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INSTEAD OF A BOOK.

serving the needs of all through whose hands it passes. Hence borrowing a title to capital is a very different thing from borrowing capital itself. But under the system of organized credit contemplated by "Apex" no capable and deserving person would borrow even a title to capital. The so-called borrower would simply so change the face of his own title as to make it recognizable by the world at large, and at no other expense than the mere cost of the alteration. That is to say, the man having capital or good credit, who, under the system advocated by "Apex," should go to a credit-shop—in other words, a bank—and procure a certain amount of its notes by the ordinary processes of mortgaging property or getting endorsed commercial paper discounted, would only exchange his own personal credit—known only to his immediate friends and neighbors and the bank, and therefore useless in transactions with any other parties—for the bank's credit, known and receivable for products delivered throughout the State, or the nation, or perhaps the world. And for this convenience the bank would charge him only the labor-cost of its service in effecting the exchange of credits, instead of the ruinous rates of discount by which, under the present system of monopoly, privileged banks tax the producers of unprivileged property out of house and home. So that "Apex" really would have no borrowing at all, except in certain individual cases not worth considering; and, therefore, when "Basis," answering "Apex," says that "it is really capital that is borrowed, and not money," he makes a remark for which there is no audible call.

The second error committed by "Basis" he commits in common with the economists in assuming that an increase of capital decreases the rate of interest and that nothing else can materially decrease it. The facts are just the contrary. The rate of interest may, and often does, decrease when the amount of capital has not increased; the amount of capital may increase without decreasing the rate of interest, which may in fact increase at the same time; and so far from the universalization of wealth being the sole means of abolishing interest, the abolition of interest is the sine qua non of the universalization of wealth.

Suppose, for instance, that the banking business of a nation is conducted by a system of banks chartered and regulated by the government, these banks issuing paper money based on specie, dollar for dollar. If now a certain number of these banks, by combining to buy up the national legislature, should

secure the exclusive privilege of issuing two paper dollars for