The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-12-02

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of interest, secured by cut-throat mort
cages on property.
1t is thus that the producers of all
wealth; who are also the great mass of
the consumers, have become the great
debtor class of the country, while the
few who control the medium by which
debts are paid constitute the creditor
class. The debtor class, as a producer
of wealth, pays interest to the creditor,
and as a consumer. it pays profits to
the same class. Thus this imperial
power of money robs the people accord
ing to law, and has established despot-
ism, in the name of liberty, more power
full than any political despotism that
has ever been established on earth. It
absorbs all the wealth created by the
people, as interest, profits, ETC., and is
continually re-investing its accumula-
tions in interest-bearing securities, up
on which the people must pay interest
The more wealth that is created by the
people, the more this Unsuitable credi-
tor is enabled to absorb, and the more
effectually is it enabled to Cypress the
debtor without violating single law
of the state or nation, and in strict ac-
cordance with the popular code of bust
ness morals which has been established
among men by the false teachings of a
money despotism.
property possessing money value is
regarded as entitled to percentage of
increase equal to the legal interest that
would be allowed for the use of the
money that it would sell for in the
market Even many reformers recog-
nize this as correct principle, and in
counting the cost of any Enterprise, add
interest on the investment as some
thing that justly belongs to the invest
all the services rendered to society, to-
gether with cost of repairs and insur-
ance against loss. Such calculations are
presented with a simplicity that would
be amusing to an acute reasoner, were
it not for the serious nature of the error
to which they give countenance. By
this rule, a railroad, for instance, that
cost 500, 600, 900 to construct, would be
justly entitled to legal interest On $780,
900, 900 in addition to full and equitable
compensation for all the service rem
dered to TIE people. It thus becomes
in effect a permanent interest bearing
debt. The same principle applies to
any manufacturing establishment, fac
tory, mine, electric light plant or other
enterprise. This principle, regarded as
legitimate and just by so many, if it
could be universally applied, would
make all created wealth in effect an
interest-b bearing debt against society.
This false principle is the keystone to
our false economic system, which is
responsible for nearly all there is of
poverty, with all its attendant conse-
quences of ignorance, vice and crime.
In the very nature of things this
principle, which recognizes the right
of the investor to legal interest on the
investment in addition to full COM
pensation for the service rendered to
society, cannot be generally applied.
The farmer cannot add interest on the
money value of his farm, stock, ma
chinery, ETC., to the selling price of his
products, but our imperial money
power can collect interest from the
farmer on capitalistic investments.
Under the conditions established by
the application of this principle,
the wealth producing classes are
payers of interest every time
they purchase a commodity or sell a
product in the market They cannot
avoid paying interest by keeping out
of debt. The business of the country
is conducted on credit basis, and in
terest on the money invested is added
to every commodity that is offered for
sale after it leaves the hands Of the
producer, who pays interest upon the
price of the product he sells in the
shape of discount. The only way by
which the producer can avoid the pay
ment of interest is to place the entire
business of the country on a cash basis,
and as soon as this is done no debts
will be created and no interest will be
required. The establishment of cash
basis abolishes usury.
There is but one method by which
this can be accomplished, and that is
for the people to assume absolute con-
troll of the issue and distribution of the
medium by which debts are paid and
wealth exchanged This could easily
be accomplished by the cooperation of
majority of the people at the ballot
box, with view to the establishment
of debt-paying system of finance.
Such system would require the
naturalization of the entire business
of banking, providing safety for de-
posts and loaning money to the people
upon such securities as the banks now
require, at just enough to defray ex-
penses.
Something of this kind will no doubt
be the elimination of the present de-
mand for financial reform. This would
be, in effect system of banking
products instead of bonds, mortgages
and other evidences of debt. The
money issued on these products would
practically be sub-treasury notes, Sc
cured by all the wealth of the country,
and redeemable in any and all kinds of
wealth at its market value This am
pie security would of itself give to
such a currency stable value as a
medium of exchange All that the
government could add to the potency
of such medium, based on products
that the world could not afford to
be deprived of, would be to make
it legal tender for debt. But
with the establishment of such a
system the business of the country
would be placed on cash basis, debts
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