THE FARMER AND THE BANKER. 149 



for what it buys from them, and can receive from them only 

 what they pay in taxes. The inflow and outgo of currency 

 would be regulated solely by the taxation and disbursements 

 of the government, which might or»might not coincide with 

 the necessities of business, and, in any event, although large, 

 are a mere trifle in comparison with the business of the 

 country. Except as government paid out for salaries or 

 supplies, no increase of currency would be possible, no matter 

 how badly needed. 



All this is not only true, but is not disputed, and needs no 

 further explanation. 



It is claimed by those favoring a bank currency, as opposed 

 to government issues, that these considerations enormously 

 outweigh the mere saving of interest upon those issues. 



The gravest problem of the day is the control of the money 

 power. Money is a useful servant, but a terrible master. The 

 proper object of social effort in this respect is not destruction 

 but control. It would be a waste to destroy power, if it were 

 possible, which it is not. We can change its form, and direct 

 its work, and that is all. In some form the accumulations of 

 thrift and foresight will influence mankind. The highest 

 efficiency of all power results from concentration, and the 

 tendency of cai)ital is therefore to concentrate. Thereby it 

 does more work. It is desirable that the benefits of this work 

 shall be equitably— not necessarily equally— distributed among 

 the greatest possible number, while it is the object of those 

 who use capital to retain all its benefits for themselves. li 

 the owners of accumulated capital could exact fifty per cent 



cost of administration. The objections to this are, that the United States prob- 

 ably could not borrow the large sums required to be used for that purpose, at 

 any such low rate, as those who have money to lend would have no confidence 

 in the ability of the government to engage in any such business without very 

 large losses from bad debts, which the people would be unwilling to make good 

 by taxation. The majority, however, who wish the government to "issue 

 money direct to the people," ask that paper money be manufactured in quan- 

 tities as called for, based upon " the faith of the people," and loaned to those 

 needing it. This subject will be found fully covered in another chapter. See 

 book sixth, treating of " Questions of the Day." 



