The advocate., 1895-07-31
HARVEY AND RORR.
lContlnued trOm Page Id

an article Is always fixed by the absolute
cost Of production--to the concern pro.
ducing 1t, which does 1t at the highest
price at which it can stay In the business
after the price is fixed.
"For instance, we had been paying
years ago $l'a pound, and good deal
more, for aluminium. 1t used to cost
that in actual work in expense TO get a
pound of it, Now aluminium Is without
limit in the crust Of the earth almost. 10
used TO cost so much to separate 1t that ID
was worth more than gold. Now we
have been cheapening the production Of
aluminium until it is down to perhaps
20 or As cents a pound. Now mark-When
some person (and it will be done) shall
discover method Of reducing alumni
ann so that 1t can be made for 10 cents
pound the price Of aluminium will not go
down to 10 cents pound at first, or any.
where near it. The man making the dis
coyery will hold the price up as high as
he can keep 1t, and that Is always at the
highest point that 1t costs any Of the
men who still stay in the business to
make It,
In reply Harvey said he would fully
debate this question later 'In its proper
place" but 'jIst give you this to think
about meantime: Between 1850 and 1873
we had great era Of improved faoilities
Even the harvesters were all invented
and in use before 1873, and yet prices were
rising. Improved facilities increased
constantly and at the same time prices
were rising. If Blk grains Of silver Is
now only worth 80 cents why 10 not the
gold in the gold dollar only worth 80
cents, II you are right about your cheap
cost Of production.
''In 1857 all the money in circulation
was per capita SI828 At that time all
money was primary money-the measure
Of values was paper money itself. In 1871
the per capita OF all money in circulation,
was SIS I9, and all Of 1t was primary
money. In 1894 we had a per capita clrs
Oulstlon Of primary and credit money
combined Of $2423" The reason why
prices were not higher, as they should
have been in 1894 than In 1879, was that
Of the $24 per capita only sc was primary
money, said Harvey
Horr rejOined: II am very much sur
pElsea to hear my friend say that we were
getting along we'll during the years Of
suspension OF specie payment when we
used entirely money that on It's face had
to be redeemed. His definition Of primary
money was money of redemption. Every
greenback has to be redeemed to make 1t
good. 1t is not primary money"
Horr went on to say that 1t was the old
hn nlv hn vho1
hung on the amount per capita in olrcula-
tlon, and intlmated that Harvey would
have been Greenbacker Horr did not
believe this doctrine; he believed the
quality of the money had much to do
with the matter This country was
never more prosperous than from 1879, as
told you yesterday, up to 1892 There Is
not man living who can take the statls-
tlcs and prove that we were not doing
we'll as q nation during all those years."
HOrr then asked Harvey who were,
among the peoples Of the earth, followers
OF the silver idea, and enumerated China,
Mexico, the South American States, etc.,
saying that the most progressive Of those
peoples were adopting the gold standard.
Harvey denied the greenback impu.
tation and declared he had never written
anything to justify such an imputation.
The reason the civilized nations were
adopting gold was that they were being
tricked. That was the way the money
power had destroyed the Roman empire.
he then proceeded with che scientific
blmetallism" argument and said. Credit
money represents primary money. II q
bank issues 1t, 1t is expected to redeem 1t
in primary money, If the government
issues IL, 1t is expected in like manner to
seaeem 1t.
The government, however, should not
ia8ue IL to an extent greater than it was
possessed Of primary money to redeem 1t
with. He declared chat nation that
borrowed from foreign nations was i'm