Spurgeon Ernest W. Bacon
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“Honest Money” by Dr. Gary North, is a book that reviews the principals of money. This book , written by the guidelines of the Bible, reveals the answers to a monetary crisis of astronomical proportions. It simply demonstrates the value of Money in our civilization. The truth is that real money is something used in exchange. In short and most important, money is the most marketable commodity in a particular way. “So when the money failed in the land of Egypt and in the land of Canaan, all the Egyptians came to Joseph and said, Give us bread, for why should we die in your presence? For the money had failed (Genesis 47:15). What did they mean, “the money has failed”? They meant simply that compared to the value of life-giving grain, the money was worth nothing. In Egypt, the money failed because everyone wanted the same thing, grain, and nobody was willing to give up any of grain except the Pharaoh. The Bible says that the money failed. “Failed” money is the same as “unmarketable” money. But there is no such thing as unmarketable money. If its unmarketable, then no one wants it, if no one wants it, its no longer money. Money doesnt have to be made in order to exist.
Why do people select a particular form of money like gold or silver? Because they learn from experience what other people accept in exchange. Eventually, people voluntarily choose what they wanted to use as money. The trouble with gold and silver is that they are metals. That means they can be measured. If a user can measure it or weigh it, he can tell if someone has added a cheaper metal into the cheaper metal. People learned to test coins. If it wasnt soft enough for their teeth to leave a mark, it was the proper weight for the precious metal. Well how do you know if the government mixes the metals and tell us that its 100% gold? The coins weight will change . It also starts to change color. People loose faith in the issuer of the coins. But paper money overcomes this inherent weakness one peace of paper looks like any other peace of paper .They weigh all the same. How can the user determine which peace of paper is the phony? He cant. How dose the state get people to accept pieces of paper as money? By making then convertible on demand for silver of gold. They accept the states paper as if it were honest money. As more paper come in use as money the price of goods starts to rise. This includes the price of gold or silver. Now, if a piece of paper called “one dollar” entitles the bearer to collect an ounce of silver, but the printing of paper money raises the price of silver “two dollars”.