The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-11-01

and government notes are not money.
They are evidences Of debt, promises to
pas money, and their currency As a circu-
lating medium will depend on the supposed
ability and willingness Of the drawers to
fulfill their promise on demand or at some
future time. But while individuals pay
interest on their debts, the banks receive
interest on theirs and they consequently
have powerful motive to issue as many
prommissory notes as the law permit. The
national banks not only receive interest on
their promises to pay money, but also in
terest on the Government bonds which are
deposited in the Treasury Of the United
States as security that these notes shall
some time be paid
do not now discuss the morality of the
legislation which authorizes corporation
to issue promises to pay two, three, or
four dollars ON demand for every dollar
which it possesses to make those promises
good. | only allege that the effect If such
issue is to make money cheap and other
commodities dear. If given quantity u
coined money be sufficient for the ex-
changes of a country, and that quantity
be doubled without any increase Of pro
duct, the excess will be exported and prices
will not be seriously disturbed. But II the
increase be bank notes or Government
notes, the excess not being eXportahle
would continue to circulate, doubling the
volume Of currency, but adding nothing 10
its purchasing power and as there would
be no corresponding increase Of products
to be exchanged, prices would he doubled.
This inflated currency Is food for wild spec
ulation and an instrument to facilitate
''cornering, forestalling and the making
of railroads in a wilderness This is also
the cause Of magnificent failures for mil
lions and widespread suspension, panic
and ruin
In the financial delirium which follows
panic and ruin, men clamor for more cur
rency, lust as poor drunkard recovering
from debauch begs for more ~ the stun
ulant which Frustrated him, to brace up his
shattered and trembling nerves The new
dose will give only temporary relief, T. be
followed again by exhaustion and another
camor for more. No matter To what eX-
tent the currency may he inflated. there
will never be enough To satisfy debtors.
Like the daughters IF The horse lrech they
cry, ''give. give" But while the debtors
gam is temporary, the loss f creditors and
of all who live on fixed incomes i perua
nent for the dilution Of the currency en-
larges its volume, but adds nothing t. its
strength This dilution Is potent cause
Of the depression If labor and working
men have good reason to anathematIze the
legislation which reduces the value of their
wages by depreciating the currency IN
which they are paid Again. although
taxes are paid primarily by property. their
burden falls at last upon labor. The owner
of houses and stores adds the taxes ~ the
rent, and the manufacturer who has paid
a tax on his materials and another on his
product adds both to the price which the
consumer pays. The profits of the capital
lists are not diminished in either case, ex-
cept that he pays the same advance as
working men on the cost of the product
which he consumes. Let us next observe
that the trade unions are adopting some
measures and recommending others which
will have the same effect on prices As cheap
money anu high taxes. These are strikes.
the proposed reduction of the work day to
eight hours and in some Of the unions op-
position to piece work, restrictions As o.
apprentices, and instructing their members.
and especially those who are employed On
public works or by corporations and
wealthy Institutions to do as little work a.
possible while they seem To work.
Strikes are either successful Or unsuc-
cessful If successful they advance prices
BY increasing the cost of production and
if unsuccessful by diminishing the supply
of products. In either case the whole body
Of consumers, not capitalists alone. viii
have to pay the advance The eight hour
rule, if adopted, would have a similar ef-
feet. The head men of the Union deceive
their members when they make them be-
lieve that they can live as comfortable by
working eight hours as they can by work
ing ten hours for the same wages When
ever the eight-hour rule shall be applied to
all branches of industry, one Of two things
must result either the workmen must do
ten hours work in eight hours which
they have no intention IF doing or the
cost Of all products Of industry will be
enhanced some 20 per cent without any
increase of means to purchase them
Norklngmen must therefore demand and
receive 20 per cent. more wages for day
of eight hours than for day of ten hours.
or deduct 20 per cent. from their purchase
of food, clothing and shelter. Intelligent
workInen understand this. and some Of
them have the frankness To admit that they
will first establish the eight-hour rule, and
afterward demand more wages But they
fan u perceive that, since whatever they
consume is a product If labor, prices viii
advance as wages rise. Workingmen want
cheap rents, cheap food, aud cheap cloth
ing not cheap in quality but in price.
The eight-hour rule would make these
dearer. For example, a builder will cor
tract to build house for II. 0OO if me-
chanies will work ten hours day. But il
they and the producers ~ materials will
work but eight hours a day he viii demand
-, 200. The capitalist will not build I'M
less he has fair prospect q rent that
will remunerate him. He will not let
s., 900 house for the same rent a. ~ 900
one. The capitalist will lose nothing. but
the tenant will pay 20 per cent. more for
his shelter. The effect Of the eight hour
rule on the cost Of food and clothing would
be similar to its effect on rents.