The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-03-18
Reconciliation of Silver Urged as Only
Remedy for Economic Ills That
Beset the World

, both capital and labor INDUCED i
wild extravaganza. When ii Wa
found almost Impossible to increas
, production. and profits and wages ha
TO be cut down. there was dead
lock.
In spite Of all these factors, extrav
'agance both in private and publi
spending would have been impossible
but for the Increase in money. If tn,
governments Of the various countries
.had not printed paper in such larg,
quantities. and stamped it as money
they would have at least effected q
partial cure In normal times, each
country manufactured goods to sell t,
others, and the latter exchanged theh
own manufactures or agricultural
products with the outputs of the for
mer. During the war manufactures
In each country We're almost solely
for the purpose of sale within the
country itself, even external trade
was solely for the purpose Of facili-
taang victory in the conflict. All pro-
duction was for immediate consump-
tion and not for the purpose of aug
menting the wealth of the country, as
ia normal times The governments
being the largest purchasers in each
country: and themselves not produc-
ing anything the only commodity
they could give in exchange for their
purchases was money created artif-
cially The governments created the
money on large scale and put it in
circulation The crlx Of the situation
is that the world is suffering from
plethora Of money.
Money and Precious Metals.
There is, however a wide difference
between money as it was known in
civilized countries before the war and
money created by the warning coun-
tries Before the war, in most of the
great Industrial nations money was
coneomitant with wealth and value.
Money was a measure of value, and
was needed primarily for payment of
balances on exchanges Of commodi-
ties. both nationally and internation-
ally
do not propose entering into a
upon money and credit.
Suffice it to say that both money and
'redit are based on values in the
'olm of goods, and that, both in in
ernal and foreign trade of all coun-
.ries, what is loosely termed as
money was used for payment of
balances. When money was a meas
ire of value Il was also a standard
ana that standard was in metal. In
ancient times people used several
commodities as money. gold. silver,
ron. silk and even leather have been
lsed as standards at various periods
IF history in various countries In
recent times, however, only gold and
silver have been used as money. or
he commodity with which individuals
md nations settled balances
Money and Value.
1t may be taken for granted that
The basis of money has always been
METAL, and that money has always
oeen Identified with value. Value, on
he other hand, has been the essence /
'f wealth. The popular statement that /
/ person is wealthy because he has !
honey is based on this presumption.
+ money does not have value. then ii /
$ no longer wealth. For instance, the
russian ruble. which was worth soc !
n normal times, is not saleable at all |
t present. The person who owned |
he ruble in 1914 had wealth to the
Xtent of soc; now the person who
WINS the ruble has no wealth There
ore, it is essential that money should
lot be created out of commodity
hat has no value; the moment it has
10 commodity backing it is no ,1nger
wealth. Today the different govern
nents have printed paper, stamped IT
nd issued it as money The more
hey continue to do so, the less be-
ONES the value of such money If an
Individual performed such an opera
ION nobody would attach any value
% the paper SO printed and circulated
y him. But government can car
y that operation for a certain length ,
f time, and for a certain amount be-
ause it owns certain properties and :
ehts in the state and has the power
> levy taxation; i'm other words, it
as credit But when it continues to +
.sue obligations it creates wealth r
ithout value and such wealth in the +
'rm of money is gradually becoming n
ISIS valuable.
So there is a difference between h
ioney and money As / have already t
"ted. money must always be based n
b value, and such value is to be s
'und only in goods For very CO. II,
ent reasons the precious metals have d
ZEN chosen as the only commodities C
hich can be used as money. Con d
'quently- we make the following dis n
notion: sound money in the form of
Id and silver, and unsound money
the form Of paper or inflated cred r
tt is important TO make it clear b
at at all times what has generally h
zen known as credit has been based o
J metal money which in its turn has t,
zen based on commodities. At no h
'riod in the history Of the world has it