The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-08-06

reducing the rate OF interest upon these
bonds, thereby taking away all motive
or interest for such locking up pro-
cess.
If the abolition of all interest upon
such bonds shall be found TO be neceS
sary to destroy the iniquitous sPecula-
ton in the currency, which has cursed
and impoverished the country on the
specie basis fallacy, or 1T should be
found that the interest upon the bonds
is too high to effect the equitable dis
tribution of the products of labor, then
it will not only be within the power, but
the duty Of Congress to fix such rates
as will defeat combinations of Capital,
and adjust equitably its relations to
labor.
With this controlling power reserved
to Congress, and with all the claims
and demands against the nation pay
able in treasury notes, it seems to US
that the question our correspondent,
asks: Where are the producing class
es to get money!" is very easily
answered.
Moreover if it should be found ex-
pedient in practice to qualify the privil-
eye Of interchanging, mutually, notes
for bonds, or If any such lock up of
currency into bonds should be attempt
ed by the capitalists, which our cores
pondent anticipates, limitation of this
privilege Of interchange would not be
incompatible with the principle of the
Cary Bill, or the financial resolutions Of
the Labor Congress. The National
Labor Union, in, considering the abuses
of the monetary system, the facilities
for controlling the values of property,
for stimulating or depressing enterprise
which exist within the powers of CAPT
talists, when the money of the country
is founded upon a gold basis, endeavor-
ed 10 devise a system which would
take the control of the business of the
country out Of the hands of capitalists
and place it in the hands Of the people
In the principle Of the interchange
ability Of the bonds and treasury notes
we have a guarantee of the f1exibility
of volume which the business of the
country may demand, in the power to
regulate the interest on the bonds,
ample protection against combinations;
and in the substitution Of the nationa al
credit and national wealth for the bs-
sis of money instead of gold, we have
absolute exemption from loss, and from
the panics which heretofore have with
great regularity destroyed commercial
enterprise.
The proposal of our correspondent
to pay off the bonds and national in
debtedness in treasury notes is certain
ly not new idea. 1t is indistinguish-
able from, if not identical with the
Pendleton plan. 1t utterly ignores
the elementary principle Of all State
a,rauurul rrgururrUu, WHICH requires O.
fit proportion between the volume of
currency and the volume Of business
to be done. 1t proposes to create Just
such an amount Of currency without
any consideration for its uses and
needs. A monetary system based on
the national credit, which does not
contain within itselfthe elements which
will adjust the proper proportion Of
the currency or medium Of exchange
to the requirements of business, must
be failure Either the money will
, lose its producing power, or inordinate
speculation ensue.
We have carefully studied the Cary
bill, and we find that it does absolute
Justice to the bond holder and the tax
payer provides for currency flexible
to the demands of business, swelling
in volume, or retiring into bonds as
the exigencies of commerce require.
: Guards against combinations and mo-
nopoly and offers absolute security to
the note holder, and provides for such
rate of interest upon public securities,
and such abundance Of money as will
prevent unreasonable interest in pri-
vate transactions, that the industrial
interests will be relieved Of the bur
dens which have thus far been their
chief opposition.
The principle of the National Labor
Unions monetary system is to destroy
f the monopoly Of money, and through
it, as their basis and support, all other
monopolies. 1t is this principle which
has aroused the enmity of the ma
tional banking and bondholding interest
against it; which ranges every shylock
and usurer and monopolist against it !;
which makes it the special object Of
the hate, ridicule and fear Of the sub
sidized press.
The financial resolutions of the Chi
cago Congress underwent the severest
criticism, and were almost unanimously
adopted. Their re-afirmance by the
Congress at New York and Philadel-
phia, the discussions had upon them,
the opposition they have evoked from
bankers and bondholders have com
mend ed them to the working men of
the nation as the impregnable basis Of