The representative., 1901-02-28

courses en- inter>t Ind its GAUSS. It
lis not necessary 1fo1ow him far before
seeing that he had no clear conception
| Of the difference between the speculative
interest asked fofa the loan or use Of
money, and the natural increase Of the
earth. incident to the fecundity of AMI
NAL and vegetablaiife. -..,...-
/ All of which he classes under the
head Of the reproduction OF nature. It
seems very evident to me that, in this
chapter. his intention was to write on
the increase arising from money loaned.
and to justify and uphold this usurious
interest on money.
For he says: 'The feeling that interest
is the robbery of industry is widespread
and growing. That interest can only
accrue at the expense of labor and, in
fact. is robbery of labor, which in a
social condition based on justice would
| be abolished"
He merely speaks of this widespread
/ dissatisfaction in order to show the
| absurdity Of people entertaining such
| feelings.
7 For he says: This interest springs
from the power of increase which the
reproductive forces of nature, and the
in effect anologious capacity for ex-
change give to capital. 1t is not an ar
bitrary, but natural thing; it is not
the result of a particular social organiza-
tion, but of laws of the universe which
underlie society. 1t is therefore just"
This tumble of meaningless words
and phrases are apt to deceive and con-
fuse the mind of the average reader,
thus diverting his thoughts from the
true cause of the wrongs and robbery
perpetrated upon him and his, to the
wicked owner and monopolizer of land
/ Let me analyze this paragraph and
| see II he is correct. Thus interest
springs from the power Of increase" In
answer I quote: ''It is not in the power
OF man to continue a more effectual
method of concentrating property In
few hands than by high rates Of in
|
securely, because it exhorts consent as
| it operates"
He says, in justification of interest on
money: ''It is not the result of par
ticular social organization, but of laws
of the universe, which underlie society"
| What nonsense! Money is creation
| Of the law; legislative enactment. And
! interest on money arises from the sim
| pie fact that an insufficient amount is
! coined and issued for the needs of ex-
! change. If
Therefore it is the result of social or
ganizations and. being the result Of
! man-made laws, has nothing to do with
the laws which govern the universe.
Were it made in unlimited quantities
! it would then work in harmony with the
natural laws. But as now constituted,
it is fostering sore on the body polite,
! and in direct opposition to the natural
laws which govern u.s., 1t is on account
OF it's scarceness being kept scarce pur
posely by the class who enjoy special
privileges that they may live in idleness
and ease through the interest that scarce
money must command. They are the
exploiting class; the enemies of man
kind.
And the in effect analogous capacity
for exchange give to capital"
In this quotation he is writing about
capital, although the subject he is writ
ing upon in the complete paragraph is
the defense of interest. 1t will not do to
say he was speaking here of capital as
money. for his definition is THAT capt
ta' is wealth in the course of exchange
All economists agree that money is not
wealth. therefore, according to his, and
their, agreement, money being not
wealth is not capital.
But whether he was writing about
money or capital, think you will agree
with me in saying: Neither "are parts
of the laws of the universe which under
lie society" And that both are parts
OF the social organization of society
That it is the height of absurdity to say
the dealings and haglings of a trader
the gamblings of money spectators, or
the laws made by politicians, are in any
way "analogous" to the immutable, in
flexible, just and impartial laws govern
ing the universe. 1T is not an arbi-
trary, but a natural thing. 1t is there
fore just"
Money being the natural medium by
and through which our debts must be
paid, and our various exchanges made.
becomes an absolute necessity. We
must have it, beg, steal or starve. 1t
is, therefore, arbitrary Being an arti-
fetal enactment. 1t is not natural And
being limited in quantity it is not just.
Very respectfully,
]. C. PATTERSON.
+These quotations are from "a New
Monetary System" by Edward Kellogg.
Thule was the name given by