The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-04-07
The Medium Of Exchange

progress is slow because we are OPP
posed by diabolical interests having
powerful influence. | feel constrained
to aid in the pursuit of such truths.
The enemies of such truths are
greatly aided by the miscellaneous use
of terms and this often in opposition
to a writer's own definition OF terms.
1t is important that an agreement
be had, especially by those of honest
intent, regarding the meaning of GER
tain economic terms. Let us see II
we can what constitutes the medium
of exchange.
All must agree that the. medium of
exchange is that medium through
which or by means of which ex-
changes are made.
We avail ourselves of the use OF
several things if necessary in making
an exchange, among which are Ian
guage, pen, paper, arithmetic, book
keeping, a system of accounts, ETC.,
but should say that none Of these
dunn of exchange. There is one thing
that is used exclusively as medium
Of exchange. 1t was introduced for
that purpose solely and can be used
for no other. 1t was suggested by the
| Importance of time as factor in the
cOnsummation of exchanges.
That one thing is debt.
The first exchange outside of pure
| barter results in debt. We no sooner
leave the province of barter than we
enter the province of debt. That is
to say, we either exchange commodity
for commodity or We exchange COM
modify for promise, for an obliga-
ton. If the expression, the embo0l-
ment of this promise or obligation, is
transferable, it will be apt to serve, to
some extent, at least, as medium for
exchanging objects of desire. When
such expressions or embodiments OF
debt are issued by the government for
the express purpose of passing from
hand to hand and by government are
made very desirable while the use Tor
such purpose of everything else, save
credits at banks, is discouraged as far
as may be, such issues become en-
phatically the circulating medium of
exchange. So, while one exchange IS
made in producing debt, multiplied
exchanges are made by perpetuating
the debt and transferring the express
sion of the same. This expression OF
debt constitutes for the time being
each holder creditor Of the original
debtor. Every individual who holds
money holds practically SO much
credit with the government that is
sues the same.
All our money is government money
and all government money is govern
ment debt. When our government
takes gold that is an obligation on no
one and converts it into coin it con-
verts it into a government obliga-
tion and as soon as delivered to the
party for whom it is coined the gov
eminent becomes liable for its re-
demption and this Notwithstanding
that by the manipulations of the US
urer its worth may be enhanced a
hundredfold over that Of bullion.
And now | wish to add that while
the governments promises to redeem
does practically and should properly
constitute all our circulating, medium
it is quite unnecessary and fagrantly
unjust for it to go in debt or continue
In debt for that purpose.
One of the great obligations or a
government to it's people is to furnish
them and itself with a medium of ex-
change.
This medium should be an obliga-
ton of the government also an obli-
cation of the people. 1t could be made
SO by constituting it full legal ten
der 1t should never leave the treas
ury, where 1t originates, for general
circulation without requiring an equiv
alent left in some form to the gov
eminent in exchange 1t should BIO
recognized as belonging to the gov
eminent, that is. all the people. alb
soluteiy. but to individuals for one
purpose only, and that purpose its
use as medium of exchange. pure and
simple. A. +. ALLEN
Vinland, Kas.
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