4 Conservative *
GOLDEN APPLES.
The golden apples hang just out of reach
While those wo grasp are only tastnless dust ;
Yet , do wo never heed the tale they teach ,
They're only ashes nil , beneath the crust.
We look upon our neighbor's richer drra < j
And envy him , perhaps , his happier lot ,
We cannot see the weary cares that press
The tears that rise beneath his eyelids hot.
Ho has not poverty ; wo have not gold ,
Yet we , maybe , are far more richly blest ,
Wo may bo young , perhaps , while ho is old ,
He may bo racked with pain while we may rest.
Each has his sorrow , reck not otherwise ,
Deep hid beneath this pleasing outer shell ,
Within the chamber of the heart it lies ,
Each knows his own and guards his secret
well.
The golden apples just hang out of reach ,
While those wo grasp are only tasteless dust ,
Yet do we never heed the tale they teach ,
They're only ashes all beneath the crust.
ISABEL RICHEY.
Plattsmouth , Neb. , July 18 , 1000.
VALUE OF GOIiD.
Some weeks ago there was published
in THE CONSERVATIVE certain replies
made by me to questions asked in a
private letter , one of which was concerning -
corning the value of gold in the United
States in case it should be deprived of
its legal tender power.
Referring to the answer I made to this
question , Mr. W.H. Ashby of Beatrice , in
a communication to the Omaha World-
Herald , requests that I answer the ques
tion in the form it is proposed by him ,
which is practically the question I an
swered , made somewhat more definite.
The subject covered is important , for
the reason that grave political issues are
made to depend upon it.
In a condensed form , the question is
as follows :
"Should the United States and the
separate states repeal all laws making
gold and silver coins legal tender , and
put an end to their further coinage , and
should the United States then issue $3-
000,000,000 of irredeemable paper money
in payment of its expenses and obliga
tions , and make it the sole legal tender
in all payments , would such legislation
diminish the quantity of value per grain
of gold metal , within the jurisdiction of
the United States ? "
My answer is the same as it was be
fore. No such action would depreciate
the value of gold in this country on
the contrary , it would have the tendency
to increase its value.
I assume of course that by the word
"value" as here used is meant , the pur
chasing power of the quantity of gold
indicated.
Flat Paper or Flat Silver.
My answer would be the same if the
flat on government made money to be
issued , should be silver instead of paper.
So far as paper money is concerned ,
the question has been answered repeat
edly in practical application , and no
? ' -V.
enunciation of theory is required to
support my answer.
U. S. IiCgnl Tender Notes.
Our legal tender notes issued during
the civil war , supply the most favorable
illustration for the paper money side ,
because they proved to be the best paper
money of its kind ever issued ; yet they
settle the question with a distinctness
which would be only more strikingly
apparent if French assignats or confed
erate currency were used for illustration
instead.
Gold Value Not Diminished.
These notes were full legal tender and
irredeemable until 1879. The gold coins ,
it is true , were not deprived of their
legal tender quality , but this only ac
centuates the fact that they did not
require that assistance in order to main
tain their value.
Their purchasing power was exercised
without regard to it and at an exchange
value greatly in excess at all times of
their legal tender value. The stamp , or
denomination simply served to indicate
the quantity and quality of the metal
contained in the coins.
The coins were practically demon
etized and driven from ordinary circu
lation , and yet their purchasing power
was certainly not impaired.
The theory which would embrace the
idea that the issue of $3,000,000,000 of
irredeemable paper money would depre
ciate tha value of gold , must go still
farther and assert that the issue of say
$10,000,000,000 would proportionately
increase the depreciation a "reductio
ad absurdum" it is true , but meeting
strictly the case in question.
Gold Value , How Maintained.
Having answered as I have , I am then
requested to say what it is in my opinion
that determines and maintains the value
of gold.
A Storage of Value.
Gold owes its superiority over all
other money to the fact , that while it
possesses in common with everything
which passes for money , the ordinary
function of a medium of exchange , it is
also a "storage of value" which is a
function either absolutely absent in all
other money or exercised in a weak and
imperfect manner.
The laborer who receives , we will say ,
$1.00 per day , a sum exactly sufficient
for his daily wants , does not concern
himself as to the character of the money
he receives , so that it procures for him
the necessaries he must have.
The money is paid out again so soon
as it is received.
But let us say that he receives $2.00
per day and that his expenses remain
the same. He then saves $1.00 per day ,
which he puts aside for the support of
himself and family at some more or less
distant period in the future.
The character and quality of the
money now become to him a matter of
vital importance.
He certainly would not put aside Mr.
Ashby's legal tender money or any other
money of like description , if it is possi
ble for him to obtain gold or a good
obligation or security which is payable
in gold.
The same impelling motive which thus
influences the wage owner , also controls
the capitalist with his millions.
Money Like OrderH.
Money may be likened to orders issued
for property or services.
In the one case the order is guaranteed
by the collective power of mankind ,
founded upon the confidence prevailing
that the order will be duly honored , not
only today , or tomorrow , but at auy and
at all times in the future.
This confidence exists for gold. It is
not required for the purposes of this dis
cussion to state the facts and circum
stances which have made it possible. It
is only needed that the matter should be
presented as we find it , and to say that
the same condition has existed since the
time gold was first used for money.
In the other case there is back of the
order , only the fiat of one ot die govern
ing "powers that be" strong at present
and capable of giving a present value to
the order , but who can tell what the
future in its case may bring forth ? Its
resources and wealth may disappear and
the notes ultimately may prove worth
less.
Gold Value , How A fleeted.
But something should be said con
cerning the conditions under which the
value of'gold is affected or is supposed
to be affected , aside from the changes
indicated in the prices or val ue of other
things.
Can it be influenced by circumstances
attaching only to itself , such as its in
creased or decreased quantity , to say
nothing about its monetizatioii or de
monetization by legislative enactments ,
as suggested by Mr. Ashby ? The ques
tion is not without its difficulties.
The Political Economics.
The writers upon political economy ,
undoubtedly maintain the theory that
its value is regulated by its quantity ,
but the reasoning through which the
conclusion is reached , is not so clear , or
maintained with such unanimity that
we are obliged to consider the question
settled.
Mr. Ricardo , for instance , declares
that it is the quantity of money in ex
istence in any country that determines
its value there , and that the quantity in
the world is controlled and limited . by
its cost of production.
Mr. John Stuart Mill on the other
hand , says that it is not the quantity of
money in existence in a country , but the
quantity actually in circulation and in
process of being exchanged for goods