The representative., 1900-10-11
M1NNEAPo11s THURSDAY II 1900

on its face in exchange for anything
they may want to dispose of. 1t is this
mighty power that takes Al cents worth
of silver and stamps its fiat or decree
and makes its pass current for 100
cents. 1t is this power that takes less
than cents worth of paper and says
1t shall be an instrument of exchange
for one dollar, or so dollars, according
to that which is expressed upon its face.
I have heard it said of men that their
word was as good as their bond, or
their promise as good as gold. If this
can be said of some men, who can
doubt the fiat or decree Of nation Of
20 billions Of dollars in wealth? You
have seen, my friends, that money Is
only intended as a means of exchange
and its function is to circulate, and men
who want gold money for the purpose Of
boarding it or shipping it to foreign
countries, unwittingly furnish strong
evidence of its unfitness for money, for
a stable and uniform volume of cur
rency can not be maintained with a
money that people hoard or send off
to foreign countries. Money boarded is
money taken out of circulation and the
purposes of the government are thwart-
ed, prices made to fuctuate and busi-
ness disturbed.
NOT A NEW THEORY.
Before leaving this branch of the
money qustions, want to say that this
fiat money idea is not new. 1t did not
originate in the brain of latter day
Populist. It was successfully resorted to
by some of the colonies before the Rev.
olutiOn, was advocated by Jefferson and
defended by Calhoun and others. In
his letter to John ". Eppes, dated June
"a, 1913, which can be found in Jeffer-
sons work. volume 6, pages 139-40, Mr..
Jefferson says:
"And SO the nation may continue TO
issue it's bills as far as its wants re-
quire and the limit of its circulation
will admit. Those limits are understood
W CACCAO WALL u6 dI " 1C0CAL W VAVV,-
100000, a greater sum than would be
necessary for any war. But this, the
only resource which the government
could command with certainty, the
states having unfortunately fooled
away, may corruptly alienated to swim
dlers and shavers, under the cover of
private banks. Say, too, as an addi-
tional evil, that the disposable funds
of individuals to this great amount have
thus been withdrawn from improve
ments and useful enterprises and en-
ployed in the useless usurous and de-
moralizing practices of bank directors
and their accomplices. In the war of
1855 our state availed itself of this
fund by issuing a paper money, bot
toned on specific tax for it's redemp-
tion, and to insure it's credit, bearing
an interest of per cent. Within a very
short time not bill of this omission
was to be found in circulation. 1t was
locked up in the chests of executives,
guardians, widows, farmers, etc. We
then issued bills bottomed on redeem
ing tax but bearing no interest. These
were readily received and never de-
preciated single farthing."
Again, in letter dated September II.
1873, he says:
Bank paper must be suppressed and
the circulating medium must be restor-
ed to the nation to whom it belongs.
1t is the only fund on which they can
rely for loans; it is the only recourse
which can never fail them, and 1t is
an abundant one for every necessary
purpose. Treasury bills, bottomed on
taxes, may be found necessary, thrown
into circulation. will take the place of
SO much silver and gold"
John C. Calhoun, one of the most
brilliant statesmen in the South, In a
speech in the United States senate, said:
Bank paper is cheap to those who
make it, but very dear to those who
use it. On the other hand, national
currency. while it would greatly facil-
itate it's financial operations, would cost
next to nothing. but would give TO
every branch of industry great advan-
tages. And now l undertake to affirm,
without the fear that can be answered,
that a paper can be issued by the gov
ernment with single promise to receive
it for dues and would form perfec:
paper circulation which could not be
abused by the government; that It
would be as uniform In value as metal,
and shall be able to prove that It Is
within the constitution and power of
congress to provide such paper, ac-
cording to the most rigid rule Of con-
structing the constitution"
UNITED STATES SUPREME COURT.
If anything was wanting to prove
that the government had the power to
issue paper money when money was
needed, the following decision Of the
United States supreme court is sufi-
Gent The court says:
There are times when the exigencies
of the states rightly absorb all sub