New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-10-10

Jul JUST COMPENSATION, SQQ 1G IA equally D
principal of justice that public property
should not be given to private individuals
or corporations without just compensation,
but this principle is violated BY the cur.
rency feature of the national banking sys-
TEN. It is certain that when this unjust
privilege is fully explained to the people q
reform will be imperatively demanded, and
the government made the sole agent for the
issue of circulating medium.
1t is 10 uncommon thing to hear those
who demand go just q reform as this
styled 'iut1ati0nists" as q term of reproach,
but the term can have no applicability
We are not agreed as to what 10 the cur
rency, whether it consists of money alone
or whether it includes bank checks, promis-
sorry notes, bills of exchange, warehouse
receipts, and so on, all of which bear an
important part in the circulation of pro-
ducts, AMI OF the aggregate OF which the
amount is ever huctuating and always IN
known. Nor will the case he improved if
we limit our idea of the circulating
medium to the money issued by the govern
ment, since the amount of that medium
needed stands in q certain ratio to the
amount of products to be circulated, COM
bined with the rapidity of circulation, and
as these factors are to such an extent in.
appreciable that they can not be named in
figures, 80 the resultant quantity which
they go to make up is in like manner in
appreciable, not to be named in figures and
actually unknown. The volume Of cur
rency may be at one time less and at one
time greater than now, but as no one can
tell when it will be greater no one Can in
telilgently apply to another the epiihet of
"infationist." The quality of convert
bility into interest bearing government
bonds with reciprocity of Interchange be-
tween the bonds and the currency. at
choice the holder of either, would ALWAYS
preserve the due equilibrium between sup
ply and demand, and this without any
need of making the interest on the bond
payable in coin.
The government, however, will not have
discharged ITS whole duty by putting itself
in condition to supply an adequate and
abundant currency to the people. The
means must alsO be afforded to the pro-
ducers Of obtaining such currency at will
and without serious expense. This you will
see is a question of the organization of the
credit and exchanges of the people, and
one to which the Legislature must give an
immediate answer 80 soon as the abolish
ment Of the national banking system is ef-
fected. Every one who has reached Ger
tain age il capable of productive labor. and
each one labors in order to produce what he
desires to give for the products Of the labors
of others, and each while labor is operating
and the product not yet realized, has need
OF the aliment of labor which is credit. The
essential conditions of productive labor are
credit and exchange, if these never fail
consumption and production may be con.
sidered as practically illimitable. Produc-
ton needs instant exchange and instant
credit. Mr. Bagehat, editor of the London
Economist, in his description of the money
market. in his book entitled Lombard
Street," edition, New York, Appleton, 1874,
page l2i, says: Our current political
economy does not sufficiently take account
OF time as an element in trade operstions,
but as soon as the division Of labor has
once established ithelf in community, two
principles at once begin to be important, of
which time is the very essence. These are:
l. That as goods are produced to be ex-
changed, it is good that they should be ex-
changed as quickly as possible. =.
= That as every producer is mainly oc-
cupied in producing what others want, and
not what be wants himself it is desirable
out effort. without delay, without uncer-
tainty, others who want what he has pro-
duced.
In themselves these principles are self
evident. Every one will admit it to be
expedient that all goods wanting to be sold
as soon as they are ready, that every one
who wants to work should find employment
as soon as he is ready for it.
Every one must produce and must ex-
onouso uis prouuCts lOr UDob0 OF OLnere, N
order that he may exist. 1t is labor alone
that affords production, and the latter
ianguishes when consumption is dimn-
ished-that is when labor ceases to be &C.
tive. Exchange can only be effected by
the medium furnished by government;
hence the medium itself ought to be con.
trolled by the producers, who otherwise are
necess acily dependent for the means of e1-
change, that rs for production and exist.
ence upon another class whose interests are
contrary to theirs.
Under these circumstances, the people,
by their agent the government, must not
only furnish for themselves currency, but
als0 an organization of credit and exchange.
The machinery of such an organization
framed by Congress, may be briefly sketched |
The Treasury Department of the United |
States should be charged with the exclusive
power OF issuing currency of paper
money, not promises to pay. A bureau of |
the treasury should be constituted for this |
purpose, and might be called the National |
bank OF Issue" or other appropriate name.
lished at the capital or other convenient |
point of each State and Territory.
In all the States and Territories, local |
banks of unlimited number should per- |
nitted to be organized by the people, I'M
der proper guarantee fixed by law.
Industrial corporations Of unlimited mum.
Der should also be permitted to be orr anlzed |
BY the people under suitable guarantees, |
according to law.
The industrial corporations should consist |
,f any number, not less than - of seri- |
,ulturists, manufacturers, artisans or other /
producers In any proportions organized
ander the provisions of general law
framed for the purpose; the industrial cor.
p0ration will be recognized as such by the /
Treasury Department., on due notice Of it's
formation and veri6cation OF its conformity
10 the statutes.
Any number of industrial corporations
'hould be authorized by law to organize .
ocai national bank, and on complying with
at the treasury AZ Q member
# the banking system in Its State, and will
lct IN sub0rdinatiOn to the national State
bank and the treasury.
The local bank will receive money onlv
rom the State bank, which will receive the
'ame from the United States national treas.
iry) bank, for which money the former will
70 responsible to the latter.
The industrial corporations guarantee the
advances made and credits given to their
ndividusl members. Thus, Q member has
iV00 bushels Of wheat worth 81
sill be NO loss from an advance uDon IL: he
hon deposits his wheat with the local bank
which calls upon the State bank for $1,000.
md the State bank calls upon the treasury
or the same amount. The State hank n |
'esponsible to the national treasury, and
he local bank to the State bank, that the
wheat exists ct the control of the
goal bank. The industrial Corporation
guarantees the local bank that there shaiI L
I, ( NO loss IN the sale Of the wheat, that il,