The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-05-13
MONEY ONLY A CERTIFICA rE
OF VALUE.

Mr.. EDIToR:-The basis for our
present currency is gold and silver
We have adopted these commoolVle
because it is believed that they Huctu-
ate less in value than any other com.
modify. We have limited the gold
dollar to SO many grains of gold and
the silver dollar to so many grains Of
silver, hoping to hold it to a uniform
value as q purchasing power; but we
find that it's value has huctuated to a
serious extent in the past twenty
wears. Is it because there is a less
number of grains of gold or silver in
our present dollar, or is it because we
have a less number of dollars in clrcu-
lstion? Facts show that its purchas
ing power has been nearly doubled in
the past twenty years. If a farm
twenty years ago worth twenty thou
sand dollars had been mortgaged for
ten thousand dollars, today the ten
thousand dollars would be sufficient to
pay the full value for the whole
property, and if the mortgage should
pay off the mortgage he would pay
back the borrowed money in a cur
rency worth double the purchasing
power of that he borrowed twenty
years ago. Thus failure is unavail.
able to debtor and contracting class Of
people.
The fact is, our currency only re-
ceives its purchasing power from its
quantity in circulation. Now how
should we put the dollar exactly
where it is needed ? Through our
national banks only our wealthy bust
ness men, our large manufacturers or
our railroad companies can be accom-
modated. The farmer who has failed
in a crop or wants to bring in cultiva-
ton land that is now unimproved,
cannot be accommodated, or if he is,
at a ruinous rate of interest. We
ask to do away with our banks and
our bogus gold and silver dollar basis
and loan at n per cent. interest from
the government to the people on a
seventy per cent. value Of u real
estate. These certificates of value
may be placed, like the United States
bond, as security in the Treasury of
the United States and on them issued
the safest currency in the world. For
example, a young nan wants to buy a
farm worth one thousand dollars; he
has three hundred dollars which he
pays down, leaving seventy per cent.
of the thousand dollars unpaid, show
ing a correct demand from the gov
eminent for seven hundred dollars.
He borrows it at one per cent. and re-
funds it when he finds he does not
need it in his business.
By this means we would have a
flexible currency that we could draw
out of the United States Treasury
whenever and wherever it was needed.
It would be out Of the power of any
party or money monopoly to create a
scarcity of money. The man that is
now lending his money at from six
to eighteen per cent. would have no
market for his money at these rates
and one per cent. would only about
pay his income tax, consequently he
"OUIO uSCIUS Ih0 d GLu0 mdu y invest
his money and take the risk of bust
ness on his own shoulders. That class
of true farmers who have been so
lately ruined by paying forty per
cent. to get their crop supplies could
give certificates Of value to the
amount of seventy per cent. of their
real estate value and draw out of the
Treasury just what money they needed
to conduct their business during the
year and refund at the end of the year
under this arrangement. We would
never see a farm or other property
offered for sale and only bring one
third of its real value at a cash sale.
This depression would cease and our
now clouded future would brighten
out of the Legitimate productions of
the American farmer and business
man. EUGENE THoRNE.
Henderson, n. G.