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agencies of production. And it is precisely because money is "a means for the transfer of these "that the ability to issue money secured by their own property would make it unnecessary for them to borrow these agencies by enabling them to buy them. This raises a question which I have asked hundreds of times of defenders of interest and which has invariably proved a "poser." I will now put it to the editor of To-day. A is a farmer owning a farm. He mortgages his farm to a bank for $1,000 giving the bank a mortgage note for that sum and receiving in exchange the bank's notes for the same sum, which are secured by the mortgage. With the bank-notes A buys farming tools of B. The next day B uses the notes to buy of C the materials used in the manufacture of tools. The day after, C in turn pays them to D in exchange for something that he needs. At the end of a year, after a constant succession of exchanges, the notes are in the hands of Z, a dealer in farm produce. He pays them to A, who gives in return $1,000 worth of farm products which he has raised during the year. Then A carries the notes to the bank, receives in exchange for them his mortgage note, and the bank cancels the mortgage. Now, in this whole circle of transactions, has there been any lending of capital? If so, who was the lender? If not, who is entitled to any interest? I call upon the editor of To-day to answer this question. It is needless to assure him that it is vital.




[Liberty, August 16, 1890.]

To-day's rejoinder to my criticism of its article on interest is chiefly remarkable as an exhibition of dust-throwing. In the art of kicking up a dust the editor is an expert. Whenever he is asked an embarrassing question, he begins to show his skill in this direction. He reminds one of the clown at the circus when "stumped" by the ring-master to turn a double somersault over the elephant's back. He prances and dances, jabbers and gyrates, quotes Latin forwards and Greek backwards, declaims in the style of Dr. Johnson to the fish-wife, sings algebraical formulæ to the music of the band, makes faces, makes puns, and makes an excellent fool of himself; and when at the end of all this enormous activity he

slyly slips between the elephant's legs instead of leaping over