New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1897-02-03
THE LABOR EXCHANGE
a Correspondent Tells the Review Read
ers What It Is.

~ Behnke, who at present IS agitatln!
the establishment of an exchange in thi
city: .,.- <.
The National Labor Exchange was in
corporaled under the laws of Missouri
by order of the circuit court for Petti
county early in 1890 and since ther
branches have been established in nearly
all the states and territories and even ii
foreign lands. There are at present 16(
of them with total membership Of ovcl
1000.
The organization is one for the pro.
ducers and others interested in the vel
fare and advancement of people. Any
person, who is of good moral character
and not engaged in d business injurious
to the public may become Il member by
taking the pledge and paying lite
membership fee of only one dollar.
The direct purpose of the organlza-
ton is the overthrow of the!.prcscnt le-
gal tender system of business: and the
substitution of d system of!s.exchangc
based upon the product of labor.
1t strikes at obligations payable in
some article of limited production and
more limited utility, as for instance gold
and silver, which are arbitrarily made le-
gal tender for the satisfaction Of debts
and thus given a fictitious value, and in
stead, makes all obi cations payable
in commodities of general production
and universal demand. Legal tender is
OF value only because 1t can he ex-
changed for the things that are indis-
pensable to life, things without which
men cannot live. The Exchange bases
Its power upon those very things, and
certities that they have been produced
and placed il the keeping of the branch.
Men can starve with Golfers full of gold,
while the farmer without gold may feed
sentations Of wealth upon the actual
wealth of the community - upon the
bread and meat, the clothing and imple-
ments, without which man. would perish
from the earth.
The medium put into circulation
would be PERFECTLY SAFE, because based
upon the actual wealth in the hands Of
the Exchange. AS has been explained,
the certificates are issued only as value
comes and that value cannot leave the
exchange until paper equivalent comes
in. Thus every dollar af1oat will be backed
by at least one dollar of value in the
keeping of the Echangc. Paper goes out
when value comes in and paper comes in
when value goes out.
Another quality, possessed by no 9th
er monetary system, is its absolute elias
ITCHY. It's volume adjusts itself to the
demands of business. The amount in
circulation will depend upon the volume
of business. If production is active, re-
quiring a large volume of currency, there
will be an amount equal to the produc-
ton. A ':stringeucy," ::as at present,
could occur only upon failure in pro-
duction. That is, the circulation would
not effect production, but production
would determine tine volume Of the cir
culation. No case can arise in which
this medium would not be found IL per-
feet and adequate currency. Under the
present system with an annual produc-
ton roughly estimated at thirty oddzbil-
lions, we have all-told but a billion and
a half of medium with which to conduct
our exchanges. AS compared to the
possible and legitimate increase OF pro-
ductlon and trade, the volume of legal
tender money must remain practically
STATIONARY. This inAexibility renders in
secure every form of production.
Another quality, not possessed by 9TH
er currency, is that Of being free from
the manipulations Of spectators.
II cannot be coruered. NJ combina-
ton Of capital could obtain control of
the entire volume Of currency, and if
such a thing were conceivable, they
could only at most relieve the warehous-
es to-day that they might be reilled to-
morrow. So. 49,
Production will be stimulated by the
introduction Of this system. Production
must he met by consumption. Consump-
ton is only possible when they who have
needs have also the means of supplying
those needs. The great unvapitalized
mass have only their labor with which
to satisfy their needs. Il they do not
work, most emplatically they do not
eat. The only way to make them buy
r. 4 a.