THE MONETARY PROBLEM. 207 



its result, should be rewarded by that which, under the law of 

 supply and demand, will assure the possession of the result of 

 other human effort of a certain quantity and quality in an accept- 

 able form. Human effort should be measured by human effort, 

 not by any one commodity, however precious, the supply of which 

 is inconstant ; human effort should be rewarded by human effort, 

 not by any one commodity, however precious, the value of which 

 is unstable. The attainment of this end is the final step of that 

 evolution which began with barter, and through the use of coin 

 and paper representatives of coin we are taking that step so 

 gradually that we notice not its meaning. 



Obviously it must not be that the assurance of reward be 

 based upon the result of human effort, as evidenced solely by any 

 one commodity. Cloth, corn, leather, each varies in quantity 

 from year to year, and the supply is not always in the same ratio 

 to the demand that is, neither one of these commodities is of a 

 definite value that is permanent. This same objection applies, 

 but in greater degree, to both gold and silver. The assurance 

 of the reward of human effort must not be based solely upon 

 the result of human effort as embodied in houses, mills, factories, 

 railways, canals, ships, machinery, for these structures are not 

 indestructible. Even those that endure for centuries may fluctu- 

 ate in value as they increase or decrease in their capacity for 

 service to society, because of change in the currents of the law of 

 supply and demand, or as they are honestly and capably or dis- 

 honestly and incapably managed. As it is for the results of 

 human effort in all their varied forms that the aggregate of 

 human effort is put forth, its reward should be the assurance of a 

 given measure of effort as embodied in desired results. 



A paper currency, therefore, should be based directly upon the 

 assurance of the result of human effort to make its value good 

 unqualifiedly and unconditionally; and that it may attain the 

 utmost confidence, such assurance must be universally known to 

 be sufficient and reliable. This can only be when a group of 

 people, the members of which, perceiving a secure currency to be 

 vital to their prosperity, combine in giving that assurance. Such 

 a group of people cohering by the force of common need, consti- 

 tuting a state or nation, can give assurance of their combined 

 effort through enactment of their administrative body known as 

 the government. The instrument whereby that enactment can 

 be made good is the power of taxation, which is the power of the 

 government to take from its people a portion of their effort for 

 the attainment of ends necessary to their common good. The 

 acceptance of such a currency among a people will depend in 

 natural course upon the degree of their coherence as evidenced 

 by their confidence in the honesty and ability of their own gov- 



