Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-02-01

business enterprises and develop tho
resources of the country. From this
fact as a text, he breaches grave dis
aster and dire calamity unless the
volume of money is speedily and large
ly increased. In a few we'll rounded
and logical sentences he demonstrates
the intrinsic value" and natural
money" theories to be superstitious fall
lacies, and emphasizes the point that
all money is artificial and law-made,
having as its monetary essence the
legal tender fiat" of the whole peo-
pie, or government In the following
terse, incisive sentence he encompasses
in a nutshell the gist of the contro-
versy between labor and capital exist
ing in the form of money:
The rate OF interest should average less than
the average profit the industries of the
country II the rate of interest averages high
er then slowly but certainly the industries
will be eaten up By the interest and transferred
10 the money lender This law of finances
transferred the lands and industries OF England
to the capitalist, and will do the same in any
nation No question but that of time is in
volved in the result II the averaged rate of in
terest is less than the averaged profit on the
industries Of the people. then the producers
will annually increase in wealth as well the
money lenders, giving prosperity to all
Eighteen months ago, in an article
written for magizine, | expressed the
same idea, thus: "The net annual in
crease in wealth in the United States
for the last twenty years was just about
four per cent and if the current rate of
interest upon money was four per cent,
the money lenders absorbed the total
net earnings of productive labor, from
the fact that, as the net increase of
wealth represents both the savings of
labor and the earnings of money, there
is nothing left for labor if the rate of
interest upon money is equal to the
total net annual increase in wealth. 1t
follows, therefore, that a rate of two per
cent upon money would make an equal
division of the net results of the ma
tion's toll between the producing fac
tors, labor and capital Hence, the peo-
ple's party builded its platform wisely
and well, and In the true interests of
productive and distributive labor, when
it demanded that the peoples collective
credit (money) shall be loaned to them
seves, as individuals, direct, without the
intervention of banks, at rate of in
terest not to exceed two per cent
In the course of his address Mr. Wild
ney vigorously attacked the state bank
idea and showed that currency issued
by them, not being legal tender, simply
formed vast pyramid of credit bills,
or promises to pay" money, such pay
ment resting upon its apex, such apex
being a ridiculously small amount of
legal tender money Mr. Widney closed
as follows:
respectfully suggest that all efforts to have
congress delegate this financial power to any
combination OF men or corpora ions is danger
GUS, and should meet the never ending oppo
sition Of all Americans 1t should remain in
the hands of the nation for the common good
We may be bankers in our day and reap the
profits of system partial to US, but our de-
scendants will probably not be bankers, and
they will suffer from the operation of any un-
just system. AS bankers, let US unfiinchingly
oppose everything but the best money and the
best system that the intelligence of the nine
teenth century can give
But Mr.. Widney, unfortunately for
his reputation for consistency, formu-
lated plan. Here it is:
When large volume is required at a certain
season, provide that proper bonds Of the
United States or Of states, cities counties
that the national banks can borrow this money
say at or per cent interest to the govern
ment and re-loan 1t to their customers at a
reasonable profit, during the time the demand
exists. AS soon as the Gus toners pay II into
the banks the banks can return it to the United
States treasury, there to lie idle until needed.
| To prevent banks encouraging wild speculation,
based on low interest, let the rate of interest
paid the United States for the money be gagged
| on q rising scale, say per cent for the first
S00,OO0 used by bank, per cent for the next
| Slo0,00O. and so on untilthe rate reached point
| where it ceased to pay to take it out This is
| the natural law adopted by banks
1t is proper to state that this money"
referred to is United States legal ten
| der notes, or promises to pay gold.
However, waving any discussion of
this feature of the plan, we may safely
| affirm:
First-The plan delegates to banking
corporations absolute control of both
the volume of money and the rate of
interest the people must pay for It's
| use.
Second-The plan simply proposes an
enlargement of the present system OF
allowing bankers to draw interest, not
only upon what is due them, but also
upon what they owe.
1t will be remembered that Mr. Win
dom, late secretary of the treasury, ad-
mitted the crying need of a system OF
finance that would provide a larger
volume of currency, during certain sea-
sons of the year, and automatically
contract the volume of currency to its
normal dimensions when such seasons,
with their exigencies, have passed
away. Mr.. Widney, upon this subject,
| SAYS,
What is the principle OF slaaticity so desired
and sought after? 1t is this: that at certain
seasons of the year large volume OF money is
| required at other seasons a smaller volume
| The problem then is, how can have this
large volume when required and not pay or lose
interest on ii when idle? How did the state
banks do it: Why, issued their own notes tc
/ meet the large demand, an1 let them lie idle In
their yaults when not needed Apply the sam,
principle TO nRtio4al Issue. When not useC
they lie idle in the United States treasury, viii
no cost or loss OF interest to any one. ~
i Right here is the place to inquire
''Why is large volume of money re
quired at certain seasons of the year?'
The answer is simply this: Because
during such sGqsons the farmers arr
harvesting and marketing the grea
staple crops of the country" AhE jus,
so. The thought instantly presents it
self to the mind: why not base thi,
additional or supplemental volume o
money upon the security OF the dis
}, turbing element itself and retire tn,
money, as the crops arg either shipped
abroad or consumed?" And Some edu
Gated Farmers Alliance man yells
whats the matter with the sub-tFeas
ury plan?" From north aud south
t from east and west, from the valleys
/ and the plains, from the mountains ant
, timbered hills comes in a mighty ant
constantly swelling shout: Its al
right"
. For United States and state and coun
t ty bonds, which draw interest, substi
tute corn and wheat and cotton, yhicl
i draw no interest and out of which tn
bonds must be paid. Governments ma.
r fail and cease to exist; state and count,
lines may be obliterated by revolution
1 esI 1a faH h