The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-05-28
A New Monetary System,
nv EowAas KsILass.
t - .N r'f
PART H. .r
TRUE MoSErAnE asYsrxM. g.
-r
CHAPTER IL-ran sArErr FUND.
SECTION III.
fsE sEcgsIrY ov rns sAxsrx suup monxy

SECTION III.
rsE sEcssIrY OF rss sAEssx suHs Monsr.
1t will be perceived that since the rata
Of interest on the money viii always be
uniform, and loans can always Be obtained
from the Safety Fund on productive prop
erty, il will be impossible to induce fiDan-
cial crisis, and depreciate the value Of the
property on which the money il issued, 10
that it would not te good for the interest.
Therefore the MORTGAGES will always be
ample security for the loans OF the Safsty
Fund and the money will always be a
FAIR equivalent for property and labor, be-
cause il will always truly represent their
value. For, II money can be loaned for d
percentage interest which will bay esrt.in
portion Of the yearly products Of land and
labor, the legal value Of the principal Of the
money will be equal to the actual value Of
20 much land as win produce what the in
terest will purchase. When branches are
established in all the States, every individ-
ual can borrow money at the usual rate Of
interest, to the amount Of half the value Of
his productive land. Every dollar thus
borrowed will be added to the amount in
ciFcuiation, as much as il it had been i'm
.pezted- 4fOm-aa-sf fsrsignA nsaaAFy -er. soinsa.
The Safety Fund viii actually create al its
money.
II will require a very small proportion
Of the property of the country to secure
sucffiient currency. The property In Mas.
sachusetts, according to the assessed valna-
ton in l840. averaged s406 so b each
individual The average wealth in proper
ty Of our whole population is from three to
Eve hundred dollars. The amount of money
needed will not, probably, exceed ten or
fifteen dollars for each inbabitant. There
fore, only three or four per cent of the .
property Of the country will be necessary
necessary TO secure an ample supply Of
money. The Governments can In this way
provide a legal value TO any extent that /
may be required. The people caC borrow
money from the Safety Fund in larger or
smaller sums Mt precisely the same rate Of
interest. 7
The mortgages may be drawn payable
one year after date, with one and one tenth
per cent. interest and 10 long as Che In
terest shall be regularly paid, he priacipal
may remain, in whols or Jun part, nd the
option Of thr mostgasor SO, whenever
mortgagor shall have the means, be can
or any part Of the mortgage, and stop the !
But bs viii never be compelled /
to pay the principal, 10 long as ths inserest
shall be regularly paid.
No aid from large capitalists will be re-
quired to establish the Safety Fund, 6r the
money will be made n balance against sHe
landed estate Of the people, without spe-
che basis. It ID NO msre nseesaary 90 make
money of gold and silver 10 render L
just balance sgainst property, than 10 make
q mortgage Of gold OF silver 10 render Il Of
equal value with q piscs Of land. The
value Of the mortgage depends upon its le.
gai power over the land and its products.
The Safety Fund mosey with have legal
representative value which win bs c.pabls
Of purchasing the mortgage, or the land, or
the products Of the land. Ths morsgage,
or the money ~ snsh, cas be no more val
liable made Of gold than Of paper. Az
paper mortgages amply secure individual
loans. Of money. 10 paper mortgages viii |
secure the money isssed by the Safety
Fund. II people will readily loan gold
and silver coins for paper mortgages on
property, they must esteem the paper mort !
CAGES as valuable rs the coius. A mort |
gage 10 q lien uPOn q specific piece of
property. The Safety Fund money will be
general lien upon all property for sale,
and legal tender in payment for all debts !
The mortgages given to the Safety Fund
will be individual obligations for the pay
msnt Of money, and will be necessarily
losal. But the money Issued for them will
be neither individual or local L. will be
equally good in Maine, New York, Ohio,
and Florida. If its owner does not wish
to land it TO individuals, he can lend Ii to
any Branch Of the Safety Fund at an ia-
tssest of one per csnt.
Il has already been stated that il ID no
more nseessary b make money of gold and
silver in order to make 10 good, than to
make bosd % nete on silver or gold plate
i'm order to make it good. Sail, If the
people shall insiss upon . mixture of specie
in the curreney, d cam be easily provided
Il viii only be Deessary that the Safety
Fund shall hs paid I'M specie. BY loaning
moasy ut one and ose-tseth per cent, the
Fund win always bs IN rsosipt Of many
times the inssrssG i'm spseia ttzas h can bs
called upon 10 psv. Ths VIII preserve tes
use of coins m msssy. Is appears evidsnt
howsvs lthst ths nsssy II the Safsiy
Fund will fulfil IN ths f.nsfions of publp
msaism Of ucha.gs withosf sny sdmix-
II