Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-01-02
Money and vaI,ie.

= 40 v l.. + IL.
a3 In your editorial Saturday you are
Slet to- Say, that the fall in prices.
I between the years 1879 and 1896 had
been 80 per cent (according to the
aestablshed method Of taking the varia-
tions in 100 staple articles to determine
1.-The general price level which Sanor-
4 back uses). and then you say that
\ money has risen in the same ratlo-a
very common error--and best illustrat-
Led perhaps In this way:
'dS a bushel of wheat at $1.50, declining
TO 81 90, is q full of 33 is per cent
iIs But the dollar has increased in its
purchasing mower 90 per cent, for the
same S1.5O will buy one and q half
bushels. ~
\ E5sss So q decline from $1.00 per bushel TO
go cents, is 40 per, cent. decline; but in
3onc case Sl00 will buy 100 bushels, and
In the decline to 60 cents it will pay for.
5106 80 bushels, hence the increased
purchasing power of money is 66 2-3
{ Per. cent. greater.
This is n livery important matter to be
considered in discussing the effect upon
debtors and Taxpayers of q change In
the standard of payment-nOt to use
the false and deceptive term used by
30 rnanya standard OF VALUE; which
is something impossible. The decline
In the commodities have been followed
by a great decline in the value of farm
lands md OF town and city property;
such that caused Senator Chandler to
declare in the Senate that the loss
from that source in our country was
lin ten years following 1885 $4,000, 100000.
f. And this was while APPROACHING
a gold Standard What Will be the
effect Of It's actual contamination upon
our country loaded down with S31, 1885,
100000 of public, private and corporate
ddbt?
These are the figures given by Hon.
lI. ii. Walker, of Massachusetts, in a
Sspeech in6 Congress about four years
ago. He gave detailed statement of
all debts of the American people at the
time. and he was the intense champion
of the gold standard. why, upon the
large increase In the worlds product
of gold in 1898, estimated at S1S0000. 600
(about the increase OF metallic money
the full and free coinage of silver would
have given to the WORLD, we have had
ingfabric of credit created of gigantic
tnronortons. Indeed, the projection
and tiotation of stock companies (called
trusts has OF late been our leading ma
stlonal industry, next to gnmbling at
stock boards and in boards of trade A
warning came TO our Legislators by the
fearful trouble in Wall street last Mon
day a WIDESPREAD panic was only
,tSVerteuib by thpRassociated banks quick
action,
bs It'll is a most nopportunc time now
to- declare for n gold standard when
the worlds greatest gold field Is closed
Sf.War, and while The demand for
money all over the world is so great. too,
because OF the great industrial and con-
isequent commercial activity.
ss5l There Is n great denrth OF money
sthhir,of'lughout the country. and the people
are compelled to LICK STAMPS to in
crease the Treasury surplus. which
1f"urplus v is now to be deposited in n
~ all street national bank to aid stock
gambling!
ssI what q spectacle we have OF ad-
administrative wasteful improvldence
since the Spanish war began.
ENABLED by law TO issue Treasury.
4 notes 4 to meet temporary emergencies
Until Unit the new revenues provided for
{ We're available to the amount of $780,
\ 100000, bonds were issued to the
amount of 5000, 900. 900. OF course money
began to accumulate in the TREASURY.
$50 that.swlthin one year we see the
Secretary OF the Treasury buying back
bonds at much higher price. This
ito relieve a money market manipulated
by stock grabbersI The masses are
supposed not to notice that our Trea
sury is thus run in the interest of
Wall street.
sisSs Then, instead Of maintaining the par
sttysof all our money in the only sensl-
bic, Practical manner BY equally hon
sOringStt ALL and permitting no citizen
ito dishonor It, as the other great re-
pub France, docs, demand is made
( Tor law to provide special fund OF
gold togmaintain the parity of Ameri-
S can dollars by swapping. Was there
ever better or more .forceful illustra-
9tlon of the truth uttered by "The Mex
Sieanlh Herald" THATSOUR FINANCES
!: WE'RE MANAGED BY a SET OF
34ssIIAIsLATA'Ns WHO KNEW. NO
MORE OF S MONETARY SCIENCE
THAN SCHOOLBOYS.
IL Il Money. the commerce adenominator
sof values, the debt payer, the public
measure of value. Is The creature of
law its VALUE is determined by what
ut will bring in exchange, not by law:
\ though law may change its value by
making Ut scarce or plentiful
Ss33sSt. All values are subject to change
4 This is everywhere admitted as to com
sModities, Which are said to be govern
led by. the law OF supply and demand
but this law applies just as truly to
money itself as to the things which
gare valued in terms OF money.
5 IL money is very scarce, prices fall
regardless OF other conditions, and if
III bein abundance prices rise
ssSiss The phrases standard of value and
intrinsic value cannot properly be an
piled TO money, Their use is mislead-
I Ing. 5.5 * 3
Money which will pay debts Is its
{ OWL Sfed eArrler. IT is redeemed every
time 1t rays a debt.
4i.t.