd with gold being due largely TO Its
greater abundance.
Perhaps for actual use In the arts
rnld o. three or four tlmea. but ccr-
tnlnly not sixteen times the value of
silver. The historic ratio. 10 TO I. was
fixed hy the accidental hut remarkably
proaistcnt fact that throughout tho
world for ages that n the ratio In
which these metals were brought TO
the mlnia for coinage. Sixteen 20 one
war their ratio az the minta-not nee
aHN 80
amounts IN use In the arts and In other
ways. The decentralization ~ all
Ner has Increased the relative
amount or silver offered nt the
inlnts for coinage. and the ratio
81 silver and gold now seeking coinage
y perhaps 20 TO one. This y not the fc-
latiNc Intrinsic value" ~ these metals
nor docs u correspond with the relative
amounts of these metals In uHt among
mankind. yet u " sufficient 10 nv the
rulnaRo value 81 the metals
while one Il denied free coinage
The value ~ these metals. like the val
We Or paper money ma bank checks IL
largely due a. their Use ~ money. a.
the value N The two metals today COM
pared with their former ratio clearly
shows. while their real or intrinsic
value ivhlue In usol has never oven
Appropriated 10 their coinage value.
These explanations may throw some
OF eNchnnHe msdln.
The clearing system NJ an Institution.
was hfft created a century ago. In Lon
don, \ few N the city bankers hired n
room whore their clerks could meet 10
exchange notes and bills and settle
their mutual dehin. In tho London
clearing house " today therc are three
clolrinEs daily ~ i0i10 at 1875 and at
aii., and the system II now extended
o. Include country banks.
AMERICAN CURRENCY FAMINE.
In the year 1898. there came eur
rcncy famine, For the ten years pru-
ccdinF 1890 tho world ~ whole had
been enjoying steady prosperity. until
the accumulation ~ raw materials and
manufactures WIS greater than ever
before IN tho worlds history. Many
new enterprises had been entered upon
end lenders had freely extended credits.
Then men bVrin 20 grow cautinns. seq
ifE that Speculation wus going too far
They began 90 dispose of surplus stocks