Mr. Westrup’s article sustains in the clearest manner my contention that money is impossible without a standard of value. Starting out to show that such a standard is a delusion, he does not succeed in writing four sentences descriptive of his proposed bank before he adopts that delusion. He tells us that one of the conditions in obtaining the notes (paper money) of the Mutual Bank is that they will be taken in lieu of current money. What does this mean? Why, simply that the patrons of the bank agree to take its notes as the equivalent of gold coin of the same face value. In other words, they agree to adopt gold as a standard of value. They will part with as much property in return for the notes as they would part with in return for gold. And if there were no such standard, the notes would not pass at all, because nobody would have any idea of the amount of property that he ought to exchange for them. The naïveté with which Mr. Westrup gives away his case shows triumphantly the peurility of his raillery at the idea of a standard of value.(81 ¶ 8)

Indeed, Comrade Westrup, I ask nothing better than to discuss the practicability of mutual banks. All the work that I have been doing for liberty these nineteen years has been directed steadily to the establishment of the conditions that alone will make them practicable. I have no occasion to show the necessity for a standard of value. Such necessity is already recognized by the people whom we are trying to convince of the truth of mutual banking. It is for you, who deny this necessity, to give your reasons. And in the very moment in which you undertake to tell us why you deny it, you admit it without knowing it. It would never have occurred to me to discuss the abstract theory of a standard of value. I regard it as too well settled. But when you, one of the most conspicuous and faithful apostles of mutual banking, begin to bring the theory into discredit and ridicule by basing your arguments in its favor on a childish attack against one of the simplest of financial truths, I am as much bound to repudiate your heresy as an engineer would be to disavow the calculations of a man who should begin an attempt to solve a difficult problem in engineering by denying the multiplication table.(81 ¶ 9)

I fully recognize Mr. Westrup’s faithful work for freedom in finance and the ability with which he often defends it. In fact, it is my appreciation of him that has prevented me from criticising his error earlier. I did not wish to throw any obstacle in the path or in any way dampen the enthusiasm of this ardent propagandist. But when I see that admirable paper, Egoism, of San Francisco, putting forward those writings of Mr. Westrup which contain the objectionable heresy;^[14] and when I see that other admirable paper, The Herald of Anarchy, of London, led by his or similar ideas to advocate the issue of paper bearing on its face the natural prices of all commodities (!); and when I see Individualists holding Anarchism responsible for these absurdities and on the strength of them making effective attacks upon a financial theory which, when properly defended, is invulnerable,—it seems high time to declare that the free and mutual banking advocated by Proudhon, Greene, amd Spooner never contemplated for a moment the desirability or the possibility of dispensing with a standard of value. If others think that a standard of value is a delusion, let them say so by all means; but let them not say so in the name of financial theories and projects which the original advocates of mutual banking gave to the world.(81 ¶ 10)