The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-07-30
A New Monetary System,
BY EDWARD KELLOGG.
PART ii.
A TRUE MONETARY SYSTEM.
CHAPTER v.
ADVANTAGES or THE SAFETY FUND.

ADVANTAGES OF THE SAFETY FUND.
The Safety Fund viii lend money at
low rate Of interest TO all applicants fur
nishing the requisite landed security hence
every town, county and State, which has
the power to perform the necessary labor,
can make internal improvements without
pledging its property to large cities or to
foreign nations to borrow money. 4 few
years since, the high and huctuating rates
Of interest 30 depressed the prices Of pro
ducts, that q number Of the States were
unable to pay the half-yearly interest due on
their bonds; consequently, they fell to a
very low price, and many Of the holders
suffer ed great losses, while large capitalists
we're enabled to take advantage Of the fall,
and to buy the bonds, in some instances, at
less than one-ffth Of their real value. The
canal bouds Of the State Of Illinois were
bought at from sixteen to thirteen cents on
the dollar. A short time after this, in l845,
the purchasers Of these bonds made ne
gotiation with the State to furnish it with
further sum Of money to complete the canal,
on condition that a mortgage should be
given to them on the canal and adjacent
lands, securing the money so advanced, and
also securing the par value Of the bonds
bought at these reduced rates, and the in
terest It seemed as if the people thought
this money would actually excavate the
canal, quarry the stone and build the locks.
But when they had received the money.
they were obliged to build the canal By their
own labor, and now that it is completed, to
collect the tolls for the transportation Of
their own products, and from all the mer-
chandise passing on tie canal, and give this
income to the foreign and other holders Of
the bonds for merely furnishing represen-
tative Of Illinois property.
IF the Safety Fund bad been established
and money had been issued representing the
property Of the people Of Illinois at an in
terest Of six per cent, their property would
not have been more encumbered than by
being pledged to foreigners at the same rate
Of interest. The propertystbat secured the
loan to foreigners would rave been good
security to the Fund The interest on the
loan would have been gained BY the people
of the State, instead Of being paid to for
eigners. All the interest that illinois paws
to other States or nations, is paid for the use
of money, and Iot for the use Of actual
capital If the people Of Illinois had bad
no capital, they could not have borrowed the
money; if they bad ample capital, they GER
tainly ought to have had the power to obtain
8 proper representative of it at home, in
stead Of being compelled to 20 abroad for it
How much greater would have been the
prosperity of this State had the Safety Fund
been established before she began to make
her internal improvements. The necessary
money to carry them through without delay
could have been obtained from the Fund at
one and one-tenth per cent. interest, and no
embarrassment from scarcity Of money
would have been felt in any department Of
industry. The improvements would have
remained in her own hands, and she would
| long since have been receiving the advan-
rsge Of them ID tolls and in increased facili-