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

l4dbpf 1nulndi.
CURRENCY AND TAXATION.
How Flexible and Elastic volume Of Cur
rency Can BE ObtainedzThe ultimate
End Sought Is Not the Abolition OF Tax
alton. hut 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 Maybell, needs no
lines OF commendation pcnned BY the feeble
writer, whom Mr.. Maybell SO kindly, hut nm.
desefvcdly, compliments suiflce IL TO say,
that the said article is an able. clear and
forcible indictment and nrraignment of the
idlotic system under which we grOan, aud by
means of which productive labor il made
the unwilling. but helpless, victim Of the
monster niquity-usury, But whilc heartily
concur IN the statement of pregnant truths
concerning rent, Interest and profit which
Mr. Maybell presents III such bold aud vg0r-
Gus language, yet ! am Obliged 20 confess
that am somewhat dubious about the "no
tax" feature Of land currency,
AS I understand II the ultimate end sought
in the establishment Of q system ui land cur
rency, or loans by the whole 10 the unit, was
not the abolition Of taxation, but tiie destfuc
tion of the power of money TO oppress, which
is the unrestricted interest drawing power OF
money, in the hands Of the individual which
always has ana always viii 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 a stickler for per capita
circulation Indeed, Irecognizc the fact that
the very essence of the nineteenth century
financial reform il 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 ren
dered flexible and elastic, and subject 70 the
laws OF supply and demand and above all
automatic, by the people standing ready AT
all times TO furnish money 20 the individual
at a low rate OF interest tthc lower the bet.
ter 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-
deemablc at the option Of both the holder
and the people, or Government Then when
the individual can not use money Ia logit.
mate business, SO as 10 make IL pay more
than the National legal rate of Increase tin-
teresD he viii return Il TO the people by
funding il in United states bonds safety
fund notesl. and some other individual viii
have chance to try his hand az using the
money to advantage, the interest he PAYS 60
the people balancing the interest paid by the
people 60 the other individual the people
charging In each case a small Zee for attend
ing 70 the business. Thus would be provided
flexible volume OF currency which would
automatically adjust itself to the demands of
business and productive Industry, and the
term per capita circulation would become
obsolete and fall into "innocuous desuo
tude.n
This Is as far as / have advanced in my
study OF the question. and am not yet pre-
pared 10 admit that the people could advan-
tagcously use the enormous volume OF cur.
rcncy, 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.. Maybcil's
plan for the payment OF State, county ana
municipal expenses. Nor do ! consider Il
either proper or practical 10 keep our whole
landed estate under perpetual mortgage In
order to provide such money. Moreover,cach
dollar. when Il leaves the land owners hands,
and forever afterwards must represent labor
performed Bear that IN mind
II Is said by those who pretend to know,
that, as 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 q source OF profit to the money lenders
who hold mortgages upon them. There are
two prominent and plainly revealed factors
which work together TO produce this de-
pl0rable 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 az two per cent, with which to
pay the present mortgages. would on 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 10 be opened at a small profit
second But first. In fact is the cause
which produced this condition OF universal
Indebtedness. The cause Is this
The farmer. during the period OF sixty OF
ninety days, must dump upon a speculative
market, 20 be handled by an infiexible. rigid
volume OF currency. the worlds supply OF |
grain for the next twelve months farm
already mortgaged TO the people for money /
10 pay of the present existing mortgages
Will not afford security for any further loan. I
Nothing but the sub treasury plan, or some.
hing Ike u, viii save the farmer from utter /
ruin But Il all land we're now paying the I
egal rate Of interest upon its value and /
hat legal rate averages six per cent then. /
Z the rate of interest Is reduccd 60 two /
per cent, land al once win treble It's I
value. as land is worth that amount of money I
lpon which Il viii pay the legal. current 4
ate OF interest And a belicyel the price 4
u labor, and Of all the products Of labor, I
Fonld at once be increased three-fold. But /
abor would get much larger proportion OF I
a product than now because profit and In j
crest would each absorb but two per cent,
while now they each absorb six per cent.
Difference IN favor Of labor eight per cent. I
interest r. the root OF all evil. The land
'wning farmer, occupying his own farm.
rrrescnis IN his own proper person both
aDor aud reat. hence rent as a factor cuts
10 figure with him. the receipt OF rent. or IN
crest upon the value Of his farm, being de-
icndent on the price Of his products. as af-
lxed ~ supply and demand. To all others
he effect OF the factor, rent, would remain
he same. land simply increasing in value a.
he rate Of interest was lowered.
Vow, then, Brother Maybeii Says our lands
md forests are worth SIS .noa anQ.uga H. then.
be rate of lntcscst is established ~ two per
ent., our lands and forests. etc. Immediately
lerome worth f45.ooo.ooo Our national e1-
lenses for iss.l. outside and exclusive Of in
crest premiums and sinking fund. were. in
ound numbers. <z5o00o.aoo. and it is csti-
mated That they viii he SNa.O00.0ao FOR the
car ending June 20. ls9l To furnish this
muunt u interest az to per cent. it would
'c necessary % keep continually ia force
is.ope .ooo.oo0 iil real estate mort,a1es. equal
q Mt NayDell's present estimate Of fhc value
= our lands and forests. and one half Of the
prospective value he gives them under the
pcrntiou of the land currency system. Bear
y mind that this enormous sum of slin1o.-
'NfN- lta-t +N NNH-AaNNIl AtEl ll AliH IInN-
q TIE people IN order 20 meet the expenses
< The General Government only. not incIud.
ne any Interest, premiums or sinking fund.
Nor. q under the land currency system
BIS Interest is paid BY the Individual 10 the
o1nty. IS the county 10 the state. and bv
D. state o. fhe General covefnurrf. in
haf manner D. q expected that this Interest
lll pay thc salaries ct county and sfate -.
lrfrs, support the public schools and other
'niIle Institutions. and naintain the roadss
n short. ahtre is the iucoae 60 rrine fruln
iiat @e new derive from what we cali state.
ouutT. school and road faxesi Ertn 4 ID
Hnnia Dc 90 'ncfeAsc such on enofinous raI-
rr d tfrrenfy ~ si-.oooa e1oa if n11II
atHftl ant ili4-. IS iateie.l dac tac isesi-
IL -------u--- ----- IL l. u--- l. -