16 THE SUT. 



interfere? Only to profit by the monopoly of the currency. The 

 necessity of interest, when National bank notes are issued at 

 one per cent., and greenbacks in London, are above par in gold, 

 is no longer an 02:>en question. The only question is, who, and 

 what kind of property, shall share in the benefits of free bank- 

 ing. It seems to us that he who is able to furnish security, of 

 whatever character, with which to redeem another person's 

 money, is amply able, with proper machinery, to issue his own. 

 Otherwise, the sinner becomes greater than the redeemer.* 



How Interest Works. — Suppose the world's capital is $100,. 

 000. at ten per cent, interest, employing 100 men at a dollar a 

 day. The first year, the capital increases to 8110,000. But 

 there is only $100,000. of money with which to pay $110,000. 

 How is it to be done? Out of the products of labor. Capital- 

 ists never finally pay any interest, they simi)ly charge it over 

 in the fonn of liigher prices. Those Avho never borrow pay all 

 the interest. The cost of living has now risen 33 per cent., wa- 

 ges are 66f cents. In ten years,^interest and principal double; 

 wages are now 33^ cents a day. In twenty years, interest and 

 principal quadruple and Avages are 33^ cents less than nothing! 



But, actually, this result is sooner reached. As production 

 advances money must increase. But there is only so much to 

 be had. Credit must therfore be substituted, and debt incur- 



*THE TRUE INWARDNESS. A Farmer discounis, at the bank, his note of $loOO 

 or $900., what really occuris? 



(1) They exchang • notes. (2) Both notes promise gold dollars, but neither has 

 any. (3) Intrinsically, one note is as good as the other. (4) In addition, the far- 

 mer gives to the banker a deed of trust on a $.3X)0. farm. (5) In case the farmer 

 fails to pay, the farm can redeem the banker's (gold?) and if the bank fails, its as- 

 sets are the solvency of its patrons, therefore, (6) The real specific basis of the 

 bank is the farmer".-* security. (7> Redeeming another's money ix equivalent toissu- 

 ing one'g own. (8)The farmer then gives his money away, to buy it back! (9) 

 The banker draws interest on what he owes. (10) The shave of S 00. was for hand- 

 ling the farmer's money. (11) All the farmer lucked to issue it, was the machin. 

 ery. (12) For questioning the right to monopolize this machine, so that the far- 

 mer can save his interest, danger signals are sounded, and yon are denounced as a 

 •'wild cat," a"red dog" and u ■'communist." 



During the war the government desired to move a box of hard tack from an Illi- 

 nois farmc^rto a wounded soldier. But there was no medium of exchange. So we 

 go over and b rrow Irorn a .Jewish broker a lump of gold, giving therefor an inter. 

 CMt-bearing bond, wiih the fiirnier and soldier as bondsmen, through whom the 

 hard tack has been i)ai(l back three times. The interest on all the Ijonds being 

 many times the value of all the slaves over which the war was waged ! 



W. II. Vanderbilt owns §47,0.) ,0 '■. in U. S. bonds, bearing interest at the rate o' 

 $l,88.5,(Ko per annum, or 88.-'»8 per minute. 

 Congress has 189 bankers to l.T farmers, yet there are four farmers to one banker. 

 "Pay your National debt in 17 installments of interest, at Cpercent." — A. Johnson. 



