117 lines
5.3 KiB
Plaintext
117 lines
5.3 KiB
Plaintext
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Conspiracy Nation -- Vol. 11 Num. 06
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=======================================
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("Quid coniuratio est?")
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COIN'S FINANCIAL SCHOOL -- III
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==============================
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Synopsis by Conspiracy Nation
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-----------------------------
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(Based on *Coin's Financial School* by William Harvey (1895))
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*Credit money* is a title to commodity money (e.g., gold,
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silver). In the exchange value between commodity money and all
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other property, credit money does not add anything -- it
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facilitates -- makes convenient the transaction of business.
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Three lines of credits are built up on primary or redemption
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money (gold and/or silver):
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(1) Credit money -- paper bills and all forms of token
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money -- all redeemable in primary money.
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(2) Checks, drafts, bills of exchange, and other forms of
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like paper, payable on demand.
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(3) Notes, bonds, accounts, and other forms of credit,
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payable at a particular day in the future (debt), or upon
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the happening of some contingency.
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Thus we have *three* categories of credit built up on primary
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money.
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Over-confidence causes an expansion in categories two (2) and
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three (3). A man finds he can easily float $5,000 in debts and,
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since times are good, he increases his debts to $10,000. This
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expansion becomes contagious. Cities, counties, corporations --
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all increase their debts. When demonetization of silver took
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place (1873), the supply of primary money was reduced by about
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one-half, and the half that was demonetized became credit money
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(category (1), above). At this point there was very little
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supply of primary money (gold) compared to (1) credit money, (2)
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checks, drafts, etc., payable on demand, and (3) notes, bonds,
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etc., payable in the future.
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It is practical to maintain a purely greenback system. The only
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theory, however, on which a purely greenback or paper money
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system might be maintained would be to do away with a redemption
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money entirely. You cannot have both without the redemptive
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principle applying. The money with its own intrinsic value
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(e.g., gold, silver) becomes the most preferable. You cannot
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maintain two kinds of money at a parity, when one has a
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commercial value and the other has none, except by making one
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redeemable in the other.
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But you might have a purely paper money. Limit it in quantity by
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fixing the amount at so much *per capita*. Maintain the volume
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at that as population increased, and from time to time provide
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for what had been destroyed. The fact that it was limited in
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quantity would give it a value.
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The objection to the greenback system is this: So long as there
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was confidence in the government, it would be a sound, stable
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money. But as soon as confidence in the government was shaken it
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would depreciate in exchangeable value.
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[CN: Put differently, to prop up the greenback, confidence in
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the government must be maintained, no matter what. Our current
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paper money is sort of a greenback system: what is now called
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"the dollar" is not redeemable for, e.g., gold and/or silver.
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>From "greenback system" follows, *ipso facto*, that "the
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government can do no wrong."]
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When the danger became imminent that the government was not able
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to enforce the greenback's legal tender character, the greenback,
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having no commercial value, would become more or less worthless.
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Combined capital all over the world have been using (1895)
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professors of political economy to instruct the minds of the
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young to a belief in the gold standard. This is not hard to do,
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as these students, being young, their minds are easily molded.
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The error is planted deep and strong. But the gold standard, now
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(1895) fitted to a shivering world, is squeezing the life out of
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it. The workers of the country, the backbone of the republic,
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are delivering over their property to their creditors, and going
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into beggary. This is the test proof of the "beneficence" of the
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gold standard.
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+ + + + + + + + + + + + + + + + + + + + + +
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For related stories, visit:
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http://www.shout.net/~bigred/cn.html
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http://feustel.mixi.net
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Views expressed do not necessarily reflect those
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of Conspiracy Nation, nor of its Editor in Chief.
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Send to: Brian Redman, 310 S. Prairie St. (#202)
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Champaign, IL 61820
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Want to know more about Whitewater, Oklahoma City bombing, etc?
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(1) telnet prairienet.org (2) logon as "visitor" (3) go citcom
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Aperi os tuum muto, et causis omnium filiorum qui pertranseunt.
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Aperi os tuum, decerne quod justum est, et judica inopem et
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pauperem. -- Liber Proverbiorum XXXI: 8-9
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