2 T IE WEALTH MAKERS June 27, 1895 READ AND REFLECT. D Not Let the Ftm Silver Ihm Con f us Oar IdM on Monetary lUform. In the Chicago Times-Herald of May SO Prof. J. Laurence Laug-hlln pub lishes an&rticle under the caption "Money as a Medium of Exchange, portions of which I propose to repro duce and briefly comment upon. Tbe first paragraph of the article in ques tion reads as follows: "The idea of money as a measure of value with which other goods are com pared has been probably too long dwelt upon. Since value is a relation there never can be an absolutely per- feet measure of it Gold does not re main absolutely invariable in value, because its ratio to all goods may be changed by the change in cost of any one or more of these goods. Gold may be like a pine tree in a forest with which the heights of all the other trees are compared. Ten years from now the forest wilt have shown the effect of growth; all the trees will have changed in size, some more than others, according to the individual conditions ot oil, light and air. The pine tree itself may have grown larger and finer than it is to-day; but many other trees may have outstripped it. So with gold as a measure; it may have had individual conditions affecting its own position, and, if all the other goods did not change exactly in the same way as . gold, the relations of goods to gold will have altered. And there is nothing disastrous or surpris ing about this change; that is the pecu liarity of value, which is a relative. Length is a positive and not a relative thing, and there the analagy between gold and a yardstick appears to be in complete." On May 29, in the Times-Herald, Mr. Laughlin laid down this proposition: "The value of goods relatively to gold makes their prices. First, what acts ""on th'eVatue of gold? How is its value fixed? By supply and demand (other things being equal), and the supply is the total supply in the world. Those forces control gold. Secondly, what fixes the value of the goods? Their cost of production, generally speaking. Then the result of the forces affecting gold is compared with the result of the forces affecting goods. Two sets of forces, working independently on two sides, are compared in their results. The price issues from this comparison. You may increase or decrease the value of gold without touching goods at all; or you may increase or decrease the cost of goods, in individual cases, or in general, without touching the cost of gold at all Then when gold, on the one side, and goods, on the other side, affected each by its own independent conditions, are compared as to their relative values, the price appears. So prices can be changed (1) by an in crease or (S) decrease in the value of gold; or (3) by an increase or (4) de crease in the cost of goods." Merely pausing to note that Mr. Laughlin makes the important admis sion that prices are now regulated by gold alone, and to state that he cer tainly cannot mean that any but the exportable surplus of the commodities of a country are controlled in price by the quantity of gold in any other coun try, I pass to the consideration of the main question. First, as to prices: Mr. Laughlin claims that they are controlled and regulated by the volume or amount of gold, irrespective of the cost of its pro duction, but says that demand and sup ply of commodities have no effect upon their prices. This is obviously a mis take. The promoters and manipulators of the modern trusts and combines recognize the potency of the factor "supply" in determining price; hence their organized effort to control prices by regulating the output, or product. As to the factor "demand," the Times Herald, not long since, asserted that the more men that are employed the greater the demand for goods and com modities, and hence the better are prices, creating, in an endless circle, a demand for more laborers and for more goods and making prices yet higher. John Stuart Mill, in formu- lating the quantitive theory of money, qualified it with the phrase, "all other things remaining the same." What ever else may, or may not, be embraced in the term "all other things," it is certain that the demand and supply of and for commodities and goods are "things," any variations in which ex ert a powerful influence upon prices. Now as to the phrase "value of gold." What does the professor mean by it? A careful reading of all his articles would seem to justify the inference that he means its commercial value, or price, as a commodity, and not its ex change value, or purchasing power, as money. He seems to entertain the idea that a variation in the supply or demand of and for the world's gold affects, first, its commercial value as a commodity and, consequently, its pur chasing power, or capacity as a meas , ure of value or money. This is not only misleading; it is ludicrous and nonsensical. The veriest tyro in finance understands that, until the de mand for gold for use in the arts equals the entire world's product, the commercial price will be merged into and governed by the monetary value given to gold by the terms of the Bank of England charter and the coinage laws of the several nations. Oq the other hand, it is easily seen that -so long as the surplus supply of gold, in excess of the demand for use in the arts, has an unlimited market at a fixed value, or price, gold will never be worth less than the monetary value given it by coinage laws. The world's mass of gold, whether taken as a whole or in small quantities by weight, never varies in price per grain, pound, or ton from the monetary value given it by law. The variations caused by fluctu ations in supply and demand of and for gold, mentioned by the professor, are variations in the exchange value of gold dollars caused by a diminution or increase in the number of such dollars. Continuing his article of May 30, Prof. Laughlin says: "But once that the standard, in which prices are expressed, is under stood, we are in a position to discuss clearly the function of money as a me , dium of exchange. Goods being al ready compared with the standard and prices being fixed, then the question U, now are these roods exchanged? Cer tainly it might seem that when more goods are to be exchanged more money in Drooortion would be wanted. If transactions increase money must in crease. If - money does not increase correspondingly, then there is "con striction" and prices falL This is the belief of many, and they have a right to hear this fairly discussed. We have seen that there was no use increasing the quantity of money as a common denominator of value merely to affect the standard; for that produced con fusion in prices and contracts.. Now we shall find that an increasing quan tity of money is, also, not properly necessary to a perfectly efficient ex change of goods. Once that prices, ex pressed in the stable standard, are given, you can exchange unlimited goods without actual money; just as you find room in the air for shooting countless arrows, since the air is ready for another arrow as soon as the first one has passed through it" It is next to impossible for a metal list, handicapped as he is by the com modity ' money absurdity, to convey his meaning in intelligible language. Mr. Laughlin appears to be trying to establish the following propositions, viz.: That gold is a variable and un stable "measure of values," but that it is the best we can find. That the vari ations in the value of gold are not in the gold dollar, as a dollar, but in the value of the weight of commodity gold constituting a dollar. That variations in the quantity or volume of the world's gold cause a variation in the prices of commodities, but that prices of com modities are not affected by variations in the volume of money. That while prices are affected by variations in the value of gold and the value of gold is affected by variations in its quantity or supply, we really do not need more than one dollar or unit quantity of gold with which to differentiate, or "meas ure,"' values, exchanges being virtually made without the use of money at all. In all of these contentions Mr. Laugh lin sees the truth "through a glass, darkly," and does but reiterate what students of monetary science have demonstrated again and again. As a matter of fact, the professor, while making an argument for commodity money, effectually annihilates that ab surdity and delivers a knock-ont blow to the fallacies, "intrinsic value," "spe cie basis," etc., etc. The professor is treading close upon the borders of the promised land. Shall we ever be able to see that a variable "measure of values" is insep arably connected with the commodity money fallacy, and that in a scientific monetary system the value of metal would cut no figure? Mr. Laughlin is perfectly correct when he ascribes the cause Of variations in the value of gold to the variations in its supply. He clearly sees that the gold "standard of values" is a variable and unstable measure, and his argument is adroitly formulated bo as to separate the gold unit, or measure of value, from the gold dollar, or money. The trouble with all sincere and conscientious met allists is that they do not perceive that the metal unit is hampered by limita tions not inhering in, or adhering to, the true, ideal unit of account, the figure 1. The volume of figure Is with their multiples and decimals is illim itable and inexhaustible, but the vol ume of gold dollars is limited by the supply of gold. Metallism is an effort to use a certain quantity of certain metals to perform functions which can be properly performed only by the ideal, immutable and invariable "mon ey of account" Measured and differ entiated by the true monetary unit, or unit of account," with its multiples and decimals, the value of commodities and goods would be regulated, con trolled and expressed in "price" solely by factors inhering in and adhering to, and having influence only upon the goods and commodities themselves; such as cost of production; the laws of supply and demand; oost of distribu tion, etc., etc. No question concern ing money would enter into the differ entiation of prices, because money would be completely divorced from all material and commodity substances. being merely an ideal and immaterial system of counters, by means of which values would be differentiated and ex pressed. k The American Cyclopedia, under the head of "Money of Account," says: The use of a money of account is in no respect a mechanical process by which other articles are compared by weight or bulk with gold or silver; but it is an arithmetical one, by which they are compared with a unit of value, which has had its origin in some coin or other commodity which possesses the quality of acceptability for the payment of debts and the purchase of commodities. A money of account is a language in which all values or prices may be expressed, and by means of .which the relative value of commodi ties may be stated. It is something which each and every one carries in his mind, as he does his knowledge of words, or of arithmetic, and in so do ing he is quite independent of any thought of coinage, or of circulating notes. These are facts which have, in whole or in part, been recognized by various writers differing in almost all other respects in regard to money, and they have been controverted by but few. But being facts close at hand, familiar and almost self evi dently true, their full significance and far-reaching importance have been overlooked and disregarded by almost all economists." But even the American Cyclopedia makes a grievous error. The term "unit of value" applied to '-money of account," is ridiculous. The true term is, of course, "unit of account" And it does not have "its origin in some coin, or other commodity" but in na ture's unit, the figure 1. As Mr. Edward Evans well says, in the Buffalo Courier: "The world must yet learn the lesson that money does not inhere in any' material thing in its normal condition. The thing we call "money" is only the material sub stance upon which we stamp the sub division of a mathematical proposition. I .- , Let ns illustrate what I mean: W have in our mind a 'unit,' a 'dollar' something to 'dole out' We then pro ceeded to select a piece of gold metal of a certain weight and fineness (25.8 grains, 00 fine), which we caU a 'dollar,' and which represents one of those mathematical 'units' which we bad in our mind. We then multiply these 'units' by ten and then proceed to se lect a piece of gold metal ten times larger than the piece selected to rep resent the first unit;' and then stamp upon it ten 'units,' $10, which gives us a 910 gold piece; and likewise do we proceed to select 412f grains of silver, 90 fine, to represent the 'unit' which we bad in our mind when we selected the piece of gold to represent the same 'unit' The point I wish to make is that money is purely and scientifically a mathematic al proposition and only applies to ma terial things when certain pieces oi gold and silver are taken to represent these 'ideal units,' or decimals, which we first have in our mind. We com mence to enumerate by decimals, or by a scale of decimals, such as 'ten mills' make 'one cent;' 'ten cents,' 'one dime;' 'ten dimes, 'one dollar.' You see that the practical decimals are first determined before we arrive at the unit, cent Then we proceed with our numerals of ten to find our 'dime.' Then, again, by our numerals of ten to find our 'dollar.' Then we proceed, by an act of congress, to determine upon a proper material to represent these mathematical divisions, and so we take a piece of copper to represent a cent, a piece of silver to represent a dime and a piece of gold to represent the dollar, and each piece in its turn to represent a mathematical ideal. This makes money the creature of a mathematical ideal,' and precludes forever any 'intrinsic' value in the metal, as money, before it is clothed by congress with its legal debt-paying function." . But suppose that instead of selecting a metal to represent this unit, with its decimals and multiples, we had select ed paper bills with suitable inscrip tions and devices? Then money, sep arated and divorced from all material commodities, would simply indicate in fisfures the relative value of commodi ties, as compared with each other, and not as compared with money. Gkorge C. Wakd. LEGAL TENDER PAPER. We Mast Not Let Oar Zeal for Silver Dis tract Our Attention from the Main Issue. In 1863 this government issued $60, 000,000 of absolute legal tender paper money. That money never depreciat ed one penny in comparison with gold through all the years of blood and car nage that followed. In fact, the great er part of the time it commanded a premium over gold. It was that fact that alarmed the money king's of the world. They hastened to Washington and forced the government to discredit its own money by making future issues worthless to pay duties on imports and interest on the publio debt. Thaddeus Stevens, the ablest man in public life at that time, fought bitterly to prevent the consummation of this conspiracy. In a speech delivered in congress on the 20th day of February, 1863, he said: I have melancholy forbodings that we are about to consummate a cun ningly devised scheme, which will car ry great injury and great loss to all classes of people throughout this union but one. It creates money, and by its very terms makes it a depreciated cur rency. We are making one class of money lor bankers and brokers, and another for the people. We are allow ing the capitalist to demand gold, and compelling the people to receive notes which the government has purposely discredited." The scheme was carried out in spite of Stevens, and from that moment the greenbacks continued to go down in value. That was exactly the result that the capitalists were striving for. They did not want the people to get accus tomed to a ' legal tender paper money which was beyond their con- troL But the historical fact remains that a purely fiat money when issued and accepted in payment of all dues by the government will not depreciate one penny. Our currency to-day is based on gold. Gold is only one com modity, and one production of the country. Does it not look reasonable that a currency based upon all the pro ductions and wealth of the country would be better for the people than a currency that is based upon only one of those productions? Let us not lose sight of this fact in the coming fight While we demand the free coinage of silver, it must be supplemented by an absolute legal tender money like the old demand notes of 1863. Maine Pop ulist Paper Money. When you receive paper money in exchange for what you have to sell, do you scrutinize the piece of paper to see whether it is redeemable in gold? Well, hardly. You think:' "Will it go?" "Will my credit take it?" If you are sure that the money ...will pay your debt, and that your creditor is com pelled to receive it, you are satisfied. Your creditor is satisfied if his creditor is compelled to take it Thus it goes till the man who owes the government import duties or internal revenue tax finds that the government is compelled to take it Now, doesn't such a piece of paper meet all the requirements of complete money? Sledge Hammer.' Consistency f In the income tax decision the su preme court feigns jealousy for the in dependent rights of spates, holding that the national government cannot usurp the right to levy a direct tax; that that is one v of the inalienable rights of the states. In the Debs case it goes to the furthest extreme of an opposite view, holding that the states have not the right to first attempt to quell riots, but that the federal gov ernment and courts shall take cogni zance of individuals at will. The in terest of capital demanded, the contra diction and the court knew not how to deny. Ripley (Tenn.) People's Advocate. Three Cent Column. mall sWlYertlenienu for short time, wlU to , 7 , Pr won lorMCftuuMr- Wntvl n&ah with tha mAm If VikCT WaW" anvttttna k a m. .VI. anybody mlm "wanta," mk Uknowattuonfk vviaHWi SV WlU trmjt F BANK D. EAGER. Attonuj-at-Law, ION 0 street. SEED CORN a.4 1 fm. SbbdOiowu, Toornie. ul TXTAMTXD OMtleaaa erUdyte at! DebU't aiemiagm vontu iceoaoalaer; flu aar eoBst pot: aavea one-third tbe eoOe. Arthur L. Debit Co., JU Wabash Ave. Chicago, 111. Burr's blocfc, Lincoln, Neb? f WAJfEIrr2,MSycl0M llnt- Good . PT- J- Y. SC Bwlgsrt, BeoV. Lincoln, 87tf DlDlfrDO THE ACME 80B80ILEB at rnAMiikJ tach8 to an; plow. Keud for Ju I.. FUNK. BUM Aftsnt, Llnooln. Neb. Dobte's Coffee EeonomlMr make yoor code lut twice as ion ft. tiu any pot, Free circular Artaar I fioble Co., 211 Wabana Ave.. Chicago, tit $750.00 A Year and All Expenses. We want a tew more Uenrrnl Agenta, ladies or gentlemen, to travel nnd uppolnt agent on oar new publications. Full partU-nlurs given on ap plication. If yon apply please send referenmt, and atate 1-Dsluens experience, aire anil send pbo toirraph. If you cannot travel, write as for terms to local ennvaxwrs. Depc.Kare.S. I. BELL A CO., fhiladelphin, Pa. m We want luoo more active agents before k July 1st. We will guarantee S20 to $30 per day T m can be easily made in any locality ; our goods V sell themselves; we furnish a large roll of I samples entirely FREE and allow 60 per cent, commission on all sales. Send to-day A for full Darticulars. or we will send witn A 1 same a Valuable sample of our goods in w 1.1 ill 1 vu. iinftTi rM.lnt lit in ..tin In 1 FROM LINCOLN is the SHOUT Line (operating its own tracks) Mjfti'gi..Rai to Marshalltown, Cedar ItapitlH, Clinton, Chicago, Milwaukee, .Mudison, Oshkosh. Fon du Lac. iSioux City. St. Paul. Minneapolis. Puluth. In ChicHgo connections are made with . 22 diverging lines. In St. Paul, Union depot with 10 lines unsurpassed time made to eastern and northeastern cities. or tickets, etc.. call at citv office 117 So. 10th St., or depot corner S and 8th ors. GILLIAN'S Want Column. TCOR BALE. Neat. Are room cottage, near school end car line. Cheap. T?OR BALE. Fine homse in Lincoln. All .lies and price. JpOR SALE. Flve-acrs tract, near college and .a. car line. Cheap. FOR SALE. Twenty acres. Good seven-room house, barn, windmill and fruit. FOR 8 A LE. 120-acre farm, near Lincoln, Im proved, a bargain at f 35 Der acre. I?OR SALE. 820 acres, well improved, 10 mils ' Lincoln, at a bargain. FOR SALE. 160 acres, well improved, 12 rallos of Lincoln. Would take an improved 80 Dart py. FOR SALE. 160 acres, 8-room house, four miles of Lincoln : only $7,000, for short time. T?OR SALE. :t00 acres. Improved, good land, A.' near Mlliord, f 36 per acre. FOR 8ALE. 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Eight room house In Bea- trice, for Lincoln property. pOR EXCHANGE. Hotel building In David City for Lincoln property. pOR EXCHANGE. Fifty Davis Platform ' Hinders, tor dear land. FOR EXCHANGE. Seven room house and two lota on corner, close In to business cen ter Lincoln. Would consider Improved land in eastern or central Nebraska. FOR EXCHANGE. Five acres, well Improved, room house, all modern conveniences, buth. ;t u rtit.i ro.d water, closet, sewerage, etc., burn, h.-ii hoil-e. well, windmill, two tanks, fruit nnd x'i.hI.-. An Ideal suburban home. Would like nn .mpnived farm near station In central or eastern .eorueka. All kinds o! Heal Eh t ate and Merchan dise, and would be pleased to serve you. Gillilan Investment Co,, 1001 0 St. (ground floor) LINCOLN, NEBRASKA. J sliver or stamps. Kstabllshed In 1882. Ad- T dress, STANDARD SILVERWARE A " Bostcm.aB. J GEMS mi A Magnificent 200 Poems ... WITH ,v f. - . ' V VTX - fJiF V J I (7- Tr..t f vaIy Peaceful Meadows and " V'WvlFi V '7. Bark Forests, of Raging. , Wilf i ,WiY ' light Nights, of Ancient j ZZ-yy riJ-&$i , CastleandtheLittleHut, J d,M fiT5 W,J ot Beckoning Church- YlM 4' .SC sf B,lh steeple and Guiding: , lSOl $ WVlfflh- Lighthouse, of Birds and -A V rMr Flowers, of Sweet Girl to, V 7vA'wmi9i and Children, of lllustri- 'Wll'kk J ' Beine a Superb Collection M Ms "WJ M W wfflflM1 1 ot the Most Famous Poems- . fw Frwf ' Most Illustrious Poets, and jmMF wifm&M somely " Illustrated with l'Mm Jm'' MWWf ' Beautiful Engravings by ' MMM fr'W World-renowned Artists, . JWf , makes this One of the- '''MP " Grandest Books of the Cen- ' tury, theErjgravlngs Alone- William tw. Costing at least $20,000.00, William Cullen Bryant. Being Made for a Book to Retail at 84.00 to 810.00. This Marvelous Book Should be in Every Home , NO OTHER BOOK LIKE IT. The Sublime Thought, the Pure Language, the Perfect Style Given TJ bj these Noted Scholars and Poets, Is Perfect Food for the Mind. ........ The Beautiful Pictures, the Seep Love and Sentiment Expressed, the True Religion Taught by these Gifted Hen, is Balm as Well as Food for the Soul. ......... It Educates the Children, It Entertains the Visitor, it Delights Everybody, . Both Young and Old. We only have space here to give the names of a few of the Illustrious poets whos poems are in this book : . WhUtier, Longfellow, Lowell, Holmes, Bryant, Tennyson. Burnt, Foe, Wordsworth, Scott, ClodeUer, Browning, Saxe, Emerson, Arnold, Holland, Hood, Dope, Southey, Byron, Keats, Shakspere, Shelley, Coleridge, Charles Xingsley, Heine, Swinburne, Dante, Gray, Sidney. Halleck, Schiller, Milton and many others. ' t t The famous artists of two continents have been called upon for the best productions to grace the pages of this work. Read the following partial list: Allan Barraud, W. H. J. Boot, B. F. Brewlnall, R.W.S., Frank Dadd, R.I., M. Ellen Edwards, W. Biscombe Gardner, Mary L. Qow, R.I., Davidson Knowles, M Blair Leighton, II. Giacomelli, W. Hatherell, J. Nash, As poetry is the cream of literature, and as this collection is tbe cream of aU poetry, this magnificent work should be possessed by every person who reads the English . language. The works of the best authors are expensive. Attempt to make a collection of the poets and see what it will cost you; you will need hundreds of dollars to get half way through the list. Besides, in the works of all the poets there is a great deal of chafr along with the wheat, and to find the real grain you would need to hunt through many bulky volumes. But here is a work which presents to you tbe very essence of all that is good the nectar without any of the dregs all carefully selected by a ripe scholar who has, by gift and training, the rare faculty of choosing the best, thus assuring to the readers a rich feast. The work is most profusely Illustrated. Beautiful engravings Illustrate the poems. These Illustrations were engraved by the most noted artists of America and Europe, and are masterpieces in every sense of t he word. Fine pictures of some of the most popular poets are also given. Most of th engravings are full-page sise. Each page is 8 inches wide and 10 inches long, Including margin. As a book for the center-table It is unexcelled. Sl.00 POST-PAID. CQDlUT nKlfi t2TtDP3QTf"iB Has for eighteen years been the chief agricuV--PJ-tK,JVl MrI J'lrEOIL-E tural and family Journal Of America. Pro gressive, practical and trustworthy, it not only is a recognized authority In all things agricultural, but being especially adapted to every member of the farmer's family, has gained a present circulation of over 250,000 copies per issue. It is unique In all depart ments, employing the ablest writers for its columns. Twice a month, with 29 to 28 pages of attractive and profitable reading in each number. The price, GO cents a year, is only rendered possible by the enormous circulation. 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