Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1900-04-06
QUANTITY OF MONEY.
AND HOW VOLUME AFFECTS
PRICES PAID l.ABOH.
PoUrle Who Vote foS 0.Htinunnce OF
tho Gold STANDARD anft lntionsl Bank
Notes This Year Must NJ -J-sss N.y he
Very Ignorant.

using a large amount of credit, or
paper money, in addition to coin. How
ever, in order that paper money may
be as good as coin, it must be based
on or redeemabe in coin, and as SOUND
finance will allow but one dollar or
credit money for every dollar in coin,
it follows that the amount of money
would not be increased. II every dol
lar of paper money is to be based on
coin, then it is but a gold or silver GER
tificate and must have dollar of gold
or silver in the vaults of the treasury
for every dollar Of credit money In
circulation. From the above 1t IS
clear that if there is not enough coin
in the world to effect all the exchanges.
the issuing of paper credit money
based on coin to increase the circu-
lating medium would not be a SOUND
policy, from the fact that If any con-
siderable amount of such credit money
were presented at the same time for
redemption, it could not be done either
by the government or by the BANKS
thus depreciating the notes and caus-
ing a financial panic.
Another objection to gold and silver
as redemption money is that they are
simply commodities, and hence are
subject to the law of supply and de-
mand, the same as other commodities.
We know that when any commodity is
scarce it will rise in price. If plenti-
full it will fall in price. This is true
with gold and silver. Now, then, II a
corporation can get control Of all tie
leading commodities, such as oil, meat,
-four, iron, ETC., and raise the price to
the consumer, then gold and silver can
also be cornered and raised in price
by the money monopolists. But high
priced money means falling prices FOR
labor and the products of labor. II
gold and silver can be made scarce
artificially or monopolized and used
as bludgeon to strike down labor ana
its products, how much more easy can
it be done with the single gold stand
ard?
! We see in the above that gold and
silver, or coin, are commodities USED
as a medium of exchange called money.
lit should not be forgotten that. any
commodity could be used as money,
provided it was possessed of the fol-
lowing properties: First, if any COM
modify were valuable in small bulk,
imperishable, transferable; second, II
it were desirable or priced by every
one, also divisible and limited in
amount.
If gold and silver money can be used
as a measure of value to ascertain the
value of all other commodities, then
they must, in the nature of things, be
independent of the law of demand anu
supply. If mountains of gold were dis
covered, it's value should not depre-
ciate. If the demand were greater
than the supply, its value should not
increase. But there are no commodi-
ties possessing these properties, hence
they are no true measure OF value.
Now instead of gold being standard
or unit of value, by which the value
OF other commodities may be found,
they must themselves pc based on
their value determined by something
else which determines the value of all
commodities. Now, since the time and
labor required to produce any COM
modify determines its price, it follows
that time and labor are the true meas
ure of the value of all commodities,
and hence form a basis for scientific,
honest sound money.
Bimetallists and other reformers
sometimes tell us that money has nc
intrinsic value, that its value is given
it by law. Now, although there is
some truth in this, yet it is not wholly
true. Gold and silver used as money
certainly have intrinsic value; not
only so, but their coin value should
not differ materially from their bull,
lion value, and unless the bullion value
of silver could be brought up to its
coin value, by making it legal tender
free coinage Of silver would not Dt
sound policy, because gold and silver
are not money in it's true sense, bu
simply commodities exchanged FOL
other commodities. Money is not only
a medium of exchange, but represel
tative of value. Gold and silver, o.
coin, are not representatives, but con
tain the value in themselves To ust
gold and silver as representative
would be akin to using a yardsticl
made of gold or bushel measure GU
of silver, when a wooden one wou!t
answer just as well, seeing that thu
value is not in the measuring instru
ment, but in the thing measured
Hence the instrument used as none.
should have no value in itself, blu
should stand for or represent some
thing which has valve in itself. Thi
representative money IN best expressed
on paper (the same as greenbacks)
in other respects the same as our pres
ent money, except that u is not to b
redeemed in coin, as 1t is not based OF
coin, but on all the products of labor
END OF ANTl-BRr~N CON