The labor journal. [volume] (Everett, Wash.) 1909-1976, 1916-04-21


circulating medium
First. we have gold coined free in
unlimited quantities. and gold certifi'
Gates for uncoined or other gold in
the L. s. treasury. Legal tender by
fiat of law and receivable for all
debts public and private Then there
is silver of limited coinage and limit
ed legal tender Then there is over
1886. 100000 treasury notes commonly
called greenbacks, issued during the
rebellion and legal tender for all pur.
poses except customs duties and in
terest on pubic debt. There were
more of them once but they were
withdrawn and interest bearing bonds
issued. They are in fact a debt of the
L. S, but do not draw interest. They
perform every function that gold does
except as stated. Then there are ma
tional bank notes printed by the U. S.
government and furnished to regular
chartered banks to the extent of 100
per cent of bonds and other approved
securities. The L. s. did at one time
tax these notes one per cent, but
understand that now the tax is only
nominal. Everyone of these bank
notes lis loaned into circulation at 10
per cent interest compounded quarter
ly. They are redeemable in coin on
demand. The L. S. can in case of
bankruptcy sell the bonds and redeem
them. The banks claim interest on
both bonds and notes. Some may ask
why under such favorable conditions
there are not more national banks.
Simply because there are conditions
in regard to population, etc. Besides
the money mentioned there are minor
coins of silver, nickel and copper. Not
any of them pretend to stamp on
metal equal to face of coin. All are
fiat in limited quantities. In actual
practice of business no one refuses
any reasonable amount. Their coin
age is limited to needs of business
only. The L. S government makes a
profit on this coinage.
Now let us examine the proposed
new currency. 1t will be paper of
course and printed at the Z, S. treas
ury department. 1t will be secured
by bonds of the state county. city or
district applying for it. 1t will be
legal tender for all debts public and
private-no exception chosen. It will
be redeemabe in instalmently taxes
on the property of state, city, or dis
trict-it needs no other redemption,
On the face it may read the City of
North Yakima Improvement bonds.
or the North Yakima Irrigation Dis
trict bonds, are deposited with the
U. S. treasury as security It will be
paid into circulation I own land in
the Outlook Irrigation District work
for the district. 1t pays me one or
more of these notes. When | or any
one else into whose hands the notes
fall pay their taxes the note is re-
deemed. 1t may be a year before it
gets around to be so redeemed, but
no harm is done because it is perform
ing its function as a public utility. to
trade with and exchange value. 1t
will not depreciate. nor will gold go to
a premium. Why not? Because it
will have every function as money
that gold has, Gold will in fact be-
come only a commodity as it should
be. Now night here I wish to say
there is nothing sacred about gold, as
some think 1t is valuable far above
its actual intrinsic value because many
nations of the earth have selected it
to stamp their fiat on and made it
so, as a legal tender for all debts pub
lie and private. If this privilege was
withdrawn the market price of gold
would drop so much | doubt any
more would be mined-certainly not
for use as money. Our new monetary
system would be money based on
value and not stamped-on value. We
do not use gold in its coined form to
do business in foreign countries, but
as a commodity Everybody knows
that gold does not circulate very much
in this country. Nearly ali of our bus
! mess is done by check or in paper
money and silver and minor coins
Gold lies in the bank vaults and it is
pretended to be there for the purpose
of redeeming paper money, | believe
that the national banks are obliged
to keep ten per cent of their bank
notes in gold to redeem them. But
how can ten per cent redeem one hun
dred per cent if a demand in all seri-
BUSINESS be made? Coin basis, whether
it be gold or silver or both, is a
fraud. There is no true basis except
the land and it's products. Remember