The labor journal. [volume] (Everett, Wash.) 1909-1976, 1922-02-24

the paper money of another island"
| am not certain that Mr.. X. I'M
derstood the philosophy of it; for
he seemed to regard the manifesto
ton as a phenomenon. But he knew
| that it worked.
| had several conferences with
the treasurer of the island, from
whom | ascertained that they had
no difficulty in obtaining gold for
the settlement of their foreign trade
balances, as their exports always eX-
ceeded their imports; in other words,
they lived within their national
means.
When Norway, Sweden and Den
mark, in the early seventies, adopted
the metric system, they also agreed
upon a mutual denomination and
standard of money, to facilitate ac
country of transactions between the
three countries. Until the World
War, the currencies, coin as well as
paper, circulated with equal freedom
in either country. Neither thought
of refusing the coin or notes of the
other. Periodically the accumulated
band notes were bundled up and re-
turned to the country of issue, only
to repeat their round regardless of
political boundaries. | am sure it
has already dawned upon the reader
that there is only one more step to
international currency.
Shipping of Gold Pure Waste
The lesson which this story teaches
is obvious, but | will nevertheless
summarize it as follows:
/. The Metallic Basis; The theory
that a gold or silver reserve is a
necessity is only myth held up
before the masses to be revered as
a religion the mandates of which are
impossible of performance, because
there is not sufficient gold in exist
ence to discharge the debts made
payable in that metal. Gold and
silver, except as subsidiary coin,
have long ago ceased to circulate,
because Of their inconvenience and
cumulative inadequacy. 7 n e e
metals are used as reserves" in
obedience to an unnecessary law,
passed to compel reverence for the
fetish of the gold standard 1t is
also used to settle international
trade balances, which could as well
be adjusted by international cur
rency, just as domestic bank balances
are sometimes settled by clearing
house certificates. If gold were
demonetized, the cost of its trans
portation forth and back over the
oceans would be saved, and the
metal would come into it's own as
inexpensive Filings for defective
teeth, personal adornments, orna-
mentations pleasing to the eye, and
for numerous other purposes requir-
ing non-corrosive material or per-
manence of appearance.
z. Over-lssue: If the issue of
paper money is confined to legiti-
mate, that is, constructive purposes,
there can be no danger of an over
issue, because it is paid out for ma
terial, labor, or other services, and
as the volume issued is based upon
the estimated cost of work to be
performed, it logically follows that,
as the performance of the work de-
ponds on the number of hands avail
able, so the issue of currency is
limited accordingly; but is, never
the less, always adequate.
Constructive Taxation Bar to
Initiation
3. Depreciation: For each issue
of money, a corresponding tax is
levied, which is paid periodically;
and, when the last installment is re-
turned, the issue may be said to
have been withdrawn from circula-
ton. 1t has served the purposes
for which it was issued and is re-
turned to its source, having COM
pleted the circuit of exchange; while
other issues for other purposes con-
tinue to circulate until their specific
objects have been attained and thei,
usefulness ended. The tax levy
thus becomes the controller of the
currency and initiation is prevented;
unless-money is issued for destruc-
tive purposes, as war, which is
avoidable; and speculation, in which
governments would have no incen-
tive to indulge.
4. Adequacy and Elasticity: There
would always be a sufficiency of the
circulating medium because each
project would be financed by its
specific issue, which by it's free cir.
culation unhampered by private
privilege of control, would serve in
all individual transactions arising
as subsidiaries to the project fol
which the issue was made, includ-
ing the personal needs of those en-
gagged in its execution. The elias.
ITCHY is automatic, as the system
provides expansion when new work
is projected and contraction when it
is completed.
1t is obvious what an impetus this
system would give to individual en-
terprise in science, art, invention
and other fields of human endeavor
There would be no national debts
and the money with which to pay
taxes would always be in the hands
of the people.
Money is only popular bookkeep-
ing; it is accounting reduced to its
simplest. form.