New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-10-14

FvI money metals we need those metals
which have q relatively high value, and
for that reason we use gold and silver.
Therefore every gold or silver coin
has natural value in itself, which Is
always at least of the value Of the met
al in the coin when the coin is melted
down..
How do we create money! Take our
law prior to Feb. / 2, 1878, which pro-
vided that 1922 grains gold should con-
stitute ono dollar and that 81 .25 grains
pure silver should be q dollar; that with
every such dollar one could pay existing
and future debts; that the government
would coin for any person that might
apply all his gold and silver without
limiting the amount. !.
The government assumed no obliga-
ton to purchase either silver or gold.
Nor did 1t agree to exchange gold for
silver or silver for gold. The only obi.
CATION imposed on anyone by our mon-
etary laws was that he was compelled to
receive these coins al their nominal val
ue in the payments of debts; and this
was true blmetallism. It's restoration
at this time is all that we ask.
He then went to tell what change oc-
ours in piece of metal when it is trans
ferred into coin and said: We have now
piece of metal of which we know pre-
cisely how much fine gold or silver is
contained in it.; quality which for the
purposes of commerce is of inestlmable
value. Secondly, we have now conve-
nient medium of exchange and measure
of value. And we have, thirdly, legal
tender for the payment of all debts. Now
the first two qualities do not add any as
sential new quality to the metal, only in
creasing its usefulness IN commerce. But
the third quality, that of legal tender,
gives it an essentially new quality-one
that no other property, not even uncoinsd
gold aAd silver has. For instance man
could not pay debt OF one dollar with
a pound of gold or pound of silver or
an acre of wheat, unless his debtor would
consent to accept the same. This quail
ty of legal tender is of the utmost i'm
portant in the study of the money 4ues-
tion. 1t is readily understood that if a
ment of one dollar, it is wholly immaterl-
al what the natural value of the metal in
the coin may be, whether it be 100 cents
or so cents or cents.
For instance during the war q gold
dollar was worth $50 cents and yet you
could compel no one to take it for more
than 100 cents III the payment of debt.
Our paper dollars were only worth 40
cents in gold and yet with that same dol
lar we could pay the debt of dollar,
just as well as witt a gold dollar. And
! at present we have silver dollar which
we all admit contains only So cents
worth of silver and yet it will pay dol.
lar debt just as we'll as 4; gold dollar.
Our opponents always ask us how we
can give silver an artificial value by law
Our answer is that for the purpose OF
paying a debt the law can absolutely fix
the value Of coin. And as the remon-
etization of silver would permit all sill
yer TO he coined at the ratio of 16 to l,
immense amounts of silver would he
coined at once, and used for the pay.
meuts Of debts, whereby great demand
for silver would he created; and as all
increased demand for silver must raise
it's price in the market, we have hele a
full and complete answer to the question
of our opponents and have demonstrated
that the law can not only fix the value
Of coin, out Can indirectly raise the
value Of the metal of which it IS made.
| know our opponents claim that the
silver dollar only maintains it's value in
commerce today from the fact that the
government practically gives us gold
dollar when we ask it, while the law
does not provide that 1t shall he done
and the government may cease to do sc
at any moment. But we claim that the
silver dollar remains at par with the
gold dollar because of its legal tender
debt paying quality. This is easily un,
derstood when we consider that we have
but 600 millions of these silver dollars
while we have over 10000 millions O
debts payable in silver. So that the sill
yer that we have is not even sufficient t
pay the annual interest on this immense
debt, let alone the principle. 80 long a
;. such disproportlon exists these sllve
dollars will remain at par with gold
whether the government ex changes golt
!, for silver or not.
i That such silver dollar is in part
tiat dollar and that for that purpose tiv
cents worth of silver or worthless piec
of paper would answer as well as SO cent
, worth Of silver; that such money is dis
honest money and is to " be condemne,
under all circumstances, we assert a
. strongly as OR opponents. But it wa
+ our opponents, who by the demonetiza
Itlon ofssilver made the silver dollar
!, dishonest dollar and it is they who ar
| now seeking to further destroy the hon
: est value of the silver dollar and make j
worth still less than So cents, while it j
{ 1--we, who seek by remonetization, to- in
crease the value Of the silver in the dol
s lar ane gain make it an honest 100 cen
q dollar. Our opponents say that We can
not do this. We say we can and we shal
prove it.
: How can we increase the value Of sill
| yer by legislation? All political eco
t nomlsts agree and our reasoning and ex
8 peTlence teaches us that the demand fo
s monevsis nraf.tica IN intiiiiifn4. hpca.rc.