The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-11-23
MONEY IS NOT WEALTH
WHY GOLD IS STANDARD
STABLE VALUE-coST OF PRO-
DUcTIoN AT A LOSS IN
ALL TIMES.

It seems difficult to impress peopl'
I with the fact that money, except com
7 modify money, is not wealth. Money
is merely a convenience a means K
} an end, but not the end itself. 1t is g
medium for distributing or transfer
ring wealth without transporting bulk
in every transaction of exchange be-
tween man and man. 1t is q symbol
or token which simply signifies at any
given moment in whose hands the
wealth it represents resides. And at
lany given moment it may serve to
transfer wealth from one man to an
other or it may be converted into
wealth by surrendering it therefor.
says Robert L. Preston in a letter to
the New York Herald
Gold coin is really what is called
commodity money. So that when gold
is paid for an article the process is
merely that of exchanging one COM
modify for another. This is, in effect,
barter. In illustration of this it is on
ly necessary to give the facts in re-
gard to the gold dollar.
The dollar weighs 25.S grains 1t is
nine-tenths fine, so that 1922 grains
are pure gold. The government pays
fixed price of s20671S3 an ounce for
gold The ounce contains $50 grains.
Divide $50 grains by 1922 grains and
it will be found that the ounce of gold
will make exactly 2O.671SS dollars.
Since the coinage of gold is free, the
government pays for the minting and
the one-tenth alloy of copper, thus
stamping on this little disk merely the
value of the pure gold it contains.
Why Gold is Standard.
Gold as a commodity has been used
as a medium of exchange from time
immemorial It's value for this pur-
pose is due to unique group of prop
critics. 1t is malleable, ductile non
corrosive, durable. easily Invisible and |
its identity is perfect. The supply is
limited, the demand for it is steady,
and it's bulk is small in proportion to
its value. It is easily transported and
easily guarded.
Not only is the production limited I
but much of this is absorbed by the |,
arts. 1t has FULFILLED more require
nents for standard of value than
any other commodity. It's value has
f'uctuated with supply and demand as
have other commodities. but stability II
nas in general characterized il. At no ,
oer-od in the history of the word has :
I alone as a circulating medium been =
lble to do the total work of exchange, =
10 that various other commodities =
rom time to time have come to its p
elief such as silver. copper, iron. carn o
obacco, wine. oil, salt, slaves, cattle h
md even service. In fact, the word q
'ecuniary is derived from the Latin l,
word meaning a heard of sheep or 2
attic.
Silver relieved its burden greatly as C
medium as did the base metals to t
ONE extent but the greatest relief "
as come from the bank note. Since g
he silver in a dollar is not worth W
ollar, the silver dollar is partly COM g
lodity, partly token money The COP N
er and nickel coins are purely tok- 81
MS. C;
The silver dollar consists of s71A Sc
rains of silver, this being the fnensss n
the old Spanish milled dollar which g
e took as our standard when we IL
oined our first dollars in 1892 and %
hich fell in fineness only 9 pc. cent ,
four centuries-the most remark u
Die coin for long stability in the en-
re numismatic history of the world.
he debts of the revolution were con-
acted in this kind of currency. H
Gold in Treasury Vaults.
Gold, therefore. has virtually ceased
function as a medium of exchange. dc
S if exhausted by its age long efforts ia
carry a burden that has always fe
zen beyond it's strength it now lies of
erte and passive in the treasury m
lults. This is its final resting place an
Id from this tomb it may never again as
merge to behold tine light OF day as or
rrency. tn
Del Mar, in the sos, after years of pc
research made the as sa
unding discovery that up to his tie
ne the average production of gold TT
d always been at a loss as far back ha
the centuries as he could trace sa
king into consideration rich, lean siN
d abandoned mines-the latter al on
Lys being reworlIed by fresh adven- pa
immense amount of futile sar
'rking and prospecting that has al tn
.ys gone on. and the untold millions he
capital invested with nothing to thu
ward it but a loss. wa