The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-05-07
CHAPTER VII.

A WELL.REGULATED CURRENCY IMPOSSIBLE UNbER
PRESENT LAWS.
Our whole banking system is based ubon
a credit given by law to bank notes, for
which the people furnish the security in their
indorsed notes and State bonds. For the
legal representative has no value in it's lf !;
it rests upon actual capital, the earth and
its productions, and not upon the inhefent
value of its material. 1t may then be as ed
why the State governments cannot bank on
the same security, and appropriate the g4ins
TO the public benefit, instead of allowing few
individuals to acquire large fortunes by pri-
vate banking. But bank notes issued lily
State would soon depreciate. The currepcy
must be national, and pass equally wei in
all sections of the country. If State should
make paper money tender land this is for
hidden by the constitution, the money, like
the money Of the banks chartered by THE
States, must necessarily be redeemed With
specie 10 secure public confidence But
this local redemption would make the imo-
ney of unequal value in different sectiOHs of
the Union. Another difficulty would bA in
CURED by State bank That unless a. few
Of the largest capitalists were included as
stockholders, and the interests Of the wealth.
lest men identified with the bank, it would
soon be compelled to suspend payments.
A United States Bank could not regulate
the currency. Before the General Govern
ment could establish the institution, it would
be obliged to consult few large capitalists
To ascertain whether they would takh the
stock. IF the charter were not one which
would probably secure an income qui u as
good as any other investment, they Would
refuse the stock, and the government gould
net establish the bank II the Govern ent
should deem three per cent. just rafe of
interest, and should limit the dividends at
this rate, the stock would not taken. But
should it allow six per cent. Interest," and
leave the dividends unlimited. both native
and European capitalists would call it
good investment for money, if they could
retain sufficient control Of the institution.
If under our present laws MAXIM all
notes redeemable in specie, the General
Government should establish bank, shd is
sue enough paper money for all business
transactions, at a low rate of interest,", our
large capitalists would array them4 elves
against it by collecting their debts IN bank
notes, and demanding specie from the bank
Such bank, established on a specie basis,
could not be sustained a month. Tho gov
eminent and all the producers eou ID not
prevent its total failure.
Monetary laws are the most important
subjects for legislation. 1t is the d4ty of
every national gOvernme@t to institute and
regulate the medium Of exchange but that
this duty has been imperfectly discha rged.
appears from the fact that where specie is
made the only tender in payment of liebts,
neither the government nor the mass bf the
people have had or can have, any adequate
control over it. Capitalists control tie mo
ney, and through the money control tie gov !
ernment. The defect Of the present hnone-
tary laws, further appears from the 'yaria-
tons in the rates of interest on government
stocks, perfectly secured at all timds. but
constantly fiuctuating in value. If TIE gov
eminent does not secure uniform value to
money for its own use, how can il Se said
to regulate the currency of the county.
II is impossible to secure to labor i'll earn
ings, under systems by which the overn-
ment and the people depend upon ia few
capitalists to furnish the medium and; stand
ard for the distribution of the productions Of