The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1874-02-07
Our National Finances and Currency
The Imperfections Of the Present Sys-
tenn and the True American None
tary System.
BY ALEXANDER CAMPBELL.
OUR MONETARY SYSTEM, PAST AND PRESENT
CONTINUED.
ADVANTAGES TO THE GOVERNMENT.

ADVANTAGES To THE GOVERNMENT.
First, in liquidating or removing the
burdens of the public debt. The debt,
exclusive of the legal tenders now in circu-
latlon, is at this time i'll round numbers,
one billion, eight hundred millions Of dol
lars, and the coin interest about one hun
dred millions of dollars annually. In the
discussion of this part Of the subject, the
! first question to be determined is the
amount of circulating medium necessary
for the transaction Of the business Of the
country. | am aware that there exists
great variety and conflict of opinion on
this point, and that we have no data BY
which the amount can be ascertained with
entire accuracy. All will, however, agree
that it would require a much larger
amount than under the old specie basis
fallacy, when it was not safe, and when the
farmers and others Of the producing classes
preferred to deposit it in some wildcat
institution rather than to keep it III their
possession over night. These parties,
having entire confidence in the government
currency, would retain a much larger
amount in their possession to meet matur-
ume of currency and fair and uniform
rate Of interest, all branches Of useful ill
dustry would be prosperous, and most Of
the ordinary business transactions would
be for cash. | therefore think it quite safe
to estimate that as much as $50 per capita
would remain permanently in circulation.
The population is now (in round numbers)
forty-three millions; at $50 per capita, the
circulation would amount to twelve hundred
and ninety millions of dollars. To meet
this, when the bank currency is withdrawn
from circulation, would require an issue of
eight hundred and ninety millions Of dol
lars Of legal tenders in addition to those
now in circulation. To keep this volume
of the currency uniform, il would require
to be increased in ike ratio with the in
crease in the population. wealth, and bust
ness of the nation. which have estimated
at 3 per cent per annum This, with the
additional issue, would without any in
crease in the present rate Of taxation,
enable the government to redeem at least
one thousand millions Of dollars If the
52Os and other outstanding bonds due
and redeenable at the pleasure ~ the
government, within the next three years,
~ a lAiLAibii a Odl ltA AAAC AAtAb btlbucdiih
days,-or, what amounts To the same
thing, TO stop the interest by converting
them into currency, which would always be
needed as circulating medium. This
would i'll the first place enable the govern
ment to dispense with the expensive syn
dicates now employed in disgracing the
nation by hawking its securities in the
money markets Of Europe at 80 cents on
the dollar as compared with the credit of
the English government. This is Just
what We are doing, for the English consol
bears 3 per cent. and u usually worth J2 l-2
cents on the dollar, whIcL Is equal to 3 IA
per ceni on the investment and 60 cents
INFESTED in our . per cent bonds would
Yield as large ar income as a dollar IN the
English securities.
Second, it would afford the most safe
and convenient form Of investment for the
means Of the working classes now deposited
in savings banks, as well as for others hav-
ing idle funds to meet future maturing en-
gagements. The certainty Of being able
to get their funds when wanted would in
duce all those classes to invest their means
in these bonds at much lower rates Of in
terest than are usually promised, but not
always paid by the class Of institutions
named. have not the data to enable me
to approximate with any degree Of accuracy
the amount of the government securities
that would be taken up IN this way, but
think it safe TO assume that it would alb
sorb all that were not converted into cur
rency within five years. The burden Of
the national debt would thus be practically
removed and its securities held by our own
citizens.
BENEFITS TO RESULT TO THE INDUSTRIAL
AND COMMERCIAL INTERESTS.
The capital released by the conversion
of the interest bearing securities Of the
government into currency, would have to
seek some other form of investment, and
if, as it should be, the speculation in the
public lands was prohibited, it would have
to be employed in some branch Of produc-
tive industry OF other legitimate enterprise
This would revive our industries and give
employment at remunerative wages to the
tens of thousands Of laborers now in forced
idleness, as well as to facilitate and
cheaper the exchanges Of their produc-
tioLs. As the amount Of loanable capital
would come to equal or exceed the demand,
the effect would be to lower the rate Of
interest, which would IN turn lead to the
development of new aud useful enterprises
requiring large outlays Of capital, and
which cannot be protitably conducted at
its present cost even with pauper labor
To show more clearly the depressing effects
of the preseLt extortionate rates of inter
est on the industrial and commercial inter
ests, and the benefits TO result to the pro-
ducers and distributors of the wealth from
fair and uniform rate, j have estimated
that one-half, or twelve billions Of dollars,
of the national wealth was owned by cap
italists who loaned their money or rented
their property to the industrial classes, and
that the rate Of interest which governs the
rent Of all property averaged as much as
nine per cert. per annum.
| Now if the proposed monetary system be
adopted, | think it safe to assume that the
rate Of interest would fall to four per cent.
isSCSSSCSoS Psr cent '4sSSSoSSs go Sco SS'
Annual saving to the industrial classes
in the cost Of capital $500 coo 400
or two millions Of dollars per day
At four per cent, capital where it co.
operated with labor would receive the
lions share Of their joint productions, but
it is step in the direction of restoring t.
the producing classes a reasonable proper
ton Of their productions. With capital al
a fair and uniform rate Of interest, We have
the natural resources, and the advantages
and facilities, with the industry, skill, and
enterprise among our people, for their de-
velopment, to the extent at least Of sup
plying our own wants and to render us in
dividually prosperous and self-sustaining
and independent as a nation, regardless o.
free trade or protection. But while tn,
present exorhitant rates of interest oil
capital are continued in force, our natura
resources must remain a sealed treasure
our working population remain in stat
of practical serfdom, and We as a nation