Show BAD MONEY AND GOOD MONEY Y the current issue of the mining congress journal gives the people of this countr country y and particularly tile the silver miners and those who as national law makers have to do with currency problems something to think about it says the world has just witnessed a spectacle of the whole e of central europe being jerked back shivering from th the e edge of an economic abyss a debacle caused entirely b by y bad m money oney what is bad money obviously it is mone money y which has neither sufficient intrinsic worth or reserve security to make it a medium of continuous circulation at a constant value the whole work of the reparations commission has been and must be based on the replacement of bad money with good money which obvious obviously i Y must lust be mone money y which has sufficient intrinsic worth or reserve security curit y to make it a medium of continuous cincu circulation bation at a const constant constatin atif value for many years the standard of silver content in silver coinage of countries which maintain the leadership in world commerce e has been fixed at fine there has been of recent years a lowering of this fineness in countries other than the united states to little more than half the former silver content unlike paper currency it does not have the reserve to fortify its value the immediate profit in is large to the mint of the issuing country the ultimate result is bound to approach a tiza tion and depreciation of its value as a circulating medium not so great it is true as in the issue of uncounted billions of paper money against no reserves but certainly ultimately to t the lie de deree degree 6 ree to which its fineness has been reduced to that extent it becomes token money with an all intrinsic value low in proportion to its stamped value and currency value it is bound to have a disquieting effect on the people among whom it circulates there has been a distinct division of opinion between those people who have supported the theory of token money and those p people eople who have supported the theory of money based on intrinsic or reserve value the economic developments of europe have conclusively shown that whatever may have been said for the theory of token money as a practical matter it is bad money |