John Edwards on Monday rejected claims that he can't get elected the Democratic presidential nominee because he doesn't have the cash.

Speaking to a crowd of voters in Iowa on Monday, Edwards was questioned by a man who said that Barack Obama's wife Michelle told the man's daughter -- who was sitting right next to him -- that Edwards was a great candidate, but couldn't win because he has less money.

Edwards, who's campaigning on the theme of change and "two Americas" and frequently rails against the effect of money in the campaign, said the election doesn't come down to who has the biggest war chest.

"We're not going to have an auction in Iowa, we're going to have an election," he responded.

Click here to watch the Edwardses response.

"How incredibly weak it is to say you're going to win because you have money," he added.  "If they have more money and the money is what matters than why are they worried about me?"

The latest Des Moines Register poll of 800 likely Democratic caucus-goers puts Obama at 32, Hillary Clinton at 25 and Edwards at 24. Questions have been raised about the poll's accuracy since it says a large percentage of independents and Republicans will caucus with Democrats.

Both Obama's and Clinton's camps have suggested they will tally more than $100 million each in contributions for the 2007 year. Edwards is taking public financing for his campaign, which means the government matches contributions up to $250 but limits the amount he can raise.

Edwards said Americans aren't concerned about the candidate with the most money, they're concerned about principle and conviction. He said all campaigns should be publicly financed.

"When I win the Iowa caucuses on Thursday, the money will pour in. That's how it always works," he said.

Edwards' wife Elizabeth then got up and grabbed the microphone.

"You may not be surprised, but I am surprised and disappointed in Michelle," she said.

The man said the conversation happened at an Obama event on the campaign trail in Pocahontas, Iowa. Asked if it were true, the Obama campaign didn't confirm or deny the conversation, saying only that if it happened, it must have been while Michelle Obama was shaking somebody's hand or engaged in some other one-on-one conversation. It wasn't during a formal or public question-and-answer session.

Later in the day, however, an Obama backer, former Iowa Rep. Berkley Bedell, alluded to the sub-surface chatter during his introduction of the candidate in Sioux City. He didn't mention Edwards by name.

"The press might want you to think this is between three or seven (candidates) or whatever. The reality is that there are only two people that can run a national campaign -- Senator Clinton and our candidate Barack Obama. That is the reality," he said.

Asked by a reporter about concerns that he won't be able to last in the campaign because of money issues. Edwards called that claim nonsense.

"If we are able to win the nomination -- and we're obviously moving in very strong right now -- what that means is I will have beaten two celebrity candidates who between them have spent $200 (million) to $250 million because of the strength of this message of stopping corporate greed, restoring the middle class, making the promise of America available to every American in a very personal way because that message will go right through all that money. And once I'm the nominee, if I've beaten them, having been outspent in ways that I just spoke about, taking on a Republican who's carrying George Bush's baggage, it will be a piece of cake."

FOX News' Cristina Corbin and Bonney Kapp contributed to this report.