Is It Ignorance? -OR- Is It Treachery? Are our National Rulers the Tools, or, Are they the Dupes of the Money ( hangers ? An Inquiry concerning a suhject of which men gen¬ erally are strangely nninforined. THE LAW OF LEGAL TENDER. r - BY JAMES D. HOLDEN. TorEKA, IvANi^AS, 1893 . Publislied by tlie Kansas Bureau and News Company. (COPYRIGHTED.) THE lansaslureau and Sews lompanij, PUBLISHERS OF AND DEALERS IN Keform Literature. lIEADQUARTEIiS FOR FACTS AND FIGURES ON ECONOMIC QUESTIONS. Distributing Center for News of People’s Party Pol¬ itics. Agents for Speakers on Reform Subjects. If you are interested in the great revolution of thought and sentiment now convulsing the social and industrial systems of civilization, whether a believer or a skeptic, an optimist or a pessimist, a friend or an enemy, we would like to have corresjiondence with you. We are all alike in our desire for the betterment of the conditions sur¬ rounding humanity, and by comparing notes and mixing ideas we will all be helped to a clearer and loftier con¬ ception of human destiny and the course of action best calculated to realize our ideal. We shall be pleased to hear from you at any time. Address: L. L. HOPKINS. Sec’y, Topeka, Kansas. Mr. Holden’s Economic pamphlets sent post-paid upon receipt of price: Metallic Money & Hard Times,.25c. Government Rail ways. 10 c. The Law of Legal Tender.10c. An analysis of the mystic device called “money” dis¬ closes truth of transcendent importance to society : i. e., That money may be made either plentiful or scarce BY ACT of Congress. A clear understanding of the nature of money verifies the truth of this assertion: Not that wealth may he cre¬ ated by legislation, that being impossible; but that money MAY BE MADE PLENTIFUL BY LAW: a dihercut proposition, and a very simple process — all mone}'^ Ijeing the creation of statutory law. The prevailing belief that paper money cannot be freely issued without deteriorating in value below coin, is a belief most disastrous in its consecpiences. It is due to an almost universal misuse of the word “ money ” and a confounding of its technical meaning with that of the terms “currency, and “ medium of exchange.” Although these several expressions possess a separate and distinct meaning, yet they are generally regarded as synonomous, and are so treated even by most economic writers. In fact, an indiscriminate application of the term money to all kinds of ciaiency has so obscured the distinction that exists between pa¬ per money proper, and credit currency^ that the non-depie- ciating character of the former is unrecognized by the general public. The idea prevails that “inflated values” result from an overissue of paper money. This belief is erroneous. In¬ flation ” has ever been the concomitant of an overissue of credit devices — or paper-promises-to-pay-coin. Papei piom ises to pay coin differ materially from paper which posses¬ ses all the legal attributes of coin. Paper invested by law with arbitrary power equal to that imparted to coin, invari¬ ably possesses equal exchangeable value^ the nature of money 4 precluding the possibility of a variance in the exchangeable value of legalized paper and of legalized metal. Issued by au¬ thority of an established government, within the jurisdic¬ tion of which both arbitrarily perform their legal office; possessing equal legal value, which alone constitutes them “money,” coined metal, and legalized paper necessarily pos¬ sess equal exchangeable value at home, and an equal market value abroad. The elucidation of this important truth does not depend upon logical argument alone. History supplies all needed testimony: The “demand notes” and the “greenback” currency issued by the Federal Governnient during The Iiel)ellion fur¬ nish an excellent illustration of the distinction that exists between paper money, and paper currency. The demand notes — issued to the amount of 60,000, 000,—were the eipiivalent of “coin” throughout the war/ notwithstanding the government which agreed to pay them ill coin “ on demand,” suspended specie jiayment January 1st, 1862, and did not “resume” until January 1st 1879, a period of 17 years. These notes remained at par because, invested with all the legal jiowers of coin, they per¬ formed all its functions, while the “greenback” currency possessing inferior legal power, possessed an inferior legal value, and deteriorated relatively to coin and the demand notes. Inasmuch as both issues were alike payable in coin, it is obvious that had Congress invested the “ greenback ” with arbitrary power equal to that imparted to the demand notes, (i. e., power to pay import diitie, as well as other obligations,’ m accordance with the original provisions of the Legal Ten¬ der Act as it first passed the House of Representatives) a vari¬ ance m the exchangeable value of the two issues would have been impossible, (a) whiih t that importers would not have paid a premium for "old with 5 30 YEARS OF IRREDEEMABLE LAND CUR¬ RENCY IN PENNSYLVANIA. The reader however, whose scepticism demands the cita¬ tion of an instance wherein paper money has been issued and maintained at par which upon its face, was not redeem¬ able in coin, is referred to that issued by the Commonwealth of Pennsylvania in 1731, which remained at par witli coin for more than 30 years — and until the American Colonies were prohibited from imparting the money function to paper, by Enqlish financiers, in 1763, by means of an act of Parliament. This purely irredeemable paper money was issued by the Colony direct to owners of productive real estate, upon mortgage security,at 5 per cent, annual interest. It was also issued to owners of plate upon deposit of the same as secur¬ ity for the issue —as coin certificates are at present issued for exchangeable purposes to owners of gold and silver bul¬ lion. The issue of this money in the manner indicated ren¬ dered land values availal)le for exchangeable purposes equally with bullion value, the increased money issue creat¬ ing an active cash market wherein, l\v reason of an increas¬ ed ability to purchase, labor and its product found ready buyers at remunerative prices. Concerning this money. The Pennsylvania Magazine of History and Biography (April, 1888) says: “The beneficenl effects of this measure were felt in a most re- “ markable manner. The notes being secured by actual mortgages, “no depreciation followed; foreign ships were enabled to dispose of “ their cargoes and clear on their return voyages without delay; local “ business Tnereased; trade was encouraged; the rate of interest drop- “ ped from G to 5 iter cent, (the government rate), and the rise in the “ value of lands only increased the e.vcellence of the security. * * “ * * In 1731 the Assembly renewed the previous issues and order- “ ed new bills to be e.xchanged for so many of the old as had been “ issued before August 10, 1728. But now another change was made, “ due to Franklin’s efforts, and these exchanged bills became irredeem- “ able.” B Thus this irredeemable paper remained at par with coin from 1731 until 1763 for the simple reason that it possessed all the legal attrilmtes of coin. AN ANALYSIS OF MO^EY. Money is essentially a debt-paying agency : i. e., a legal TENDER token, representing value. As such, it acts as a most eflective medium in facilitating exchanges. It is simply a form of value that will arbitrarily discharge legal obligations under the law. Briefly, money may be defined as legalized CAPITAL : i. e., any form of property-value to wdiich legisla¬ tion may impart the legal-tender attribute h}^ ‘ coining” metals, or by the issue to the owner, for exchangeable purpo¬ ses, of debt-paying certificates representiny the propert 3 "-value thus “ legalized.” ' In the creation of monev^, the law (at present) declares a si)ecified quantity of coined gold a debt-paying agency to the amount of an imaginary unit of account, called a “ dol¬ lar.” It declares a specified quantity of coined silver or copper (irrespective of its commodity value) a debt-paying agency to the same extent. It also declares j)aper certifi¬ cates, representing property-value, (a) a del)t-})a 3 dng agency to the amount of the sum indicated on their face. (a) Coin Certificates. In this manner is such property-value as the law may DESIGNATE made available for exchangeable purposes in the inter¬ est of its oivner, and, for the eonvenienee and benefit of society. Vrdues thus legalizedbecome money —the magical instru¬ ment by means of which maids every materied want may be readi¬ ly gratified. CONFLICTING INTERESTS. BtRcause the controlling forces of government are, in fact, hostile to the interests of the producing classes of society; or, in other words : Because all ‘‘ governments ” are, administered h}^ ambitious political leaders and practical politicians, for the benefit of an influential minority, whose interests as creditors^ demand, an inadequate money volume, (*) only the metals gold and silver are legalized for money purposes by the statutory laws of civilized nations. Thus a most subtle and oppressive financial system is craftily per¬ petuated in the interest of the non-producing “ financiers ” of every nation; a system which ingeniously generates so¬ ciety’s arch enemy — interest ! — and for the use, simply, of a form of value that iviU arhitrarily pay debts and taxes; i. e., “money;” i. e., legalized capital. Thus, subtle legislation by confining the issue of money to the legalization, or “coinage” of the scarce precious metals, despoils the followers of every useful jmrsuit, by render¬ ing/m* one per ceot of all property-value legally avail¬ able in the payment of debt; while contemporary laws which re(iuire all obligations to be paid, at maturity in legalized capital, create an almormal demand therefor which enables the owmers of a restricted supply to exact tribute from their fellowmen for the use of that which is thus cleverly constituted an indispensable public agency. In view of these truths, it is obvious that the law which by legalizing bullion value alone, makes money scarce in the interest of money dealers, would by simply legalizing other suitable property-value make money plentiful thus bene¬ fiting all other classes of society. * That all governments are methodically administered in the inter¬ est of the influent al non-producing classes is attested by : 1. The tenvr of every financial measure on the statute books of civilized nations. 8 2. By the permanent bonded indebtedness of tlie principal nations of the earth, which yield perpetual incomes to large holders of public securities, in the form of “interest” wrongfully exacted from wealth-producers by taxation. 3. By the demonetization of the so-called money metals when¬ ever the discovery of either has been in quantity sufficient to materi¬ ally affect the interests of the influential creditor classes; that of gold in 1853-7, in Europe, upon the discovery of the gold fields of Australia and California; that of silver in 1873, in Europe and the United States upon the development of the silver deposits of Col¬ orado and Nevada. 4. By the “exception clause ” on the United States “ greenback ” currency which created a special demand for coin and bullion during The Rebellion. 5. By the payment of U. S. bonds in appreciated coin, which upon their face, v.’ere payable in the paper legal tenders with which they were purchased. 6. By the immediate repeal of the Income Tax at the close of The Rebellion. 7. By the contraction of the nation’s legal-tender currency from a volume of over 1J)00 million dollars in 1866, to less than 800 millions 1873. 8. By the conversion of millions of non-interest bearing legal currency (without consideration) into 6 per cent interest bearing bonds. 9. By the exemption of capital invested in such bonds from the burden of taxation. 10. By the payment of interest on such bonds, in advance, at the “discretion” of the Secretary of the Treasury. 11. By the issue of currency to owners of such bonds to the amount of 90 per cent of their face value, without consideration, and without abatement of interest. 12. By the resumption of “ specie payment ” in 1879 —whereby debtors are required to obtain, uiwn conditions j>rescrihed hy creditors^ the coin (or its equivalent in currency) in which obligations are leg¬ ally liquidated, etc. etc. etc. 9 money vs. currency. There are in use tivo distinct agencies by means of which exchanges of commodities are readily effected: 1. Legal-tender money, consisting of coined metal and legalized paper. 2. Credit devices, consisting of bank notes, bank drafts, bank credits, etc. While these several agencies act with equal facility in effecting exchanges, yet, between credit devices and money, an important distinction exists: money being currency pro¬ vided by government at a nominal cost to the citizen^ while credit devices are provided by financiers at impoverishing interest rates. The significance of the distinction appears in the fact that to civilized society a ready circulating medium is indispensable, and these interest-yielding credit devices are craftily forced into use by an insufficient issue of govern¬ ment money, acting in conjunction with rigidly enforced laws which require all debts and taxes to be paid in money, or in its commercial equivcdent — the credit device — at maturity, under penalty of execution. Money being an indispensable public agency, it follows that anything less than a supply equal to the demand, must prove injurious to all who do not live upon the interest of money, the resulting injury being commensurate with the insufficienc‘y of the public issue. WHY money passes cUrreNt. To be effective, a medium of exchange must be some article or thing for which the demand is general. The ex¬ ceptional arbitrary power which money alone possesses is that which imparts to it this chief requisite of a ready cir¬ culating medium. Money, irrespective of its material, is in universal demand — not because governments certify to the 10 weight and fineness of metallic coins, but because legislation imparts to it an extraordinary legal power which is withheld from all other forms of value, i, , arbitrary ‘poiver to liqui¬ date debt. Notwithstanding this most patent fact, a contrariety of opinion exists as to why money passes current, the prevail¬ ing belief, in fact, attrilniting its currency to the intrinsic value of the substance upon which this legal power is im¬ pressed. It is the general belief that gold coins pass current because of their inlierent worth, and that legal tender jxiper passes at par because it is “ redeemable in gold on demand.” That this strange idolatry of a scarce yellow metal — a metal wdiich is in universal demand, not because it is “ precious,” but because it is legalized — proves fatal to general [)rosperity, and destructive of human happiness, is a truth which is rapidly commanding })ublic recognition. Were the intrinsic-value theory of money true, there would be no demand for the ])resent silver dollar coin at a valuation exceeding the market price of silver, — the com¬ modity value of the metal would determine the exchange¬ able value of the coin, (a) (a) Silver dollar coins are not redeemable in gold under the law, nor are silver certificates so redeemable, e.xcepting at the discretion of the Secretary of the Treasury. Did money pass current because of its inherent worth, gold coins iiossessing a commodity value of 100 cents would not be freely exchanged for silver coins possessing a com¬ modity value of 70 cents, nor for paper currenc}^ which possesses no commodity value whatever. The absurdity of the claim that the various money issues of the government are interchangeable in trade because of a iirevailing faith that they will he “ redeemed in GOLD on demand,” becomes apparent when the fact is con¬ sidered that should a demand he made for their “redemp¬ tion,” the government, because of the dearth of gold, would be unable to meet it. 11 THE subtle law of LEGAL-TENDER. ITS aNi^'^Us. There is among men a natural aversion to arduous toil; — the desire to consume without i)roducing being instinc¬ tive. In all ages a small percentage of mankind liave enjoyed an advantage at the expense of society by faring sumpt¬ uously without contributing to the common fund from which all subsist. In primitive times the fruit cf toil was taken from the industrious by armed force. In civilized society it is laic- fuUy api)ropriated by the operation of ingenious laws. In this connection it is significant: — 1. That only gold and silver are ‘legalized” forex- changeable purposes by “governments.” 2. That national financial policies are invariably dicta¬ ted by consincuously prosperous non-producinff financiers. 3. That financiers are owners of, and dealers in legal¬ ized value or money; —selling the use of their legalized capital to those inhose capital is not legalized. 4. That less than one per cent of all property-value is “legalized,” or made available for exchangeable picrposes under the pre.sent monetary system. 5. That an inadequate money volume generates debt: which generates INTEREST,—or that which en¬ ables the “ financier ” to consume while others produce. A clearly defined distinction exists between : compensa¬ tion paid for the use of capital; and “interest” i)aid for the use of money —on secured loans. The first transaction involves the use of capital; the second involves the use of legalized capital. To compensate the owner for the use of capital is legitimate and proper; but “ interest ” legally 12 exacted from the citizen for the use of legalized capital, for which inexorable laws create an inordinate demand, is tri¬ bute, pure and simple. Tribute lawfully exacted from the industrious by the shrewd. Those who i)ay “ interest ” for the use of money on secured loans, are owners of capiUd who thus pay for the use simply of another form of capital — pledging their own as security for the return of that borrowed, with interest. The capital borrowed, is — legalized. That pledged is — unlegal¬ ized. The power that legalizes tJie hoiroiml capital may legalize that which is pledged: Under the present system however, those who receive i\\Q interest ” really own the jwesent restricted volume of legalized caj)ital; while those who pay it, {and all consumers are interest-payers') are (generally speak¬ ing) the unconscious victims of the subtle financial legis¬ lation of their own government. A FATAL illusion. The continued existence of the present inherited, money system and its successful ])erpetuation among a people who can vote^ is due to a prevailing impression that gold, or gold and silver jointly, constitute a “ standard which acts as a necessary measure ” in determining the market value of commodities and other property. This belief however is utterly without foundation in fact, and the terms, “ gold standard,” “ single standard,” “ double or bi-metallic stan¬ dard,” etc., which are so frequently used by uninformed writers and others are sim})ly meaningless phrases which serve only to further mystify and obscure this all-important question. Demand is that which “ measures ” or determines the market value of property : — not in coined dollars, however, but in imaginary numerical units — units of VALUE. 13 Such imaginary numerical units being represented in trade by tangible “representatives of value ” or tokens, consisting of metallic coins, i)a})er currency, (puldic and private) bank drafts, cheques, etc.,— the private credit device of par value con¬ stituting as potent a factor in measuring value” or in determin¬ ing jmice (because eqiiall}^ a “ representative of value,” and equally available in trade) as the coined metal in ivhich such credit device is payable. The so-called “ unit of value ” therefore, is an intangi¬ ble unit of account, rather than a specified quantity of coined metal: coined metal being the legal-tender ec^uivalent of the numerical unit, as the private credit device of par value, is its non-legal-tender equivalent, and the commercial equivalent of the legal-tender coin. The following lucid illustration of this vital point, is quoted from a most instructive pamphlet entitled, “The Financial Problem,” by Alfred B. Westruj), Chicago. (Con¬ cerning the term “ measure of value,” INlr. Westrup says : “There is a fatal misunderstanding in regard t(' this term, and almost all writers on the subject of finance appear to have fallen into an error. There is no such thing as a ‘measure or standard of value,’ Instead of saying, ‘ the gold dollar is the measure of value,’ we should sa}', the dollar is the monetary unit or conventional monetaiy denomi- nant. The fact that we cannot express the value of an article, except by staling a quantity of some commodity, is proof that there is no fixed or permanent measure of value, for the (market) value of all commodities change with supply and demand, and the object ‘ measur¬ ed ’ is as much the ‘measurer’ as the commodity by which it is ‘measured.’ Value not being a substance nor occupying space, can not be reached by mathematics. The absurdity of this popular view of the ‘ measure of value ’ is graphically illustrated in the constitution of the United States in ‘conferring the power ’upon congress to ‘ regulate the value of money,’ for neither congress nor any other leg¬ islative body have any more power to regulate the value of money than they have to regulate the velocity of the wind, or the degrees of solar heat. So long as competition-supply and demand-regulate the market value of labor and products, it, and not legislation, controls the purchasing power of money.” 14 “A monetary unit (a conventional denominator or denominant) to facilitate the expressing of amounts in the realm of value is, apparently, so similar in its function to that of the units employed in physics, such as the inch, the pound, Ptc , especially as certain coin is made legal tender, that the notion has become well nigh universal that this monetary unit must be a definite quantity of some com¬ modity just as the inch is a definite and unvarying length, or the pound is a definite and unvarying weight; but this notion is utterly devoid of reason.” ” As there is nothing definite or permanent in value, a unit of value is a physical impossibility. The monetary unit is as near a unit or measure of value as the ‘x’ in an algebraic equation is a known quantity. You can ascertain the exchangeable value of a gold dollar in any commodity by inquiring the price of that commodity; so also you can find the quantity ‘x’ by ciphering out the equation.” “The value of the gold varies with every change in market price, just as the quantity ‘x’ differs with every change in the equation. This gold dollar is a certain quantity of gold It is not the gold, how¬ ever, but the value of the gold that is supposed to do the measuring and it is the value of the gold that is the uncertain quantity. How can an uncertain quantitiy be a unit of measure? And if it is not a measure, what is the object of a coin basis? If it is answered that it is not a measure, but a ‘ standard ’ of value, if by ‘ standard ’ is meant denominant, then the use of the term ‘ standard’ is equivocal, and therefore sophistical or dishonest. If it is claimed that it is more than a denominant, there is no escaping the dilemma that con¬ fronts the paragram ‘ measure.’ When paper money is issued as proposed by the populists, full legal tender, but not redeemable in any special commodity, the mone¬ tary unit dollar will simply be denominant. Its purchasing power will not be affected by a rise or fall in the price of any commodity any more than an order for a pound of butter commands more than a pound at one time and less at another. The paper dollar will buy more butter at one time than an other, but this will take place in con¬ sequence of the operation of supply and demand in regard to butter only; and so with regard to all other commodities; the paper money will have no more effect on the i)rice of commodities than the order for the butter will affect the price of butter, whereas when the mone¬ tary unit is a legal tender commodity dollar, variations in the price of any commodity are affected, not only by supply and demand in that particular commodity, but also by‘supply and demand’ in the arbi¬ trarily limited legal-teuder-commodity-dollar, which limit enable a 15 class to own and control it, the scarcity or abundance of which (de])endent upon combinations among this class) must affect the price of all other commodities. Under any system, therefore, which recog¬ nizes any special commoditiy as a legal tender basis for its paper money, especially as that commodity must necessarily be one that is limited by nature, fluctuations in prices become complicated by com¬ pound causes, resulting from the limitations to credit through this control of money.” The truth recognized tliat it is not a nation’s coin alone which constitutes that in which value is “ measured,” and that all“ representative of value” Avhich are available in trade are equally potent as factors in determining price, it becomes clear that a materially increased issue of legal ten¬ der currency, (obtainable from government at a nominal cost) would simply displace an e(iuid amount of high-j)riced credit in the medium of trade without affecting the aggre¬ gate of that wdiich now, in connection with demand, deter¬ mines price. Hence it follows :—That while a materially increased issue of government money would advance^ it would not “ inflate ” prices : and that the increased money issue would affect the price of such commodities only, for which, be¬ cause of the increased ability-t()-i)urchase, there would be an increased demand- No uniform advance in prices (equivalent to a dei)reciation in the exchangeable value of money) would follow, and, in fact, should an increased supply of a given commodity equal the increased demand therefore, no advance whatever in its j)rice would result as a consequence of the augmented money volume. Although this theory contradicts the teachings of noted economists, it is one which cannot be successfully assailed. Did prices advance or decline “ in proportion to the extent to which a nation’s money may be increased or diminished,” as claimed bv several eminent writers, the exchanging capacity of a small volume of money would equal that of a larger, hence no permanent benefits would follow an increased volume of government money. 16 ILLUSTRATION RY ANALOGY. The jmtage stamp, like mone^’ is a public agency pro¬ vided by government for the convenience of the citizen. Both these public agencies are invested by law with arbi¬ trary power; money to liquidate debt; stamps to defray postal charges. The stamps, without possessing intrinsic value, frequently act as a medium of exchange, in small transactions. Their legal value would not l)e enhanced were they made of metal, nor would they perform their office more effectively were they “ redeemable in gold on demand,” Their value like that of‘‘money ” is a legal value derived from legal power. Because the stamps are ])rovided by government in su])ply c(pial to the demand, they are obtainable at a uniform and nominal cost. Were the su])])ly restricted the j)rice would advance, and the same principle ap])lies to money. Were legal-tender currency jwovided by government in su])ply equal to the natural demand therefor, money would also be obtainable for exchangeable purposes b}" all own¬ ers of suitable security at a uniform and nominal cost. A SIMPLE PANACEA. Productive real estate, urban and suburban, is a form of property-value which is peculiarly adapted to serve as a oasis for the issue of national currency in volume equal to the needs of trade. And, as certain as legal-ten¬ der currency (paper or metal) is that by means of which the material needs of man are readily supplied, equally certain is it that an era of unexampled prosperity for the American people awaits the enactment by Congress of A SINGLE STATUTORY LAW: 17 Namely: An act authorizing the issue of legal-ten¬ der currency, on demand, to owners of ])roductive real estate to an amount not exceeding the phesknt official valuation thereof for taxable purposes — at an annual rate sufficient only to defray the cost of issue —sav two per cent per annum—as legal-tender currency is"^ now issued by government for exchangeable purposes to owners of gold and silver metals. The advantages of an Irredeemarle Land Currency, as a substitute for the present system, are manifold, and include the following essential features: 1. As any currency issued hy government for ex¬ changeable purposes, proves useless to those to whom it is directly issued, unUl placed in circulation, no advantage would inure to the recipients of a land currency which would not be shared by all with whom the currency would be exchanged. 2. As currency representing value in land, if made a legal-tender in payment of public and private obligations would possess all the legal attributes and powers of “coin,” or coin certificates, it would be the equal of either for exchangeable purposes. Demand for legal-ten¬ der, regardless of its material, constituting it an effective medium for facilitating exchanges. 3. By constituting the present official taxable valu¬ ation of land, a permanent arbitrary valuation for the purpose of a money issue, an equitable means of distri¬ bution is provided, and an over-issue of currency is guar¬ ded against, while a first mortgage lien in favor of govern¬ ment, covering the property upon which an issue is grant¬ ed, would secure pa 3 mient of the nominal sum annually required to maintain the system, and insure a return of the currency when no longer desired for exchangeable purposes. 18 4. The nominal rate at which currenc}' would be obtainable from government by land owners, would result in the establishment of a like current rate for the use of private capital, thus abolishing the burdensome tri¬ bute which, for so many centuries, artful legislation has unjustly exacted from those who toil. 5. As the lernedy herein proposed simply renders value in land available for exchangeable purposes equally with bullion value, no injury could possibly result there¬ from to any class or interest. SUMMARY. In the foregoing pages the writer has sought to dem¬ onstrate : 1. That Money, the all-potent, is not gold^ but — LEGAL-TENDER VALUE. 2. That the exceptional power of gold lies, not in the metal, but in its right of coinage under the law; ‘coined’ metal being legal-tender metal —for which statu¬ tory law creates an abnormal demand. 8. That an abnormal demand for a restricted vol¬ ume of Legal-tender, generates interest for the use of property-value that will arbitrarily liquidate debt. 4. That a circumscribed issue of legal-tender cur¬ rency thus enables some, without labor, to lawfully enjoy the fruit of others toil. 5. That the law of interest divides society into two classes whose interests are antagonistic, viz : producers and non-producers of wealth. 6. That the efforts of the producer to become a non¬ producer results in an unseemly strife for wealth which 19 renders life to the an irksome and fruitless struggle for subsistence. 7. As legal-tender currency generates interest, be¬ cause issued by government in restricted volume, it follows that a supply eqwd to the demand would abolish this fruit¬ ful cause of poverty. 8. That legal-tender paper performs every function of legal-tender metal, and never deteriorates in value be¬ low coin. 9. Money being a legal-tender representative oi value, or wealth, the currency certificate may represent value in land, as well as value in metal, without imparing its effi¬ cacy as a circulating medium. ^ CATECHISM. 1. Is not a circulating medium for facilitating exchanges indis¬ pensable to civilized society ? Yes. 2. Is net “ money” simply a legal curreneg issued by government for the convenience of the citizen ? Yes. 3. Is not the universal demand for money due to its ai'nilahility for ei'changeahle purposes ? Yes. 4. Is not the “coining” of gold and silver a process simply whereby certain value is made available for exchangeable purposes ? Yes.* It is iniportaut to note, that in the act of “ coining” gold or silver, govern¬ ments not only certify to the weight and finene.ss of coins, hnt imj)art to them their essential attribute —arbitrary power to discharge legal obligations. 5. Is not value in the precious metals made available for exchangeable purposes also by another entirely different method—the issue to the owner thereof of a legal repveftenfative, in the form of “ coin certificates ? ” Yes. 6. Is not the representative the equal of the coined metal for exchangeable puroses ? Yes. 7. May not the power which thus makes value in wetal available for exchangeable purposes also make other suitable value available by the same process ? Yes. 21 8. If suitable value generally may be rendered available for exchangeable purposes by an issue to its owner of a legal representa¬ tive, does it not follow that legal currency, or “ money,” is something which may be made either plentiful or scarce by act of congress ? Yes. 9. As money possesses no fixed purchasing power, but is simply a form of value (or its legal representaiive) to which legislation imparts the debt-paying power, may it not be made plentiful, if con¬ sistently issued, without impairing its value ? Y"es. 10. Are not coin certificates based on depreciated silver the com¬ mercial equicalcni of those based on gold ? Yes. 11. Is it not because bolb are ecpially a legal-tender, and receiv¬ able for taxes, that they possess equal e.xchangeable value ? Y’'es. Note.— The idea is entertained by many that the present silver and paper issues of the grovernment would not pass current at iiar, were they not redeem¬ able by the Treasurer in GOLD on demand. Mature reflection will cure those who harbor this hallucination, as the assumption is justified by neither reason, logic, nor experience. U. S. Treasury notes and coined silver possess exchangeable value equal to gold coin, not because their interconvertability is maintained by the Secretary of the Treasury, but because they possess equal debt-paying power under the lawdebt-paying power in money, being the equivalent of purchasing power, or exchangeable value. Gold coin, as such, has never in the history of nations commanded a premium over either full legal tender silver or paper currency. The absurdity of the claim that legal tender silver, or legal tender paper passes current at par because of its redeemability in gold on demand, appears in the fact that should the emergency arise wherein the redemption of this entire currency would jirove desirable, there would be in the United States (public and private) less than one billion dollars in coin and Ijiillion with which to “redeem” nearly two billions of national paper obligations, not to mention some four and one-half billions of bank deposits which are al.so “redeemable” by the banks out of the same inadequate fund of coin and bullion. 12. Does not legislation by arbitrary decree equalize the ex¬ changeable value of — 7 cents worth of copper, (r/); 70 cents worth of silver, {b); 23.22 grains of gold, (c); or a farthing’s worth of paper, by simply imparting to each, equal legal power to discharge legal obli¬ gations ? Y’'es. (a) There is about seven cents worth of material in 100 copper cents. (b) The commodity value of the present silver dollar coin is about 70 cents. (c) The amount of pure gold in the standard gold dollar coin. 13. Does it not follow, therefore, that the availability of money is due to the arbitrary power with which it is invested by statutory 22 law, rather than to tlie character of the muterinl of which it may he composed ? Yes. 14. Does not a piece of paper which under tlie law will arbitrarily di.scharge legal obligations to the amount of $20. p(3ssess mme value ? Yes. 15. Is it not worth twenty “dollars” for debt and tax-paying purposes ? Yes. 10. Does it not possess value for debt or tax pa3ing purposes equal to 2 ) bushels of wheat at $1. per bushel ? Yes. 17. If it is wortli twenty “dollars” for debt or tax paying pur¬ poses, is it not worth an equal sum for exchangeable purposes—among a people whose debts and taxes are by law made payable in legal ten¬ der money ? Yes. 18. If the legal tender token possesses exchangeable value to the amount of .$20. in (say) New York City, must it not jjosse.ss an equal market value in (say) London, less only cost of transpor¬ tation to New York where it is a legal tender, 'i Yes. 19. If the money token is a legal tender representative of need it necessarily be a represetative of ineUdlic value in order to con¬ stitute an an effective circulating medium ? No. 20. Legal-tender certificates based on depreci qed silver, being the commercial equivalent of those based on gold, would not currency based on land, if like-wise a legal-tender, and receivable for taxes, be the commercial equivalent of either ? Yes. 21. In the issue of coin certificates l)ased on gold or silver deposited with the mint, does not government (practically) hold the metal a security the return, (or “redemption”) of the currency when it is no longer desired for exchangeable purposes ? Yes. 22. AVere value in land also made available for exchangeable pnrp(,ses by the certificate process (i. e. by a conservative issue of cur¬ rency to owners of productive real estate upon mortynye security, at actual cost of issue—sa^’’ two per cent per annum) would the recipi¬ ents of the currency derive any advantage from the issue which would not he shared hy all with whont such currency would he exchanyed ? No. 23. Inasmuch, therefore, as legislation is not conferring wealth upon the owner by rendering suitable value available for exchange¬ able purposes, would not society be the sole beneficiary of a national 23 currency base:l on land—the maintenance of which would fall upon those alone to whom the issue of the currency would be direct ? 24. Is not the value of productive real estate throughout the United Stales a matter of public record—for taxable purposes ? Yes. ^ 2o. Might not congress advantageously declare this 2 ^remit official valuation for taxable purposes, an arbitrary valuation for the purpose of a money issue, and by establishing a safe maximum limit to tlie issue of currency representing value in land, (as it now regu¬ lates the issue of currency representing value in metal) provide a national system of finance which would enable the citizen to avoid the exactions of the usurer ? Yes. 26. Money then being a IcgnUzed representative of value—avail¬ able for exchangeable purposes by virtue of its debt-paying attribute —an indispensable public agency—should not the supply provided by a government of the people be equal to the demand ? Yes. 27. If the supply of money (proper) were regulated by demand, would there be an orer-tssue ? No. 28. Is the exchangeable value of money dependent upon the ability of the owner to loan it upon satisfactory security at a high rale of interest ? No. 29. Would not a plentiful supply of money create an active demand for labor ? Yes. 80. Would not an active demand for labor result in remunerative wages for the toiler ? Yes. 31. Would there not result from remunerative wages a general ahility-to-imrchaHe which would vastly benefit all industries, trades, and professions ? Yes. ^ 32. The exceptional demand for “money” then, being in fact, a demand, not for gold, but for currency (paper or metal) to which legislation imparls the del)t-paying power, is it not clearly apparent that if legal-tender certificates were issued for money purposes, upon demand, to owners of productive real estate, as well as to owners of white or yellow metal, that legal currency, or “ mone3%” equal in value to coin, would become plentiful—to the inestimable benefit of society, and without injury to any class or interest ? Yes. 33. If legal currency, or “money,” may be made either plenti¬ ful or scarce by act of congress, why is it not made plentiful ? uhseeh cause Metallic Money & Hard Times. By Jas. D. Holden, Money (Question in a nutskeil. Interest-Payers should read it. What is said of it.—“A veritable revelation,” “A wild theory,” ‘‘A great educator,” “Very ingenious,” ‘‘Exceed¬ ingly plausible,” “Very radical,” “Extremely strong,” “Un¬ answerable,” “Refreshingly interesting,” “A masterly es¬ say,” “Invaluable,” “Extremelv clever,” “Can it be true?” Only 50 pages. Sold by newsdealers. Sent postpaid on receipt of price, 25c. Address, Eeform Piiblisliiiig Co., Emporia, Kansas.