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

posed monetary system will furnish
The currency would go into the posses
sion of every citizen in the nation, even
to the child who owned but dime, and,
If the bonds were issued in denomina-
tons as low as $25, they would afford
the most safe and convenient form of
investment for the the means Of the
working classes, who constitute much
the larger portion Of our population.
And as the value of both these classes Of
security would depend entirely upon
the stability Of the Government and the
perpetuity Of the Union, and as the sys-
TEN would greatly increase the rewards
of labor in all branches Of useful occupa-
tons, it would tend to attach the affec
tons Of the citizens Of all classes and
sections to the Government and unite
them in one harmonious whole.
1t is claimed by the advocates Of the
present monetary system that our ma
tional debt will prove a source OF
strength to the Government. This will,
however, depend largely upon how it is
managed. If it is distributed among
the people, either in the form Of curren-
cy or bonds of small denomination
bearing such rate Of interest as will not
be oppressive to the industrial classes,
it will undoubtedly have this effect and
tend to strengthen the bonds Of Union;
but, if it is retained in the hands Of a
few bankers and other capitalists, it will
just as certainly prove source of weak
ness. 1t should be, then, the first care, as
it is the highest duty, OF the Represent
atives Of the people to so manage the
debt and currency as to tighten the bur
dens of the producing classes and to in
terest pecuniarily the greatest possible
number in the preservation and perpe-
tuity Of the Union. This is the object
that the advocates Of the system or
bonds and currency, inter convertible at
the pleasure of the holder, have in view,
and which they believe would accom-
plish this desirable end without doing
injustice to any class or portion Of the
people. ..
The bill provides for the issue of reg
istered bonds and that the volume Of
the currency shall not be reduced below
$40 per capita of the population. The
first of these provisions is to prevent
the bonds from circulating rs money
and the second to prevent the contrac-
ton Of the volume of the currency be-
low what would afford an easy-working
money market. The bill also provides
that the bonds shall draw lawful interest
I'd tn hn ,,rh tn
change the rate when in its judgment
the public welfare will be promoted
thereby. The object Of this provision is
to place the money or circulating me-
dunn Of the nation under the direct con
troll of the people through their Repre-
sentativcs in Congress. This will or can
do no injustice TO the holder Of the
bonds, for, if they should be dissatisfied
with the Chang" in the rate Of interest,
or if they SHOULD be able to employ tnelr
means so as to yield greater income
than that derived from the bonds, they
would have ample time to present them
for redemption before the law would
take effect.
THE RATE OF INTEREST THE KEY TO THE
SYSTEM.
As the rate OF interest on the Govern
meut securities would, under this sys-
TEN, govern the rate in all business
transactions, and rs the bonds would be
the most desirable and convenient form
of investment, they would be preferred
to other securities even at n somewhat
lower rate of interest. 1t follows that
the rate on them should be below rather
than above, the average rate Of increase
in the national wealth by productive
industry If greater, the effect would
be to absorb too large a portion of
the loanablc capital; and TO advance
the rate OF interest beyond the point
where capital could be safely and profit
ably employed in legitimate business.
This would defeat the end sought to be
attained by the system, which is to es-
tabhsh fair and uniform rate of in
tcrcst and an equitable standard Of dis
tribution to capital and labor. | have,
as | believe, shown cOnclusivcly that
the average rate Of increase in the ma
tional wealth does not exceed per cent.
per annum. This is, therefore, in my
Judgment, the highest rate that should
be allowed on the bonds. Even at this
rate capital, when it co-operates with
labor in the production Of property, will
absorb all the surplus earnings and
compel the laborers to work for mere
subsistence. am aware that there are
those who have given much patient
thought and careful examination to this
subject, and who As earnestly favor