The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1876-02-26

70 capital and labor, the rate OF interest
on loanable capital determining what
proportion ofsthe joint productions of
capital and labor shall be awarded to
capital for its use, and what to the labor
ers for their services. And further, that
all interest paid for the use Of capital for
any purpose whatever, must, in the end,
be borne by labor, and is as much
charge on it as the taxes paid for the
support of the government.
TITS CLAIMED FOR THIS SYSTEM.
l. That it is adapted to our theory Of
government, and in harmony with the
letter and spirit of the constitution, which
clothes Congress with plenary powers
over the currency or money Of the ma
ton, and charges it with the duty Of pro-
viding ithe people with safe and con-
venient circulating medium, adequate to
the demands of the industrial and COM
mercial interests.
2. That it would restore the power over
the currency to the nation, to whom it
belongs, but which has been tilched from
it by banking corporations, and provide
the people with medium of exchange
directly under the control of those who
produce and distribute the property it is
designed to represent and exchange, and
in which each citizen would be interested
to the extent of his wealth or the amount
of property he might have to exchange,
and .have Ia corresponding influence in
its management and regulation.
3. That it would be just in its bear
ings on all classes and interests, as well
as to all sections Of the country. Under
its operation, the currency or money
would, without any legal enactment reg
ulating its distribution, naturally flow to
the section Of the country and into the
pockets of the individuals producing the
wealth, and not, as under the present
system, to money centers and into vaults
of the banks and the pockets of the usur-
ers, whittier it is attracted by eXtortion-
ate rates OF interest.
4. That it would be self ad busting, and
possess the elasticity necessary to adapt
it to the ebb and flow Of trade; for it, at
any time, the amount in circulation
should be insufficient to meet the de-
mands Of legitimate bus mess, the rate of
interest would advance, which would
cause the bonds to be exchanged for cur
rency. On the other hand, should the
volume in circulation be in excess Of the
demands OF trade, and the rate of inter
est in ordinary business transactions fall
to or below the rate paid on the govern
ment bonds, the currency would be con
verified into bonds to the extent necessary
to restore the proper equilibrium. Thus
it would prevent all violent expansions
and cOntractions of the volume Of the
currency, as well as the high and fluctu-
ating rates Of interest on lOanable CAPT
tai, which have in the past proven, and
must, 50 long us the present system is
continued in operation, prove dctrimen.
tai to TO all useful industry and lcgiti-
mate enterprise.
). That it would establish an equitable
standard Of distribution TO capital and
labor, which is the most important func-
ton of a circulating medium, or rather
of monetary system. With the rate of
interest on the government bonds suili-
GENTLY below the rate Of increase in the
national wealth by productive industry
to make an equitable division Of the
joint earnings Of money, or non-produc
ing capital and labor, those who produce
and distribute the wealth would receive
IA fair compensation for their services,
and capital a just reward for its use.
6. That it would furnish an honest cur
rency and gives us specie standard,
for when once fairly in operation, the
bonds, into which the currency would be
convertible at the will of the holder,
would command the coin in the open
market, and the currency would, Of
course, Ue par with coin. This the spe
Gle basis fallacy never did, nor never
can do, for it is an impossibility for eth
er the banks or the Government to re-
deem 81 to So of circulation with - Of
coin and the parties making this prom
Use. whether it be the bankers or the
Government. know that they cannot full
fill it in good faith, and it is, therefore,
an act of dishonesty to make 1t.
= That resting, as it would, on pub
lie faith, which is the basis upon
which our Government is founded, and
being endowed by law with all the at
| tributes Of money, it would have per
manent value and uniform credit. and
perform all the functions Of a -circula-
ting medium, equally as well as coin
! better, because more convenient and
| economical.
8. Advantageous as this system would
! be TO the Government aud the people in