The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1865-07-08
ghs 0ttan,a 6ree Eraillr.
rkkMs OF suLscRsp11on:
ADVERTISING RATES.
The True American Financial
and Monetary SyAtem. S <

The True American FinaxaclaI
and Monetary Syatem.is *
/, For the purpose of exhibiting tine results
of this system our national finances, ! will
assume that our national debt will be three
thousand millions of dollars, which l think
will not be too large an estimate, when ali
the proper liabilities of the government are
taken into account. | will also assume that
as much as one thousand millions OF dollars
will, under this system, circulate as mon V
and bear no interest, which III order to main
tain uniformity of value must be increas ed in
like ratio with the increase in the business
and wealth of the nation. | feel very conf
Dent that this estimate will be found quite
low enough when all bark notes are driven
from circulation. which will be done Just as
soon the people come OF calmly consider
the subject, and see the great advants ges
III every way of IA national currency issued di
rectly by the government for surely they will
not consent to be taxed six TO ten per cent.
for the privilege Of taking bank currency in
preference 10 Il legal tender issued by the
government.
We come now to the most important and
vital principle, and on1 probably less under
stood, and upon which greater variety of
honest opinion exists than any otier couLect-
ell with the whole subject OF money and f.
n nee, namely, TIE rate OF interest money.
happIiy We are not without sufficiently reI-
liable data to approximate very nearly the
truth on this important point. Physical and
intellectual labor produces all wealth, the
rate OF increase III the population should then
be a fair index to the inc ease In the nation
al wealth This for period of seventy years
is found 10 average very nearly three per
cent. per annum, while from the best sta,is-
=, Il.
in the national wealth his been nearly four
per cent per aLnum for the same period I'm
computing per cent. increase | have in all
cases compounded it annually which IS the
natural law governing this subject. From
tbese data ! think it is safe to estimate the
increase in the national wealth at three
and one third per cent t3J) per annum in
the future, which / think viii be IL sufficiently
close approximation 70 the truth for all prar
ti.al parposes. Now If this rate Of interest
Should b. maintained on money, it would
gather up all The Surplus products OF labor
appropriate them TO money or capital and
compel The LAX ortrs whole to wu, k for {.
mere subsistence of f,.od, clothing AID shelter.
This would be manifest In ustce, for surely
labor ougu, 10 have some portion OF lis sur
plus products think, III justice. labor Is
entitled 10 halfut the surplus products, | WILL
however. tidlifl ItT blElN bllt-4tBu. tIl- lllS
viii give To capital two anc a half per cent.
and 10 labor ive-sixths OF one per cent of
the incnase il the national wealth. Taking
the estimate | have made OF the national
debt. and OF the amount that would circulate
IS money with the rate OF interest on the
government securities fixed II TWO ard !, Lait
per cent, the result would be as tUll-ws :;
two thousand and fifty millions ut dollars at
the end OF the first year. The interest. tiiy
millions year. propose shall be collected
by taxalion.l The increase OH one Il ousand
millions OF dollars Oi money AT three and one
third per cent, Will be thirty hree millions
three hundred and t..,i-trthr,, rhuusand three
hundred and thirry-three dollars, add 500
pGG, $50 collected 10y axes-tutai SS.;,: ,:'33 ,333
which deducted from , 1000 0Ou 600. and YOU
have as tue amount OF the InIerest-bearIng
Indebtedness at the end Of the first yea-
$l.966, ,665,667, this with two aud Il hall per
cent. added will amount to S2,0l6, So. .3333.
The increase in the currency tor tie second
year will be S3 /, 44i ,444, add Sjh. .000 COO col
lected by taxes the second rear-fotal ssh
Ala AS, deduct this fir, IN the inteYesL bear
Eng Indebtedness. and yoa haze as the amount
OF the interest bearing Indebtedness ut the
end of the second pear, 81 ,93l ,:iSe, ,sSH, add
two and half per cent tor interest Tor third
year-total 81 ,979.GI3,G1l. The increase in
the currency for the third year will be S35.-
692, ,592. add $4,000. 900 collected by taxes
total $S6, ,552. So, this deduction from the
amount OF the interest bearing Indebtedness
will leave as the amount thereof, at the end
of the third yesr, 1893, 3,0Sl ,0l9. Continue
this operation ard in twentyseven years,
nine months and four days the whole OF the
interest bearing Indebtedness of the govern
Inent will be liquidated, leaving 50, 4S4.030.-
600 non-interest hearing Indebtedness. which
will always he wanted for money, and TO be
Increased at the rate OF three and one-thIrd
per cent. per annum. Thus it will be seen
that the whole of the expenditures of the war
would only in,l ose on labor a burden OF fifty
million of dollars annually, while it is demon-
strabie that the benfit it would derive from
the establishment of just monetary system
would be, at least, eight times that nmoun,.
The assessed value of the property of the
United States per census OF $50 was Sl6,-
O00, ,Oo0, 900. one half of which was owned by
FIVE per cent. of the population, WHO loaned
their money and rented their property to the
wealth producing classes. If any one doubts
that halt Of the property is owned by SO small
a portion Of the popuiation let him take
town OF city, of say 5000, and see if he can
not find fifty of the most wealthy individuals
who OWL half of the property, allowing FIVE
to the family this would make $50, which is
five per cent. OH FIVE thousand.
l he rate of interest Oh money determines
the value OF all propcr.y, and will with US
average, at east, eight per cent. per anuum.
This rate o.. $4,000. 900 900. owned by five
per cent of the population, will amount to
$j4o,uOO,0uO. The rate of interest in bust
ness transactions under the system propose
would average a fraction higher than the rate
established on the government securities.
therefore compute II at three per cent, this
rate on $S.U10,00O;000, owned by FIVE per
cent of the population, will amount 30 $40
100000, th deduction from 100000
will leave $400, 100000 as the net gain to
the industrial classes by the adoption of the
True Amer can System of Finance over the
one now in operation. This calculation is
based on the state o. things existing before
the war. The war has had tle effect Of cen
tr.,lizin9 the property Of the nation in fewer
han IS. and increasing the burdens of labor,
the benefits would therefore be greater at this
time than the above calculation shows them.
Another beneficial efec, of this system
would be, that il would stimul,te legitimate
enterprises aud productive industry in the
development of our great national resources
and render Us financially Independent ard
seif-susrainIng a. a nation, an object OF great
consequence at all times, but one of para
mount Importance tn US in the present exi-
gehcy. we are admonished by the policy
pursued towards US by two, at least, of the
leading nations of Europe in our present
troubles, that it is more safe to rely upon our
own resources than to trust to their fri. nd
ship in the day of adversely and, five would
Uphold and perpetuate our democratic insti.
tnIons, we must assert and maintain our
financial as we'll as cur political indepen