The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-06-19
THE rLUTooaATIO Plan.
EsnOrts % the Republicans 20 Perpssuasz
the NatIssnal Debt

q million revealed by the May state
ment Of the federal treasury IS empha-
sized by the circular in which the
secretary announces the approaching
maturity OF the Observation-Disclosures
cent bonds After stating the I'd OF
September next as the date when these
obligations are due and payable, he
makes the following suggestion of a
default on them for the purpose of
forming a nucleus for a permanent
debt:
Suggestions have been made on the part Of
the holders OF some OF these bonds Of desire
to extend the payment thereof at the option OF
the United States at the rate Of one or one
the secretary OF the treasury will hereafter
consider whether the acceptance OF such Offers.
or any OF them, VIII be profitable TO the gov
eminent. and. in that event, reserves the right
TO accept such bonds from this call.
CHARLES FOSTER Secretary.
It is unquestiOnably the desire of
the capitalists who control the repub-
lican party TO find some way of creating
a permanent debt, and this desire was
not lost sight OF in the policy which
was acted on by the billiOn-dOIlsr con-
gress. In the seeming lack of method
OF its extravaganza there was always
the idea that with deficiency instead
of a surplus it would be more easily
possible to PsrPetuate the high tariff
and the national debt.
The perpetuation Of the debt will
give capital invested in money-lending
or in trade in money as a commodity
the enormous advantage of a system
OF controlling circulation in which
there are two distinct features of ad-
vantage, either of which would be very
great without the other.
L The delegation Of the sovereign
prerOgative of issuing money from the
government to private corporations
?. Il system OF issuing money under
which the basis for the note is reen-
forced with an interest bearing capaci-
ty apart from the interest bearing
power of the note itself.
If gold or silver bullion is deposited
in the treasury, gold or silver notes are
issued on it. These bear interest if
loaned. The gold or silver bullion on
which they are based does not.
But when national bonds are deposit
ted in the treasury as a basis for note s,
the bonds bear interest for the hypoth-
ecatiOn as well as the notes based on
them.
This makes such notes the most
costly form of money ever devised, be-
cause, to use common phrase, it bears
interest lat both ends" the gold
note or the silver note does not. To
perpetuate this system, to keep in pri-
vate hands the sovereign prerogative
of issuing money, and to collect inter
est both on the notes themselves and
on the basis for the nOtes-aS it were,
to make the hypothecated bar of gold
bear interest as well as the gold note
issued on it, is surely worth the ven
ture of desperate risks by those who
would benefit by this magnificent priv
ilege-the most royal that was ever
accorded to capitalism.
But it is not on this alone that the de-
sire to perpetuate the debt depends.
The millionaire class, already large, is
constantly increasing. What the mil
| liOnaire who has made his fortune"
breads most is the risks of business,
which for at least six in every ten cases
mean an impartial redistribution OF
these immense accommodations. What
this millionaire class with its fortune
made desire most is that the govern
ment shall by law save them from the
risks OF investment in which either
they or their children have under the
laws of trade the odds against them.
For without law to prevent natural re
distri button, these boards cannot be
| held. As far as our national debt has
| been paid, the payment has, in that
| proportion, deprived money OF its
| power of agglutinatiOn. Money
makes money" but one dollar will not
| stick to another until there is a million
OF them permanently solidifed in q
| cOnglOmerate mass unless they are un-
/ naturally fused together by some proc
ess of law. As the debt has been paid
! there has been a quiclzening in the &C
/ tivity of production and distribution,
and a special activity in land, because
next to national securities, land seems
! to the mOney-hOlder the safest invest
ment- But no judgment is required to
| put money in national bonds on which
! all the people are bound to pay the
/ profits, and a great deal of Judgment is
required on the next safest investment
/ Every mistake made in land dealing
/ helps to redistribute the money of the
/ millOnaires. AS the debt has been
progressively paid of land specula
/ ton" has increased It is not a good
thing in itself, but, compared with the
! giving of national bonds for principal
and interest of investment, it is a good
| thing, because it makes the possibilities
of boarding wealth depend on private
| judgment, which. by its failure, reds
| tributes the hoard into the channels OF
/ productive activity.