c
i
UNIVERSITY CORRESPONDENCE.
Some Astounding Statements by
Hon. J. R. Webster.
CAN CONGRESS "FIX" THE
PRICE OF COMMODITIES'?
Should we Sell England our Gold
and Substitute Silver or Paper
for it. '
;i
Lincoln, N'kis., lec. 1. lMtT.
Euitoji Lincoln Inkki-kxdkxt: In
your comment on my reply to Mr. Iloach
you criticise the statement that "statute
f law never fixes "value." It is above the
power of parliament or congress," and
you cite the constitution giving con-
gress t he power "to coin money and
regulate value thereof."
Does congress, in fixing the weight,
lineness and nanis of a coin lis its 'value'
in the sense, of its "purchasing power?''
obviously not. Can congress by stamp
' mur 3i2i' or if it saw lit loll1 V srrains of
silver "one dollar" do more than anthen
titrate it as so many grains of line silver?
Can congress thereby make it exchaug
able on the market in voluntary trans
actions for two bushels of wheat or one
unit of labor offered for one gold dol
lar? If not then it cannot "fix value"
or do more than authenticate its weight
and fineness.
(Irant that, congress may 'make such
coin legal tender for pay merit of an ex
isting uebt.that is no proof it fixes value
or does more than debafce the coinage.
The. "value," in sense of "purchasing
power ' is not lixed unless it is in the
estimation of the seller acceptable on j
the market in voluntary transactions at
a fixed ratio as compared with the other
money metal, gold, for products offered
for sale. Tins has been tried many
times in the past, by our congress with
resnect to the creenback.midthe French ;
assembly with respect to the asslgnat,
yet the enactments are powerless be-J
fore the Law of Trade to make t hem j
acceptable in estimation of the seller in j
voluntary transactions on parity w ith j
coin. The seller who knows what cur i
rency he is to be paid simply raises his j
i juice. Legislation has tried often 'to
)ix the value of products on the market, j
u:t always such legislation is futile to ;
govern the market. mist everdidn- ever will deny it. Ly
A good present illustration is found law there could be free and unlimited
in theMexieansilverdollarof 320 grains coinage of silver into full legal tender
lina compared with our dollar of :12'.j primary money. That would greatly
line. The Mexican dollar passes current increase the supply of money. No
at its "value" or purchasing power of economist would deny that such a law
about ."0 cents in the commercial j would '-lix" the price of products at a
world's basis of exchange. Our lighter ' greatly higher rate than now prevails,
dollar will purchase two of its larger ' The illustration which he cites proves
Mexican sisters, not by virtueof any act , the very opposite of his statement. In
of congress fixing its value but because ; Mexico, w hich "by law" has the free
in the practice of the treasury it is a i coinageof silver, the "price of products"
' token" exchangable at the treasuiy for are just double what they are in this
a jother, or real dollar of the cummer-; country. The prices are fixed by law,
c.al world's basis of exchange. If not : by increasing or diminishing the quanti
so exchangable, it would merely pass on ! ty of money; and money, as Aristotle
its merits like its larger Mexican sister j truly says "is not by nature but by 1 iw."
it the "value" or "purchasing power" of j Third. The American silver do la- is
itsJine metal. i not redeemable in gold. It is almost
wet the constitution of Mexico, j hey end Iwlief that Mr. Webster could
modeled on our own. gives its congress ! make such a statement, and if thelxuB
sirotlar power to provide for coinage of pkxhknt did not have it in hii ow n
monty and regulate the value thereof. I hand writing it would not telieye that
as does our own. I'nder this power ! he had. Kvery secretary of the treas
t he Mexican congress provides for "free! my for many years past has in official
and unlimited coinage" of silver and of
gold en basis and ratio sinnlai to our !
own coinage. J!oth are legal tender, i
but Mexico being unable to maintain j States and not redeemable in any other ' t.0nd;tioii of affairs at, the Wind Insti
redemption of its silver coinage in gold, - form of money. Mute at Nebraska City. It is a disgrace
with the free and unlimited coinage of j ( in the Till day of lleceiuber is;2. the j t , ,iH. party. Gov. llolcomb and the
silver the two coinages part company, ; secretary of the treasury sent the . I'ol-. fri,.n,s who endorsed the. appointment
gold becomes a commercial money am! ; lowing letter to Senator Teller: 0f l'rof. Johnson as superintendent,
is expelled from circulation by the My !i:ai: Sii:: I have your favor d';dl- the governor should end the difli
cheaper medium, because it is not ln'Hec. 7. I beg to inform you that hdverj,..jty hy making some radical changes
the power of constitution, parliament, dollars are not in law or in practice i-x-; n institution at once. Mr. Johnson
congress or statute to "lix value. The
l iw of trade is paramount to any eu
a.'tJieuts of conventions, legislatures or
imperial edicts. The baser money ex-
bides the dearer. Mexico comet to a
liver basis of .nrreiiey.
1 Mibmit 1 am right, t itnte law
f li. VHHI
It can only lit a ba-is
. .....
-1 , (1 u t..ti.,r l-l'i, l tutu.
u.r iMninii ., .i- . - ......
l;ll., but the seller gets no more.
'.,iii ciiiiiiot !i tl e ,ilue fen of ioid
I. I lie I. aw oi i i ! - a i .un'iiii
.... - :
. . .
xliltiTc,
Tins in iioarf flout the iiot-ti.-ti
whether trie limit ft nl i.ited "t.ites
V'onM In opj-ned t the rte uud on
lf.itt l coin.i.'H Mher " I hat .s en
ir'ltt-tl ciiii.is;h o MlW I fiat .n
l.tV..Krremn.!,..,. .,.,'. whiter
xA: l.,an.M!.v.f . .it, or ,f
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il It W lid ' U I l i liiiiiit, t l.i t
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demand for silver would to some extent
appreciate its value and the decreased
demand for gold to some extent depreci
ate its value. To what extent their
nresent value would be affected, and the
length of time lefure approximate sta-! debts in the same ratio,
bilily of their relative values would bs ! Sixth. '-Existing contracts." Ail the
reached, is too complicated a question to debts of the government under "exist
be solved otherwise than by the test of ; irg contracts" are payable by the terms
experience. In my opinion the result j of tho written contract itself in silver,
would be lenelicial to the people of Mm the face of every bond it is so
both continents, ultimately, and would j printed. Congress formally declared
probably lead to international treaty of .March IS, 1M'.!, In the celebrated Stanly
the principal commercial powers adopt-1 Mathews joivit resolution, that they
i.T l.ncic nf tiYi-iiiinoH ratio or the.
two money metals, making practical
bimetallism the basis of the world's
. r . .. Jf I ..... ' -A'
money. lietner me iornier u;ims m j
VS., or l'i to 1 would even then be prae-1
ticable could only be ascertained by re 1
suit of 'experiment. The. Law of Trade
alone can determine the question, anu
any legislation by one nation alone, or
even international treaties not joined in
by tie governments of a large commer
cial preponderance of trading peoples
could fix a stable ratio between the
metals. A ratio lixed might require re
vision in case discovery of rich mining
lields, or improved reduction processes
should largely increase the supply of
one metal or the other, as was the case
in I84i and the 50's with gold and m
the 70's with silver.
Very liespectfully.
J. ll. Wuismi.
The points in Mr. Webster's letter to
which all economists would iake excep
tion are:
First. That congrtss cannot fix the
value of golda:iU liver or do more than
authenticate its weight and lineness.
Congress did "lix" the value of gold
at a higher rate in 1 ST.'i by doubling the
demand for it. and not by any change
in the weight or lineness of the dollar.
There was a demand for so mucli money.
Congress cut oil' half the supply and the
value of the other was "lixed ' by mi act
of congress, at a higher rate. M r. Web
ster admits that gold has appreciated.
What made it appreciate? Increasing
the demand for -more money by
diminisliiir the supply do it
by
con-
act of congress! Jiy act of
gress the price of products are ' lixed"
Mid in no other way. Congress can fix
the valueof wheatatone dollar a bushel
or twenty cents a bushel by increasii g
or diminishing the quantity of money,
It is almost inconceivable how a man of
learning can deny it.
Second. Law can "lix the price of
products on trie market," aim noecono
documents and in letters for publication
repeatedly announced that "silver dol-
lars were standard money of the I'nited
changed for jfola or lor paper that calls;
for gold. Ciias, l'osii i:.
line umculs containing the same state
ment are on lilc written by Secretary
Windom. V. s. Treasurer Nebeker.
ami secretary Carlisle. Mi . Carlisle m
hi", testimony Wore the Springer en;-
mittce p. 2 said:
'l'.t .l..iki,t ln-i:nfim I h IKirttv
... j......
not ma
by
u leem'iig the silver doll, us or
ceitilt-
rite in Hold. but. bv the const tn! ir; c
..... At... ... ... in I. ,..
nee 01 rccen iiijj iiii-m 11 iuii mu-ui
... .. I.,, i... .t..
lion oi ! j ot oi U'lV Wl hhi i iriiirm.
tie Inioiimom will uie Mr.
W el.ster a (. eo ten doll.tr to pi i:.t oil
the ital i t rt 'pilling tin tn tui ol
the Irejtiirv to retleem tulvrr d -lhirt in
IV irea-tiirv M reiueiu mivrr 11'in.irt ui
,d, It e-..,,,.,. lu-,,,,1 l.,va e,:,,,
, l.ar,,,.., eeuldm ,k, ,. h a .U
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',o... Iti i " i .'u a MeMeai 'lo r
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U'i;.i. e ii"i in a l'i. wen kihi hi
don oi'l a i ,iii'ii .in iltrr !!' tr i
u l , ,il. Mi 'i I, a I Hi I (tie 'i ll"
i.',,-H ti i ll If in ' ti;l( t.UMii lie
I i i.it? i ii .in 1 . r !- if in , hi nt i.
,f ri I"! l.ii. le- I', tn t f. e
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l.i .- . It .1 il I I ,li ll m I
41.
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changed to the dearer money. They did
it in secret and without notice. Spain,
that country that all America is now de
nouncing, when she changed by liw the
value of her money, scaled down the
were navaii e m siner uwiuis. i.asi
winter the money power offered con
gress a bribe of !?H'.,(ltO,(Kc) to change
the contract and make the new bonds
payable in gold, ami congress, bv an
overwhelming majority, refused to do so.
Seventh. The Ixii:f kmi N r does not
know what a "unit of labor" is, although
there has been a good deal written
ab nit it.
Kislit.h. "Perhaps it would be wise,
policy to sell Lurojie our present gold
and all we in the future produce."
Mr. Webster is heie verging near
populist doctrine ami the teachings of
the great standard economists. Kicardo
says:
The use of paper instead of gold sub
stitutes the cheapest in place c' the
most, expensive medium, and t',.'.blen
the country, without loss to any indi
vidual, to exchange ull the gold, which
before it used for this purpose for raw
materials, utensils and food - by the
use of which both its wealth and its
enjoyments are increased.
Francis A. Walker, Pol. I'.com., III.
i i i. 1 1 1 says:
Money is a medium of exchange.
Whatever performs this function !
momy, no mutter what it. is made of.
l'rof. .fevoiis, i'ol. F.com. p. KM says:
Almost any commodity might be
used as money.
John Mewart Mill, l'ol. Leon. ML Mi.
sec. 2, says:
Money is bought and sold like other
things.
l 'rof. Therold I lodgers in I'riucetoii
lieview, Jan. is7t says:
A large demand brought to bear on a
limited supply will ali'tct, the value, of
the. precious metals, and through them
lower prices.
l'rof. F. W. Main. M. A. of Oxford,
England says:
Any particular commodity we can do
without: and so if it costs too much to
produce, no one will buy it, but money
must be had at all costs, for without
it no commodities can be procured at
all.
'l'rof. Francis A. Walker in Quarterly
Journal of economics, July lS!ir says:
Other conditions remaining the tame,
an increase in the quantity of money
mi'st jcaik i-i:k i and a hkciikasi;
in or AVI II v or MONKY Ml sr i.owki:
Mill KS.
it is with such authorities as the above
that the lNiu:i'i:xiPi;vr sustains its
criticism of Mr. Webster's article. If
he can find standard economical writers
to uphold or support the strange propo
sitions he lays down the Jmh.m:nih:x r
will gladly print, them.
W. 15. Ila'gus, one of the substantial
men of Otoe county, was in the city
Wednesday and paid the Immti ii:vr
a visit, lie was accompanied by his son
Thos.
B? nu iv and wee Sutton k I fol
low bush's stock of Xtiirs candies
before you huy. Twelfth and O
r-tret-t, Fu nke opera house block".
For the sake of all parties concerned
the lMi:i'i;xir.xT reeretjthe tangled.
js evidently not the i i-ht man in the
nr'.t place.
'oi.il, soliil, sulit intiil! meal
Rf the MMchanls Hotel I'aud KleV-i-uth
htreets lor 10 t ents.
II. ). Fstubiook of Omaha w .is a
Cvlera populist quarters at the tale
hoii-e cdncM.'ay.
L'iuH A. K'.'ii-k, 1H North
IVntli ttreet. luitoiter and leiilT
ii Wines hihI Liquoih. 1'abst
.Milwoiukeo lU-cr. r Hiiti 1 1 trad" u
sju t ii'ty. Write for rice.
t t,e peMtelit iai y llllld'ft em:iill Ull
i,'it! It ih Mill 111 u,e ii.ii,. i a i!ie j
0,um , ,.rt ami r.e u t .
v. ,'l ,r... I, an .d,.,-In,,,. nuU
aOu iU ..-I ,-.,, I K a. :
i nin'.l M.ut.wi.ile tU wa.-tei,
i . m .it.. . .....i .i.i ,,, l..v
ic'id ll it Mil! to the hand "I the
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II.
TIIK LIBRARY OPENING.
Gov. llolcomb Receives and G. W
Lnngworthy Taylor Writes
Screeds Against i?a
por Money.
The University library building
was practically opened Tuesday
night, (iov. Holcomb, the chan
cellor, the regents and heads of
departments held a reception in
the main hall of the building, and
Lincoln's culture and intelligence
thronged through every part, from
early in tho evening until after ten
o'clock at night. Many of the
rooms were adorned with pictures,
palms, and potted plants.
The main floor is set apart for
the library and reading room. The
place devoted to this purpose is
as extensive and the rooms are as
finely furnished as those of any
university in the United States.
Several finely furnished rooms in
tho second story are set aside,
temporarily, for class work.
The' recitation room for the class
in political economy is now in this
building. vV. G. Langworthy
Taylor had expended "an incle
ment of labor" by proxy in
covering the blackboards with
scre.-ds against legal tender paper
money from men, not onoof whom
is recognized as a standard econo
mist. Among them were the fol-
lowing words from iKmicl Webster.
"Of all the contrivances lor
cheating the laboring classes of
mankind, none have been more
eflicicnt than that which deludes
them with paper money."
After expending "the dose of
labor" required to put that on the
wall, if W. (. Langworthy Taylor
had written underneath, in just as
plain a hand:
"Mr. Webster was speaking of
wild cat, redeemable bank paper
money," be would have shown
himself to be an honest teacher of
scientific truth.
The only quotation on the walls
from a standard economist was
from John Stuart Mill, and it con
tained these words.
"The distribution of wealth de
pends on the laws and customs of
society."
That is science and populism.
We say that millionaires at one
end, and tramps and paupers at
the other end of society, are the
result of laws, not of necessity.
We propose to change the laws so
there will be a more equitable dis
tribution of wealth.
It was a disgrace to the state to
allow Mr. G. W. Langworthy Tay
lor to advertise his gohl-bugism un
the blackboards of the State Uni
versity at a pnblic reception. An
hopcst and intelligent teacher
would have quoted what the stand
ard economists say on that subject.
It would not have taken a very "big
dose of labor" to have wtittt n this
sentence from Hicardo:
"A well regulated paper cur
rency is so great an improvement
in commerce that I should greatly
regret if prejudice should induce
us to return to a system of Jess
utility."
Or this from the same writer:
"A currency is in the most per
fect state when it consists wholly
of paper."
l'ay $ i now and receive this pa
per until January i, 1M07.
Sutfoii & Hollow-bush have the
hett, 10c mixed eaudv. Twelfth
nml 17. runkoti opera House
hleck.
Sutton IIoIIowIiuhIi make
j i-peciul low prices on Xiiihh enudies
for cii 111 hen and schools.
IT ou have i.o un..., w ,. ' .
wan r, tlieii an- t:;h. or -JUilci, t!ic
pomes! ) :i a stippl).
I .1 ut- L 111 li ic u very ; v r ar.Lnt.
j He (li'iovs from life ai.ti h'n l- is
; painfull r nlf.uic.
I I 'inlT rlo'i'-i linn- lo t -t dei lil.-il
' whellier Neiu lill"i or iI?vel on (he
. banjo it ui ho; t'le fir' ,
j Tin ' Itiitr.ii r Tru.it" tr.uit at or
1 IMiil.- lor Hi pniHi... if furii'.stiliit;
1 ulirti iclH et 10 Hie li'lo r 1 1 11 t .
I It I- lunch Miir 10 iiiuke that wiil ti
Is n!' niilor :i,l tin It u. to tiu'iio
- - - ; i it . .; , :
5' " lr,;1' !ry ext.-.ie ht- of UtiipM-H-'eially oil. I eautiful, lateM and
t,u!tuZ X 7Z?i -1 Utit" ""''V .'"1 1U.. We are o.i.g to ollevy.., for the
; ' :t:JZ.'n' ten il iy imuieli' H'cliil ... Lamp, of etery V.r.ef,.
!t ; le and l'.-uty. We r.-tf.il.g to Hie,,, ,ptk, Hktl eoiiti,,,,,,!
v..' ... 1 -hltm will ''in 1 iu com pi ul. it. 1 l':e fall and emit lure our.
M ..I,. . , k ' , ti ,1.1 ,1 t I . , i. ...
n iii,' lu . im: tsail ;t 'r.
Hi I of
1 1 v t Miii.it ,i.i, !i- l.ii 'i . i,
.i .i liijv 1 1. .i"i. t , iiriMi l
'.i ii u , ,ij
ll' 1.1 l
P. J. STEPNEY'S ;
Old Beliabls 0. K. Carter Shop.!
. i.i.m i. i nh '.i r st
! Hi.tl, h-t,( i. . is t J i !.
' 1 1 1 I . It
H . I t
il' iOl l' i f.
ll' -ll'. I'.' fl tl '.
it It i i.
e I ii U ii i.'
i. ..f if .i ir ' m, I
ir i i t i
I', W I i- h ! '
1 .1
ii . ,i I i :e"
,it
'., ir , o I i I ,.ur v. . i
I. f, ..... jr i.
U e
OF1
Suits
and
IS
Your Opportunity
We know time are hard nml Jlooey siiirce, hut
Clothing is no luxury. We help you to get what
you want by ranking prices ho low that n very few
dollars will go u long ways. Our prices are always
low for the qualify we give but now fo close down
our Men's nud Hoys' Clothing wo Imve uri le them
still lower. We will sell you Men's suits from S3 81
to 10 Unit are from $1.00 to $1.00 below regular
prices and Overcoats from S3. 50 t 10 that are just
hh cheap.
BOYS' SUITS
at 8rc, 1.00 Btnl !jl,i0 that are surprisingly
good for the money. Our WOOL Suits at $2.35 aw
made double at seat and knees and warranted tovraar
XJncierweeir,
Fhirts, Cloves, and Mitts ami winter Caps equal
ly as low in price.
Our Bargains are Yours if You
Want them.
The Globe I
Clothes, Hats, Furnishings.
O and Tenth Streets.
H! 10 Sen! IffiEo
Best in the City.
On account of Hard Times wo have decided to make the pric
of our Celebrat -d Mealn at
IO -: CENTS -: lO .
And upwards, l.'euiemher we guarantee our Meals the Best in
the City for the l'rice.
Everything Clean and Neat.
JAMES HENRY.
132 South Tenth.
Great 10 cent Store.
The Greatest and Largest Baigain House in
tho State.
Once im.re we done to Lull ,vur attention to oui eU-g uit and
extctie lift- of Lump, fhM'finlly on. I eautiful, Utent .unl
, . . , .
iwi'i h'. nieMt indc iiteut m
,1 i -
n'll elittH' Hl.UllIH"ti IUH'.
Con.e hlid li" k at o'ir ri t'ellt lilpnii llt of oltit S of .J j .t n
uitrutt, MTiniui mi l Kreii' h init lal ioim of mn o u, Op.-iiuu
oi.r . it ll.d div l'i'!iV i!l luinoiiiM lit r.
Vet) 'Ki r. tf Ih.
UH S 12th.
Tho
FURNISHED ROOMS,
OY DAY Ofl WCCK.,
S .i i i I : lo .'i' '4 .
n, tl-
MRS- CI-IESSIlrOT02T.
I iii U Si.. i lt..'iN, Nih
1LE!
Overcoats
, . , .
itre now
oti rnt yon nirt'tiitoui
S. POLWOSKV.
Groat Ten Cent Store.
iii ?l to ; IN r Wii'i.
lo Save Money.
