The Great Donlan

Thomas G. Donlan of Barron's is THE BEST editorial writer around, for my money. (And since I'm a paying subscriber to Barron's Online, it really is for my money.)

I probably like Donlan because his views strike a chord with my own libertarian streak. Some may think he's a right wing conservative, though those folks probably didn't read his editorial sympathetic to possibly impeaching the current US President over government wire tapping.

Some of my favorite editorials concern a federal government energy policy (the best policy is no policy) and the nomination of Janice Rogers Brown to the Court of Appeals for the District of Columbia (she was right in saying the New Deal was an advancement of socialism).

This week's issue of Barron's contains another winning editorial (scroll down):

In 20th-century America, gold was the first good money to go. First, it was driven out of circulation by a flood of paper; then the government confiscated much of the gold its citizens were hoarding.

Silver dollars were the next driven out, and silver quarters and silver dimes weren't far behind. In 1965, it cost more than 10 cents worth of silver to make a dime. First, the government made it illegal to melt down coins, then it took the silver out.

Pennies were next. Until 1982, there was enough copper in a penny to pose a temptation to melters and hoarders.

The pennies made after 1982, though intrinsically almost worthless at the time, now contain more than a pennyworth of zinc and copper. And there's more than five cents worth of copper and nickel in a nickel coin.

Since 2006, it has been illegal to melt down pennies and nickels for their metal; now there are active proposals to substitute baser metals for zinc, copper and nickel.

There is a better alternative: Create good money, and maintain its value.

See what I mean?

Many wonder (and worry) about Rupert Murdoch's plans for Dow Jones. I certainly hope those plans include keeping Thomas Donlan at Barron's.

Comments

[David]

Hi John,

I find myself agreeing with Donlan's editorials a lot lately. I thought his piece last week on food prices and government intervention in agricultural markets was very timely and to the point.

As you mentioned, it's easy to get the impression on first glance that he is a WSJ editorial page-type conservative, but I have found a real common-sense libertarian streak in his writings.

By the way, the phenomenon he describes in his latest editorial on money is known as "Gresham's law" (Bad money chases out good), if anyone would like to know more about it.

[John]

David: Yeah, in a op-ed world where everyone falls into the same old "left vs. right" or "liberal vs. conservative" model, Thomas Donlan is certainly a refreshing viewpoint.

And thanks for pointing out Gresham's Law. Donlan mentions it in his editorial but I didn't re-post that part.