The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-03-13

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'"The restoration of confidence
through the election of Mckinley has
not restored prosperity, and tariff leg
islation can not build up the farming
interests, while interest on money, on
the average, is more than double the
profit on farming. The general growth
of wealth in this country does not av-
erage three per cent, and the average
interest on money is seven per cent.
Constant prosperity cannot exist un-
der such conditions.
"The bankers and leading business
men have decided to do their best to
We the greenbacks redeemed in bonds
b, ng interest to them and to have
the national banks issue all the paper
money for their own benefit. A paper
money that is a promise to pay coin
on the single standard can at any time
be used to disturb the gold reserve,
and produce a panic, by rich money
spectators for their own interest; so
1t seems very probable that our pres
ent system will be changed during the
administration of Mckinley. The ques-
tion is-whether the change shall be
for the benefit of the people or for the
benefit of the national banks.
WANTS GOVERNMENT PAPER.
"Bonds even a t two per cent. for fifty
years to be basis for national bank pa
per money will be equal to a gift of at
least three times the full amount of
greenbacks in circulation. Calculating
greenbacks in circulation to be three
hundred and fifty millions, the neat lit
tie sum of one thousand and fifty mil
lions is a very conservative estimate
of what the national banks demand for
supplying the people with paper money
to fill the place of the greenbacks.
But why redeem the greenbacks?
If the people We're educated to believe
in perfect fiat paper money there
would be no necessity for doing so.
The only law needed would be to make
the greenbacks receivable for all debts
and not redeemable in any other
money. The last election proved that
the people are not ready for full fiat
money, so the bill to issue an interest
bearing bond certificate of deposit was
planned TO meet all the demands-a
perfect system of credit money that
would be redeemable in bonds as good
as gold
THE rate of interest paid on any
wealth-producing capital regulates the
value. SO the bond or a mortgage
that will be sure to pay the interest de-
manded for gold will be equal to gold
in value Therefore a certificate of de-
post of a bond bearing the rate of in
terest to the government that the gov
ernment pays for gold, would make
this paper money of equal representa-
tive value with gold money. 1t would
therefore be u credit money based on
credit, and on the gold standard of
value, without being on the gold basis,
or redeemable in gold; thus avoiding
the possibility of drawing gold out of
the treasury for the sake of specula-
tion In prices of stocks and produce.
Limiting this issue of money to the
bonds of the state, counties, and cities,
at twenty per cent of their taxable
valuation, or abous one fifteenth of
the real valuation provides double Sc
curity back. of every dollar of the
money, except the amount provided to
redeem the greenbacks and national
pank notes, which are floating at pres
ent on the direct credit and debt of the
government.
1T seems to me that a bond bearing
interest to the government is far bet
ter basis for currency than gold bought
with bond drawing interest from the
government. The argument seems
clear, If one dollar of gold bought with
bond drawing interest from the gov
ernment is security enough to float
three dollars and q half of greenbacks
TWO dollars OF bonds drawing three pei
cent. interest to the government would
be hundred times better security tC
float three dollars of currency.
INTEREST RATE.
"Why provide to change the rate O.
interest from three per cent. to be two
thirds the average growth of tn,
wealth In the country?
Common interest between banks an,
individuals should never be above av
erage profits All that any person coul,
make on money borrowed with the av
erage security, above average profits
is the result of extra work or talen
and belongs to the borrower and not t
the loaner of money. Calculating tha
the savings of wages and salarie
would balance the interest used for
living, the rate of growth in the tota
wealth would represent the ayerag
profits. Public securities being of tn
nature of first mortgage should no
demand over two-thirds of the ayerag
profits, and the average profits will de
crease naturally with the increase c
population. A system of finance ca
never be in harmony with the need!
until the interest will be regulated b
the profits,
TO what purpose shall we blame tn
rich for wasting money on balls lik
the Bradley-Martin affair? Enact TIL
provision into a law, and 1t will be I
the interest of each rich person to us
MS money, to add to the real wealth {
the country, or the rate of interest {
MS wages in a sense, will be loWere
for the next decade. This also wi
make the best regulation Of the amour
of money in circulation.
AN AUTOMATIC CURRENCY.
"When the amount Of money will /
too large, property will increase
value. The rate of growth in wealt
Will raise the rate of interest. and thel
Will be no borrowing from the govern
ment, and vice versa,
why does section third provide
supply silver money at it's face valu
and demand the fun weight of go
when redeeming the bonds? Beeaul
there is a margin of profit to the go,
ernment in preparing silver and pap,
money; but gold, demanding the san
interest from the government as Il
government demands from the peopl
II is only right that the people thi
want gold should stand the wear az
loss in the use of 1t. This proviso is il
tended to restrict the demand for go
TO the actual need of It, and at Il
same time provide gold enough