The herald., 1894-05-27

ury for gold currency surrendered, the
government must pay out this same gold
redeemable currency for expenses.
Owners OF merchandise will receive this
currency for their articles, and as such
currency accumuiates in bank or in the
hands of goldites, it will be again run in
on the treasury and gold taken out, to be
resold to the treasury for more interest.
bearing bonds.
This process can end, if carried out,
only in the bankruptcy OF the United
States and the financial enslavement Of
the people.
II to avoid this the treasury should
refuse to reissue the gold-redeemable
currency. then the end would be that all
such currency would be turned into gold
bonds and our volume of money would
be contracted several hundred millions
of dollars by the retirement of all of our
currency.
This would 80 contract our volume of
money that we would be reduced to
condition of insolvency.
That lie, debtors could not get money
on their property to meet their obliga-
tions to creditors. There would not be
enough money to transact business, and
the financial and com mercal panics of
the past would only be zephyrs compared
to the cyclone that would carry destruc-
ton over the land.
Evidently this thimble-rigging racket
is being systematically worked for all it
is worth by some financial power, on the
United States treasury.
1t increases our interest bearing debt
and decreases our volume of money. 1t
increases our debt and decreases our
power to pay the debt.
What is the solution OF this riddle by
the financial sphinx that ia proposing
the question, and is financially eating
US up for not ans Wering it?
The plain answer is, change the sys-
tenn; alter the points at which the trick
is played.
To illustrate, and at the same time
approach the point by degrees: What
is United States bond? 1t is nothing
more or less than u cluster of green
backs fastened together and sold at a
discount, but lacks being legal tender.
The legal phrsseology OF a greenback ia:
The United States of America will pay the
bearer five hundred dollars on demand.
This note is legal tender. etc.
The United States bond reads;
The United States of America is In debted to
| the bsarer IN the sum of five hundred dollars.
Payable July l, 1907
To this bond is attached 40 coupons,
to represent the semi-annual payment
OF interest, say at per cent, for 20
years. The coupon reads as follows:
The United States of America Will pay the
bearer ten dollars on the - day of -,
| 1S-.
The greenback, the bond and the
coupon are of the same legal obligation,
promise to pay: the greenback on
demand; the bond In 20 years; the
| int Iiaf doka
Add tho value of the 40 coupons to
the face value of the bond and they
represent par value of 5000 in green
backs. That ia, selling 5000 per cent
20 year coupon bond for par ($50O) ia
the same as selling 1900 in green backs
for $500, payable 20 years hence without
interest.
But the bond is not a legal tender and
can not be used as money, and it's exist
ence and use produce no compensation.
A greenback, however, clrculatee "a
money, and by it's use produces a valus
equal TO the rate of interest. 1t ia Al,
value to the people of the United States
in its use.
Therefore if selling bonds to buy gold
were stopped We could buy gold with
greenbacks by issuing on the same basis
as the bonds, to say the least That is,
5000 in greenbacks Reasonable in gold
20 years hence would bring at least as
much as bond. $500, giving $500 bonus
for the gold. In this case the 5000 cur
rency would go into circulation and in
crease our volume OF money, and our
gold obligation would be the same. The
bond is only the promise Of the
pom, 30 ia the greenback. Each
has hack of it the power, the good faith
and wealth CT the nation. nothing more,
nothing less. One is as good as the
other, and neither is better than the
other. The power, faith and ability of
the nation to meet the obligations is the
real basis of value in each hence, all
financial talk about the bonds possess
ing an element of value not in the green
back, is financial sleight-oi-hand to fool
the people.
The bond is not as good as the green
back for the people of the United States,
for it is not legal tender, and we get no
money out of it and the coupon, where
as, from the greenback we get an an =
nual money use. Owing to the fact that
the green back has money use, it would
not take 500 in greenbacks, redeemabie
in gold 20 years hence, to buy $500 in
gold. In fact such greenbacks would to-
day buy gold either ut par or at a slight
premium. Because, il the owner of $500
in gold could get 500 in legal tender
currency, he could net the $40 by the
exchange and have the 500 with which
to pay any of his debts. whereas, before,
the gold could only pay $500 OF debts.
Therefore, to issue legal tender green-
backs redeemable 20 years hence in
gold, and with them buy gold is better
for the people then to sell bonds.
But the bonds are better for the
money owners, because they are sold as
such discount, and they keep down
the volume OF money thus increasing
the purchasing power OF money.
How long will the people etand this
transparent fraud?
One other important change should be
made in our financial system, The
treasurer should have the power to
charge a premium on all gold or silver
taken for export. England, France,
Germany and other nations exercise
this power, to retain gold and silver.
The United States alone is open to free
plumber by foreign fnsncers IN this re-
spect, and daily the plunderng goes on.
1t may be safely ssid that the Ameri-
can financial system is the biggest fool
system on the face OF the earth,
and can only be accounted for on
the basis either of want of sense,
consummate villiany or criminal care