The labor journal. [volume] (Everett, Wash.) 1909-1976, 1916-03-24
HOW THE GOVERNMENT
CARES FOR IT'S
REAL OWNERS
SECRETS OF THE INNER
MONEY CIRCLE REVEALED
How the Games Played

Ter OF currency, 1917, page 20
Profit on national bank note circula-
ton based upon a deposit of 100000.
United States consuls of 1880 loan of
1885 and Panama canal loan at the
average net price, monthly during the
year ending October 81, 1914.
Cost of bonds, 1900. Circulation
obtainable, 100000. Interest on
bonds, $4,000 Interest on circulation,
$4,000. Total expenses, S463.20. Net
receipts, $7,536.SO. Interest on cost
of bonds at per cent, $3.50. Net
gain, 1,6S6.S0-per cent of profit on
circulation in excess of per cent. on
investment, 1.79 per cent"
Sort of an occult Law
Note the care that our dear uncle
takes in order to show us how a fl
nancier can get more than per cent
on his investment in government
bonds and bank stock. Also note how
the doctrine that an investment" is
entitled to 6 per cent as a matter of
some occult law" that runs through
the capitalistic universe.
Now, about the 100000 who have
nothing but their labor power to in
vest. Is it not about time their inter
ests were considered?
The thoughtful reader asks: What
happens when the government Dor
rows? What does the government
get? Is the credit of any private
person or corporation equal to that
of the government? The constitution
gives the national government the
sole and exclusive right to coin and
issue money. Why does it not exer-
else that right and issue money when
it needs it?
Ignorant or Corrupt
Back of the government is the
wealth of the nation. It's credit is
equal to the combined credit of all its
citizens. It's taxing power is practi-
cally unlimited. Why does it go to
private concerns and pay them for the
privilege of using it's own credit? Evil
IDENTITY because the men elected by the
people to conduct the business affairs
of the government are ignorant of the
nature and function of honest money
or they are corrupted by organized
wealth.
In addition to the enormous sum of
fictitious money upon which the pro-
ducers pay interest, already discussed,
there is a huge interest-bearing debt
upon school districts, counties, towns,
cities and states.
Official reports for 1918 show that
cities of 10000 and over had outstand.
ing bonds to the amount of $1,S69,S41,-
1913. They paid annually for the use
of credit capital" (as the compiler
lucidly puts it, in interest $109,6S4,1 1923
while they expended on highways
SOL, 952, 900; on education SAL ,6S4 900,
and on recreation $26 900.
Worst Kind of Graft
Much is said against graft. RE
spectacle" people are all against
graft. The heightened, progressive,
metropolitan newspapers suffer untold
agonies over the grating proclivities
of politicians, but as long as these
papers and the dominant political par
ties they support approve and defend
a system that pays $1oo,ooo,ooo an.
nuaIly for "the use of credit capital"
the bowls against smaller graft is a
rotten joke.
On June 80, 1912, the railroads of
this country were capitalized for $19,-
700 200, 600 and bonded for $11 100 ,000,-
600. The bonds had been Issued to
get the money" with which to build
and equip the roads. This money"
was of the same kind that Grain Deal
err Smith got for his bond (note). The
bonds draw interest just like Smiths
note The rate averages s per cent.
and amounts to $555,000,000 yearly
have not the space to discuss the
nature of the $19,50OO00,O0O capital
Suffice to say that most of it is fic-
| titious, existing only as paper certifi-
Gates and in entries on ledgers. 1t is,
however, expected to pay its reputed
| legal owners dividends of not less
than per cent. totaling every year.
1882, 900, 900
How 1t Makes YOU Poor
want to bring home to every man
and woman, to every husband and
wife, to every father and mother the