The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-28


uIe OF value, ever indica ting that guam
! tity or useful things the amount Of need
81 services TO be obtained at his viii in
S4cnange for IT, Instead Of parting with
( MS own labor OF the products Of his Ia
Dor TOT the labor or products of others,
ne sold his own for money and then used
the money 10 obtain theirs.
Medium Of Exchange.
The exchange Of Il Dor or commodity has
- certainty taken place In the one case
- iH the oIner. Money has been for him
[ mus medium OF exchange Exchanges
are not only accomplished by means Of
money. but generally facilitated by its
1 use. BY II time is economical and the
energies Of the people conserved
Money thus gives employment to labor
ana supplies a market for its surplus pro-
ducts, il Is tho alert and efficient middle
man which brings buyer and seller tOgoth-
/ err 10 their mutual enrichment.
1t is, moreover. the standard by which
edc1 man measures his own and the
/ Wealth OF his n6ishbors and that OF the
entire community
With reference 70 this standard the bur-
Gems or pubic expenditure are equitably
aHpOTuoned and distributed.
/ II serves also as a measure Of deferred
/ payments. 1t is at once n measure and
| me means of enforcing the performance
! blhty Of their nonfulfllment.
Money is thus a standard or measure Of
/ value. a medium Of exchange a measure
/ or deferred payments, and means Of per-
Q
! It's posssssor may Immediately convert
] II 70 supply his present wants or desires.
/ ne may Keep II TO provide for future
/ wants or desires. If he stores Ii away
I OF boards it, while IL becomes to him a
| Store OF value IL ceases 10 be an active
agent either in facilitating or effecting ok
/ changes. It is not dead. but latent. 1t is
] true InaI the use Of money as a store
/ or value is not necessarily inconsistent
! with its active use as medium Of eX-
/ change
1t may perform both functions at the
/ same time 1t may be loaned to be put
/ into circulation by the borrower its own
/ CT, whose wealth is stored in il. retaining
| the right to demand its return at the
Qualities of Money.
/ The thing or material in which money
/ is symbolized ought to be something
which is convenient to handle as IL passes
/ from hand 70 hand in effecting exchanges.
1T ought to be durable, so that as a
/ standard measure and store of value it
may not suffer diminutiou or destruction.
II ought not to be easily cOunterfeited.
and should be readily distinguishable
from all things to which the money fuirc-
. ton or privilege does not pertain.
: The quantity or number Of units or
pieces ought to be such that the COM
munity should at al times have sutb-
cient supply to enable It's members TO ef-
feet their exchanges with tho greatest
conservation OF energy and economy IN
time.
values and deferred payments, and hA the
means of performing contracts equitably
ana justly. No man or class of men
should be able to profit or compelled to
suffer loss by its contraction or eEpan-
sion.
I'm practice it may not be possible TO
attain 20 such a just and ideal system of
money. IL is such a system, however,
which should ever be kept in view and
TO which the nearest. possible approach
should be made
By far the most important consideration
rotating to this subject is
What shall the quantity of money be
and to what extent shall the original sup
ply be from time 70 time increased. and
by what method shall such quantity and
its increase be fixed and furnished?
Shall it be by the automatic system, the
fiat system, or a combination of both?
There is but one distinction between
these two systems In the nat system
there are three elements, each the crea-
ture of legislation.
Legislation designates the material IN
which the unit Of money Shau De SYM
bOiized and the devise by which II may be
identified. Legislation gives 10 II IT'S
legal tender quality. Legislation hXes the
number of units which may be issued.
Every element of this money is depend
eut upon the behest of government
Volume Of Money.
In the automatic system the unit or
the material of which it is composed and
the device by which II may be dIstin-
guished are the creatures OF legislation;
the legal tender quality IS bestowed by
law but the number of units OF volume
of money IS left 20 depend upon the guam
1ity OF material OF metal which may be
discovered and produced
I'm the one case the quantity or money
is regulated OF limited by artificial law
in the other by natural law.
Under the first system almost any con-
Venienu durable substance which may by
Suita BILE superscTipuOn or device De ldeI-
titled and protect ID from counterfeit may
be selected for use as money. because
the number of money units VIII be aTCl-
trarily fixed and limited. The volume Of
money Will depend upon the viii or ca
price of the lawmaler-
BY the fiat of legislation il VIII be great
or small. with all the results toLowinS
upon the plethora or dearth of money
Under the automatic system the mater
iaI selected must be OF limited production,
because if like the sands upon the sea-
tshore IL could readily be produced in
unlimited quantity, the number OF money
units would soon approach intinlty and
their value or purchasing power zero
Gold and Silver.
Hence gold and silver. by common con-
sent of The human race. nave ever been
regarded as meeting most fully the re-
gUiTgmenIs Of the automatic system. The
scarcity Of these metals and the difh-
culues attending their production and
separa ton from the crude materials with
which they are usually found combined
i'm nature gave assurance that their free
use for money would not lead 10 unjust
FIat money has usually been resorted
to. not from choice, but from the neces-
sity arising from the extreme scarcity at
times Of the precious metals or from some
sudden and great demand for money. This
has generally happened in times Of war.
England In 1886 during the war with
Napoleon. had 20 resort 20 paper money
The United States have been compelled 20
do. -a
which they were engaged. except that
with Mexico.
Since no G Tilized community can exist
and progress without money, II gold and
silver cannot be obtained, something else
viii be adopted 90 take their place aud
perform their money function.
The Fiat System.
There is no essential evil connected with
the fiat system of money except its la
bi-ity to abuse Those who control the
issues and VINO. at VIII and without eN-
pGnse, may add 10 the volume or moIiey
arg placed under great temptation.
The government of France in issuing as
siguats. yielding 10 this temptation. 50
multiplied the issue that they became
worthless. thus ililicting great wrong
uDon the nation The farming out TO
private persons in England Of the right
20 issue copper tokens without restriction
lea TO similar evils In that country The
turning over 10 the banks under this Dill .
the entire CoatrOl Of all circulation OtfCr
than gold, limited only by the discretion
Of q secretary as TO the issuance OF DDnQS. +
ne ever suhseryient to their wishes. viii
prove equally fraught with mischief
II the number Of money units In the
fiat system were justly limited 50 that
their purchasing power would remain uni I
form and thereby the general level of
prices be maintained, that system would
be free from serious objection. still eN-
uerience has shown that fiat money has .
as a rule. been res0rted TO a. a tempo J
rarv device in times Of emergency OF by
some nation in distress and has had no