The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1877-05-10
usURY AND THE CURRENCY.

One thousand dollars at ten per
cent. interest, compounded annually
sixty years, amounts to eighty
dollars. If there is q sim
gle legitimate business interest in
country, which will warrant
those engaged in it paying ten per
cent. interest on money, or any rate
approximating to it, we are not aware
OF its existence; yet our Banks and
money lenders are charging from 10
to - per cent, compounded every
sixty or ninety days. 1t is only q
question of time when, under this
state of affairs, those among u bu-
siness men, who are thus compelled
to borrow, will become bankrupt.
Statistics of the profits of business
transactions in the United States de-
monstrate the fact that, money may
be made to earn on an average, about
81 per cent. per annum Any rate
of interest on money above that
which it will earn, in the ordinary
course of business, is usurious and
ought to be prohibited by law under
the ~severest penalties; such as the
forfeiture of both principal and in
terest to the State. If such a law
were provided by the general gov
eminent and strictly enforced, and to
make such a low rate o finterest prac-
ticable by asystem of legislation pro-
viding for a volume of currency COM
mensurate with the demands of blu
siness and trade, then might we con-
fidently anticipate the Inauguration
of better times.
Money is not a natural product,
but is strictly a creature of legisla-
ton. That thing is money which is
made such by the law of the land. 1t
matters not whether it be paper or
metal, if it have upon it the stamp of
the government and, her solemn
pledge for its security, and is made
a legal tender, by law, for the pay
ment of all debts, public and private;
if it is made receivable at par by the
government for taxes, duties, DC,
and the people have faith in the sta
bility of the government, such issue,
without regard to the material or
substance out of which it is on
structed, becomes the medium Of &c
change and answers every purpose of
money. But it cannot perfectly meet
its requirements, if the volume of
currency be fixed at an arbitrary
sum. 1t should possess the element
of elasticity. The supply of cur
rency should increase with the in
creased demand for it. 1t should de-
crease in volume whenever there is
more of it afoat than is required to
transact the business of the country.
Then would the price of all commo-
dities of value be regulated by the
supply and demand for them, and not
by the abundance or scarcity of mo-
ney with which to purchase and
transport them. Then would every
business enterprise be prosecuted in
proportion to the demands for its re-
suits or products and not controlled
or hampered by the supply or scare
ity of money with which to carry it
on. In a word, the price Of every
thing of monetary value would be
fixed, not by the intrinsic value of a
dollar, but by its own inherent worth.
To accomplish these desirable OBJ
jects, let the general government pro-
vide a legal tender paper currency;
let it be made a legal tender for all
debts, public and private; let it be
made receivable at par for all dues
of the government; let it be disburs-
ed by the general government pay
ment of her obligations and current
expenses until a sufficient volume of
it is afoat to meet the requirements
of business and trade; let it be made
interconvertable with a low rate OF
interest bearing bond, thus provid-
ing the way for retirement from cir
culation such surplus of currency as
shall not be required in the transac,
tion of business, or, in other words,
when all of it aloat can not be made
to earn the rate of interest paid on
the interconvertable bond. Let the
general government further enact a
stringent usury law, fixing the rate
of interest at a per cent. not greater
than the rate upon the interconvert.
able bond, and not greater than mo-
ney by It's legitimate use can be
made to earn, and for the violation
of such usury law provide the sever.
est penalty, such as the forfeiture o.
both principal and interest to the
State, then might the people expect
to be able to pay their private indebt
edness and the debts of municipal
ties, States and nation. If, however
the policy of the Administration anc
the Republican party, that of forced
resumption Of specie payments OIL
the first of January, 1879, is to be
followed and enforced and the con
sequent reduction in prices and pros