136 lines
6.0 KiB
Plaintext
136 lines
6.0 KiB
Plaintext
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Conspiracy Nation -- Vol. 11 Num. 05
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=======================================
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("Quid coniuratio est?")
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COIN'S FINANCIAL SCHOOL -- II
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=============================
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Synopsis by Conspiracy Nation
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(Based on *Coin's Financial School* by William Harvey (1895))
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The science of money is an exact science. As much so as
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mathematics.
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The primary value of all property is its exchange value. If we
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had no money, one kind of property would be exchanged for
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another. Money is a medium of exchange to facilitate this
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exchanging of property.
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If there were no money, and we had to depend on exchanging
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property for property, we could find a subsistence, but there
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would be no such thing as our present civilization or anything
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like it.
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As stagnation and depression to business would result from having
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no money, then a part of these evils can be brought about by
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having money insufficient in either QUALITY or QUANTITY.
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It was best to select something for money which was valuable
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within itself. By stamping it as money, and making it legal
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tender in the payment of all debts, it then became money and
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possessed two qualities:
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(1) It had value of itself. If the government went to
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pieces, it was still valuable property and would have an
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exchange value;
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(2) The stamp of the government upon it became a
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certificate of its QUALITY and QUANTITY.
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It was considered that silver and gold were sufficient in
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quantity for use as primary money, but if at any time their
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combined quantity should become too small, then some other metal
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would have to be adopted and added to these two.
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After a nation has fixed what its *money* shall be, it then
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issues different forms of *credit money* all of which are
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directly or indirectly redeemable in the commodity (silver and/or
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gold) to which a fixed and stable value has been given.
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All money may be a medium of exchange, but primary money *only*
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is the measure of values. Credit money is not a measure of
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values; it is a medium of exchange only.
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There are two kinds of *credit money*, as to the material out of
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which they are made. One is made on paper and embraces all forms
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of government and bank notes. The other is *token money*. Token
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money is made from some metal that does not enjoy free coinage.
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Credit money of all kinds circulates by reason of its being
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redeemable directly or indirectly in primary money. A piece of
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paper money, or token money, is a promise of the government to
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pay so much primary money. Hence it is called *credit* money.
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It circulates on the credit of the government, on the confidence
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of the people that the government will be able to redeem it if it
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is presented.
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In issuing dollar for dollar of credit money to redemption money
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(primary money), it is not necessary that the government should
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keep the redemption money (gold and/or silver) at all times in
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its treasury in full amount ready to redeem all the credit money.
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So long as sufficient redemption money is in the country, the
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credit of the government can be depended upon to get it. But it
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cannot strain the proportion beyond such amount without making
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the danger imminent, and the lack of confidence great.
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If there is one thousand million dollars of redemption money in
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the United States -- in its treasury, its banks, and among its
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people -- then one thousand millions of credit money can be
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safely used and not more.
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If the plan is to weaken the currency, then (a) credit money is
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increased *beyond* the supply of primary money; or, (b) the
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foundation is dug out from under the credit money by lessening
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the supply of primary money.
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The currency was weakened in 1873, when Congress snuck in a law
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demonetizing silver and President Grant unwittingly signed the
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law. (See previous issue, CN 11.04.) If the plan is to weaken
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the currency, the foundation (silver) is dug out from under the
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credit money by lessening the supply of primary money.
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By making gold the *unit* and closing the mints to silver, it
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lessened the demand for silver, and its commercial value at once
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began to depreciate. The moment a new standard of money was set
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up -- only one-half in quantity to what had previously existed --
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silver began to fluctuate. It was then measured for its value in
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this new standard for measuring values and no longer possessed
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that fixed value which free coinage had given it. Silver had
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been changed from primary money to token money. With the
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demonetization of silver, the balance between credit money and
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primary money went out of whack: two-thirds of the money became
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credit money; one-third was primary money.
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+ + + + + + + + + + + + + + + + + + + + + +
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For related stories, visit:
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http://www.shout.net/~bigred/cn.html
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http://feustel.mixi.net
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Views expressed do not necessarily reflect those
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of Conspiracy Nation, nor of its Editor in Chief.
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I encourage distribution of "Conspiracy Nation."
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Send to: Brian Redman, 310 S. Prairie St. (#202)
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Champaign, IL 61820
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Want to know more about Whitewater, Oklahoma City bombing, etc?
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(1) telnet prairienet.org (2) logon as "visitor" (3) go citcom
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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
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Aperi os tuum, decerne quod justum est, et judica inopem et
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pauperem. -- Liber Proverbiorum XXXI: 8-9
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