— 14 — 



In order that we may be understood, we wish it to be borne in 

 mind, that whenever we speak of interest, it is ahvays in connection 

 with money borrowed on good security ; a business transaction in 

 which no risk is supposed to be incurred, and not in connection with 

 transactions that partake more or less of the nature of a favor, and in 

 which more or less risk is incurred. The one we will call real credit ', 

 the other, peisonal credit. With the latter we have nothing at all 

 to do. 



We will now suppose two individuals equally wealthy ; the wealth 

 of one to consist of the metals, gold and silver, and that of the other, 

 of buildings or any other product of labor. 



What, we ask, are the facilities afforded by this financial system 

 for the obtaining of real credit on the part of these two individuals ? 

 If they possess an equal amount of wealth are they not equally 

 wealthy ? Do they \\9\. stand on an equal financial footing, and are they 

 not ecjually entitled to real credit? 



The fair, honest and impartial answer to this question together 

 with the abolition of property in, and recognition of the ecpial right of 

 all to natural wealth, is the simple, effective and only settlement 

 possible to the conflict between labor and capital. 



In the specie basis system of banking, as in others, this right to real 

 credit is utterly ignored ; first, by government coinage and "fixjng" the 

 \ alue of gold or silver, or both, or in other words making the ( i lin legal 

 tender; second, by government giving the owners of this coin the 

 EXCLUSIVE PRIVILEGE * to issue paper money, not only to the extent of 

 this "fixed" value of their coin, but to the extent of three times as 

 much. What right, we ask, has government to "fix" the value of any 

 ]jroduct of labor, or make it legal tender, authorize the issue of paper 

 money to the extent of three times the amount of this legal tender 

 coin, and jjrohibit the issue of paper money by the owners of any other 

 products. If government has the right to "fix" the value of one 

 product, then it has the right to "fix" the value of all products, and 

 what is this but communism, or state socialism? 



\o. it is a fundamental error in political economy to admit the 

 right of government to "fix" the value of any j^roduct, inasmuch as it 

 exempts it from the effects of sup])ly and demand to )i^^H all other 



inasmi 



• .^ jirivilege to one is the same thingas the; supjiression of the naturnl rights of the 

 st, nncl KC'vernnient is a USUKI'I'K when it attcMiij^ts it. 



