Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-09-02

rency OF the country than Its actual
business requirements demand. Such
. policy would place the currency of
the nation upon the safest foundation
possible, and would entirely preclude
those extremes of contraction and ex-
pansion so hurtful to business interests;
for, if there should be In circulation
more money than could be advan-
tageously used it would seek invest
ment in government securities, while,
II there should be an urgent need for
more the bonds would be changed into
currency.
''The loaning Of money by the gov
ernment at four per cent would at
once fix that rate throughout the coun-
try without any other or further legis-
lation. and the capital now employed
at ruinous rates Of interest as leeches
upon the people, thereby exhausting
the hfe-blood from all of our industrial
pursuits, would, by the conditions con-
fronting it, be invested to q large ex-
tent in government securities, thereby
furnishing portion Of the currency
required; or, if not so invested, it would
be compelled to seek out new enter
prises for its employment Thus the
accumulated wealth of our plethoric
capitalists, now overburdening our ma
tional industries with its ruinous ex-
actions, checked in its unlicensed
power, would patiently and effectively
subserve the common veal
"The plain alternative presented to
that class, and to the whole people of
this country, so far as our financial
system is concerned, Is reform or revo-
luton. And whatsoever party shall
bring about the needed reformation in
the fiscal policy of the government will
secure the favor of just God and the
support of a grateful people"
The foregoing Is aR extract from an
able article contributed to the North
American Review by Gov. Sylvester
Pennoyer, Of Oregon. The governor
starts from a sound premise and arrives
at logical conclusion Under a sys-
tenn of government loans direct to the
people the rate Of interest established
by the government upon such loans
would at once become the legal, current
rate of interest the country over.
But while proceeding in the right di-
rection, and while his article shows the
hold the financial demand of the peo-
pies party is obtaining upon the minds
Of the people, is not the governor
cropping blindly, and does he not as yet
see ''as through glass darlxlyP"
No legitimate business or industry
can pay four per cent and live. The
average net annual increase of national
wealth is three per cent, and such net
annual increase represents not only the
earnings of capital but also the savings
of labor. Three per cent interestgives
it all to capital and leaves labor moth
ing. -Four per cent takes it all, and al
so takes one per cent of the wealth
which existed at the beginning of the
year, which one per cent must be paid
out OF the wealth possessed by labor
at the beginning of the year.
Thus, it will be clearly seen that gov
ernment savings bonds drawing three
per cent would be the best investment
securities in the world, and If they rep
resented the currency with which the
exchanges of the nation were transact
ed or effected, the holders of such bonds
would receive as tribute the net annual
product or residual increment Of the
entire nation.
Let us hold fast 70 the demand: cat
rate of interest not to exceed two per
cent. per annum."
GEORGE e WARD.