The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-12-15
NEW CURRENCY PLAN.
How to Have Money Without Interest for
Public Purposes, Upon City, County
and State Bond BasiS

How to Have Money Without Interest for
Public Purposes. Upon Il City, County
and State Bond Basis.
Editor of The Tribune.
Sir.-I well know that any innova-
ton, having in view the reform or eX-
pansion of our present currency circula-
tion-no matter how solid the basis for
this innovation may be, or how just its
claims-is instinctively frowned upon
by the banking and moneyed classes,
who fear for privileges acquired; as
well as by the thoughtless and ignor-
ant, who either will not or cannot
understand reforms in favor of the
great masses of the people. But the
financial reform is the first and greatest
of all reforms, because capital controls
labor, inasmuch as capital is the only
medium of exchange through which
wages, or the price of labor, is de-
termined. And consequently the finan-
cial question must control the labor
question and lives at the basis and foun
dation of the solution of the so-called
social question of the day.
We see throughout the financial
movement of the whole world that prices
rise whenever the currency circulation
is increased; and, on the other hand,
that prices fall whenever the circula-
tion is contracted. And, furthermore.
that with rising prices the condition of
the laboring classes is improved, be-
cause the price of labor rises also.
wbnrpuc Uhnn ic la hnr
is ill-paid This law is universal and
well established. 1t must consequently
furnish the true key for improving the
condition of the working population
which is to increase the volume of
money in actual circulation. This, in
deed, is the first and most important
step toward the peoples financial
emancipation and without which all
thought of radical and permanent re-
forms is an illusion. Therefore, the
question is, How can we increase the
money circulation on sound basis for
the direct and evident benefit of the
people at large?
One Plan Outlined.
1t seems to me that this might be done
in the following manner: We all know
that United States bonds are accepted
in the United States treasury on deposit
as lawful security for an issue of bank
notes-full legal tender to the amount
of 90 per cent. of the face value of the
bonds. And, moreover, that these bank
notes, printed by the government, are
| issued to our national banks absolutely
| free of interest and with a tax of only
per cent. Nevertheless, there are mil
lions of dollars worth of state and city
| bonds in our country which are in every
respect of as good intrinsic value as
any United States bond, and which,
moreover, are considered as such by
private capital for investment.
Then why not permit these bonds-as
good as our federal bonds-to be re-
ceived in the United States treasury as
| lawful security for an issue of bank
notes on the same terms as the United
States bonds?-which is that this
money would be full legal tender and
| without interest. Thus the bonds on
| deposit would be non-interest bearing
and constitute loan of money without
interest for public purposes, and for the
sole benefit of the taxpayers and the
people in general.
The bonds in question could be re-
deemed by annuities paid yearly in
gold coin if need be, say at the rate
of or per cent. of the capital loaned,
and these bank notes could be with
drawn from the circulation and can
celled as the above payments We're
made. Furthermore, it could be re-
| quired that tie first money collected
each year through taxes in centers
where these bonds had been issued
must be sent to the United States treas
ury for their redemption as stipulated.
And in case of non-payment the federal
government could be authorized to col
lect the taxes directly in these centers.
Besides small tax, say Y of per cent,