The morning call., 1891-07-06
MAKING OUR OWN MONEY.

The Hon. w. A. PETER of Kansas adj
dressed a New York audience few days
ago. The speech was regarded as semi
authoritative statement of what the new
party intends TO do when it comes into
power, unless meantime the old parties
make such concessions as the new party
demands. Ono OF these concessions de-
manded Is cheap money Mr.. PETER sup
poses that two men have each $4,000 One
loans his money on mortgage bonds at 10
per cent annual interest; the other invests
in a farm. Mr.. PETER contends that at
present rates of interest the man who loans
money makes larger profit without work
Than the one who buys a farm can make
with work. This, Mr.. PETER contends, is
not fair. why pay the fellow in Wall
street." he asks, zen per cent and the
poor toiler in the sunshine nothing?" Mr..
PETER continues:
Now, we are going TO eouaize that, even II we
are going 10 revOlut0niZe the whole country.
And instead OF calling US repudators and an
archists you have to thank us for giving you
warning in time. You must meet us half way in
his matter, or else-not war not bl0odshed, not
destruction, but this (here Senator PETER held
up newspaper In his hand)-we viii make our
own money That is just what we did during
the war. We Will say TO those who have the
money, Meet us half way let us have your
mo ney at rates we can do business" and If not
we VIII lei them keep 1t and make our own
Mr.. PETER is taking a larger contract
than he seems to realize. lie would know,
if he should stop to think minute, that the
Government cannot make money out of
paper. 1t can make currency, but the re-
lation that currency would bear TO money
will depend upon the ability of the holder
to- b..
with coin because the holder can get coin for
them. During the war and for years after
there was a doubt if the Government would
redeem greenbackS with coin. That doubt
was so great at one time that greenbacks
fell below forty cents on the dollar. As
the public gained confidence in the ability
and inclination of the Government to re-
deem its promise TO pay money for cur
rency, the value of the latter increased.
Greenbacks and coin were interchangeable
before the date upon which the coin was to
be had for asking. Now, if any party
should get possession cf the Government
with the avowl d purpose of Issuing a large
amount of paper currency, money and cur
rency would again part company. The
issue of one or two hundred piillion might
not have much effect, but anything like an
unlimited supply of currency would GER
taInly impair its value. BY such means the
nominal rate of interest might be lowered.
But the actual rate of interest is deternl-
med as much by the purchasing power of
money rs by the rate named in tie contract.
The relief of the debtor class will be found in
the largest possible issue of metallic money.
Stamping paper OF stamping leather does
not make the thing stamped money unless
the value is in it. When silver is at the
established ratio with gold, coin of either
metal contains its face value in bullion If
the coin is thrown into the melting pot the
bullion value is still there That is the
reason why gold or silver is money when
stamped, and anything else to be money
must have the intrinsic value it is declared
f.