The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-12-23

. rate Of two per cent upon money
would make an equal division Of the |
net results Of the nations ton between
the producing factors, labor Z and
capital. Hence, the peoples. party
builded it's" platform wisely, aud well,
and in the true interest Of productive !
and distribution labor, when It de.
that the peoples collective
credit money shall be issued to them.
selves, as individuals, direct without
the Intervention Of banks, at rate OF
cost not to exceed two per cent
Interest is the factor through tho
medium Of which the money power"
absorbs the earnings of labor. The
output, or supply, of the precious (?)
metals is ridiculously inadequate as .
basis for volume OF money to per-
form the necessary money functions in
the nineteenth century. We prove this,
first from the fact that labor pays ALL
and more than all of its total produc-
ton for the use Of money as a factor In
production and medium of exchange;
second, from the fact that with q total
volume Of money in circulation of less
than twelve hundred millions of dol
lars, the various banking institutions
have loans and discounts out amount
ing to forty-five hundred millions
of dollars, at rates of interest ranging
from six to twenty-four cent, and we
may safely assume that if the rate of
$n<a a. 70 <xrv<
the demand for money for legitimate
use would be three or four times as
great as at present with interest rates
as they are.
If, then, the supply of gold and silver
is so grossly inadequate for money pur-
poses, in what direction shall we look
for real or acquired values which will
afford safe and reliable security upon
the basis of which the people, ns a
community or government. may loan
their collective credit, in the form of
units of accounts, to themselves as in
dividuals? Land is the basis of all
wealth, the source of all kinds and
varieties of food and sustenance,
the store-house from which is
taken all forms of mineral wealth.
Land has an absolute. intrinsic or in
herent value, and leaving aside the
ethical question as to whether land is a
proper or legitimate article of COM
merce or exchange, the fact remains
that, under the present conditions and
systems, land always commands q
price and possesses value, independ-
ent of all legal enactments or fats of
law. Moreover, reduced to the last
analysis, land is the basis of all the Sc
curity given to the banks for advances
of what Mr.. Atkinson is pleased to call
''credit." Will productive real estate
furnish broad enough basis upon
which to issue the credit of the people?
The approximate assessed valuation
of the land of the United States and
permanent improvements thereon, is
sixteen billions of dollars Casting
aside one-half of this valuation as un-
available, being nnimproved and un-
productive, we have left an assessed
value of eight billions of dollars, or
twenty billions of dollars of actual
value. Land is safe basis as security
for the issue of money, and the present
assessed value would afford a proper
arbitrary limit to the total value of
such money. We, therefore, again as
sert that the peoples party builded it's
platform wisely and we'll when it de.
manded that the credit of the people
should be loaned to themselves, as in.
dividuals, at rate of interest not to
exceed two per cent. upon real estate.
| vNA hoxyinrp 1f,,onk ok kxryo
per cent. on real estate security, need
one more feature to form and complete
perfect monetary system. We must
give ourselves an elastic, flexible vol.
ume of money that will automatically
adjust itself to all demands, ordinary
or extraordinary, made upon it. To dc
this we must provide surplus or re-
serve fund, which drawing less interest
than the normal rate established by
the government, will at once offer itself
for active use and circulation the mo-
ment a demand develops itself fol
money, in channels that promise re.
turns equal to, or greater. than the rate
of two per cent established by the gov
ernment
This can be effected by establishing
in connection with the land loan sys
tenn what might be called postal saw
ings banks in which the people, as in
dividuals might deposit their surplu.
earnings or savings, receiving therefor
United States savings bonds of con
venient denominations drawing on.
per cent interest and interconvertibl,
into United States lawful currency o.
legal tender units, at the pleasure O.
the holder. Under such a system tn,
moment any extraordinary pressure fol
money developed demand which
raised the rate of interest above tn,
nominal rate, the individuals having
idle surplus money invested in Unitet
States savings bonds, would CONVEX
such bonds and with the proceeds sup
ply the demand for an additional
volume of money.
As for instance, when the corn O
wheat crop is harvested and has to b.
handled, notice what an enormous de
mand springs up and develops itsel
for money, and what time the eastern
banks, aided by the United State
treasurer, have in getting money ives
to the grain-buyers and merchants
Under the system have outlined, wit
United States postal savings banks il
all principal towns and cities, the re
serve or surplus fund would not have t
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