The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-11-04

TO The Editor Of The washington Times.
- nave IN mind Mail Bag" suepes-
- lot the monetary Commission
"I-lSs mas been for some time past
i'iis the ways and means Tor
| tenn. 'ViioS sys-
| I think It is agreed among all th,,k
ers upon this subject that - .u a.
gold and silver dollars on earth -.
dumped into the middle OF fha PIE
ocean to remain there. this vzeuld ,,ot
oiIiihisn the real wealth OF the worfa
money is not wealth. II is an article
USED as means OF exchange in b,,si-
ness IN paying small accounts ana {,
seteililg differences IN accounts: bst n
Is not wealth. ON' II
/ . NoIo mas no absolute money vafr7e IN
ttseiI. but Is OF value bv raaso- -
| CoiiAihoh consent among the peoples Of
the world II is the best and safest
| metal that could be used AZ /. 80
OF value for money. and the nsonls
nave therefore made the vises4 cbotc,
| IN selecting IL for this purpose.
II money must be based upon a sun-
posed or agreed metal value.
Glasses of Real Wealth.
NOW what is real wealth? There ara
TWO classes or kinds Of things that eon-
! stitute wealth. The land a man owns
may be called his permanent wealth.
Whiie the houses, furniture, ieweIrv.
implements, produce and merchandise
ne owns may be called his tranzitorv
wealth. Money is only a means Of ex-
| change; It may be exchanged Tor
wealth. but it is not of itself real
wealth.
The world seems TO have agreed ana
decided that gold shall be used "a a
basis for currency, and It would be
at the present time out Of the question
70 suggest any change from this agree
ment But, as II IS fnconvenient to
handle gold and as there is not enough
or It to coin the amount OF money our
business transactions require. what is
the best and safest plan upon which
we can issue an additional paper cur
rency?
One plan has been to issue this adj
tionaI currency upon a basis OF what
our Government has owned rather than
upon basis OF our real wealth. But
thinking men have come to see the
fallacy Of this and are looking out for
some safe. sane and sound basis upon
which TO issue a means OF exchange.
They have come to see that this cur
rency should be issued uRon a basis
Of some real wealth and not upon a
basis of our Indebtedness: that our
General Government should issue this
currency upon basis OF what it owns
and not upon basis OF what It owes.
Power to Tax.
A citizens wealth IS composed Of the
land and other property he owns. while
a ant
from its right or power to tax this
property. The citizens safest wealth
is his land, for the reason that this
viii produce a means Of living regard
less OF what may happen TO his transit
tory property. And IN ike manner, a
governments safest and surest wealth
Is its right or power to tax the cIti-
zen's land Now. If We want to issue
paper currency upon a basis OF the
government safest and surest wealth
we must select for this purpose its
right or power to tax the citizens
land. But It happens that our General
Government has no right or power to
tax land and IL Is our General Govern
ment that must issue this currency.
The Constitution reserves to the sew
eral States the right or power TO tax
land, and, II we are TO Issue this cur
rency upon a basis Of the safest
wealth, viz the right or power TO tax
land. our General Government VIII have
to issue IL upon bonds based upon land
these bonds VIII have TO be State
bonds.
Now, under some general plan OF
sound business regulations, these state
land bonds would be the safest possible
bonds. They would be based upon al
the real and permanent wealth of the
entire country, and would be much safer
and better than either railroad bonds
or our General Government bonds.
General Law Needed.
- -
pass a general law covering all the
Estate land bonds, and the washington
Government would have entire charge
Of the matter OF passing upon the bonds
and issuing the currency, e5 well as
making ali arrangements for redemp-
tiOns and reissueS-al Of which should
most scientific plans that the experience
OF the world has taught. The State
land bonds would pay small annual
interest. and would be available for
national banks, with such slight changes
from our present plan as might be
necessary They would represent the
several States right or power TO tax
real wealth, and the amounts issued BY
each of The States would be regulated
by Congress, and would be In accord
ance with and upon a basis OF the as
sessed values in the States, and the
number of inhabitants. It might be that
10 or Is per cent Of the assessed values
and SIS or $50 per capita would be found
TO be a safe limit
The bonds could be issued. along at
different times as needed. and as
might be necessary to effect a gradual
change in our currency system, and
the money coming to the States could
be used in paying on their present in
debtedness, in making loans upon
mortgages, and in sinking funds. !. e,
provided IL should seem unwise al any
time for a State to issue a larger
amount than its legitimate bonded in
debtedness.
This plan would give US a safe ana
elastic paper currency. and would nj
In with the general idea upon which
our Government has been buIlded.
F. II. SMITH.
1925 L street northwest