REPRESENTATIVE MONEY. 393 



not one commodity only, as gold, nor credit, nor population, &quot;but all 

 commodities the entire taxable property of the commonwealth. 

 Money having this basis would be representative money, the money 

 of the people, the sovereign money. The volume of money required 

 for producing, utilizing and exchanging property is necessarily de 

 termined by the same law which governs production and exchange, 

 viz., demand for use. Enough money for equivalent exchange is 

 the law of volume. Therefore, arbitary limitation of the volume of 

 money is a violation of the natural law of exchange, and is void of 

 right, as would be a like limitation of production and exchange. 

 Arbitrary limitation of the volume of money has been the principal 

 measure of class power to secure the monopoly of money; a neces 

 sary result of such limitation has been forced credits. Credit is the 

 immediate parent of bankruptcy, and periods of bankruptcy have 

 been the harvest times of the money monopolists. Therefore, arbi 

 trary limitation of money issue should cease. 



The right of monetary issue is a sovereign right, to be held and 

 maintained by the people for the common benefit. The delegation 

 of this right to corporations is the surrender of the central attribute 

 of sovereignty; is void of constitutional sanction; is conferring upon 

 a subordinate irresponsible power and plenary dominion over indus 

 try and commerce. Therefore, the people should resume their right 

 over the issue and circulation of money. 



Value is determined by agreement between parties to exchange, 

 and the final standard of value is use. Gold is not the standard of 

 value, but like other commodities, its value depends upon its power 

 of exchange. 



The legal dollar is a certain measure or counter of value. Its 

 weight, twenty-five and eight tenths grains of gold, nine tenths fine, 

 is the standard weight and quality of the monetary unit. 



The volume of gold and the purchasing power of the dollar vary 

 widely, as do those of other commodities. The use of gold in pay 

 ment of interest upon national debt, and in adjusting balances of 

 trade between nations, confer upon it the character of universal or 

 international money. These uses, use in the arts and private hoard 

 ing, absorb nearly the entire volume, leaving little available for do 

 mestic exchange, and are reasons conclusive against making gold the 

 sole basis of national or domestic money. 



Promissory notes are evidences of debts. Such notes are not 

 money, and the attempt to circulate them as money is an attempt to 

 evade the force of the natural law, which has necessarily resulted in 

 failure. Such notes were spurious tokens, and their proffered use 

 as money should be prohibited. 



A currency is inflated when the volume issued exceeds that of its 

 basis. The so-called &quot;specie basis currency&quot; notes, promissory 

 of specie payment, have been issued &quot;nominally in the ratio of 

 four dollars currency to one dollar coin, supposed to be in bank; 

 but, in fact, six dollars of currency to one dollar of coin.&quot; The 

 paper currency of the past, therefore, has been inflated to the extent 

 of five hundred per cent. 



A currency is redeemable when .all of it can be redeemed in the 

 substance signified or thing promised; therefore, with only one dol 

 lar of coin to redeem six dollars of promissory notes, the specie basis 



