The new philosophy of money, a practical treatise on the nature and office of money and the correct method of its supply

Contents

Introduction, ...... . . 9

A Synopsis of the Philosophy of Money herein presented.

General Effect of the Artificial Limit to the Volume of

Preface

This work is an investigation as to the nature and office of money; what constitutes the most satisfactory money, and the best method of providing for its supply. It is necessarily, therefore, an exposition of the errors and fallacies that are accountable for the prevailing unsound notions and the apparently inextricable confusion that characterize the subject, and are responsible for the existing absurd money systems.

The title, The New Philosophy of Money, might, perhaps, better have been formulated, The Philosophy of Money. Putting it in this positive form affirms that which it claims to be — the correct and only sound theory of money. A philosophy may be knowledge imperfectly understood, and contain errors, but the philosophy of a subject should be knowledge which has been demonstrated. It should be complete, and so formulated that all error is excluded. The New Philosophy of Money has been adopted as the title, for, while it is an old subject, the philosophy here presented is not only correct, but it is new.

The reader will find herein treated all the facts and theories that have a bearing on the subject, including that diplomatic phase of it called "finance."

Heretofore, the end that should have been sought — a faultless medium of exchange — has been lost sight of; and every writer who has presented a new theory of money, not to mention the old one, has become entangled with the dogmas, State supervision, "measure of value," "standard of value," and legal tender; or lost his bearings and ship-

8 PREFACE

wrecked among the breakers — fiat money, wildcat money, monometallism, bimetallism, and the like.

Production and exchange being the two great burdens that the constitution of things imposes on us, exchange being fully as important as production (because if exchange stops, production must stop also), and a medium of exchange, c«//6'c/ ?/zc»;^e)/, being indispensable to the accomplishment of exchange, what money will the most effectually and economically fulfil its oflice, and how to provide it, is a question of the very first magnitude, if it does not transcend all others. If the invention of an instrument used in the production of only one article of the thousands that contribute to comfort is of value to mankind, how much more so is that instrument which enables us to exchange all those products, and without which we could not enjoy them because we could not possess them? On this question of the best medium of exchange there is absolutely no conflict of interest. If it is reliable and there is enough of it, all are benefited; no one can be hurt by it. If it is unreliable, all are involved in the risk, and all interests are damaged.

This is the ground on which The New Philosophy of Money appeals to the reader in behalf of the Mutual Credit System. The writer makes no pretensions to originality or special merit. Whatever new idea, term, or definition may be presented here for the first time, he will, no doubt, in due time get credit for. The allusion to its being new has reference to the manner of presenting it; and that, in the popular sense, it is new.

With grateful remembrance, the author acknowledges his indebtedness to the writings of Col. Wm. B. Greene, E. H. Hey wood, Josiah Warren, and others.

The Author.