The citizen. [volume] (Berea, Ky.) 1899-1958, 1921-02-24
FUNCTIONS AND VALUE OF
MONEY, HIGH PRICES
ETC.
BY Rev. George Candee, M. A.

Money represents the value OF
service and things. II has two legiti-
mate functions:
(1) One function is 10 aid men in
exchanging their valuable service and
things with each other; which Is alb
solutely necessary TO human well-be-
ing.
Each piece Of money, coin or pancr
has stamped on its face, by authority
Of the Government, the value IL REQ
resents, in dollars and cents. Legal
money is, virtually, a receipt for valu-
ables which the holder Is supposed
to have given in exchange for il; and
Is a Government order for the same
values to any other parties who may
want TO sell them.
Money, issued in numerous pieces,
each stamped for some value, from
hundreds Of dollars down to one cent,
enables people TO exchange their
properties Of any. or many, values,
at hand, or any distance apart. For
this purpose. the function Of money is
the same as that Of road-ways and
waterways, ie, to help the people
to exchange their goods with one an
other. And this Is as valuable TO
the community as are tools and ma
chinery Of production; for, without
the exchange function Of money, road
and waterways, there would be but
comparatively little use for tools and
machinery Of production! Hence,
money is public utility, the same
as are roads and waterways.
(2) It's other legitimate function
Is to help men to store their valuable
things for future use, without pre-
venting their continued usefulness 10
the community.
A laborer can store his present la
Dor for future use. The farmer can
store his farm products, or his farm,
for future use, without preventing
their continued use to the community.
Through the exchange function Of
money any man can store all his own
ings for future use without preventing
their continued usefulness to the
community. He can put his money
IN his pocket or in his private safe;
or, better, (if the community were
wise), In a Government deposit and
loan bank where II can continue It's
exchange functions.
The great value that money is to
the community In performing these
two functions Is not its price in COM
modities. VALUE and PRICE are
not the same. The most valuable
things In Nature, the air we breathe
and the water we drink, are above
price.
The value Of service or Of a COM
modify Is its power and facility to
supply the needs Of men. It's price
relates to, and is. its equal value In
some other thing. For example: The
price Of a bushel Of wheat In pota-
toes is an amount Of potatoes equal
In value TO the bushel Of wheat. The
price Of bushel Of wheat, In money,
Is the amount Of money that repre-
sents the value Of the bushel Of
wheat.
Prices are regulated by supply and
demand. II the supply exceeds the
normal demand. the price goes down.
II II drops below the demand. the
price goes up. For example: II a
super-abundant crop Of potatoes
should raise the supply Of potatoes
above the normal demand for pota-
toes. as often happens, their price
would fall: II would require more po-
tatoes TO buy bushel Of wheat.
Just the same. II current money.
from any cause. should be inflated
above the normal supply and demand
for money-as IL was inflated by the
creation and use Of the greenback--
the price Of the dollar, In service and
general commodities, would drop be-
low it's normal price; IL would take
more dollars to buy labor or bushel
Of wheat or other commodities.
This probably, II not certainly, hap
pens today from the same cause!
That the currency In this country Is
greatly inflated above the normal
supply from the two following causes
Is very evident.
az First: From a great influx
Of gold from Europe for war ma
terials and supplies. Europe had
nothing else, then, to give in ex-
change for those things. That sur