New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1895-02-27
What is Needed is Medium Of Exchange
That Will Be Fixed in Value.
So Says M. Lind in Discussing the Ethic.
al Side Of the Financial Question.
The Low Prices Of Commodities to Be
Traced to the Inconsistency ofthe
Factor Of Exchange.
He Says SThat the Fifty Cent Dollar is
Honest in Itself.

John Land of New Ulm was the speaker
before the Minnesota Congregational
club, atkits February meeting held last
evening at the Park Congregational
church. His address treated of the eth.
lcal Side of the Financial Question" and
it proved to be very interesting expos
ition Of dry subject. 1t was nothing
more nor less than an argument for free
silver. H. -. s%..;,tt
Mr.. Lind began his interesting talk by
a glance at the conditions of the last
part of the lost century, it's revolt against
political economics and individual serf-
dom. In this revolt he pointed out that
philosophers and scholars had been on
the side of The people. The doctrines
they have advanced were good for the
needs of the time, but, though they are
still harped upon, most of them are as
obsolete as the institutions they helped
to overthrow. In short, social and econ
omic laws are not permanent, universal,
immutable, like those of nature.
Passing to money, Mr.. Lind reminded
his audience of its two principal func-
tons, as a measure of value and medi-
UNI of exchange. The only essentials Of
the material to be used as money, he
said, 'whether silver or paper, are that 1t
have a known value as compared to 9TH
er things, that it be reasonably stable
and pass current from hand to hand"
Price varied with the supply and de-
mand for commodities on the one hand
and the volume of money IN circulation
on the other. Owing to the movements
in transportation and facilities in spread
ing intelligence prices are no longer To-
Cal. but international, and are influenced
by the volume of money in circulation
in other countries. If all business was
done on cash basis, ana credit was ell
minated, the variations in the general
level of prices would not have any eff
feet. But the credit system has come to
stay. 1t is necessary. Hence the second
function Of money as standard of de-
ferred payments. The value of the money
must be constant or else the debtor or
creditor will be wronged. If gold has
been constant in value, then it is a lust
standard. If it has appreciated, it is an
unjust standard.
The value of dollar is what it will
buy. The great staples, wheat, iron, etc.,
that constitute the bulk of international
commerce, have fallen so per cent since
1878. The country is young and needs
capital. 1t has to avail itself of credit
TO maintain it its only resource is in It's
products. If the legislature steps in and
reduces the value of this product, the
burden becomes unbearable. In 1890
the mortgage debt of Minnesota farms
amounted to $187, 900, 900, computing the
interest at 7 per cent. If congress re-
duces the value of farm product by
one fourth, it would mean reduction
to the extent of one-half the value of
last years wheat crop. This is what has
been done. The arguments that the fall
of prices in the last twenty-five years is
due to>improved methods is weak. Pro-
duction has increased from year to year
for the last forty-f years at about the
same rate. During the first part Of the
period there was bimetallism, but since
1878 the increase in the volume of re-
de mption money has been decreased.
One half was dropped out in 1878. One
factor has been constant, and the other
inc onstant. Logically, then, we must
trace the result of low prices to the in
consistent factor. -..
Mr.. Lind then went on to show that
the evils of an appreciated standard were
not confined to the taxpayer and the
debtor, but arrested moral, social and
in dustrial progress as we'll. I'm conclu-
sion he stated that in 1878, when silver
was demenetized, it was slightly at
premium as commodity. It was on
ly after the unrestricted money had been
taken away that it fell in value. The
largest..use of the precious metals was in
their moneyIuse. The single standard
advocate maintained that the increase in
the production of silver had made it i'm
possible to maintain the ratio. But the
volume of silver and gold in the world
to-day was about even. The production
of gold had,:in the last forty five years,
exceeded the production of silver by
more than 81 SOC, 100000. As it is the
use of an article which establishes its
value, if the law gives the same identical
use to two metals as coin, the bullion
value would not have any effect. The
~koos AIaE