The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1891-04-02
NEW METHODS OF DEBr-PAYING.

Ne" mEIHOBS Of DEBT-PANING.
What the world has long been in search
of is an easy and convenient way of pay
ing debts. About the process of borrow
ing there is nothing particularly painful.
A great many more people would resort
to it if it were not for the disagreeable
sequal, the necessity of paying the money
back at some date in the future There
is where the rub comes. In the Middle
Ages the difficulty used to be met in the
rough and ready fashion peculiar to
those times. In those halcyOn davs, if
the money-lender made an inconvenient
disturbance about the rep yment of his
loan, violent hands were laid upon him
and two or three of his teeth were pulled,
or he was subjected to other indignities
calculated to make him understand that
his conduct was not regarded as in good
form. Public sentiment now would not
approve, at least openly and without re-
serve, this method of treatment. But
the feeling that some method of settling
for borrowed money less incOnvenient
than repaying it ought to be devised is
probably as widely prevalentnow as ever
scheme, however, which promises to
accomplish this must be admitted to
meet long felt want.
This is the strong point of the finan-
cial theories proclaimed by the leaders of
the Farmers Alliance. Gradually, in the
form of interviews, speeches and letters,
we are getting the Alliance theory of pc
cunary obligation reduced to something
like definite form. We have it where
we can examine it and see lust what it
purposes to accomplish, and how. We
have had Congressman Simpson, with his
iggtrft,,r
of notes against nnmined deposits in
the mountains as a basis: we have had
Senator PETER with his little scheme for
putting out SjOO,OOO,O00 of notes as a
starter, under a system which shall
eliminate from money not only the ele-
ment of intrinsic value, but the power to
limit or control the value of things in
use.' Precisely what would become of
its purchasing capacity after the element
of value and all its relations to the value
of commodities had been eliminated,
Mr.. PETER leaves to the Imagination.
| Now we have new development of the
Alliance theory, communicated by Con-
gresham Davis, who, like the other
statesmen whose views we have quoted,
| is rom Kansas.
Congressman Davis would have the
tariff reduced till there is a deficit in the
Treasury, land then greenbacks should
be printed and issued to pay all claim
ants" In reply to the very natural in
quiry whether these notes would be re-
deemable. he said, "No, not in metal
money. Each bill should bear the leg
end, say, 'One dollar, receivable for all
dues and debts This would make it re-
ceivable for all taxes and import duties
and legal tender. This would keep it
peTpetually at par This is delightfully."-
simple. 1t is the old fiat money theory
in its most acute form. Nothing but
the government stamp, This is adollar,"
is required, and presto, we have as much
money as the printing presses can sup
| ply us with. Practically there is no
limit. If there is a short supply of money
we have Ouly to run the presses night
and day, and the difficulty will be met.
Money would be extremely plenty under
this system. Even poor men might
have reams and bales of it. But when
money comes SO easy, who is going to
exchange for it long days of toll and
products or industry and other things
that come hard? We do not gather that
Congressman Davis has thought out that
branch of the inquiry yet. But he is
quite clear in his mind as to the beauti-
full way that his plan would work in the
payment of debts. The government is to
lend its new notes to farmers at l per
cent. interest in this manner
This way: Suppose | owe you $1,000
and accumulated interest on my farm.
The new loan would direct you to add
the interest to the principal and 90 the
treasurer of my county and file and
mortgage and an abstract of the prop
erty and get check ON the nearest bank
for the entire debt. That would satisfy
you. Then the county treasurer makes
draft on the United States treasurer
for the money, and gets tin crisp new
bills. That satisfies him. The United
States accepts the mortgage on the farm
| providing it is worth the amount of the
mOrtgage), and when the per cent. in
terest is due. Is not that simple? 1t is
the first news | have had of the transfer
of the debt. That ought to suit every
body"
Under the practical workings of this
| plan it will be perceived we should none
of us, be owing anyone else, but we
should all of us be owing tine government,
at the delightfully."- low rate of per cent.
interest payable in "crisp new bills"
which were not redeemable in anything
oahhN "a hAbAN NAAoH nov bAAAos ~ 10
not altogether clear how we are to settle
any little obligations with foreign cred
itors. Probably we shall tell them that
if they retained their absurd prejudice in
favor of metal money and were too
proud to accept crisp new bills" they
could go without. This might eventu-
ally cause unpleasantness and tend to
restrict our foreign trade, but what of
that?
1t is not quite clear, either, what would
be done with people even in this country
who might Obstinately refuse to part
with property in exchange for irredeem-
able bills, fresh fir IN the press, with a
nice little legend declaring that they
were dollars" but outright confisca-
ton might meet the case, and it would
be a scarcely perceptible advance upon
the regular features of the system. It is
very plain that if the regard Congressman
Dayis's plan simply as an expedient for
dispOsing Of inconvenient indebtedness
without eXertion, it leaves almost
nothing to be desired