The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-07-27

yet prices were rising Improved IA
cilities increased constantly. and at the
same time prices were rising. When
we get to it we will all understand this
question.
I was discussing primary money as
measure of value. We have as much
silver relatively with gold in our none
tary system now as at any time in 40
years, but it is not performing the func-
tions of primary or redemption money
it is token money-resting on gold,
and silver bullion is measured in gold
When we say price we mean gold. Sill
yer is not exerting an influence as
measure of values. The act of 1873
made by express words the unit of
value of gold, and left gold without any
concurrent coinage of another metal to
add to it's quantity. Hence, it left gold
the sole measure of values, and such it
is.
Mr.. Horr-I am very much surprised
to hear my friend say that we were get
ting along we'll during the years Of
suspension of specie payment when we
used entirely money that on its face
had to be redeemed. His definition Of
primary money was money of redemp-
deemed to make it good 1t is not
primary money, nor we cannot construe
it into primary money by any hook or
crook. Now, in 1879, we did return to
specie payment, we did make our green
backs and all our money as good as the
best, and Brother Harvey and his
whole crowd of followers and adherents
were going up and down this country
stating that if we undertook to enforce
that act we would ruin the business of
this country.
Mr.. Harvey-You did not hear me
say it.
Prices and Circulation.
Mr.. Horn - Well, if you were old
enough you did say it, A man consti-
tuted as you are couldn't have said any
thing else. Your whole crowd kept re-
peating it.
Now, I want to say to Mr.. Harvey
right here, 1 have not admitted that
prices are governed entirely, or any
thing like it, by the amount of money
in circulation. I said that your au-
thorities who claimed that quantity
doctrine all admitted (all of them, so
far as I know, admit, that it is the
quantity of anything that is used as
circulating medium that affects prices.
did not say I adopted the theory, be-
cause my experience has proved to me
that country is prosperous. not in pro-
portion to the amount of stuff that
circulates and is called money, but to
the amount of honest money, of honest
money that will be redeemed when pre-
sented, in it's value, dollar for dollar.
more prosperous than from 1879, as I
told you yesterday, up to 1892
Mr.. Harvey-Mr. Horn says I am a
greenbacker. Now, Mr. Horn, there is
nothing in anything l have ever writ
ten or anything that I have ever said
that will justify you in saying that 1
do not believe in gold and silver as
primary money to the fullest extent
under the bimetallic laws that gov
erned it prior to 1873. (Applause) We
may later discuss greenbacks and their
proper position in our financial system.
Mr.. Horn, failing, 1 presume, to find
better arguments, undertakes to sus-
tain his case by saying that gold has
been adopted by all civilized countries
as the sole measure of values and that
we have on our side only Mexico,
China, Japan, and such nations. Now,
Mr.. Horn, that is not argument.
Primary and Credit Money
I now proceed with the question of
the relation of primary and credit mon
ey Credit money represents primary
money. If bank issues it, it is ex-
pected to redeem it in primary money;
if the government issues it, it is ex-
| in To - T.
is not value, but represents value 1t
is issued on the same principle that a
check is issued.
Credit money may be issued by the
government with safety only in such
quantity as will not embarrass it in
case run is made on the government
for redemption. If it is a government
we'll founded and popular with,its own
people, it may issue credit money to an
equal amount with the quantity of
primary money in its borders. If re-
demption money is required it can float
bonds among its people to the full
amount, if necessary, and get the prf-
mary money. 1t should never borrow
money from the people of another ma
ton. (Applause) To do so is a sure
indication of monetary weakness zap
plause), and if persisted in will lead to
bankruptcy. No man can do business
on borrowed capital over a long period
without the almost certain risk of fail
ure. The same is true of a nation if it
borrows from a foreign nation. No
harmful effect results necessarily from
a nation borrowing from its own peo-
pie. When nation, its municipalities,
/, its corporations and its people are all
. borrowers from another nation, their
decay has set in. (Applause) And
nothing but exceptional craftsmanship
and vigorous action can save it from