Page:David Atkins - The Economics of Freedom (1924).pdf/308

already mentally crediting your estate, owing to the tenants you control in virtue of your position as landlords, with a capacity to earn at least 6.85 billion dollars per annum for the next 20 years. On the basis of 5 per cent tax-paying capacity the earning-power can be capitalized at 137 billion dollars, less the present debt of 30 billion dollars which we have incurred on behalf of your individual sovereignty, and upon which we are now paying interest. On this basis there is due to you the sum of 107 billion dollars. It is not necessary for the most conservative of you to be alarmed over this revelation of value; for all we propose is to partially anticipate the inevitable dilution of the ‘gold-dollar,’ which, by previous experience, we know will take place in the next decade, under our present gold-standard system. This increase, at a normal rate, by 1930 will probably be at least 400 billion dollars. We propose to face this dilution of value deliberately, and avoid being taken unawares as usual, to the confusion of our more innocent citizens who have invested in bonds and life insurance, or who have foolishly put their money away in banks—only to find that the rate of interest is less than one quarter the depreciation^[1] and the value of the capital is cut in half in a period of ten years. We now propose to certify to you the order-value of your holdings on condition that you will lend us the entire sum. After settling the obligations already incurred for your protection, we shall repay you the balance due, over a period of approximately 20 years at the rate of 10 billion dollars the first year, 9+¹⁄₂ billion dollars the second year and so on, reducing the amount by $500,000,000 every year till the total is paid off. So that there may be no doubt as to our good intentions we shall place the instruments which represent this validated credit in escrow with the United States Treasury—only—and this must be definitely borne in mind—we are also henceforward going to hold you responsible for a total annual tax bill of at least 10 billion dollars per annum, which we shall apportion to the Federal Government, and to all local subdivisions of Government, in a ratio based upon need instead of advantage. We propose henceforward to utilize this sum

1. See page 130.