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Money And Trade Dollars

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To the Ann Arbor Courier. In the belief that your writer on silver coins was mistaken as to the weight of the trade dollar, I wrote to the treasury department for Information, and am informeel, as I before supposed, tliat the trade dollar was 110 cheat, but contained 420 grains of silver while the standard dollar has but 412L grains. The tirade against the trade dollar, reminds me of an old neighbor who indignantly returned to his grocer a sack of flour beeause it weighed two pounds more tlian standard weight. All this uonsense about dollars is the outgrowth of erroneous theories pertaining to the properties and functions of money, which, for the edification of your readei-8,1 will try to explain. The iutrinsic valué of all things - money too - the same as of coal, iron, wheat, etc., is exaetly measured by the labor and skill required to produce them. Gold and silver, having been adopted as money, they are the commercial measure of all other things, at the exact labor cost of their production. It having been proven by long tried experience that it requires on an average the same labor and skill to produce 25 4-5 grains of gold, that it does to produce 412J grains of silver, they have been adopted as equivalents in viilue, and each is called a dallar. Such too, is the true measure by which all commercial values are determlned, including "fiat inoney,'' which has not and never will have any greater value than the material ou which the denomination is printed. Money being the commercial measure of all other commodities, the price of all other things is necessaiïly high or low, in the exact ratio as money is ubundaut or stinted in its supply. The aggregate amount of the world's gold and silver being about equal in value, it iscertain if either be demonetized.prices for other commodities will have but half their present measure and the burdens of the debtor class will be doubled. In other words it compels the debtor class to give 6 feet tor a yard and 32 ounces for a pound on all existing debts. The objections to the coinage of silver and the tirade against süver dollars were originated and are still fanned into flame by the great creditor class in the hope or inaking silver inoney unpopular and linally demonetizing It, thereby doubling the value of their bonds. Though silver dollars are eoinc-d in excess of our wants for change the deniand for them is a thousand times greater tlian it is lor gold dollars. Tlie demonetization of silver by the strongnationsofEiiropegreatlydepressed its maiket price and equally enhanced the value of gold, doubling its purchasiiig power.whichspeedily whittled the debtor clasë down to a point, making them " hewers of wood and drawers of water." Gold and silver having been adopted as the world's inoney.their production should be absolutely free and beyond the power of legislation. It should not be possible to stimulate or to discourage their production by cnactuients of law nor by the decrees of courts. As gold and silver may be tendered government should freely coin into convenient inultiplies, then, exchange for bullion- weight for weight- without limit as to quantity, deducting cost only, for coinage. When coin is not desired in exchange for bullion, certifleates, convenient for currency, should e substituted therefor. Thus arranged the production of gold and silver, and the supply of mouey will become self regulating. When ordinary pursuits are profltable, labor will be high and mining for gold and silver will be unprolitable, but, where markets are overstocked, labor will be low and mining for gold and silver will be profitable and self paying, uiitil an equilibrium is restored. So longas gold and silverare the money of the people, it is nonsense to talk about overloading the treasury. Three bullion vaults should be established, one at SanFrancisco, one at Chicago, and ono at New Yorlj. T hose vaults should freely receive hII the gold and silver tendered them, payable ín coiu or eertifiraUes, convenient for currency, ileductingcost for nihiing, thus, giving trade the exact ineiisnre of :ill tlie cold and silver not useil in 1 lio uts. Aun Arbor, July IK, 18SÜ.


Ann Arbor Courier
Old News