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the farmer," I shall show conclusively that the bank did nothing of the kind. If I successfully maintain this contention, then it will be demonstrated that the interest paid in the transaction specified was not paid for the use of anything whatever, but was a tax levied by monopoly and nothing else.

Meantime it is comforting to reflect that my labor has not been entirely in vain. As a consequence of my criticism of To-day's article on interest, the editor has disowned it (though it appeared unsigned and in editorial type), characterized it as "trivial" (heaven knows it had the air of gravity!), and squarely contradicted its chief doctrinal assertion. This assertion was that "the amount of currency can have no effect upon the abundance of capital." It is contradicted in these terms: "Evidently money is a necessary element in the existing industrial plexus, and increase of capital is dependent upon the supply of a sufficient amount of money." After this I have hopes.

 

 

GOVERNMENT AND VALUE.

[Liberty, October 16, 1891.]

In a letter to the London Herald of Anarchy, Mr. J. Greevz Fisher asserts that "government does not, and never can, fix the value of gold or any other commodity," and cannot even affect such value except by the slight additional demand which it creates as a consumer. It is true that government cannot fix the value of a commodity, because its influence is but one of several factors that combine to govern value. But its power to affect value is out of all proportion to the extent of its consumption. Government's consumption of commodities is an almost infinitesimal influence upon value in comparison with its prohibitory power. One of the chief factors in the constitution of value is, as Mr. Fisher himself states, utility ; and as long as governments exist, utility is largely dependent upon their arbitrary decrees. When government prohibits the manufacture and sale of liquor, does it not thereby reduce the value of everything that is used in such manufacture and sale? If government were to allow theatrical performances on Sundays, would not the value of every building that contains a theatre rise? Have not we, here in America, just seen the McKinley bill change the value of nearly every

article that the people use? If government were to decree