The Detroit times., 1908-01-14

money made OF gold and silver (these
being materials universally desired
for themseyes) would circulate nat
urally and without any agreement.
The statement usually made about
this rs that money, being a medium
Iof exchange must be a measure OF
value. and that whatever Is 10 meas
ure value must have value, as what
ever is 10 measure length must have
length.
But those that think money should
be made OF the precious metals do not
agree as To what metal or metals
should be chosen. Some think that
there should be only one standard
money, and that should be OF gold,
and the others think that gold and
silver equally and upon an agreed
upon ratio of exchange should be the
standard.
In order 10 see clearly the differ
ence between these theories we
should remind ourselves OF the diff
ference between the standard money
OF country and it's subsidiary or
token coins. In our country, for in
stance, the standard money is dollar
made OF gold This particular coin,
DY lnC WAY. uOG5 nOl AliNhldNV aN oAit
but subsidiary coins made OF silver,
and not standard money. circulate uni
versally. This Is a mere matter or
convenience, and does not affect in
eny way the main question OF the
standard money. The subsidiary coins
circulate only because they can be eX-
changed for standard money.
To come back again to this main
question. these are the principal ar
guments in favor of a standard money
OF both gold and silver:
The amount Of gold in the world is
much too small 10 support the worlds
exchanges. More than 90 per cent OF
such exchanges are therefore made on
credit But this over-use OF credit is
exceedingly dangerous TO business
stability II creates a false and un-
real condition that is likely at any
time to collapse into business panic
and industrial depression. The world
needs much larger supply Of actual
money than gold can furnish, and for
reasons OF safety it should employ
also it's resources of silver.
Tn the next place, the supply OF
gold being comparatively small. and
therefore easily controlled. there is
created an opportunity for great fnan-
Cial interests TO corner 1t, releasing IT
only upon exorbitant terms, and for
their own very great profit AS money
IS the absolute necessity of commerce
and industry (as at present these are
conducted). the world cannot safely
run the risk OF such control. And as
the supply OF silver is very much
greater than the supply of gold. and
very much too large to be secured for
any individual control. the only safe
standard is one composed OF both sill
yer and gold on definite ratio OF
exchange.
In the next place. II the standard
money Is composed of only one metal,
the products OF labor can be esti'
mated. expressed or priced in only
that one metal. But the supply OF
that metal fuctuates. and as ii fluctu-
ates il disturbs the entire market for
commodities and also for labor. Thus,
as the supply of the one metal In
creases, the prices of all copmodities
as expressed In that one metal will
abnormally increase, causing an i'm.
mense increase in the cost OF living
and another peril OF business depres-
sion, because 1t happens TO be fact
that in all such economic upheavals
the rewards OF labor do not keep pace
with the greater cost OF commodities.
so that what really happens is that
the purchasing powers of very large
part of the community are reduced.
But. according TO this theory. If the
standard of money be composed OF
gold and silver, an increase in the