The RURAL NEW-YORKER 
A 015 w 
A Primer of Economics 
By John J. Dillon 
Part XXXII 
MONEY AND CREDIT 
What is money? 
Money is a measure of value and a 
medium of exchange. 
Is money a commodity? 
Money (gold) is a commodity. It is 
produced under the same laws that govern 
in the production of other commodities. 
Is money wealth? 
Money (gold) has an exchange value 
in itself and is one of the forms of wealth. 
Is money synonymous with wealth? 
Money is not synonymous with wealth. 
The volume of gold in the country is so 
much wealth ; but it forms only a small 
part of the total wealth of the country. 
Has money value? 
Money (gold) has value primarily es¬ 
timated like other commodities on the 
supply and demand ultimately by the cost 
of production. 
Is the value of money stable, always 
the same? 
The value of money (gold) is not 
stable. It varies like the value of other 
commodities because of changes in the 
cost of production and in the supply and 
demand. 
Does the use of gold as money increase 
its value? 
The use of gold for money increases the 
demand for gold, and this demand in¬ 
creases its value. If gold was not used 
as money there would be a larger supply 
of it for use in the arts and the decreased 
demand would tend to decrease its ex- 
always equal the value of goods for sale? 
In practice the quantity of money in 
circulation is not equal in value to all 
the goods then on the market for sale. 
The money paid out is equal to the goods 
bought, but the money in circulation is 
not the same as the money handed from 
one to another in payment of goods. The 
same money may change hands many 
times; the real volume of money as it 
affects the supply and prices is the vol¬ 
ume in use multiplied by the number of 
times it is paid out in exchange. A large 
portion of the goods also change hands 
many times for convenience of distribu¬ 
tion or for profit. These duplications of 
sales are taken into account just as if 
so much goods were added each time to 
the previous volume of goods in the mar¬ 
ket for sale. Hence, the money in use 
multiplied by the average number of 
times it has been paid out must equal the 
price paid per unit multiplied by the num¬ 
ber of units of goods or service exchanged. 
This being so. and the number of units 
of goods and service remaining the same, 
it is evident that any increase or decrease 
in the volume of money must cause a 
proportionate increase or decrease in the 
average prices paid per unit. 
Tanning Rawhide 
Will Mr. Ormsbee tell us how to make 
rawhide? With calfskins selling as low 
as 25 cents each and a strip of %-inch 
belt lacing costing 20 cents, it would 
seem as if one could afford to spend the 
time to cure a few hides. .r. H. T. 
At the present comparative prices the 
manufacture of belt lacing offers the 
shortest road to wealth that I know of, 
provided one has a ready market for his 
product. But the market for belt lacing 
is exceedingly limited, and I can hardly 
advise anyone to engage very extensively 
in the business. However, there is a lot 
of satisfaction in doing things oneself, 
and what is lost in one way is amply 
compensated by the gain in another. 
In the manufacture of belt lacing it is 
customary to trim off the legs and other 
irregular parts and bring the skin into 
nearly or quite the form of a parallelo¬ 
gram. This is not necessary, but it saves 
the trouble and expense of tanning these 
parts, which are of little value as lac¬ 
ings. Then lay the skin upon a bench, 
flesh side up. Dive one side a thick coat¬ 
ing of hardwood ashes, say 1 in. deep. 
Fold the hide so that every part of it 
shall come in contact with the ashes, and 
then roll into a compact bundle. Lay 
away in a cool, dark place until the hair 
will slip readily. This will probably re¬ 
quire from three to 10 days. Shake free 
from the ashes and scrape the hair off. 
The scraper used in removing the bris¬ 
tles from the pig at butchering time will 
be a handy implement for this purpose. 
Turn the skin and remove with equal 
oare every particle of fleshy integument, 
and you will be surprised at the amount. 
Now have a box or other receptacle in 
which yon can spread the skin out flat. 
A worn-out sap pan from the maple sugar 
camp makes the very beat box possible. 
Put an inch layer of soft soap in the bot¬ 
tom of the pan.. The old-fashioned soft 
soap that our grandmothers used to make 
is much the best. Spread the skin upon 
this soap and then add as much more of 
the soap, thus completely covering the 
skin. Let it remain for tw r o weeks. Re¬ 
move and scrape off all the soap possible 
and then wash in soft water until every 
particle is removed; at the same time 
pull and stretch and twist and wring the 
skin in every imaginable way in order to 
get the water out of it and to make it 
more flexible. Then hang in a well-ven¬ 
tilated and shaded place, not until the 
skin becomes dry, but until the surplus 
water added by washing has evaporated. 
Remove the soap from the pan, wash 
the pan, lay the skin on it as before and 
cover the skin with neat’s-foot oil. Let 
it remain two weeks, and then remove 
and work as before, except that it will 
not be necessary to wash it. When 
practically free from oil clean the pan 
again, put in a layer of clean sawdust, 
spread the skin upon if. and cover with 
another layer of sawdust. This is to re¬ 
move the surplus oil. Let lie a few days. 
Remove and rub well with the sawdust. 
If soft, pliable and unctuous, the skin is 
finished, but if oily, bury in the sawdust 
again. c. o. ormsree. 
A Spray that Kills Flies 
One gallon keeps 4 cows 
free from flies for 30 days 
change value. 
Are prices affected by the quantity of 
money in circulation? 
The volume of trade remaining the 
same, an increase or a decrease in the 
total quantity of money and credit used) 
in exchange increases or decreases prices 
in exact proportion to the variations in 
quantity. 
Does the supply of money mean all the 
money in the country? 
The supply of money does not include 
money that is held in reserve or hoarded. 
It is the money that is in the market im¬ 
mediately available to pay out for pur¬ 
chases. The economic supply of money 
is the money in circulation. 
What constitutes the demand for 
money? 
The demand for money is the goods 
that are offered in exchange for money; 
it is goods that are offered for sale. 
In principle there is little difference 
between exchanging one commodity for 
another by barter, and in effecting the 
exchange by the use of money. Barter is 
the exchange of one commodity for an¬ 
other direct. It is the exchange of a 
bushel of wheat for a hat. By the mod¬ 
ern commercial system we exchange the 
wheat for a dollar, and with the dollar 
buy a hat. The money is a convenience. 
It saves time and labor. The farmer 
does not need to hold the wheat while 
he looks for a hatter. lie .sells it and 
knows when he needs the hat he can get 
it for the dollar. The same thing is true 
of the hatter. He sells the hat for a dol¬ 
lar, knowing (hat he can buy wheat or 
anything else when it is needed with the 
money. Money itself is a useless thing 
except as it serves this convenience in 
measuring values and in facilitating ex¬ 
change. 
Does the volume of money affect prices? 
If the amount of money and credit of¬ 
fered for goods were suddenly doubled, 
prices would double. Each person would 
handle twice the amount of money as be¬ 
fore, but the amount of other things re¬ 
ceived in exchange for the money would 
be the same. If the money and credit 
were reduced one-half, then prices would 
fall one-half, and the only difference in 
current transactions would be that less 
money would be carried and counted. 
In the same way, if the volume of 
goods were suddenly doubled prices would 
be cut in two ; and if the volume of goods 
were reduced one-half prices would 
double. These effects would hardly show 
themselves at once. It would take some 
time to adjust prices generally, and then 
prices of some things may advance more 
than others, but the general average 
would be exactly in proportion to the in¬ 
creases or decreases in money or com¬ 
modities in the market to be exchanged 
for each other. 
Does the value of money in circulation 
Full gallon and 
a Hand Spray 
for $ 2:25 
Washington, Pa. 
May 21st, 1921. 
Morgan Corporation 
Gentlemen: — Please find enclosed 
check for $2.50 for one can of Sure 
Death. I can buy all kinds of spray 
here but none comes up to “Sure 
Death.” Please quote me prices in 
lots of five and ten gallons, also your 
price to dealers, as I may be able to 
get some one to handle your goods. 
All it needs is an introduction in 
any good dairy section. 
Yours respectfully, 
Ezra Cattell. 
NOTE: —Tho retail price of Morgan’s 
Sure Death Fly ami Insect Destroyer 
is only SI. 50 in gallon cans. Mr. Cat- 
tell’s willingness to pay a round dol¬ 
lar more for it—in theso times — is 
the best evidence that " none comes 
up to Morgan’s Sure Death.” 
■■■■ 
W© 
Y OU DON’T RISK ONE CENT. Send us 
$2.25 and the name of the dealer you ordin¬ 
arily buy supplies from and we will ship you 
a hand spray and a full gallon of Morgan’s 
Sure Death Fly and Insect Destroyer. Spray 
your stock twice a day. Make a thorough 
test. If you are not entirely satisfied with the 
results send us the empty can and the spray and 
we will return your money. You are the judge. 
A gallon can without the sprayer costs $1.50. 
Most so-called l'ly-chasers are crude carbolic 
or creosote compounds—extremely poisonous. 
Morgan’s Sure Death Fly and Insect Destroyer 
contains neither. It is non-poisonous. It will 
not cause blisters. It does not stain or mat the 
hair of the whitest cow. It can be used im¬ 
mediately before milking without danger of 
tainting the milk. It knocks flies dead and 
keeps cows comfortable. They give up to 25 % 
more milk and gain in flesh and condition. 
Spray and increase your milk check. Take ad¬ 
vantage of this limited time combination offer. 
THE MORGAN CHEMICAL CORPORATION 
Executive Offices: 
39 Broadway Room No. '400 New York City 
