The Caucasian. (Clinton, N.C.) 188?-1913, 1890-04-03
M0netiZatiOn of Land.
BY A COLLARD.

The introduction ihtO the
Senate by Senator Vance Of the
banking scheme advocated by
the Farmers Alliance is only
one evidence Of the great dis
satisfaction that is felt with
our present National banking
system. The farmers propose,
in brief, that the government
shall establish warehouses
throughout the country for the
storage Of their products and
upon such storage to issue certi-
ticates equal to 80 per cent of
the value Of the products de-
posted which shall circulate as
money. In effect it proposes to
make the annual products of
the country the basis of its
currency. The essentials of a
paper currency are safety and
foxibility. The holder Of a.
promise to pay must know that
upon demand and without trou-
BILE or expense it will be re-
deemed. Our present currency
has this quality in a very high
degree, ten dollar bill is never
protested. But it IS totally
wanting in the second requisite
-dexibility. The volume of
currency is changeless without
regard to the needs Of the peo-
pie. It.knOws no law of supply
and demand and has become in
the hands of the bond-holders
and national banks, a mighty
engine of Oppresson. 1t is also
SO contrived AS 20 concentrate
itself around the large financial
centers. The people need, de-
and will have a change
in our financial system.
The basis of our present sys-
tenn is coin. This is safe. which
is good; but the supply, inflexi-
BILE and irrespOnsive to demand,
VIII ch is bad; and easily con-
centrate6, which is the worst
feature about it.
Cannot some better system be
devised? The farmers surely
need relief. Suppose two young
men entering upon life with
just $1,000 each. The first invest
his capitol in a stock of mer-
chandise and buys and sells and
gets gain. The second invest
his capital in a farm and at
once finds that he cannot do
for want of capital.
The former used his stock of
goods as capital with which to
trade and gain an increase. The
latter has nothing he can use.
His capital is locked up IN land
What he needs and what the
country needs is the monetiza
ton of land and this can be
easily accomplished by making
land the basis of banking. A
proper banking system based
upon the imperishable value of
land would have all the ele-
ments of an ideal currency. 1t
would be safe, more SO even
than gold-could be rendered
flexible and could not be con-
centrated, bu currency, upon
such a basis, would of necessity
be diffused throughout the
Suppose a dozen III Ell in Samp-
son county are desirous of for
ming a bank with a capital of
100000; why not let them
purchase S1OO,OOOln State bonds
and deposit them as security in
the State treasury. Then let
them pledge for the redemption
of their notes 100000 in i'm
perisbable real estate. Then
they issue in bank
notes, to circulate as currency,
100000. Why is. not such a
plan safe and practicable? The
bonds would be good and no
President or cashier could run
away with the land, and under
a proper system of inspection
aud management such a system
would be fully as safe as our
present National bank syste %.
This would be the MoNETIzATIoN
of land and would place the
greater part of the banking
capital of the country in the
hands of the farmers instead of,
as now, having it locked up in
Wall street. Under such a sys-
tenn money could be easily bor-
rowed at five per cent. The
stock holders in the bank would
have invested only 100000 and
5 per cent on 100000 in equal
to Is per cent on 100000 to
add 1 per cent interest
ON the State bonds and the
stock holders would receive on
their investment 19 per cent
and at the same time lend money
at 5 per cent. Such, Mr.. Editor
is a brief outline of system
we believe will bring
relief to the country more
quickly and surely than any