Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-07-23

listing monetary obligations. This pro-
vision, together with the fact that a
government could increase the volume
Of currency by undertaking special inn
provements would tend to prevent the
boarding Of money and effectually de-
stroy speculation in 1t. The result
would be that individuals would use
their surplus money in private enter
prises, giving employment to others
and increasing the material wealth Of
the country. Every enterprise under
taken by a government would also add
to the common wealth, and the expense
Of such undertakings could be provided
for without appealing to the Shylocks
of this or other countries. Some honest
critics may object to this currency
scheme, because, in their opinion, 1t
would possibly be temptation to-,
especially state and municipal govern
ments, to undertake extravagant i'm
provements and enterprises. No scheme
Of finance can be devised which will, in
itself, make rogues honest, although
our present financial policy has I'M
doubtedly tended to increase dishCn-
esty. Unless the currency provided for
by the scheme under consideration Is
dishonesty disbursed, the improve
ments and enterprises undertaken by
government will add to the common
wealth Of the people and strengthen
their ability to sustain taxation.
Let us look at the principle INVOLVED
through a simple illustration. Say the
government Of Illinois undertakes the
construction Of great ship canal to
connect the waters of Lake Michigan
and the Mississippi River. The esti-
mated cost is $lO,OOO,G00. An issue Of
paper currency to that amount is au-
thorized, but the money is issued only
as the purchase of land, material and
labor require it. Thereafter other is
sues Of money are made annually 10
cover the expense of maintaining the
canal in operation. Taxation Is levied
in the form Of toll fees on vessels using
the canal, and the money paid into the
state in these fees is cancelled until an
amount equal to the cost of construc-
ton plus the operating expenses is
cancelled, after which the toll fees
would be reduced to approximately
equal the cost of operating and main
tanning the canal. The result would
be that the common wealth would be
increased to the extent of the value Of
the canal with really no cost to the
people.
To build the canal today It is neces-
sary that the state borrow money, and
the interest paid to the lenders in
creases the taxation of the people with
out adding to the common wealth.
1t should be kept in mind, In consid-
ering this proposed currency scheme,
that the money issued by the general
government is the only kind to which
a national legal tender quality is given.
The legal tender quality of the other
money is confined to transactions be-
tween the citizens of the states and
municipalities Of its issue, and its ac-
ceptance by citizens of other states and
municipalities would depend upon con-
fidence In the governments of issue. In
the majority of business transactions
Of today checks on banks are used in
stead of money. 1t is undeniable that
the people have more confidence in
state and municipal governments than
they have in private individuals and
banks. Were this not true, there would
be no foundation for patriotism and no
confidence between individuals. It is
certainly safer to trust our govern
ments than our selfish bankers, who
are today seeking to destroy govern
ment money.
One effect that the currency scheme
proposed would have would be to make
our government independent of the
Shylocks of Lombard street and Wall
street, and 1t is from this class and
their emissarles that the strongest OPP
position to it would come.
G. L. Mexican.