The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1900-06-22
MONETARY STABILITY.
A Healthy Condition Of Currency ~
autses steady Additions
of Gold Coin.

as well as 10 nave polu CUM - ''
condition of currency requires STEADY
additions of silver and gold coin to keep
mace with the increase OF population
and the increase Of both large and small
exchanges. Expansion OF trade ana IN
dustry furnish demand for greater en-
ployment OF coin; banks must increase
their reserves with both foreign and
domestic purposes 10 keep up with eN-
mansion as well as TO provide for re-
demption of notes. Hence TO limit com
are OF either metal restricts supplies
Of coined money and decreases the
stock OF primary money per capita.
I'm the commercial world gold is used
and demanded in payments because
IL takes less of il TO make an exchange
and as commercial exchanges generally
involve large amounts of money, II Is
necessary that the money commodity
in commerce possess all the qualities
that gold does. Silver is the only other
money commodity recognized. IL sill
yer we're worth as much as gold, there
would be no preference. but as IL is not
n can be utilized only in trade where
millions of small exchanges are max
ing. or in larger exchanges where gold
Is lacking. Gold is not in demand TOT
domestic trade because II is coined In
too small pieces for safety and is easily
lost. Thus gold is best adapted to com
merce and silver is best adapted for do
mestc trade.
The selection OF a single metal rs
money centers the demand for money
in both domestic and foreign trade up
on that metal, and with an unusual
foreign demand precipitates contrac-
ton of primary money TO pay domestic
obligations. The monometallists seek
70 hide such contraction of coined
money by expansion of paper money
which in turn forces further contrac-
tion of standard money. With such ex-
port of coined money comes the alterna-
tive Of free coinage of the other metal
or the issue of irredeemable legal ten
der notes to take the place Of stand
ard money.
II the gold standard as we have II is
made TO carry silver as an artificial
value. we not only injure commerce by
drawing upon its medium OF exchange,
gold. in order TO sustain silver. but do
nestle trade also. IL becomes seesaw
between two great sections OF the
country. alternatively injuring each
for an increase Of silver money in one
section is balanced by decrease in the
other. IL is the excessive issues OF pa
par money that prevents the use Of sill
yer as an agio TO god as primary
hot q m flf
east must stop every time that eNces
siye importations of gold coin leave
only greenbacks and treasury notes e
nav debts; in the lack of gold thu
Creenback becames the only kind o.
primary money. and even that is ther
, boarded to draw gold out of the treas
ury.
! The functions Of gold and silver arr
not the same. although each may be I
measure of value not in either case ;
fixed value. 1t is conceded that M
substance but gold or silver isqualife'
or recognized in trade as a proper meas
IRE of value. and my contention = tha
: silver as Wei as gold is necessary 70
: money in domestic circulation; the al
temp. to substitute greenbacks rs Al
@ agio for gold has failed in every appli
0 cation of law to theory.
1t is conceded that tho bullion o
market value OF the precious metal
: regulates their value in foreign eN
4 changes. bat that bullion value is GOV
2 erncd by the demand for coinage pun
: poses. i.et any two great nations Q
o the world decide TO abandon gold an
:, take up silver coinage in place Of golt
: silver in the market would 20 kitint
while gold would not be sensibly Al
fected. simply because the two metal
;. act Independently of each other.
l. II we should open our minis to III
6 unlimited coinage of gold and silver a
= a ratio fixed by congress. would il nj
x give us more money than we need
\ No. Provided that the legal tende
= notes were retired in proportion TO I'll
d coinage of silver dollars. Because III
a ratio could be SO adjusted that foreig
u silver coin would not be profitable
i import and the bullion presented Q
n our mints would he limited to ths
a product in this country. The only re-
IL son we have not been forced to retur
q 10 silver coinage long ago was III u
IL plethora Of legal tender notes.
n When gold and silver shall circula'
y at their bullion value as money. flu
!. service as coin will be secured becau'
Y. indepe ndent of each other. 1t is Il
= function of the government TO coin. d
n termine the fineness. weight and shat
a. OF the pieces Of money. but il cann'
- create money from worthless SUI
" stance by act Of congress. No artifici
4 restrictions must interfere to impe,
4. its circulation or force fictitio,
y parity. for that plan has been the cau
OF all the business troubles which ha
afflicted the United Statcs.-James
Y. Larner. in Money.
- In silver Mexico.
n The increase Of business and cor
81 nercial growth in MeSico during Il
III mast year has been phcp oflyenaI M