Part 3

Thus it is seen that the four per cent. or the three per cent. interest-bearing national bond becomes the _fixed measure_ of value for money. It would always be worth _just that amount_—_never_ any more; _never_ any less. The gallon measure always gives just the same quantity of molasses. The yard-stick always gives just the same quantity of cloth. The pound weight always gives just the same quantity of sugar. So, too, would this measure of money always give just the same amount of real wealth, or its representative, every day, week, month or year, whether applied to wealth in business, to bonds, or to money at interest. An oscillation would be perpetually maintained; first, conversion of currency into bonds; next, conversion of bonds into currency; and whenever the supply of currency should be deficient, _then the issue of more by the government to meet it_. Thus there would be a _people’s_ money regulated to _financial_ equilibrium, which is the _ultima thule_ of convenience for exchanging the products of industry.

It may be remarked, parenthetically, here, that even three per cent. per annum interest is altogether too greatly in favor of capital. A careful calculation of interests and general increase of the nation’s wealth discovers that less than a two per cent. interest is required to make the capitalist and the laborer stand upon an equality. Had I the time I would be glad to present you some figures to show to what condition we are tending. I will simply remark, however, if capital continue to receive the present rates of interest for the next thirty-five years, at the end of that time it will have absorbed all the wealth of the country. That is to say, that interest compounded at the rate of 6 per cent. upon the present Banking Capital will amount to a sum larger than the present aggregate of wealth together with the same rate of increase which has governed it during the past, added thereto. Is not this a sufficiently alarming fact to cause people to stop and consider the despotism into which they are rapidly merging?

Everybody who knows anything about the relations of money to the people must prefer such a money as we have indicated to any other kind. It is really the greenback system extended to _all uses_ for which money is required, and to which is given a _fixed measure_ of value. All people at present interested in national banks and high interest-paying bonds are constitutionally opposed to such a change in our money system. This, however, should not deter its introduction and use. The people’s welfare is what should be consulted, and made _the test_ of all propositions that are to become theirs to practice. National banks and all banks of issue, with their drain upon the people to make their immense profits, must be done away, and banks simply as depositories for the accommodation of the people, alone exist.

The national bank and other currency would be gradually called in at the rate of, say ten per cent. a month.

I may add in justification of this plan, that if the Government can loan three hundred millions to the banks for nothing, it can loan to the people for three per cent.; if at the same time it can pay three per cent. on its bonds and in currency, instead of six per cent. and in gold, it secures a new-found advantage.

But one of the _chief_ benefits which would come to the people from the proposed currency would be the _interest_ which would accrue to the government—all the people—for the use of this money. In other words, _all_ the interest now paid to _banks of issue_ for _loans_, for the _same_ convenience should be paid to the government. A _part_ of the people, for the _use_ of money belonging to _all_ the people, themselves inclusive, would pay _interest_ to the government therefor. And what more legitimate method of governmental support than this, if by it all other means of taxation could be annulled? The interest now paid by the people of the country to the Banks and Capitalists would, twice over, pay all costs of maintaining the government. A three per cent. interest paid to the government on all loans the people required would not only relieve the people who produce wealth of one-half the interest they now pay, but also of all taxes of all kinds. Is not this a matter to be looked into in the most serious manner?

With such a currency system _once_ inaugurated, the country would begin a gradual process of general prosperity. Wealth, instead of accumulating in a _few_ hands, would continually tend to an _equal_ distribution among _all_ producing people. A large part of the speculative mania would be rendered futile, and those now devoting all their time to _hatching schemes_ by which to defraud the producing classes of their wealth would be _compelled_ to turn producers themselves. It is calculated that one-tenth of the male population of this country is engaged in speculative pursuits. In other words, they ‘live and grow fat’ from those who are engaged in production. And that is our boasted equity, our equality.

It should be the object of all reform to make a _nearer_ approach to a system of _complete_ justice and a _perfect_ equity. Any reform that does not base itself upon _such_ a proposition and whose outlook is not in this direction _is no reform_, and does not deserve the serious attention of any. There is scarcely an idea prevalent in the community of what true justice and equity consist. But it may be stated as follows: _No person has any just claim to the ownership of anything which he did not produce or which he did not acquire by an equitable exchange of something which he did produce._ Tested by _this_ rule, the accumulated wealth of the world is in unjust hands; it is held by those who have a _no better title_ thereto than if they had actually stolen it. It has been fraudulently acquired, and that is the word which best expresses the manner of its obtainment. And one of the most effective methods of remedying this growing evil is to attain to a true money system—one founded in the requirements to be met and based upon that which it is to represent—that which it is to be used to exchange. Anything that _departs_ from these standards is _not_ scientific money. That which _has_ these for its standards _is_ a scientific money.

Aside from all that has been said, there is a general principle rising into the comprehension of humanity which _must of necessity_ dethrone that which has so long been worshiped as the money god. The day for arbitrary rule and standards is drawing to a close, whether they be standards of materiality or spirituality; of morals or intellect; of despotism or democracy. Gold _is_ an arbitrary money standard, and with all others of like character _must_ fall. The tendency of the world is _against it_, and its doom is _already_ sealed. It has been _weighed_ in the balance and found wanting.

The interest of the common people, who should always hear every new Christ, demands a reform in our monetary and financial systems. We are aware, however, that there is a great deal of prejudice in their minds in favor of “hard money,” and they must be awakened to the fact that hard money is a myth—a play upon words—a deception practiced upon them by those who have played the part of “the appropriators of wealth” lo! these many years, and who would continue to filch _year_ after _year_ all that the “toiling millions” can compel nature to yield up to them. In this process the laboring classes are the mere avenues through which the earth pours its wealth into the coffers of the capitalists.

Some object that the very numerous and intricate methods to which resort would be required would prove _unmanageable_, and that _corruption_ would _inevitably_ creep in and undermine its usefulness. Let such consider our almost perfect postal system, and how _well balanced_ are all its movements and checks, and find therein their answer. Would there be more intricacy in the proposed system than there now is in the present? Do not all national banks, though nominally distinct, _really_ have a common fountain head in government? Does not all their currency come from government? Suppose all these banks, instead of being independent institutions, were an organized system, having a common head, as the banks of New York City virtually have in the Clearing House, would not that be a condition so nearly related to the system which would be required as to show its entire practicability?

Indeed, there is scarcely need that there should be a new department inaugurated to bring such a currency home to the people. Perhaps there never was a system operated in which there was _less_ proportionate loss through its executive officers than in our postal system. And this is because the _responsibility_ comes _home_ to the people. The postmaster is _always_ a resident of the _place_ in which he officiates, and, either with or without a civil service law, should be the _appointee_ of the citizens whom he is to serve; and, of course, would be a person possessing their special confidence. To such persons might the _care_ of the public money well be intrusted; and in _all places_ except cities a _single_ person could perform both the services of postmaster and of United States financial agent.

Means can be easily devised to make all post offices offices for loaning, as they now sell post office stamps and money orders.

In all that I have said my only purpose has been to endeavor to arrive at a proper understanding of the most important feature of governmental justice and uniform equity among all the people. All past systems have failed to secure this. The world has constantly witnessed the proceeds of the labors of the millions _aggregated_ in the hands of the few. This advantage which one class has possessed over another cannot long exist under the rapid spread of intelligence, which marks the present generation; and it behooves _this_ people to give _due_ consideration to _any_ scheme which proposes to lessen this advantage. And _most especially_ does it become the duty of the people, if there be such a thing as _principles_ of _finance_, to _find_ them out and cause them to be practically applied.

In fine, and to resume, the idea of money must first be separated from that of the intrinsic value of gold, or any other commodity, and confined to the mere capacity of representing all commodities, and so of facilitating the exchanges of wealth. This, it has been abundantly demonstrated, can be as well, and for various reasons, better done by strips of paper, properly stamped and signed, than by gold or any other metal.

In the next place, these strips of paper, signed by the Government, with the credit and wealth of the whole country, are better than individual promises; though the issuance of individual promises should not and need not be prohibited, as we do not now prohibit anybody from making or receiving private notes, drafts and checks.

Again, the Government Money need not be redeemable, but only convertible into new strips of paper when the old ones are worn out, and into commodities when they are used in trade, and into other Government Securities bearing interest, as I have pointed out.

Still again, money has also been held to be a correct measure of values. This it ought to be, indeed, but has never been so, because it has never been measured itself. Of what use would yard-sticks be, used for measuring cloth, but which had never themselves been measured by anything? The system which I have stated for measuring money itself is believed to be perfect. It is not the individual dollar, relatively to the half dollar or the hundred dollars, that has failed to be measured or fixed; but the rate of increase relatively to other values, of _all the Government currency afloat_. By the convertibility of any excess of issue sinking its value below a certain standard into interest-paying bonds, any over-issue is immediately absorbed, while a deficiency of issue will be revealed by the fact that absolutely no bonds will be sold. In this manner the whole operation will be self-adjusting from day to day; the value of the aggregate of Government money will be accurately measured and kept uniform; and any interest or temptation which the Government might have to an over-issue would be immediately neutralized by the absorption of such surplus into bonds, upon which the Government itself would be paying interest; or, in other words, assuming an unnecessary and useless burden, in the face of the people and of its own economies. Can anything more perfect be devised? If so, let us have it by all means; if not, let this device be adopted. A self-adjusting, self-regulating admeasurement of the value of money would make it a true measure of other values, and is a suggestion which, if it can be secured, is of unequaled importance.

Another somewhat similar idea was glanced at in passing—that of a definite method of determining scientifically the equitable rate of interest. This I cannot stop now to explain. It will, however, only be when we come quite down to that basis, that the full value of this financial system will be experienced.

Finally, in its basis, this system of Government money is money issued at the mere cost of printing and circulating; but by adjoining with it the idea of a complete, simple and exceedingly economical means of raising the revenue of the country, the three or four per cent. is paid to the treasury; that is to say, by the people individually to the same people in their collective capacity. Under this system all the various revenue officials and tax assessors and gatherers would be dispensed with, and a vast system of economy inaugurated, which, in a few years, would transpose us from a borrowing to a loaning nation, making us the financial example for all the world. This it also seems to me is another invaluable feature of the system, all of which I, however, respectfully submit to the decision of the people.

The interests of humanity which are involved in this question are greater than are the interests of those who have assumed to _rule_ the world, and who are endeavoring to _fasten_ upon the people _despotism_, to escape from which would require the shedding of whole rivers of human blood and the destruction of the best evidences of our civilization, for which we have a perfect right to feel the greatest admiration.

A _timely_ understanding of the money question would guarantee precisely the reverse of _all_ this, and cause humanity to take still _greater_ and more rapid _strides_ toward that perfect enlightenment which can alone thoroughly recognize the common brotherhood of the human race, toward which end all reform should be directed.

TRANSCRIBER’S NOTES

1. Silently corrected obvious typographical errors and variations in spelling. 2. Retained archaic, non-standard, and uncertain spellings as printed. 3. Enclosed italics font in _underscores_.