The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1875-09-30

inn the uOVHrnhenb uuPkey toV Hlouoy
at = rate low enough and for q period long
enough to encourage productive indus
tvisa The Government now loans 10 the
ham a 435O 600 OO0in National Bank notes
Without dny interest, This law should
I'D repealed and another enacled by
whi,h nny individual holding United
States bonds should be able TO b,lrrow
the par value, and as the annual expenses
oft6e Government are large, an annual
tax ofthree or four per cent.--say 3 65--
should be imposed on those who borrow.
THe percentage might be called interest.
i should,prefer calling II q tax for sup
piyinX the currency. The Government
gives il its value, and the Nation at large
should have the advantage, Whether
this measure supplied enough currency
or nor no more twenty-five bonds should
be issued and those not converted into
'fiye per oents'' should be called in and
paid in greenbacks. Add 10 these meas-
tIres the 8 65 interchangeable bond propo-
sition-a measure attracting the surplus
capital Of the country, and one OF econo-
nv for the Government, and 80 far, an
aidto the whole people--and large sums
would flow into the public treasury at a
low rate of interest. There are now over
$500, 100000 Of deposits In the savings
funds of the country, drawing about four
per cent, most oft not payableon de-
mand, and with precarious security and
nearly 100000 in the National banks
with no better security, drawing an av-
erage interest of less than one per cent?
payable theoretically, ION demand, but,
practically, ss 1t may best suit the banks
as was done in the crisis Of 1873, in bank
certificates. 0fthese 81 ,500000,0O0 it is
estimated that quite two-thirds would
seek A. Avestment in the 3.65 interchan-
geable 0nds, because the average inter
est would be more than is now paid,
because the security would be better, and
because the holders of the bonds could
have their money absolutely on demand.
These bonds mig be made principal and
interest, payable in greenbacks, at the
demand of the holder, and payable in coin
of the present weight and fineness, at any
time after thirty years, at the option of
the Government. .... .
Our 1881" bonds can not be demanded
at any time by the holders, and can not
be paid by the Government before 1881,
and, after that, at any time the Govern"
ment may elect, near or remote.
These measures, ifthey did not prevent
would lesst n and modify money convul-
sions. Panics are caused by want ofcon-
fidence, not by scarcity of money; fear
that what is due cannot be paid; that
what is wanted cannot be had. There
are reasonable fears when ones means
are in the hands of savings funds or
banks, whether they be California gold
banks or not. for they are all liable to in
flation, all liable to create obligations
based on what, in troubles caused by in
dividual over-trading, becomes valueless,
But the Government of the United States
having a taxable property Of over $685.
900, 100000, is ready at all times to re-
deem its obligations, and as four cent. on
the foregoing amounts 81 100000, ,O00, our
currency, which amounts To less can
hardly be called inflated.
My appe ] Is in favor OF the wealth.
producers, for who pays these many mil
lions but the wealth-producers2 1t is in
favor of the debtor class, for if they are
not cared for, what becomes of the credi-
tor class [? In closing let me call your
attention to the words Of Judge Bradley,
of the Supreme Court, when disposing of
the Legal-tender law:
"The heart of the nation must not be
crushed out, The people must be able
to pay their debts and meet their obliga-
tions. The debtorinterest ofthe country
represents its done and sinew, and must
be encouraged to pursue its avoca;ions.
If relief were not afforded, universal
bankruptcy would ensue, and industry
would be stopped; aud Government
would be paralyzed in paralysis of the
people. It is an undoubted fact that dur
ing the late civil war the workshops and
factories of the loyal States, caused by
the issue OF the legal-tender currency,
an inexhaustible fountain Of
strength 10 the National ca lse."
'7e0Ii T'rEG;61q E. M. DAVIS.