The great West. [volume] (St. Paul, Minn.) 1889-18??, 1891-12-11

control and monopolization by the few
means tribute exacted from the many
the enrichment of the moneymongers
and the impoverishment of the masses.
The circulation of a currency. the saw
ings of labor, loaded with a commission
interest. such as our currency is now
burdened with, is an addition to the
burden of oppression under which
labor groans- The popular fallacy is
that low wages, cheap production and
frugal economy are the stepping stones
to prosperity and wealth. There never
was more pernicious error, and the
reverse is true. High wages, Zap
parent), increased cost in produc-
ton and the expenditure by each
and all of their full earnings will not
only provide work for all, but make all
wealthy in the actual possession of
wealth. A mortgage is not wealth; it
simply provides a necessity for trans
fer of wealth. The old school of polit-
ical economists teach that consumption
is predicated on production, instead of
which the reverse is true; production
being predicated on consumption. We
produce because we consume. AS con-
sumption decreases production also
lags AS consumption increases pro-
duction must also increase, which de-
creases the cost of products and in
creases the purchasing power of wages.
Profits Increase as wages rise, be-
cause a certain portion of all money
spent stands for profits to some one.
fo11
cause there is less money to spend. and
as wages rise and men become dear all
species of wealth become cheap, l. e.,
easy to obtain. If all spend all they
earn all merchants, jobbers, manufact-
urers, artisans and mechanics will be
fully employed and wages will rise.
Soon the farmer will feel the effect in
an increased demand and better prices
for his products, and thus, his purchas-
ing capacity being increased, he buys
more goods of all kinds and
that calls for more laborers,
whose wages, in being spent, call for
greater production, until two employ
ers hunt for one man willing to hire,
instead of, as now, million men vain
~ seeking for chance to produce
wealth. But suppose each and all save
all they can. Each dollar saved means
dollar sale the merchant loses, which
deprives labor Of the work necessary to
produce dollars worth of goods,
which again lessons the merchants
sales. This soon affects the jobber
and the manufacturer, and men
are discharged to compete with
those already in the search for
employment. Wages go down,
business is stagnate and tramps
abound. Soon the farmer feels it in
decreased demand and lower prices for
profit, he becomes las he has been for
several years. unable to buy goods,
merchandise and commodities, and
again more labor is thrown idle. Soon
the merchant must borrow money, and
whose money do you think he borrows?
Why ths money the frugal, economical
people have saved. And who pays the
interest? Nobody but the poor, deluded
fools who have saved their money and
given it to these money-mongers to
loan out for them. Labor pays all
interest, but the money-mongers and
usurers erect palatial mansions and
massive business blocks with the
interest realized upon other peoples
money.
What is the remedy?
First-Esta blish the graduated, cumu-
lative tax system. This will destroy
all trusts, establish multiplicity OF
a. h c1, &c
of capital to proftably operate with
and necessitate the employment of
multitude of men who are now idle.
Second-Enact into law the Stanford
bill, with clauses added providing for
safety fund notes or national savings
bonds, and a system of sub-treasuries
postal savings banks?) in the principal
cities and towns. If the interest upon
land loans is two per cent, the interest
upon savings bonds might be II
per cent, so that the excess of in.
terest paid by the individual to the
people, over that paid by the people to
the individual, would pay all expenses
of the land and loan bureau and SUBJ
treasury system.
This would provide a currency for
the use of the people almost entirely
free from the burden of interest, and
automatic in its supply, its volume ex.
panding with the legitimate demands
of commerce and trade. The nominal
interest paid by the individual for the
use of money would not enrich any in
dividuals, but would simply pay the
expenses of the peoples banking sys.
tenn and a nominal interest upon the
nations savings, the desideratum being
not big interest but absolutely safe de.
post for the money saved.
Under this system no Individual
or corporation could corner the
money market or enrich them
selves at the expense of others,
while the legal current rate of in.
terest established being less than the
profit ultimately accruing to money in.
vested in business, there would at all
times be as much money in circulation
as the business of the country de.
manded and the people could profita-
bly, use. The earnings of money in
use being so much greater than the
rate of interest paid depositors Il a per
cont \po Yponav would ho eovo1 ovooD<