Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-04-09
RELATIONS OF MONEY.
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The value of money is It's relation to
commodities and other forms OF prop
erty with which 1t is composed, and
as this relation is constantly changing
and is never fixed, congress cannot fix
it. 1t can only regulate" the value of
money. How does congress regulate
the value of money? BY making of 1t
q scale or standard, III the denomina-
ton or unit of which. and its multi
Piles and fractions, all values are cN-
pressed precisely as the weight and di-
Ihensions of objects are expressed in
terms of the standard OF weights and
measures. This was done by the TWEEN
tieth section of the act of 1872, which
organized our monetary system, and
which reads as follows
And be it further enacted that the
money of account of the United states
Shall be expressed in dollars or units,
dimes or tenths, cents or hundredths
and miles or thousandths; a dime be-
Ing the tenth part of Il dollar, cent
the hundredth part OF Il dollar. mile
the thousandth part of Il dollar; and
that all accounts III public offices and
all proceedings in the courts of the
United States shall be kept and had in
conformity to this regulation"
That is. this regulation of the value
of money. The unit of this scale is
I'm the terms Of this unit its multiples
and fractions, and for this reason 1t
is called the unit Of value. This is in
exact accord with NJ. Ccrnuschis deli
milton OF money. where he says:
Money is Il value created by law. to
be Il scale of valuation, and Il valid
tender for payments. The correct
ness Of this defination is illustrated by
the monetary system of all money
using countries. We see. then. that
money, and not the material of which
1t is made, is the standard of value.
The words 'single standard" and
double standard do not involve the
idea of single measure and double
measure. Value, like ratio, is Il rela-
ton. and cannot be measured: 1t is
expressed. Standard in coinage laws"
says Cernuschi, lis the metal selected
for full monetary use If one metal
is selected. the standard is single if
two metals are selected. the standard
is double" Though. whore the primary
money OF n country is restricted to that
which can be made from gold alone.
THAT country can he said -otf-tif1-
gold standard. and its unit OF money
the quantity of gold in which that unit
is embodied I5tnetallism, or the dou
bic standard. does not require the con
current circulation Of the coin struck
from both metals. or that the coins
struck from one of the metals should
ne the exact ctulNaicnt Ill Naluc ui
purchasing power OF the coins struck
from the other metal The monetary
system Of a country is bimetallic when
It's laws provide for the unrestricted
coinage of both metals upon pre-
scrlhod ratio. and The unrestricted use
OF the coins struck from both Of them
for monetary purposes. without regard
to their relative quantity in the cur
rency. In the monetary conference
convened in Paris in 1867, Mr.. Ruggles.
our delegate to the conferences. contend
cd that this country did not coin silver
and was practically on the gold stand
ard. The president Of the conference
= interrupted him. saying, in effect. that
= the United States could not be on the
gold standard so long as its laws pro-
vidcd for coming both metals upon
ratio of to 16. and NJ. Sacobi remark
cd: The United States could not be
said To be on the gold standard any
( more than France, until II law was
passed prohibiting the coinage of sill
$ YER" This led to the passage Of that
(, baleful measure of 1873, which was
smuEEled through congress. and was
unwiitingly signed by the president.
The value of the metals is their rcla-
ton to each other. During the greater
portion of the time from 1892 to 1884
silver predominated in our currency,
because upon our ratio OF l To 10. If
teen pounds of silver were equivalent
10 one pound Of gold, While upon the
French on European ratio of / to 1875
fifteen and half pounds Of silver were
equivalent to one pound of gold Sill
Yer, therefore, came To this country
and gold went to Europe. In 1884 we
changed our ratio To 20 16. one-half
a point on the other side of the French
or European ratio, and as a given
quantity of silver would exchange for
more gold upon the French ratio IL
went to EuroDe and gold came to this
country and prcdominated in our cur
rcncy down TO 1878. when the COMA GO
oil silver was suspended Yet during
the whole OF this time, TON 1792 70
1873. our monetary system was bimc-
tallic. The aim of the bimctallists is
not SO much To secure the concurrent
circulation Of the metals as TO restore
the bimetallic principle to our none
tary system. Wha. great benefit or
advantage Will result from the rc-ce-
tabiishmcnt of this principle in our
monetary system? An eminent econ
omist has said: The office OF money
is TO take property to market" Under
the operation of the bmetallic prin-
cipie one of the metals keeps down the
charge which the other makes for rem
dering this service, by Itself standing
ready To perform it. The operation of
the two metals in our monetary sys-
tenn IS analogous to the operation of
railway and waterway systems in thu
transportation of merchandise.