The midland journal. (Rising Sun, Md.) 1885-1947, 1890-09-12
The Injustice of Debt.

Debt is one of the principal agents of
business in civilized society, and the power
and importance of debt increases as civiliza-
tion multiples and complexities business.
Debt is the only factor in the social fabric
that has been given fixed status. Every
other part of the business machinery of
society is subject TO the fluctuations in the
prices of things. Although established on
the value or price of things-products of
industry and commerce-it is given a fixed
status at the time OF its creation measured
by the money value of staple articles of
trade at that time. To illustrate: If debt
of one hundred dollars is worth a hundred
bushels of wheat, or the market price o:
numerous staple commodities, at the time of
Its creation, it is not made subject to the
varying prices which money is compelled
to conform to by every change by the in
crease or diminution, the demand and sup
ply of trade, but it is formed, as it were.
like an iron image cast in mold, that when
cool becomes fixed and interchangeable in its
demands, and in form and substance until
destroyed at the termination of lis allotted
period of existence.
The advantage taken by capital to over
reach labor in the matter of debt. making is
in the form of contract, the nominating in
the bond, which designates a certain nun.
Der of dollars to be paid at some future day
without regard to the varying value ofthese
dollars through all this period. The debt
at the time of its making is based on he
money value ofproperty, or things produced
by labor, at that time, and in justice should
maintain all through the period ofits ex.
isteuce the same relation 10 the products of
labor, because out of that fund it must be
paid at maturity, and should not demand
more of that 'abor to cancel it than was rep
resented in its formation. The elimination
of this principle ofjustice from the contract
between capital and labor in the formation
of debt, is where shrewd INSCRIPTIONS cap.
ital has been enabled to over.reach labor
end despoil it of countless millions This
principle is forcibly illustrated in the for
nation and cancellation of our public debt
During the period of the formation of the
national debt wheat averaged about two
dollars per bushel in greenbacks. We tax,
wheat as an object lesson, being familiar
article of commerce and maintaining as
near uniform relation in price to the
staple articles of trade as any other product
of labor.
The face of the national debt scored two
thousand eight hundred million dollars
when the government ceased TO borrow in
1865. That mountain of debt during IFS
creation represented one bushel of wheat to
Two dollars of its face, or about that, and all
other farm products in the same ratio 10
value. One thousand four hundred million
bushels of wheat therefore represented the
actual value Of the debt. The debt holders
pad no more than the valne of that much
wheat for the bonds of the government.
The government paid gold interest on the
face of the bonds which was equivalent
measured by the products of labor, which
pays all national debts, 10 twelve per cent.
while this ratio between greenbacks and
gold was maintained, or 81 per cent on the
wheat or gold value of the debt. 1t was
not long after the war was over till the
stealthy bond holder persuaded Congress to
make the principal payable in coin. In this
year of grace 1890 the half of that colossal
debt has been cancelled, and between seven
and eight hundred millions more of il has
been bought at premium before its ma
turlty and has ceased to draw interest. All
but about One-hundrel millions of the re-
naming debt is at premium of twenty
four per cent above gold, and was not long
ago twenty-eigbt per cent above gold, and
the Treasurer has been buying it right
along from the bond spectators at these
;obLing rates OF premium.
Bearing in mind the value of the debt in
wheat, when created, it will be seen that il
has been paid twice already, and in all