The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1874-01-24
Philosophy or Gibberish :!

munications for the Chicago Industr5M age,
claims by intense thought and study, to have
solved the problem OF - true, natural
scientific system of currency or money Inc
wav il came about was this Having strong
nassiou for ethics, he abandoned his proteS-
sion as a lawyer to devote himself to studies
in that other realm of thought. lie found,
however, that ethics had not yet been reduced
IN n science and before that could be done,
another subject for science preceding ethics
in chronological and logical order-to-wit'
pcliticol economy, "which means the economi
cal use of man power" must be mastered
So he tackled political economy. But thls
also he found, had not yet been "scientlzea'
However, it was ready for scientific solu-
ton, and he went to work to do it. The ilrst
step in the process was to solve "the currency
problem, or money question" He found, as he
revolved the great theme in his mind, that
all the systems of industry, past, present ana
prospective, were of three kinds-monopo'
little, competitive and cooperative; and as
the competitive, when it superseded improved
upon the monopolitc, so perfection was
attained in suppanting the competitive by
Inc cooperative. WITH those suggestive ana
comprehensive congratulations on the labor
problem in the minds eye, he was heipea 10
an equally useful and truthful generalization
on the subject of money or currency lo'Wl',
the private banker represents the monopolitlcI
system; as he is superseded by the corpora
ton sbank, greater homogeneity in the co
opcration of the members is attained, and
consequently Il step in advance Another
step in advance is the state bank; but still
"vcsted rights" stand stffly opposed to the
general good, and it is still monopolltic.
Take another step and we come to free bank
ing, which is the competitive stage; but 1t is
only when we reach the greenback system
the furnishing of a currency by the nation,
based upon all the wealth and commodities
of the country, that the true cooperative and
therefore perfect system is attained
We shall not undertake to pick flaw IN
this logic, which has the merit at least OF
being Ineligible. Only side remark" OIL
Mr.. Boucher at present challenges criticism
lie claims for his perfect currency" al
superiority over that of the old banks, orI
in that the latter was specie basis currency
and Therefore so narrowly and weakly based
that the slightest panicky breeze toppled it
over in ruins Would Mr.. Boucher have us
=. L.
is not a specie basis currency9 Is it really
true that that currency which he boasts has
gone through the late panic remaining
entirely intact and as good as ever" is not a
specie basis currency: What gives the green
back its present valueY Is it the legal tender
clause, or the fact that it is based on all the
wealth and commodities of the country" or
either or both? The truth is, the exact value
or purchasing power OF the grecnback isl
measured solely and exclusively by the value
in goN of the United States bonds upon
which 1t is based In the money markets of
the world, five years ago, United State bonds |
were worth say 30 cents on the dollar in gold
and greenbacks were worth so cents on the
dollar in gold. To-day United States bonds
are worth 100 cents on the dollar in gold, and
greenbacks 90 cents on the dollar. The
the same. Whyg because the grecnbaci
is based on the bonds, and the bonds are based |
on the pledge of the government, and the faith |
Of capitalists in its ability to redeem the
NJ lra q, L,. nripp,nnl apI ;nt nT
its bonds in goid. The only reason why the
grecnback is not worth 100 cents on the dol !
lar the same as the bonds, is because it does
not, like the bond, pay interest, and is notl
therefore Immediately, like the bond con
vertiblc INTO gold. Make the grecnback cx-
changeable at the pleasure of the holder for
gold or Il |. $ bond, and 1t once ii Jumps To
the same value. But take away from L! e
bond its rcdccmablity in gold, and what
becomes OF the value or purchasing power OF
your bond or the grcenback based ON i,?l
Will the fact of its being illegal tender"
and based on the "wculth and commodities"
you knock from ihem the undcrpinning of
ultimate redemption in gold There are
economists" just hairbrancd enough 10
imagine that the purchasing power Of The
greenback would remain the same. but while
We have too many such economists" or
philosophers, il is henriy rs sad to remember
that Our asylumS are full of lunatc,.
.FIooD At BUFFNLo.-The heavy rain and