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

prageQ S3ZU,UOU,Uuo lOl tNci'S
that the premium on coin averaged 20
per cent. Now, the issue OF leSal-teh-
ders instead of the bank currency in
tbo first instance, would have obviated
the necessity for the issue OF a like
amount of bonds bearing per cent.
interest in coin, which, after deducting
the tax on circulation, would for the
twelve years amount to S26s,OOO,OOO in
coin. besides the cost Of collection and
disbursement. Again, the premium on
coin having, for the the time named, av-
eraged 25 per cent, deducting from the
aggregate of premiums the tax on circu-
lation, would give as the loss to taXpay-
ers for the twelve years, 1861 100000 in
currency, or $3O,OOO,OOO annually.
Not content with these enormous prof
its and the unwarranted powers already
secured, the bankers and bondholders
demanded, and, under the delusive plea
of return to specie payment, obtained
the passage of the law Of 14th Of Janua-
ry, 1875, removing all restrictions on the
volume of the bank currency, and pro-
viding for the retirement OF the legal
tenders from circulation by converting
them into interest-be bearing bonds. The
principal argument offered In FAVOR OF
the passage Of this act was that 1t would
make banking free, but it only extended
the MONOPOLY of issuing currency to the
present holders of Government bonds,
for the bonds are now held at prices that
make the business of issuing currency
on them improbable to any but the
present owners. The practical effect or
the law will be to retire the legal
from circulation, when the bankers, and
q few capitalists in New York, New
England, and other money centers will
have control of the circulating medium
of the nation, with power to expand ana
contract the volume, and to raise and
over the rate Of interest so as to make
every other interest subServient to their
cupidity. The Government and people
will then be so completely at the mercy
of the bankers and usurers, that they
will be powerless to resist any demands
they may make, and we shall either
have a large increase in the volume or
the currency with the repeal OF the tax
on circulation and deposits, or further
contraction and advance in the rate or
interest, Just as they may deem most
conducive to their interests. Ii they
should decide to adopt the former poll
cy, we shall have an increase OF the cur
rency to at least $1OOO,OOO,OOO, secured
by bonds bearing not less than per
cent in coin. This will impose burden
of S5O.OOO,OOO annually on the tax payers,
and il to this be added the exemption
from the tax now paid on circulation
and deposits, it will swell the burden to
$4,000, 900 yearly over what would be re-
quired if the currency were all legal ten
ders. On the other hand, if they should
elect to adopt that most barefaced OF all
frauds. the specie basis fallacy, it will
not tighten the burdens OF the taX-pay-
ers; for, being masters Of the situation,
they will select the line OF policy most
advantageous to themselves.
The effect of contracting the currency
III be to still further reduce the wages
D.. labor and the money value OF all It's
reductions, while the bankers and us
llrers will retain control Of the currency
or money of the nation, and maintain the
rate of interest on loanable capital as
high as it now is il they do not advance
it still higher. 1t will then take more OF
the labor and property of the industrial,
enterprising classes, who are necessarily
the borrowers or debtor class, to pay
the interest and principal of their obliga-
tions. 1t will also increase the pay OF all
officers with fixed salaries, State and
national; for their pay will purchase
more of the products of labor at the re-
duced prices. 1t is then not strange
that those who live and thrive by usury
and llpOn fixed salaries should advocate
the reduction of the price of labor and
the value of productive property. II we
adopt this system, we will get hard
money" but not specie redemption.
The only hard money this system can
or will furnish will be in the way OF 10
per cent. for gilt edged" paper over the
bank counter, and one and one, half or
two per cent. per month for other we'll
secured paper from the bankers cellar
broker" an appendage to most OF the
national banks. The currency will not
be puO into circulation in the vicinity OF
the banks issuing it, so that if it were
possible for the banks to redeem three
to five dollars of currency with one Of
coin, specie redemption would be inn
practicable so far as the great majority
of the people are concerned. But it is
both physical and moral impossibility
Ia, lie tho Gn,