Such a process goes on everywhere. In modern times the movement of capital is made thru the banks and by the use of credit instruments; but the balance against the community, when all the bank transac tions have been marshalled against one another, must be paid in money.
We are much given to thinking of the social income as a matter of money, but in reality it consists of the products created in such vast amounts and in so many varied forms. Every community produces something in larger quantities than others. The city of New York is a great clothing center; in it are made thou sands of suits, dresses and cloaks. Pittsburg pro duces iron and steel commodities; Minneapolis makes among other things quantities of flour; Maine pro i duces many_ bushels of potatoes, and North Dakota . harvests millions of bushels of small grains.
1 These goods, with many others of all sorts and 1 kinds, constitute the social income. The problem of distributing them calls into existence many wonder ful marketing, transporting and selling devices. In the present organization of society money is the great medium thru which the distributing process goes on. Men everywhere secure money for their services and this they use to buy what they need. Going from store to store and person to person the owner of money exchanges it for what he wants and so comes into the possession of a share of the social income. This method of dividing the products of the earth has not always been in vogue; and even now in the South among some of the negroes, labor is paid for in kind. As Professor DuBois in a speech at the Uni versity of Minnesota in 1906 declared, the negro emerges into better things when he receives money wages for his work and when as a renter lie can pay a fixed money rent.
10. Metallic money.—Metallic money is the coined money. The money of the standard is gold in the United States, as well as in most highly developed commercial lands. In the United States gold is coined in denominations of 2%, 5, 10 and 20 dollars. In this coinage the chief role is that of the twenty dollar gold piece, which in value has formed over two thirds of the coinage of the United States ever since its mints were established. In contrast, the coins of the smallest denomination now coined ($2.50) repre
sent only one per cent of the total coinage.
Silver is coined into half-dollars, quarter-dollars and dimes; and in addition the monetary stock con tains a large number of silver dollars, which have not been coined since 1904. For the smaller coins nickel and copper are used. The various experiments made, and they are numerous, show that the nations have bit upon a satisfactory selection of the metals for coin use. Durability, homogeneity, ductility and di visibility are the qualities required in the metals. Gold, silver, nickel and copper mixed with alloy fill these requirements and make satisfacto7 coins.
The governments have assumed the function of coining not so much for the profit involved as for the purpose of maintaining at all times the accuracy of weight and design of coins. Gold coins are made from the gold purchased at assay offices. The phrase, free coinage, applies to the coinage of gold, since the (Told coins are issued for a similar wein-ht and fmeness e, of gold. In some countries a fee is charged for ao-e This is called brassacTe The owner of bullion n • in the United States does not wait for coinage, but receives payment at once, tho required to pay for the alloy in the coins.
11. The silver dollar.—In the monetary system of the United States the silver dollar, and in that of France and the Latin Union countries the five-franc piece, occupy peculiar positions. They are in law, but not in fact, standard money. They are legally, a full tender for the payment of debt- in any amount. They are not expressly convertible on demand into gold coin, tho they could not maintain their place in the monetary circulation if this convertibility were not obtainable indirectly. At the present time in neither of the countries named can this coinage grow in amount.
12. attempt to keep gold and silver coins in circulation at the same time, both legal tender for obligations, and exchangeable for each other at par, with free coinage for both metals at the ratio fixed by law, is called bimetalism. For centur ies governments have tried to keep the two metals in a fixed ratio to each other. But whatever the legal procedure developed by them to do this, the commer cial ratio has been one of constant oscillation.