The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-05-21
A New Monetary System,
SV EDwAsD KsLLOoa.
PART III.
TRUE MONETARY SYSTEM.


SECTION l.
, TEE FORMATION on Mozax. AHD sHn HoDs o. Dsus.
The Constitution declares, Art. l., SEQ.
VIII, 5, 'That the Congress shall have
the power to coin money, regulate the value
thereof. and of foreign com, and FIX the
standard Of weights and measures" Sec.
x, l., mo State shall coin money, emit
bills Of credit, make anything bat gold and
silver tender for payment of debts 1t
is clear that Congress has the Constitutional
right to coin money. and regulate its value;
to emit bills Of credit, and to make any
thing &c chooses tender in payment Of
debts. This reserved right makes Il the
duty Of the General Government to provide
The money Of The patton and il il, accord
ingly, bound to make money in quantities
adequate to the wants of business, and to
institute 1t in a way which will secure the
effectual regulation Of its value The Con-
stitution as plainly calls for the exercise Of
the Federal power for this purpose, rs for
the fixing of the standards of weights ant
measures. Sec, XII, declares that the
States have no right to coin money, emit
bills Of credit, or make anything but gold
and silver tender in payment Of debts.
Bank bills are bills Of credit, and very haz-
ardous ones too for millions Of them are
issued without being representatives of pro-
perty, and many holders have sustained
great losses by their failure. According to
the Constitution, the State governments have
no right to establish banks, and impose this
hazard and loss upon the people; they
have infringed the province Of the General
Government Having themselves NO Con-
stitutional right to issue bills of credit, they
can certainly have no power to delegate such
right to others EI 4ft.t.
In the plan we are about to propose for
the formation Of National Currency by the
General Government, all the money circu-
lated in the United States will be issued by
o national institution, and will be repre-
sentative Of actual property, therefore it can
never fail to be good and safe tender in
payment Of debts II Will be leaned to IN
dividuals 10 every State, county, and town,
at a uniform rate Of interest, and hence will
be Of invariable value throughout the Union.
All persons who offer good and permanent
security will be at all times supplied with
money, and for any term of years during
which they will regularly pay the interest
Therefore, no town, county, or State, need
be dependent upon any other for money,
because each has real property enough to
secure many times the amount which i will
require. If more than the necessa
amount Of money be issued, the surplus viii
be Immediately funded, and go out Of use
without injury. 1t will be impossible for
foreign nations, or any number Of banks, or
capitalists, to derange the monetary system,
either by changing the rate Of interest, or
by inducing scarcity or q surplus of mo-
ney. 1t will be the duty of the government
to ascertain as nearly as possible what rate
of interest will secure to labor and capital
their respective rights, and to fix the inter
est at that rate.
The plan requires the General Govern
ment to establish an institution, with one
or more branches in each State. This in
stitution may appropriately be called the
National Safety Fund first, because the
money Of this institution will constitute le-
gal tender Of Uniform value for the whole
people, and will always be safe second, be-
cause the interest being fixed Ut just rate
it viii secure the respective rights Of labor
and capital and third, the supply of money
being always commensurate with the wants
Of business, It win ieHectually protect the
nation from financial revulsions.
To make this currency true representa-
tive of property, the safety fund must issue
its money only in exchange for mortgages
secured by double the amount Of productive
landed estate. The money ought not to be
issued on perishable property, nor on the
credit Of individuals, because such property
might be destroyed, or the individuals be-
come bankrupt, when the money would cease
10 be representative and become worthless.
except for the guarantee of the Government.
and the loss would fall upon the nation.
The money, then, when put in circulation,
will represent and be secured By The first
half Of productive property, and the interest
upon the mortgages will be secured by q
portioneof the yearly products orineome of
the property. The safety fund win issue