The rights of the people in money

Preface

THE RIGHTS OF THE PEOPLE IN MONEY.

This book was written to announce and maintain the principle that money Is entirely a public thino^, chosen by society and made and legalized by government as an authoritative standard of value and medium of exchange in the affairs of the government and people. That the custom of society and law of government make it necessary for the individual members of society to procure and use it in their business affairs and to pay taxes and public revenues. And hence that every member of society and subject of the government has a right to meet money in business, in exchange for property, services, or labor ; subject to the choice of the holders to make the exchange, and also subject to the competition that other people's property, ser-

IV.

nces, or labor may offer for it ; but not subject to any right in the holders to make gain out of it, while they refuse to make such exchange, nor while by notes and promises to pay money they hold it bound to return to themselves, excepting only the money invested in the bonds and promises to pay of the United States Government. That it is the duty of the government to protect these common rights in the money by sufficient penalties and confiscations of property and money involved in violating them in any form, especially in the form that is generally known as lending money for interest, or in exchanging it for private promise to pay money.

It is not the intention to give a scientific treatise on money, but to illustrate the common rights in it, and note and refute the sophisms of lending money for interest as they come up in the mind from the pages of fourty-four years of business experience, or as they are suggested by current events. There will be copious quotations from the works of learned authors and from lectures and newspaper articles to show the tendency

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and direction of the learning of the world on the subject of money, with such comments on the same as may help to let the truth appear over all. It will be the especial effort to make every chapter and article as near as possible a complete argument in itself against lending money for interest.

GEORGE WILLIAMS.

Northwood^ Columbus^ Ohio,

Chapter I

The bankers and money-lenders are rapidly breaking up the business of the country, are taking the property from the mass of the people, and are reducing them to a condition of hopeless poverty and degradation. To understand the power for evil that the bankers and money-lenders are exercising over the mass of the people by means of the money, it is necessary to revert to first principles and consider

WHAT MONEY IS AND WHAT IT IS FOR.

Money is a sign of value, and a medium of exchanging value, adopted by custom in the transaction of business, and legalized by government, and made a final end or test of value that labor and property, and other things of vakie, shall be referred to and valued by. The affairs of civilized society and government require the presence of a universal sign or representative of value, that real values shall be made to end or terminate in.

The ending of all value in money, is effected by custom and law, making a constant necessity for labor and property, to be converted into money to pay taxes and public revenues, and also business balances, at the option of creditors. This constant exchange of labor and property for money is necessary in the affairs both of the government and of the people, in securing and maintaining an interchangeable relation between money and labor and property. In a primitive state of society,

THE ESSENTIAL FEATURES OF MONEY

could onl}' be secured by making it of gold and silver. These metals are but little subject to waste by rust, and as they exist in limited supply, it is supposed to cost as much in labor to procure them, as it would to procure the things that they are the price of But whatever money may be made of, the controlling powers above enumerated must be organized In it by custom or law, or by both. These essential and controlling powers in money, afford the opportunity for the holders of it to inflict upon all the rest of the people the most terrible oppression and abject servitude, if they are not restrained by the power that makes the money. As is now seen, custom and law lay a necessity upon the people, to determine and end all value in money, and this requires of them to constantly procure and use money ; a thing impossible for them to do, unless they can get it in exchange for labor and property. Now, the bankers and money-lenders, having gotten the money in exchange for labor and property, refuse to let other people get it in that way, but hold it until the need resting upon the people to pay business balances and public revenues, will compel them to borrow the money on promises for Its return to the lenders with increase. The light of common reason, as well as sore experience, clearly shows that it is not possible for the people to fulfill the conditions made for them now, by the joint action of the government and the bankers and money-lenders, and that the bankers and money-lenders will continue, as they are doing now, to break up the business of the country, and take the property from the mass of the people, until they take all the property, and reduce all the laborers to a condition of abject poverty and servitude ; or until the government, the money-making power, restrains the evil business of money lending.

As the individual members of society are placed under the necessity to procure and use money, by a regulation of society and government, to the intent that they shall be compelled to constantly exchange labor and property for money, and thereby establish and maintain an interchangeable relation between money and labor and property for the benefit of society and government, there results

THE RIGHT TO EVERY MEMBER OF SOCIETY

to meet money in worldly affairs In exchange for labor and property, subject to the choice of the holders of the money to make the exchange, and also subject to the competition that other peoples labor or property mayoffer for it; but not subject to any right in the holders to make gain, while they refuse to exchange it for labor or property, nor while by notes and promises to pay money, they hold it bound to be returned to themselves.

The right to meet money in w^orldly affairs to be exchanged for labor and property without any right for holders to make gain while they hold it back from such exchange, is as important to the individual as his right to liberty ; for it is evident that his liberty and his condition will depend upon this right in money.

Their right in money is the test of their right in property, and in their own labor. Their right in money involves all the important points of the conflict between freedom and slavery, with greater ease and less responsibility resting on the money-lender, than rested on the slave-master.

Chapter II. Why Lending Money For Interest Is Wrong

It may be seen from common reason that no person has a right to take from another more than he gives, unless he accepts it as a gift of friendship, or acknowledges it as a gift of charity. If he takes increase, that is, more than he gives, in any other way, it is clear that he is an oppressor, a thief, or a robber. The nature of the crime is determined by the circumstances connected with the taking. If the need of others is taken advantage of as a means to extort increase, it is oppression, or robbery, depending upon the circumstances of the case. If the increase is taken through deception it is theft. By whatever means taking from others more than is given is effected, unless it is accepted as a gift of friendship or a charity, it is an offense against justice and right. The custom of society and the law uniting to make money a necessity to the people in their worldly affairs, while they are prevented by the same authority from producing it, presents an opportunity that is never or rarely offered to the holders of any other thing, for the holders of money to take from others more than they give. The act of holding money to lend for interest, is an offense against the rights of all the people in money ; while taking more in other matters than is given, very rarely, if it ever, effects any but those from whom it is taken. Takinor usury or increase on what is given in other things, marks the individual as an oppressor, and people will avoid him ; for they are not compelled to deal with him, as they are with one who stops the money from circulating in exchange for labor and property. The wrong will not only be limited in extent, but the perpetrator will be punished by neglect and loss of business, and will be checked in the evil practice. Taking increase on any other thing cannot be compared with lending money for interest, nor can either of them be compared to making gain in business

GAIN IN BUSINESS

is no evidence that increase is taken, or that more is taken than is given. To illustrate the proposition, we will take the example of a merchant, who prepares a storehouse and fills it with goods, to sell to his neighbors. If he faithfully consults the good of his customers, he can scarcely avoid giving them more than they give him in profits ; as they would learn by experience, if they were forced to get along without the office, or function of the merchant, being filled for them. If he takes more from them in profits than he gives them in goods and in the services that he renders them, they will soon quit his store. It would be a rare situation in business, where people would be compelled to deal with a merchant who took more in profits than an equivalent for his recurring outlay, and for the goods and services that he gave to his customers. What is true of a merchant in this respect, is true of every other honest and faithful person in business. If they are true and faithful, they give more than they take. If they purposely take more than they give, they, too, are usurers. To give a clear example of a business person giving more than he takes, let the intelligent and careful publisher of a news, paper be instanced. Consider the important fund of useful information that is given in a carefully prepared weekly newspaper, for three or four cents per week, and it will be seen that it is quite possible for business people to give more than they receive, and still make gain. The money-lenders alone, from the nature of their business, must be chargeable with taking more than they give, and they stand condemned by the Word of God, and by the sore experience of untold millions, as the oppressors of their kind.

That the borrower frequently makes more than the interest upon the money borrowed, is no refutation of the charge that the money-lender takes more than he gives. It merely shows that the borrower has either unwittingly or purposely become a participant in oppressing the rest of the people. For the interest or increase is not in the money borrowed, nor in the services of the lender ; and if it is taken^ it must be taken from other people. Increase means more than, or above the thing increased ; and when a person takes back all that he gave, and something more than or above what he gave, the circumstances of the case determine whether he is a recipient of a gift of friendship or of charity, or whether he is a usurer. To give in friendship is often the only way the giver can do the good that he wants to do ; but there is no doubt that the giver, when he bestows the gift upon a worthy person, reaps the highest reward of the two in satisfaction. True people in business try to give more than they receive, and are blessed with a blessing that the takers of increase cannot receive, or comprehend. While these truths may be seen through common reason^ we quote the sure foundation for them from the Word of God : " Take thou no usury of him or increase ; but fear thy God, that thy brother may live with thee. Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase." — Liviticus, xxv,, 36, 37.

Chapter III. Circulation Of Money

The circulation of money is often spoken of, and people pass along the remarks that are made on the subject in conversation, without noticing what the words do, or what they ought to, import. For instance, it is customary to hear the act ot borrowing money to pay a debt, or taxes, or to buy produce, or other things as circulating money ; without considering that the larger part of the operation consists in taking the money back to the lender, with the required additions in the form of interest ; ahhough there may be, and generally is, but a few days between the different parts of the transaction. And without considering the fact that the interest paid, together with the evident immunity from competition in business that the money-lender enjoys, may at the time be causing people to take money out of business, to be used in lending for interest, instead of continuing to circulate it in business. Now, suppose that the average timxe of loans of money to business people is sixty days, it is evident that after the money is once out, instead of circulating, the operation is a constant contraction of circulation. The business has been in operation long enough now, to afford a view of the other side. Let us go into the counting-rooms of the borrowers, and see what is going on there. Look at that careful man bending to the inspection of his business, to see where he may hope to draw out money, for the sixty days are passed, and he has only the days of grace left. After long hesitation, and with deep concern mingled with pain, he now makes drafts upon customers, that he knows ought not to be drawn.

He is conscious that in precipitating these drafts upon these careful business men, his customers, it will inevitably disturb the business relations ; but it must be done ; the money must be returned to the lender, with the interest. The drafts are made and sent. We will now take a look Into the counting-rooms of the men to whom the drafts have just been presented. They go now to the work of examining accounts ; they find their business standing fair, but working close. There appears to be no margin of money. They accept and pay the drafts ; but take a hint, also, that business is working too close ; and they determine to contract the borders of their operations. These contractions effect others, and vibrate through business, till every branch is touched by them. So business goes on ; the borrowing continues up to its old volume, but each evening the circulation is less by the sum of the interest of that day, than it was in the morning. The people are novv^ conscious that money is becoming very scarce in their affairs, and they become more careful in parting with it. The motions of money become much slower in consequence, and the same am.ount of money does inuch less business ; while the amount in business is actually becoming less day by day, and its motions continue to get slower in a corresponding ratio. Any person can recognize the picture as the true likeness of the existing condition cf the country; and they can also see at a glance that the picture, like the condition, gives no hope of anything better, so long as business runs in existing channels. They can certainly see, also, that borrowing money on promises to return it to the lender with increase, does not circulate money, but the reverse ; and that the only way to circulate money is to give it out in exchange for labor and property. The more a7id oftener that money is bo7'rowed and returned to the lenders with interest, the faster it contracts the circulation ; and in aii eqttal degree practically changes the ptirpose of mo7iey,fro7n that of supporti7ig the business of the gove7^n7ne7it, and all the people, to that of supportifig the mo7iey-le7iders

Chapter IV Standard Of Value And Medium Of Exchange

In a work entitled " Money and the Mechanism of Exchange," by W. Stanley Jevons, M. A., F. R, S., Professor of Logic and Political Economy in the Owens College, Manchester, and published by D. Appleton & Co., 549 and 551 Broadway, New York, there is much information given on subjects connected with merchandising in money. Also, a broad, rickety foundation for the business of lending money for interest. We quote here from the book, that part which appears to be offered as a foundation for money-lending, with the explanatory connections, as found in the first and second sections of the third chapter.

" We have seen that three inconveniences attach to the practice of simple barter ; namely, the improbability of coincidence between persons wanting and persons possessing; the complexity of exchanges, which are not made in terms of one single substance ; and the need of some means of dividing and distributing valuable articles. Money remedies these inconveniences, and thereby performs two distinct functions of high importance, acting as

(i) A medium of exchange.

(2) A common measure of value.

In its first form money is simply any commodity esteemed by all persons, any article of food, clothing, or ornament which any person will readily receive, and which, therefore, every person desires to have by him in greater or less quantities, in order that he may have the means of procuring the necessaries of life at any time. Although many commodities may be capable of performing this function of a medium, more or less perfectly, some one article will usually be selected, as money par excellence, by custom or the force of circumstances. This article will then begin to be used as a measure of value. Being accustomed to exchange things frequently for sums of money, people learn the value of other ar-

RIGHTS OF THE PEOPLE IN xMONEY. 25

tides in terms of money, so that all exchanges will most readily be calculated and adjusted by comparison of the money values of the things exchanged."

By the foregoing the public need of money as a measure of value, and medium oi exchanging value, is well shown. The author appears to have a peculiar taste in this instance for putting his horse to the hind end of the cart, and making money a medium of exchanging value, before people have learned its use as a measure of value. He says that after money has been adopted, " by custom or force of circumstances, as a medium of exchaneinof value, this article will then begin to be used as a measure of value." And he adds, " being accustomed to exchange things frequently for sums of money, people learn the value of other articles in terms of money, so that all exchanges will most readily be calculated and adjusted, by com.parison of the money values of the things exchanged."

It would appear from the last sentence that the author did not like the look of things while the horse was at the wrong end of the cart, and people were exchanging values in money, before they had learned its use as a measure of value, and he concluded to take the horse away altogether.

Now it appears to be his meaning that the people use money as a medium of exchanging value, before they learn the value of it ; but being selected, by the use of it, as a medium of exchanging value, this article will then begin to be used as a measure of value.

Having learned the value of things by the money measure, people cease to use money as a medium of exchanging value, and most readily adjust all exchanges by comparison of the money values of the things exchanged.

That looks like an improvement. The horse had better be away. But now he puts the horse back again, and again to the hind end of the cart ; for he says : " A third function of money soon develops itself Commerce cannot advance far, before people begin to borrow and lend, and debts of various origin are contracted. It is in some cases usual, indeed, to restore the very same article which was borrowed, and in almost every case it would be possible to pay back in the same kind of commodity. If corn be borrowed, corn might be paid back, with interest, in corn ; but the lender will often not wish to have things returned to him at an uncertain time, when he does not much need them, or when their value is unreasonably low. A borrower, too, may need several different kinds of articles, which he is not likely to obtain from one person, hence arises the convenience of borrowing and lending in one generally recognized commodity, of which the value varies little. Every person making a contract by which he will receive something at a future day, will prefer to secure the receipt of a commodity likely to be as valuable then as now. This commodity will usually be the current m.oney, and it will thus come to perform the function of a standard of value. We must not suppose that the substance serving as a standard of value is really invariable in value, but merely that it is chosen as that measure by which the value of future payments is to be regulated. Bearing in mind that value is only the ratio of quantities exchanged, it is certain that no substance permanently bears exactly the same value relatively to another commodity ; but it will, of course, be desirable to select as the standard of value, that which appears likely to continue to exchange for many other commodities in nearly unchanged ratios."

From the position the professor gained under the head of a medium of exchange and a common measure of value established by custom, or the force of circumstances, he finds people v/ill begin to borrow and lend, and that " every person making a contract by which he will receive something at a future time, v/ill prefer to secure the receipt of a commodity likely to be as valuable then as now. This commodity will usually be the current money, and it will thus come to perform the function of a standard of value."

A measure of value, when it is adopted by sufficient authority, becomes a standard of value. Pie had the measure of value established by the strongest known authority, that is, by custom or the force of circumstances ; but he does not find it to be a standard of value till people begin to lend it to be paid back In kind. When money is loaned, to be paid back in kind, the act values money at a future time, as compared with itself at the present time. A value set for a future time, of course, would be in the nature of a guess, but as there is in lending money always an advance in the value of money over its value at the present time, and as an advance in the value of money makes a decline in the things that mxoney measures the value of, it must be admitted that there is great propriety in the guesses, for they make their own fulfillment sure. The Professor might, with great propriety, have said that thus It came to perform the function of a measure of value; a dishonest measure, always expanding to take unjust gains. But he could with no propriety say that thus It performs the functions of a standard of value ; for those who use it always change values by It. He will hardly claim that it Is the function of a standard to make changes against others, at the will and for the gain of the interested parties who use It.

Falsity is the garb of evil, and a writer describing and tolerating an evil, will be sure to clothe it in falsity, if he makes his language consistent with his work. Professor Jevons was writing a book on money. In the work he came to the point at which evil desires prompt men to take advantage of others, by taking money out of its function in business,, and holding it to lend for interest, an evil that in its every act injures the public rights in money. If he had had any (the least) of the reformer in the constitution of his mind, he would have seen the evil. But he is no reformer ; he appears to be entirely satisfied, and if advance is to be made, he will look for it in the straight line of existing conditions. He saw no evil in money-lending. But he was compelled to recognize and account for it in his work ; he did this, and he gave it the most comely dress that it was capable of wearing. It is the greatest evil extant in worldly affairs ; and he clothed and surrounded it with falsity and rags. The only thing remarkable Is that he should be so entirely unconscious of what he was doing.

We will now look over the ground for ourselves. We will suppose that in the early

Stages of the question of selecting and adopting money, two men meet in business ; one oi them has gold, and the other has corn ; and they want to make an exchange of a part ot their commodities. They will not exchange by even weights, or even bulks. It is evident, that they must fix a value for one of the com-^ modities by bulk or by weight, and then ascertain the quantity of the other that will agree with the value fixed for that one. They know that corn can be increased indefinitely,, and that it is very perishable ; it will not,, therefore, be suitable for a measure of value. But gold is limited in supply, and is very little subject to change ; and for these reasons. it is very suitable for a measure of value.

They value gold by weight, therefore, and then determine what the corn is worth by the gold measure. That being done they are ready to make the exchange, using the fixed value of gold as the measure of value, and gold itself at its fixed value as the medium of exchange. They have now erected gold into a measure of value and a medium of exchange, and they show the convenience of it to others ;

O'^ RIGHTS OF THE PEOPLE IN MONEY.

and they adopt it also. When it has become customary to value things by the gold measure and exchange values in gold, they go to government, and it adopts it, and by law makes it the only legal sign of value, and legal tender.

Thus it becomes a standard of value, and a standard medium of exchange.

By custom and by \si\N all are now compelled to procure money to pay business balances and taxes, or they can hold no property or do no business. Certain sharp ones now see the grand opporticjiity and they exchange their property for money, and refuse thereafter to do business that will require paying out the money. Soon the need of the money that they extracted from business channels presses heavily upon other people, and they go to the holders of the money, not to borrow it, for they know that those who " go borrowing go sorrowing ;" but they go to exchange services or property for the money.

Oh, no ! the holders of the money do not want labor or property ; but they will lend it on condition that it will be paid back to them

With more money. And now, In the palliating^ not to say deceptive, words of Prof. Jevons, " Commerce cannot advance far before people begin to borrow and lend, and debts of various origin are contracted." The statement of the condition carries positive proof on its face, that the people cannot perform the tasks that the money-lenders force upon them by taking the money out of business and holding it to lend. In the nature of things, money-lending, if it Is allowed to become general, will subject all business and labor to itself Many things may exist that may help to hold a sort of depressed life in business. As, for instance, large collections of taxes and revenues, to be disbursed among the people, in pensions, annuities and salaries. While this governmental control of large sums of money may make it possible for business among the people to retain some vitality, it is a slavish life for the masses of the people, and they cannot help but sink deeper and deeper into poverty and degradation.

There is a view of the effects of the control of the money of the country as interest-bearing capital, that all are interested in keeping before them, and especially the laboring and producing millions. That is, that an interest or inducement that acts to restrain the exchange of money for labor or property, the product of labor, is borne and paid by those who labor and produce property ; and it is paid on every dollar's worth of business that springs from and is connected with labor and property. If the interest is one per cent, the producers pay it on all the business operations that are measured by money, and not merely on the actual money borrowed in transacting the business ; and they pay as much additional as the condition produces restraint upon the exchange of money for labor and property. Thus the one per cent, to-day reduces the prices of the product of labor by that amount. But after the reduction is established the one per cent, acts with as much force for another reduction of one per cent.