New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1878-11-20
MONEY IN HISTORY.

MONEY IN HISTORY.
Written for the Review by O. P. CIIAn1pL1N
With this article / close the series on
finance. The article which has a uni.
versal purchasing power; which most
permanently represents given a.
mount OF any grade OF kind of labor
performed by men; which has an in
herent value constant and continuous
under circumstances which would de-
stroy most commodities; and which is
the most conveniently handled consist
ent with these attributes is the best
for money; and that article is gold.
Silver stands next to it.. Hence. we
find in the history ofall ages that these
two articles have been most desired by
men as the standard of value and for
money. We can trace their use for
this purpose far back into remote an.
tiquity. The use of paper for money
belongs to more recent times. 1t has
become part of the money system of
most civilized countries. It owes it's
origin, probably, to the Jews of the
Middle Ages who were driven. by the
necessities of their changeable circum-
stances. to invent some method by
which they might safely retain their
money and, at the same time accom-
modate each other in their unsettled
life in their business transactions.
They adopted system Of drafts, or
written orders upon each other which
each one agreed to honor and cash to.
the person named in the draft. But
these drafts or bills Of exchange were.
of course, valuable only as they were
based upon money, gold or silver coin.
Whenever paper money has been is
sued without the intention of redeem.
ing it in gold or silver, or in quantities
more than sufficient for exchangeable
purposes it has deprecated. All the
facts of history show this. The lesson
OF our own Continental money has
been given to mankind over and over
in the experience ofN Nations and States.
In colonial times there was so little
specie that the governments resorted
to the issuing OF paper money as asub-
stitute. Some of the notes issued bore
interest and some did not. The amount
issued was increased or decreased in a
most arbitrary manner; and the result
Of all the ingenuity Of the financiers to
furnish the people with the money was
disastrous in the extreme. The econ
tinental money! Of ITS, in use dur
ing the Revolutionary War, came out,
at last, so worthless as no longer to-
serve the purpose Of money, even; and
had to be thrown aside for coin, and
coin issues. The successful termina-
ton Of the War did not save it from
this disaster. Of course as the cur
rency deprecated commodities rose in
value.
The French have had similar ex-.
perience. In order t. meet the national
expenses, during the earlier years of
their Revolution, they issued bills of
credit known as assignats;; and al
though these were legal tender, and
bore a daily interest and were redeem
able in land; yet, the evil that grew
out OF their issue was so great that they
had to be withdrawn; and were at the
very time when France had fairly be-
gun her long contest with the other
powers Of Europe. Then men began
to produce, to create capital; business
revived; and the nineteen years of.
war which followed was carried on
without a further issue of paper
money. Since then the French nation
has never trusted itself to a paper cur,
rency. It is useless to multiply Illus
trations. From the history of one
learn all. OF the evils of redundant
paper issue. James Buchanan said in
1887: It alternately rises and sinks
the value of every man. property. It.
makes beggar of the man tomorrow.
who is INDUCING in dreams of wealth
to-day. Tt converts the business of So.
ciety into 4 mere lottery, while those.
who distribute the prizes are wholly
Irresponsible to the people. When
the collapse comes, as come it must, it
casts laborers out Of employment,
brushes manufacturers and merchants,
and ruins thousands OF honest and in,
dustriOus citizens. =
History gives us numerous instances
where money has been deprecated by
reducing the amount of silver or gold
in the coin. The two go together; and
no fiat of any Government can prevent
it. Deprecated money produces tha
same effect as depr ciated currency.
i The value Of money is in the amount
of coin there is in it; and not in tue
! stamp of the Government,