New national era. [volume] (Washington, D.C.) 1870-1874, 1874-02-26
ystem would make Unnecessary the intorrer-

system would make unnecessary the inieryeu-
ton of banks, either national or savings. or
any bank whatever. Under that system the
natural course would be with the facilities
at hand to pay as we go" and keen out Of
debt. Under this true system the Federal
Government, in which is lodged the supreme
power over this question, would issue all the
money, and when the quantity issued became
sufficient for the legitimate business andwants
of the country, and so abundant that The
average rate 0t interest fell below the ayerare
rate Of annual increase OF the national
wealth-say about three per cent. But for
commerce, we might fix il at , Gj-IGO. or one
cent day on 800; the Government takes
1t from the holder, issuing in It's stead con
vertibIe Understanding bonds. These Ger
tlhcates OF value, this paper money would
always be legal tender for every puvpa3e
whatever, and all the people and probcrty o."
the country bound for them, and ali Womb
have confidence in them. The quantity Of
THIS circulating medium would never be too
much or too little; the rate Of interest which
thls representative or redemption bonds bore
would always regulate the quantity in circ
iaton. 1t would act as a balance-whecl. and
the chiet OF the Treasury DEPARTMENT need
require 40 other 81 1nt,oua ~i.s,, 10 redeem
and Issue according as the demand was
greater or less for the one or The other.
Iherc could be no permanent redundancy O.
permanent scarcity, and the business o.
banks, spectators, and gamblers could have
no longer power 10 rob labor or create corners.
No Foreign pOwe~ could effect the stability Of
our productions. or our commerce any more
Than they could the tides which ebb and flow
upon our coast. With this cheap money
everything which money represented would
be Co'fcSt onclngly cheap, and we could BY
having the necessary tool produce rs cheap
as the rest OF the world and share with all
other nations the markets Of the world, and
nave no fear Of being unGcrsold anywhere.
" hen tins system is established the occupa-
ton OF bankers, usurcrs, and spectators
would end, and such might be turned out to
earn an honest living by honest industry.
HE most conspicuous and one OF the most
important considerations fox the American
statesman IS how to control the relative rate
oil interest IN TIE United States, compared 10
that maintained in those countries with which
this nation has large dealings.
Our own experience, rs a'e0 that Of all
counties in which the rate Of interest fixed
upon national debts, is that the rate so fixed
determines the relative exchanging value Of
all things for Which money has the pyrchqs.
ing power in that nation. Under the existing
false system VIC have gone on adding to oir
foreign debt until il exceeds = 800 millions.
Sut own market, where everything IS made
high by orr high rate of interest, is to-day
the best foreign market which England has.
while al! foreign markets are practically shu.
out iEoLn US, because Of the high rate OF in
terest here, prevents US from producing as
cheap as our competitors.
no system Of finance which falls ID Fix u
low rate OF Interest upon money seeking re-
pose ior the interest ii yields will satisfy the
people Or benefit the country; the g.yinE
elasticity to money supply simply, without
the element OF cheapness, would be useless
IT'S not so much from the quantity as the
rate of interest which the Government fixes
to avoid the evil Of credit, we require the
natural substitute, the ready money! If tins
is denied by the Government, whose issues
we are now compelled to use, there IS no
alternative but credit. For ages this curse
has afforded the tyrants power ID keep the
teiieg IN subsection and slavery, ana unless
they arise in their might to overthrow this
tyranny, they will continue in slavery.