The Caucasian. (Clinton, N.C.) 188?-1913, 1890-05-22

approach to 1t Is a meta lie
currency. When a MN ex-
changes his cotton for gold he
does lot proceed upon the
principle that so many ounces
of gold are equal in real value
% so many pounds OF cotton,
but observing what valla has
been stamped upon the gold by
authority OF law he takes
it at that value without once
thinking of ascrrtaiHinE the
weight Representative value
is HE prime pie upon whi'h
paper currency is supposed to
be based ! ten dollar bill or
note is of very little internsic
value but because it is supposed
To represent ten dOllas OF real
value somewhere as in the
Golfers of bank or the govern
ment treasu. y, 1t passes current
and performs all the functions
Of money.
Fiat money as it ia called il
that which does not possess
Intrinsic value and neither re-
presents nor processes to re-
present real value. 1t is simply
and purely IL promise to pay.
The green back currency of this
county was purely fat money
and the government bonds Of
t. day are the same. 1t is very
clear that a currency based up
Oh fiat value inasmuch as it
Costs practically nothing to
produce it, can be supplied by
the government to its citizens
at al exceedingly low rate Of
interest, and it is equally clear
that, AS such a currency will
perform all the functions of
money as efficiently as the very
expensive gold and silver, it is
the duty Of government to pro-
vide it in sufficient abundance
Tor the needs Of the people.
Indeed the government has pro
viied just such a currency as
this for the use OF the very
rich. Bonds each Of large value
are issued and with these such
men as Gould and Vanderbilt
can buy and sell railroads &c
but an ordinary man can never
own one. Nay so Ear ar: the
very Itch from paying any in
terest upon their pecul ar cur
rency that they are permitted
to charge the government in
tereSt.
Let us suppose the govern
ment to issue to us through a
national bank, a ten dollar bill
Which is nothing more than a
note by which the government
or the bank promises to d. ay the
holder ten dollars. This note
passes from tie bank into the
hands Of a private citizen, who
gives his note with abundant
securit' in exchange for it. We
will sly that he keeps it foc
two years aud then presents it
at the bank for payment. -.He
receives just ten dollars and
nothing at all is said about in
terest. But when he comes t.
nay his ten dollar note to the
bank, he is required to pay, not
only the ten dollars as princi-
pie, but eight per cent interest
for ten years or in all $500.
Who has got the S.? The Bank.
Then the rich grow richer at
the expense of the poo.
We hear much said Of the
rapidity with which the United
States is raying off its national
debt. This government has
paid since the war by means Of
cruel taxation imposed almost
exclusively upon the Industrial
classes a sum which battles
comprehension and almost de-
ties computation and yet, in
zeal truth, the national debt is
as la"ge now as it was the day
the War ended. 1t will take
mo e bales Of cotton, more
bushels Of wheat, more pounds
OF pork and more Of anything
which the farmer produces to
discharge the national debt to
day than would have been re-
CURED to do so in 1865. The
criminal contraction of the GU
rency and excessive interest is
the groundwork of most OF the
evils under which the industrial
classes are lab ,cins and the
national banking system is re-
sponsible for the whole thing.
With a currency based upon the
mone'lzation Of land or f ee
banking made SAT-, or with a
currency issued direct from tie
government in quantities suff-
clint to supply the needs Of the
people, there is no earthly rea-
son why any one ny giving
sufficient security could not
obtain all the money which he
might need for not more than
three per cent interest.