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We are in receipt of the following i reply to a letter appearing in these col umus soine issues since. lts appearanc lias been unavoidably delayed severa weeks : Mr. Editor : I have been reading witl interest au artiele on the subject of money published in your paper, and, not agree ing with the writer on the more promi nent points he presents, I have concludet to give yon my views on the subject. The money question is one of the tuost irapor tant subjects of the day. It alfects ever; interest of society, the industrial, agricul tural, professional, and commercial; there fore that money that lilis its offioe in the cheapest, safest, easiest, and most corree marnier, is the best. The tirst question to be settled is, what is money ? Money per forma two offices. It is a measure of value and a medium of exchange. It is an inventiou to meet the deinandsof trade, jus as the plow is an inven tion growing ou of the necessities of agriculture. The Phoeneciaus invented coin, about 120( years before Christ. Previous to that al value of money as a medium of exchange was ascertained by weight; henee the term shekel, so oiten used in the Scriptures means to weigh. The commercial interests of the nations, as they ad vaneed in civilization, led to the adoption of checks of deposit, and bilis oi exchange. "Fiat money" was introduced by tlie Lombards in the eleventh century. Henee we see that money has existed in some form from the earliest dawn of civilization. It bas dineredas much In its denominations, as a Standard of value, as the nations have diftered that used theui. And to-day there are no two nations that have the same standard; henee it cannot be assumed with any degree of correctness, that the cost of mining and the expense of coining, are the means of determining the value of the coin ; at least, there is nothing In the laws of Congress, or was not four years ago, on the subject of colnage, that indicates any such basis; but the value of gold and silver in markets of the commercial nations is taken to regĂșlate the value of coins, in this and in other nations. The whole subject comes uiuler the dominion of law ; while the material out of which it is made has nothing to do witli its ollice as a meusure of value, or medium of excliange. Uncoined chunks of gold and sil ver have no more power as money, than so many pieces of irou or coal, untll they are comed and thcir value established by law. Tlms we see why 412)-L grains of silver will pay a (lebt of one dollar any where in the United States of America, when 420 grains will not. It s the " fiat " of the law that makes all nioney ; and that power of the law is liroited by the boundaries of the natiou that makes it. Our gold and silver coins are not nioney among any of the Eistern nations; but it will sell for what bullion is worth in the inarket, jnst as wheat or any other product does. " Does Mr. Hall consider his bonds, moitgages, or notes of no more value to him than tbe cost of the paper on which they are written, er printed ? Does he consider the bonds of the United States of America worth no more thai: the cost of the material, and the expense of prinring? I quote his languasre: "Such, too, is the true mensura by wliich all commercial values are determined, Irjclnding 'fiat money ' which has not and never will have any greater value, thau the materiul on which the denominations are printed.' But after all his illogical and unsound theories, ' for the editication of y our readers' he virtually concedes his error, on the pointof intrinsic value, bysaying: "When coin is notdesired, in excliange for bullion, certilicatesconvenient forcurrency should be snbstituted thercfor," which, according to his statement in regard to 'fiat nioney.' can never have more value than the "material on vvhich the denominations re printod." He says that tlie basis, which he has laid down for " establish' ing the value of coin, is the principie by which all commercial values are established." Xow I want to ask Mr. Hall " how we farmers can possibly accumiilate any wealth, if our products must be sold in he market only for the exact cost ot raisng and marketing them." Here, too, he s in error. The price of what is producid for the markets of the world is regnated on the principie of supply and denand. When the market Is overstocked, jrices will be low, and when there is not Miough to meet the demand, prlces will )e high. These facts are well established )y every producer's experience, as Mr. lall admite, in regard to the pupchasiiig


Ann Arbor Courier
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