The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1874-03-07
MONEY AND INTERCHA NGEABLE
BONDS.

A friend sends US what purports to be a
criticism Of the monetary system and finan-
cial policy, advocated by the National
Labor Union, taken from a paper that
claims to be an advocate of the rights and
interests If the producing classes. Like
most productions Of the kind, this is com
posed mainly Of false charges, inconsistent
and erroneous conclusions. These So
called criticisms, whether put forth by
bankers, Insurers and spectators or their
allies, under whatever guise they may as
sumo, all start with the charge of repudia-
ton to be brought about through the
cheapening Of money, or lowering the rate
of interest, followed by the further and
inconsistent charge Of depressing the pro
ducng classes OF tax payer, by dear money
or eXtortiOnate rates of interest. That is,
the capitalists are to be deprived of their
Just dues by the reduction of the rate of
interest, and the industrial classes are to
be oppressed and ruined by An advance in
the rate Of interest How this or any sys-
TEN can produce results so Numerically
opposite, is not clear to the common
mind. and we shall not attempt
an explanation Of the enigma But in
in order that all may have the opportunity
of seeing for themselves, and Judging OF
the merits and dement's of the system We
,r IN a., lI;sb III raSolutioua IN ~. Nat;nnol
Labor Union platform relating to the cur
rency and financial policy If the govern
ment
/. That it is the duty Of the government
to establish just standard of distribution to
capital and labor, by providing circulating
medium, endowed equally with coin with all
the legal attributes of money, based on the
faith and resources Of the nation. and issued
directly to the people, in the payment of the
lawful debts OF the government, without the
intermediate agency of any system Of banking
corporations and inter-convertible at the OPP
tion Of the holder, with government bonds
bearing rate Of interest not exceeding 3 IS
100 per cent Teserving to Congress the right
to change the rate of interest.
, That the National debt should be
paid in strict accordance with the laws under
which it was originally contracted-gold when
specifically promised--but all other forms Of
Indebtedness, including the principal of the
go bonds, should be discharged at the earli-
est option of the government in the legal ten
Iar - h. E-u.taI a. ior IN,
rency bonds bearing a rate OF interest not ex-
ceedng 65-l00 per cent, at the option Of the |
holder OF any such indebtedness), without |
funding it in long bonds, or in any way increas-
ing the gold bearing and untaxed obligations
of the government.
3. That the public domain should be dis
posed Of to actual settlers only.
This is the sum and substance Of the |
monetary system and financial policy advo- /
Gated by the National Labor Union, and
we challenge the bankers, usurers and
their allies, in whatever guise they may
assume, to show wherein it favors repudia
ton or will work injustice to capitalists
of any kind. Or how will it increase the
power Of capital over labor, or in any way
prove oppressive to the producing classes.
We assert, without fear of successful
that with Just rate of in
terest on the government bonds (which,
we think, should not exceed ten per cent
while tightening the burdens and greatly
the rewards of honest industry
and legitimate enterprise, it will give to
capital all that it is equitably entitled to,
and at the same time will provide q circu-
lating medium of uniform credit through
out the jurisdiction Of the government,
and adapted to the needs Of industry, en-
terprise and commerce
But IT Is ASKED,
''How 10 a merchant, manufacturer, or
real estate owner to get or borrow at a low
rate Of interest under the system advocated
by the National Labor Union platform if
he has no bonds Can he borrow direct
Of the government, AMI f so, what kind of
security does he give
IN rcpil ~ IlAS 4uSS0ou VIC WOuAu Soy
that the system does not contemplate
the loaning Of money by TIE government
to corporations, companies or individuals
on bonds or any other kind of security.
We hold that it is no part of the functions
Of government to provide any or all OF it's
citizens with money, except in payment of
services rendered, or for supplies furnished
10 It, What the producing classes con-
plain Of in the case of the National banks
is, that the government loans them 1854,
OOO, 900 at one per cent per annum, which
will mot more than defray the cost of
printing their notes and supervising the
institutions issuing the currency, 20 that it
is virtually gift TO the banks Of the
amounts of the interest ON the bonds de-
posted with the government, amounting
to over s9O, O0O, 900 annually. Besides,
if the holder Of government bond, or the
owner Of real estate il entitled to . loan
from the government, the owners of per-
sonal property have an equal right 70 q like |