The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-10-11
THE PHILOSOPHY OF CREDIT.
The Nature and Function of Mon
ey Logically Set Forth.

ey Logically Set Forth.
Neither gold, nor anything else we
use for money and call money, is the
real money; for if either one of them
acre the real money, then there could
be no money in the world if the one
thing were annihilated.
Money is Credit confidence, trust);
in circulation represented by any
thing the public will accept as tender
for debt. For without this credit or
trust there could be no money in the
world. Just take from gold, silver,
or paper our confidence in them and
they are no longer money signs. And
when we by our laws violate the ma
ture of money and declare any scarce,
costly thing the sole legal tender, we
have always seen about ninety per
cent of all money representatives
float into circulation based solely up
on credit. Now the most perfect
credit is that which exists between
two mutually indebted responsible
parties. If l owe you a thousand on
demand, and you owe me ditto, our
due bills are perfect tenders as be-
tween ourselves. Every individual
has certain amount of demand
credit, and the sum of the credits of
all of us is probably the sum of what
is needed for our currency.
Government and people being one,
the people owes to itself all the reve-
enues for distribution among the
servitors, pensioners, contractors,
etc. People, here, through govern
ment, owe to servitors, etc., some
two million dollars per diem, suppose,
or two hundred millions per quarter
more or less, and servitors owing (or
have owed) the same in services,
etc. Services, i. e., commodities,
ETC., is all they need in pay
ment, for all the business of the
world is but exchange of services, in
the final analysis. Any sign will be
good as between them that they will
recognize as clearing off or settling
between them. Banks do this by
cancel stamp of clearing houses. In
dividuals so mutually indebted mere
ly exchange signs; but we, the peo-
pie, hire men to dig metals or Dor
row the credit of bankers to settle.
The greenback, made absolute legal
tender, is perfect for this. Some
cities have for years kept out treasu-
ry receipts for taxes to the amount
of their revenues, and these, though
not legal tender, have gone at par
and done mighty works. St. Joseph
and Kansas City, Mo-, for years did
this and prospered by it.
Suppose some bank, having power
to tax the people several hundred
millions had out it's bills to that
amount; would anyone ask what it's
circulation is based on? Is not such
power superior to any matter what
ever? And we debase Power, Honor,
in a word, credit, -beneath metal +!
Credit, the ideal, is as far superior to
all materials as are those sublimated,
hidden powers no man ever saw or
felt, more potent than mountains of
matter tangible and visible. Our
gold finance is as inferior to the ideal
as is pure idol worship to the spiritu-
al. Must we feel and see, handle and
kiss our gods?
All this public credit, our very own
that should circulate as legal tender,
is given up to individuals; and just
look at it!-every time government
borrows money it borrows back the
use of it's own credit. Mr.. Calhoun
exposed that absurdity time and
again in the days of the bank war
Jefferson said we could keep out two
hundred millions of treasury notes
as early as 1901. Surely we can keeI
out ten or twelve times more now.
.0 t,ll4 fg H CLARKE IRVINE.
Oregon, Mo. 85