The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1892-03-30
COL. KEITT'S FINANCIAL SYSTEM.
No analogy Between it and the French
AssdGnats, Nor the Cedulas of the Ar
gentine Republic.

Editor Herald and News: Having
demonstrated in my last article by all
array of authorities incontrOvertible,
that the value Of money does not de-
pend on the material; but OH its legal
tender qualities given TO it by law, |
will now proceed to show that there Is
no analogy between the systems of
tiuance proposed by the writer and the
French Assignats, the continental
money of our ancestors, issued during
the revolutionary war OF l776, or the
Cedulas of the Argentine Republic.
The system proposed coutemplates
the issue by the Culted States Govern
uent of legal tender notes receivable
for all debts public and private-real
money, not promises to pay. These
nores TO be loaned through the States
to the people, on long time, based on
unencumOered real estate where the
fee simple title is uuqueStioned, and on
non perishable products for one year,
all at a low rate Of interest properly re-
st-icted and secured. The notes will
be- based, not only on the property of
the entire State, but on that OF the
United States, whose wealth is increas-
ing at the rate of $50, ,O00, 600 month.
Notes OF this description now com.
nand premium in London aud Paris,
the great commercial centres of the
world, over gold and silver coin.
The French Assiguats were notes
issued by the French Republic during
the French revolution, when France
was at war with bonded Europe, and
had an army of l, ,4OO, 900 nen III the
field. These notes were based on he
contiscated estates Of the clergy and
nobility ho fled the country. France
was torn by internal discussions. y
large portion of her people favored the
restoration of monarchy. The basis of
these notes was practically worthless
and the commercial world knew 1t.
The restoration of monarchy would be
the restoration of the contiscated es-
tates and the destruclien of the basis
of tie notes, hence their depreciation.
The Confederacy that issued the Con-
tinental notes during the Revolution
ary war of 1776 was not a government
proper. Under the "Artlcles OF Con-
federation and perpetual union" no
power was granted TO levy and collect
faxes: hence the Continental notes had
no basis.
Under the land mortgage system of
the Argentine Republic few favored
corporations were chartered to place
the Cedulas or mortgage lands. Ihey
were sold for what they would bring,
the government guaranteeing the IN
serest on the bonds which was as high
as S per cent.
There was 20 limit to the issue OF
these bonds, and great frauds. were prac-
ticed in the assessment of the lands.
Under this system the money was bor-
royed and the government paid high
interest. Under the system proposed,
the government creates money aud gets
interest. There is no analogy be-
tween the financial system proposed
and those above named.
If adopted it will meet all the de-
mands of business. The notes should
never depreciate. They can at any
time be retired, dollar for dollar, by
taking up and canceling the mortgage
bonds on which they were issued.
We are now shipping two-thirds OF
all the cotton we make to foreign coun-
tries to be manufactured. Ihe great
profit in cotton in the manufacturing
The writer had occasion recently to buy
some plow lines. He paid 20 cents per
pound net cash for them. No doubt
they were made out of cotton that cost
) cents or less per pound. What an
enormous profit. Instead of shipping
the raw cotton, factories ought to be
established and every pound manufac'
tured where it is grown and the goods
shipped.
ii the financial system proposed is
adopted it will give US the money to
build and equip the factories. We will
then keep at home the profits of our
industry and no longer be the hewers
OF wood and drawers of water for other
nations. Respectfully,
ELLISON S. kEITT.
Enoree Plantation, S. c., Mach II,
1882.