The independent. [volume] (Lincoln, Neb.) 1902-1907, 1903-11-12
LAND LOAN CURRENCY
Mr. Reeves Replies to the Editor and Sug-
gesta Plan of Issuing Notes
Based ON Land

appliances the volt is measured. Now,
it appears to me that change in the
battery cells or the substance of the
circuit would change the strength OF
the current. or, in other words, that
the voltage would be expressed in con-
crete units of battery cells or wire
regardless of atmospheric influences.
In the same way conceive the force
of demand for some commodity to be
fixed by weight and quality regardless
of the influences of weather, fashion
or law | can see how law may UNI
justly affect that force of demand, but
cannot possibly see how the force OF
demand for taxes and judgments can
be expressed in any other than a con-
crete commodity unit. But whatever
the unit may be its actual use except
for comparison is never required for
making exchanges Nine-tenths OF the
worlds business is done without any
money changing hands and very few
people ever receive or pay gold coin.
Even the so-called balances OF trade
are mostly settled without money. In
stead of money other forms OF credit,
notes, checks, drafts and book ac-
counts are used. These are called cyl
dences of debt, but the amount OF each
debt must be measured by the force OF
demand for some one or more COM
modities. Debts always imply secur-
ity, and security is measured also by
force of demand.
Money is an evidence of debt (the
eame thing as form of credit and
therefore should have security. That
such security must be locked in bank
vaults or taken from other uses and
the owner thereof paid per cent OF
its value because it is thus locked up,
are relics Of barbarism.
There is no better security on earth
than real estate under stable gov
eminent. The real estate, whether
farm, forest, mine or building site,
which may serve as such security, is
no less productive Cd that account.
The amount of money that can be
safely issued on real estate security is
limited only by the lowest estimate OF
the force of demand" applied to all
the real estate of the country. AS
this is several times the amount of
money needed to put all exchange on
a cash basis there is no necessity OF
ever having inflated" or wild cat"
currency.
Nor is there any necessity of paying
interest, for that which causes no
loss or sacrifice to owners of security.
The money, not being a commodity,
and being in excess of any possible
demand, would not come under the
law of values as applied to commodi-
ties, but would remain at the level OF
value caused by force of demand for
the standard commodity
A money of this character might be
furnished by the general government
to real estate owners at a rate OF in
terest which would cover the cost,
and perhaps afford some revenue,
without injury to any line of BUSH
ness and it could put all business on
a cash basis at once and do away with
the personal credit system which
causes failures and panics.
The reason this plan of issuing cur
rency is not now universal is because
of opposition from banks and polite
ians. AS early as 1712 the state OF
Massachusetts issued currency which
it loaned at per cent on real estate
security. In 1920 Rhode Island adopt
ed the same plan, and issued bills on
real estate security for ten years at
per cent. This currency remained mt
par. But In 1723 Pennsylvania issued
bills OF credit on pledge of plate
which soon deprecated. Other states
attempted to float currency on plate
or tobacco notes, on the plan of the
bonded warehouses, and brought the
whole system into disrepute. The
land loan plan would settle the vol
ume OF currency beyond any tamper-
ing and remove all necessity for such
legislation asis now pending to allow
assets other than national bonds to
be- held as security.
C. Il. REEVES.
Perry. Okla.
(Mr. Reeves seems 90 misapprehend
the meaning OF tho verb express" as
used by The independent We must
have word or term In which 90 Eek
press" quantities. OF weight. value.
tlectrlcitv. etc. That d. 10 any"
them. One does not express" electro
motive force In concrete units III
battery cells or wire" Sufficient of
the alnrtFf,- n.atfva force IA prodstce A