Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1896-10-18
LAW DOES NOT MAKE MONEY
Exchange Carried On by a Recognized
Medium Long Prior TO Legislation.
GOVERNMENT FIAT NOT A CREATOR
Free silvcritc FnIIncic- Concerning
Value and the Regulation Thereon
Exposed and the Rcni Truth
Carefully Expounded.

r. Rosowater addressed a republican
rally held last night under the auspices
OF the Sixth Ward Republican club
at Twcnty-fourth and Spruce streets The
large room was we'll filed with voters.
among them being several Of the supporters
OF the free silver idea. e. Hutchins had
been announced to follow Mr.. Rosewater,
but President Leavitt announced that Mr..
Hutchns would be unable to appear.
Mr.. Rosewater talked for about two hours
devoting the greater part Of his time to
discussion OF the financial question. His
statements and illustrations were made in
a pointed and incisive manner, which inn
pressed his hearers most favorably and he
held the attention of his audience closely
The first proposition advanced by Mr..
Rosewater was that money is not the
creature OF law. There was money In the
world, he said. before there was any law re-
lating to money, and he referred to the
bible story OF the purchase of a burial lot
by Abraham, payment being made with
money current with the merchant" There
was record he said, OF any law at that
time fixing the value OF money and yet there
are numerous evidences that money was
used In the earliest times. Coming down to
more recent times, the speaker said there
fixes the money standard yet business is
carried on in that country on a large scale.
The next proposition advanced was to the
effect that labor creates all the wealth In
the world and that the value given to
money Is the toll necessary to produce the
metal and shape 1T into form for use. Mr..
Rosewater refuted the oft-repeated assertion
OF the slverites that the stamp Of the gov
eminent makes value, and explained the diff
ference between actual money and fiat
money.
The speaker then referred to the use OF
various metals as money at various periods
In the worlds history and incidentally as
serted that the kind OF money in circulation
among a people indicated the state OF civ
fliZation OF that nation.
CHANGES IN RATIO.
The question OF ratio between gold and
silver was then taken up and the various
changes through which the coinage ratio has
passed in the worlds experience was hastily
referred to. showing that 1t had been found
necessary to change from the ratio OF 10 to
! by gradual stages to IS to l on account OF
constant variations In the commercial ratio
OF the two metals, Notwithstanding the eff
forts of the principal nations of the world
to maintain the ratio at a fixed point.
Referring to the claim OF the silverites
that gold and silver are the money Of the
constitution, Mr.. Rosewater quoted the con-
stitutional provision giving congress the
right to coin money and fix the value thereof
and the provision restraining the states
from coming any kind Of money except gold
and silver. The latter clause, he asserted,
was inserted in the constitution to prevent
the states from flooding the country with
paper money. The best proof, he said, that
gold and silver were not the money OF the
constitution was found in the fact that the
first money coined under the constitution
was copper. and he further asserted that
there Is nothing In the constitution TO pre-
vent the governments coming money of QnN
metal
The meaning OF the phrase honest
money was next explained by the speaker as
meaning money which would stand the test
of the melting pot and be worth as much
bfter Il came out OF the pot as before II
went into It,
The history OF the coinage OF money In
this country was then referred to at some
length, showing how the ratio between golt
and silver had been first fixed at Is to
and how 1t had been found necessary t
change the ratio from time to time to keel
the gold from leaving the country entirel.
because the commercial ratio differed from
the coinage ratio. People found they coulC
get more silver in Europe in exchange To-
their gold and the gold was sent there TO
exchange before the ratio was changed.
NOT THE FIRST CRIME"
Taking up the question OF Grimes" Mr.
Rosewater said that Thomas jefferson, Will
president OF the United States. ordered tn
coinage of silver dollars stopped in 1906 we
the country went along for thirty year
without anybody finding 1t out In 1894 tn
ratio was changed and in 1896 the coinag
OF silver dollars was resumed 1t was o
the free and unlimited variety, but in on
year the minis coined but 81 900. becaus
q silver was worth no more coined than |
was as bullion and no one cared whethe
their bullion was coined or not
The speaker asserted that the changing o
the ratio in 1896 made the ratio in thu
United States higher than in Europe ant
put this country on gold basis and 1t haC
been there ever since. THE country ha
been on n gold basis for the past slxt,
years" said the speaker land these Ri
Van Wrinkles are just finding II out. Thu
free and unlimited coinage of silver dollars
was stopped in 1853, instead of 1873 an,
= the law of 1873 was simply making law o
what had been the practice for years"
Mr.. Rosewater then referred to the tall
OF the silveriteS about the secrecy" will
which the act of 1878 was passed. He sale
this matter had first originated in 1867, wheI
the secretary of the treasury recommended
a revision of the mint laws and under tn,
direction of the secretary a bill was pre-
pared and submitted to the various director.
of the mnts for criticism. These officers
made written reports, which were printed II
1870 and circulated in printed form amonl
congressman and public officials The bill
as prepared by the secretary had the i'm
portant features printed In heavy type ant
In that document appeared in this type tn,
clauses referring to the dscontinuance o.
the coinage OF the silver dollar and otheI