The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1876-11-04

4
toms. and. equally with coin lawful mon,
ey Of the United States, they would louR
ere this time have been At par with coin il
not at premium over silver coin, on
which every dollar q the national debt l.
legally and oqnitably payable, as well 40
all the private debts contracted before the
passage If the law u 1873, demCnetizing
silver.
In support Of this assertion | cite the
case Of the denanl notes. fifty million
dollars Of which were issued in August.
1861, and afterwards increased 10 sixty
million dollars. These notes passed. at
par with coin until the latter part of
December Of that year, when tn. banks
and the government suspen led specie
payment, when they immediately began
TO depreclate in value rs com Jared With
coin, the ealy lawful InoueE then An air
sslEFi5F, EhE 7~anti1usd % dsprsoiate IN
I'll the February following. when they
we're Inade receivable for customs duues
and endowed with all the legal power of
money. Then they Immediately rose 10
par with coin and remained 50 as long
as they were in circulation. When coin
went up 10 2S0 they rose with It, and
claim that the same result would follow
If the present legal tenders we're endowed
with all the legal power Of money, which
is just what the advocates ~ the system
Of currency interconvertble with govern
ment bonds demand nothing more, moth
ing less.
| deny the volume Of the currency could
be unduely iuf lted under the operation Of
the system. for not one dollar could get
into circulation until the government re-
ceived value for it either ia payment Of its
debts, or for services rendered or supplies
But repeat that the national
banking system which Gen. Hayes advo-
Gates, does encourage Initiation to the ex-
tent of the whole amount u the national
debt, BY offering the bankers double inter
est on their capital.
Again Gen. Hayes says
''The people are complaining about
heavy take now, and yet here il q
scheme to add to their burdens If aka
tion the sum of S25 600 600. each year"
This is a grand mistake The proposed
system viii relieve the tax payers IL
much larger amount each year, now paid
TO bankers by way Of double interest on
their capital, for which the people recsiye
NO equivalent whatever ami Of more than
ten times the amount yog name by way of
extortiouate rates of interest oil l1Auable
capital generally. This is the Legitimate
effect of the national banking system, the
NJ which you advocate and
which would be impossible under the sys-
tenn of currency, intercbuvertabe with
government bonds bearing an equitable
rate pf interest
Again Gen. HAYES says
II Mr.. Campbeiis system was adopted
All other currency would disappear, ana
his currency would be the only medium Of
III use
Then say it would be the best money
or currency any nation ever had. ~ would
perform all The functions of a circulating
medium better than either gold OF silver,
because more convenient ANA Tess expeis-
i've, and infinitely better than any bank
Ing system ur specie basis fallacy that We
have had, Or that the ingenuity of man can
devse. Operating, as it would, as a regu-
latOr on the rate NJ interest Uu luanaOIe
capital, it would give "a the wea.th-pro-
duclng classes an equitable share of their
productions, and to capital Just reward
for its use
But he seems not To credit his own state
nent that all other currency would disap-
pear, for he says
''Supposiug, now, that we have 81 29O,-
600 900 Of this currency, ana that Ils pur-
chasing power could be- kept as the paper
money men claIm-equal ID gold-how
much ct this currency would be kept in
actual circulation HI
answer, just as much as the people
might deem necessary to effect the ex-
changes of their property and productions,
provided they could give u the Govern
ment Zone hundred cents worth Of labor"
for each dollar. He farther says
Figures show that ii does Mt take over
5000, OOO, 900 of our present currency TO
transact the business II the country. The
remainder lies idle in the United States
Treasury and national BANKS II We sub
tract this 5000, 600, 600 from 81 29O, OOO,-
900, we shall have $500 900 900 not being
needed 70 carry on business, and will pass
into the United States Treasury. Tie
Government will have no use for thus
money-It cannot invest il 80 il will bring
IA anything and it must be idle in the
Treasury, while ths E.v.rnulrt.t u -
pected to pay interest on It. Now, one Of
the strongest objections I'd this intercOn-
vertible bond theory (and one that must
prove fatal To it) ~, that II absolutely com
pels the Government 70 pay interest on
money that II does not want and cannot
use. The annual interest on $500. 900. 900,
AZ 50 100 per cent, would ~ 80. I85, y
900. Now, 1 ask what sense there. Is IN a
bnancIal system that mpels the Govern
nent, or rather the tax payers, u pay an
annual interest " S25, 0OU. 900 ~ money
that the country does not need III
Now | will tell Gen. Hayes, and the
party for which he claims u speak, that IL
We only need 5000, OOO, 900 to transact the
business Of the country now, and we keep
progressing towards specie payments for
tour years TO come, at the rate W. have for
the past fonr years, The value u property
and the wages Of labor viii be ~ reduced,
and tue nunber Of idle men (tramps) 90
increased, that it will nut require ong- half
that amount
come nos to examine bis strongest
objection TO the peoples monetary system,