Indian chieftain. [volume] (Vinita, Indian Territory [Okla.]) 1882-1902, 1891-01-01
CURRENCY AND TAXATION.

How a Flexible and Elastic Volume OF Chr-
rency Can he Obtained-Thc Ultimate
End Sought IL Not the Abolition OF Tax
alton. But the Destruction of the Power
of Money to Cypress.
The mastery production. published in the
National View OF November ~, from the
trenchant pen Of stephen Mayboll, needs no
lines OF commendntion pcnned by the feeble
writer, whom Mr.. Maybcll SO kindly, but un.
deservcdly, compliments. suffice 1t to say,
that the said article is an able, clear and
forcible indictment and arraignment of the
idlotic system under which we groan, and by
means of which productive labor II made
the unwilling. but helpless, victim Of the
monster inlqulty-usury But while heartily
concur In the statement of pregnant truths
concerning rent, interest and profit, which
Mr. Maybell presents In such bold and vigor.
Gus language, yet am obliged TO confess
that am somewhat dubious about the "nO
tax" feature of land currency.
As understand IL the ultimate end sought
In the establishment of a system Uf land cur
rency, or loans by the whole to the unit, was
not the abolition of taxation. but the destruc-
tlon of the power OF money to oppress. which
Is the unrestricted Interest draw Ing power of
money, I'm the hands of the individual which
always has and always win impoverish the
masses and enrich the few. But Brother
Maybell does not exactly state my position
In reference to the volume of currency and
taxation. ] am not sticklcr for per capita
circulation. Indeed, recognize the fact that
the very essence OF the nineteenth century
financial reform Is the demand that the vol
ume of money shall not be fixed or station.
airy, but, ON the contrary, shall be flexible,
elastic and automatic. Money can be rem
dered flexible and elastic, and subject 10 the
laws of supply and demand. and above all,
automatic, by the people standing ready at
all times to furnish money to the Individual
uf "A lou fsuf ff - Ns, hot
teri and by standing ready, at all times, TO
pay the Individual the same established rate
of interest for the use of money.
This can be effected by an issue of United
states bonds, In small denominations. re-
deemable at the option of both the holder
and the people, or Government. Then when
the individual can not use money IN leglti-
mate business, so as to make IL pay more
than the National legal rate of Increase lin.
teresD he VIII return IL to the people by
funding IL in United stases bonds (safety
fund notes., and some other individual will
have chance to try his hand at using the
money to advantage, the interest he PAYS to
the people balancing the Interest paid by the
people e. the other individual, the people
charging In each case a small fee for attend.
ing to the business. Thus wodld be provided
flexible volume of currency which would
automatically adjust itself to the demands of
business and productive industry, and the
obsolete and fall into "nnoeuous desue-
tude."
This II as far as have advanced IN my
study Of the question, and I am not yet pre-
pared 10 admit that tho people could advan.
tagcously use the enormous volume Of cur
rency, the interest upon which at two per
cent would pay the expenses of our National
Government; while, at the same time, can
see no provision whatever IN Mr.. Maybell's
plan for the payment Of state, county and
municipal expenses Nor do ! consider II
either proper or practical to keep our whole
landed estate under perpetual mortgage in
order 90 provide such money. Moreover, each
dollar, when Il leaves the land owners hands,
and forever afterwards. must represent labor
performed. Bear that in mind
IL Is said by those who pretend 10 know,
that, as a rule, the farmers of the United
States are working their lands at a loss In
stead of a profit. II this be the case, the
farming lands OF the Nation, under the pres
ent system, are worthless to their owners
but source OF profit 20 the money lenders
who hold mortgages upon them. There arc
two prominent and plainly revealed factors
which work together TO produce this de-
plorable result.
First. The fact that the farms are, as a rule,
mortgaged at an average rate of Interest OF,
say, eight per cent Money borrowed from
the people at two per cent, with which 20
pay the present mortgages, would at once
place six per cent. upon the right side OF the
ledger upon such portion of the value of the
farm as Is represented by the mortgage.
This might turn the scale. and cause the
farm to be opened at a small profit
Second. But first, In fact, is the cause
which produced this condition OF universal
mortgage Indebtedness. The cause Is this
The farmer, during the period of sixty OF
ninety days, must dump upon a speculative
market, TO be handled by AN iniexible, rigid
Volume OF currency, the worlds supply OF
graiG Tor the next twelve months. A farm
already aortgaged to the people for money
to pay off the present existing mortgages,
will not afford security for any further loan.
Nothing but the sub treasury plan, or some
thing like II, viii save the farmer from utter
ruin. But II all land were now paying the
legal rate OF interest upon it's value, and
that legal rate averages six per cent, then,
" the rate of interest Is rednced 10 two
per cent, land at once Will treble It's
value, as land Is worth that amount OF money
upon which Il viii pay the legal, current
rate OF Interest And q belieye) the price
Of labor, and OF all the products OF labor,
would at once be increased three fold But
labor would get a much larger proportion Of
lis product than now, because profit and in
tercst would each absorb but two per cent
while now they each absorb six per cent.
Difference In favor OF labor eight per cent
Interest Is the root OF all evil. The land
owning farmer, occupying his own farm,
represents IN his own proper person both
labor and rent, hence rent a factor cuts
no figure with him, the receipt OF rent, or in
terest upon the value of his farm, being de-
pendent ON the price OF his products, as af-
liked by supply and demand. TO all others
tho effect OF the factor, rent, would remain
the same, land simply increasing In value as
the rate OF interest was lowered
Now, then, Brother Maybell says our lands
and forests are worth 81, 900, 900 900 n, then,
the rate OF intesest Il established at two per
cent, our lands and forests, etc, Immediately
beeome worth tl5,OOO,O0O. Our national ex-
pcnses for lssD, outside and exclusive OF In
terest, premiums and sinking fund, were Ia
round numbers, $4,000 900, and II is esti.
mated 1Lat they will be $4,000 900 for the
year ending june 30, 1921. To furnish this
amount of Interest at Two per cent, II would
be necessary 10 keep continually In force
$4,000, 900 900 in real estate mortgages, equal
Ia Mr.. Maybell's present eatimste OF the value
OF our lands and forests, and one half OF the
prospective value he gives them under the
operation Of the land currency system. Boar
IN mind that this enormous sum OF b.OO0,.
0oOooO must be constantly kept IN the hands
OF the people In order 10 meet the expenses
OF the General Government only, not includ.
Ing any Interest premiums OF sinking fund.
Now, II under the land currency system
this interest Ia paid BY the Individual 10 the
coaniy, by tho county 10 the state, and by
tbs state 20 the General Government, IL
whEt manner u II expected that this interest
viii pay The salaries 81 county and State Of.
nrfrs, support the public schools and other
public Institutions, and maintain the r0adsf
Ia short, whore ID the ncOme 10 come frOin
that We now derive from what We call State.
county, school and road faxes2 Egsn II Il
would do 10 lncrnAse anch an enormous vol.
ulpp Of currency ~ Ns.0oo0eo.O00. Il would
pel avail any ching. as interest due The Gen
fh uvietnmenf could not De used 70 pay