The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-05-09
ABSOLUTE MONEY.

ments of the country, would he a
blessing to the people, and not rest
upon them like curse. as that part
of our money does which is called
bonds, and which brushes the life of
the nation out by the weight of its
enormous interest, amounting now to
over one hundred million dollars Il
year. 1t is in this that my system
differs from those of others. who
otherwise have promised a similar
currency for our country. They
would still have two kinds Of money
a legal tender note, and All interest
bearing bond. not legal tender; while
l would have no bond at all. and hence
would save the people of the United
States those one hundred millions Of
interest per year, under the burden Of
which they now groan. To make
their proposition seem more plausible.
they advance in behalf of their scheme
tkat their bonds and legal tenders are
to be lntercOnvertible. and that the
Interest on their bonds is to be very
low; and they consider it very in
genions that they have fixed its rate
at 3.6o-l00 per annum, or one cent
interest per day on 500. On leap
years, of course. the holders of the
bonds would have to throw in an ex-
ira day. 50 much has been said in
support Of this scheme, that / shall
more at length expose it's main falla-
cies and defects.
The first objection is one that ap-
plies to all bonds issued by sovereign
nation. What are those bonds They
are u commodity created out of the
national sovereignty, and their sale
IN the money markets of the world is
degrading and dangerous hypotheca.
ton of what a nation should hod
dearest-lts sovereignty and national
credit. 1t pawnS its life and indie
pendtnce to foreigners, and pays them
ruinons premium lin interest) for
the sacrifice of the bonds. The dis.
grace is as deep us that of the cooley
who sells himself i'll slavery. But it
IS not only disgrace, it is also an
eminent danger. When unforeseen
financial disasters throw nation into
bankruptcy. its very existence is at
the mercy of its creditors. We have
seen how Napoleon III. took advan-
'tage of the bankruptcy Of Mexico to
take possession of the country. 1t is Il
danger which no nation can risk.
This is the main political objection.
The financial objections are. first
that the bonds are to bear interest.
which means that the government is
10 pay the holders of the bonds pre-
MUM (called INTEREST," for the priv-
lege it extends to those holders Of
having Il universal medium of inte-
change in the Urited States. What
would the bankers say if they were
requested to pay. instead If to charge
for the drafts which they issue! The
absurdity is transparent. But the
government serves all the purposes eff
Exchange. 1t enables men in San
Francisco to settle with men in New
York by It's means quite as effectually
as bankers draft. and with far
greater security. Why, then. should
the government pay for atfording the
means of that settlement, when the
bankers charge for it. though they
have not more than,1, 100, 0OOth part of
the wealths or power of the govern.
ment!
This whole interest paying business
by u government is, indeed, IL gross
fraud upon the people, devised for the
exclusive benefit of the bondholders.
and the 3.65-l00 intercOnvertible
scheme is all the greater fraud, in
that it would swell the interest &C.
count OF our government still more, by
what its OrlginatOrs consider its
peculiar and most recommendable
feature. For let us look little closer
at this interconyertibility, aud the
way in which it would operate. 1t is
proposed to let the holders of legal
tenders have the privilege of changing
them in sums Of fifty or hundred
dollars for Understanding bonds.an
when they need the legal tenders
again, to give them back currency for
the bonds; the holders of those bonds
receiving the interest from the gov.
eminent for the time that they have
held the bonds, or, in other words,
making the government pay them for
the service 1t has rendered to them.
The natural consequence would be.
that every holder of money would
prefer to hold the bond. since it would
serve him all the purposes of money.
and ut the same time earn him I'm
interest, which the taxpayers of the
country would have to pay. Hence
the legal tender notes used by the
people would he reduced to the lowest
posi- bic minimum, and the amour. of
bonds outstanding would be con-
stantly at the highest maximum.
And tins scheme. which go plainly in
creaseS our interest account, and
would thus make taxation still more
oppressive than it is now, is placed
before the public under the Cuise of u
benefit of the laborin- masses 1t is
hard to tell whether the authors of
the scheme were too ignorant to see
its immediate effects, or whether they
pnrposely endeavored to deceive by
false representations.
Another very serious defect in the
plan. is that it would involve the
necessity of keeping on hand. in the
principal cities of the country. Oman.
titles OF 1865 bonds and currency. so
large rs to invite official defalcation
and burglary on fearfully extensive
scale. Hundreds of millions would
have to be kept constantly on hand
in city like New York, for instance.
and every section of the country the
government wOnld hax,n - lno.xa-