New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1894-08-22

in this statement. Let us try to be truth
full about these matters.
It is the threatened free trade legislation
Of the Democratic party which has par
alyzed business, thrown people out Of em-
ployment and cut down the wages Of
laboring men here in the United States.
The fact cannot be gainsaid by calling
any one else hard names. Epithets prove
nothing
More Money Now Than Ever.
Representative:
Mr.. Horn said:
"They tell US that it is overprod uction,
sumption, because there is nothing to buy
with"
What do you buy with p Money. Who
reduced the money of this country by de-
monetizing silver ? The Republican party
Again Mr.. Horr said:
''The Republican party plants itself
upon the position that we should make, as
far as possible, everything we need right
here at home"
To which 81 D." inquiries:
Well, why don't you make your money
at home? Why should we borrow money
in England, and pay interest on it, when
our experience during the war, with the
first 100000 of greenbacks, shows that
we can make just as good money our
selves, and pay no interest on it?
The statement which I actually made
was this, that the working people of the
United States could not buy articles as
they had done in the past because their
wages had been recently cut down or en-
tirely stopped, and on that account the
workingmen had nothing with which to
buy. Nowhere did I intimate that such a
state of affairs existed because there was
no money in the country with which to
buy. The statement which did make is
absolutely true. The wages paid each day
for work all over the United States for
many years past have been the greatest
distribution of wealth known anywhere on
the face of the earth. ~
The statement which this writer seems
to believe, and seeks to make me utter, is
not true. The money of this country was
not reduced in amount by the law of 1873
The money in circulation per capita in 1878
was S1S.O4 In 1874 it was $18.13. It then
fell little per capita each year, chiefly in
consequence of the population increasing
100000, up to 1878, when it was 1882.
Then the amount began steadily to in
crease, and in 1898 it had reached the sum
of $3.50 per capita.
TODAY 1T is NEARLY TWENTY
FIVE DOLLARS for each man, woman
and child in the United States
In the face of this we'll known fact why
keep asserting that there is such lack of
currency in this country? What we need
is a revival of business, so as to make the
money circulate which has all this time
existed in the United States
What Money Really Is.
Because stated that we should make as
nearly as possible everything we need
right here at home, this writer asks:
well. why don't you make your money
at homer"
That question is founded on the assump-
ton that money is a manufactured article
} like cotton cloth or wooden blankets. 1t
is nothing OF the kind.
"Why should we borrow money and
pay interest on it, when experience shows
that we can make just as good money
ourselves and pay no interest ," quoth
81 Do
That question could be asked only by a
person who believes in fiat " money
Experience shows this and nothing
more: That our government can issue a
limited amount of notes, payable on de-
mand, and keep such notes at par so long
as it redeems them when demanded. Ex-
perience also shows that when the amount
is so large that the government fails to re-
deem them on presentation, such notes
fall below par. A government might issue
$50, 100000 of such notes and keep them
good, when it could do nothing of the kind
with 10 times that amount. A man worth
$1,000 might issue promissory notes of s1GO
each to the amount of $1,000, and those
notes might all remain good. His we'll
known ability to pay that amount would
give people confidence in his promise. Let
it once be understood, however, that there
are $4,000 of such notes out against him
and those notes will instantly fall below
par. Because government can issue a.
limited amount of promises to pay and
keep it good, it by no means follows that
it can do the same thing with an unlimited
amount.
This Populist writer doesn't say how
much of such money can be issued bv a
government and be kept good I assert
that the amount is limited Does he denv
this? If not, why did he not name the
limitation? Or does he believe that the
government can issue money payable in
nothing, redeemable in nothing, and that,
too, without any limitations as to time
and amount, and yet that such stuff will
be good money as long as it exists? A
Populist may believe such thing posi-
BILE. I do not.
People earn money by all kinds of labor.
Men who mine gold and silver furnish the
world with substances which have been
used for ages as money The government
coins these substances for the purpose of
showing the quantity and quality of each
piece The people furnish the metal out
of which the coins are made. By the
process of coming the government creates
nothing.
Money is used to facilitate exchanges.
People make money by producing the ar
tcles out of which money is made or by.
producing the articles that can be ex-
changed for money. When man gives
mis- note for s1O6 in exchange for q horse.
the man is worth no more than he was be-
fore he bought the horse, $500 is the
fair value of the animal He has the
horse hut, he owes its ful1 va1ua whon9