Let us assume, then, that for an adequate volume of currency, at the present time, we require 6 billion certified dollars out of the estimated 224.215 billion dollars’ worth of basic wealth which we control through our taxing power. When the fact is disclosed that the Government (or the community) not only controls all this wealth, but actually owns a fairly large portion of it, we may find to our surprise that we have already in hand far more than sufficient basic exchangeable value to support our new currency without even thinking of coercion or confiscation.
The unappropriated public domain in the United States amounts to 200,320,128 million acres exclusive of the 352,781,760 acres owned in Alaska; but if this is regarded as a pledgeable asset we must see that it is paid for at its scientific value when ultimately handed over to individuals, as is most desirable for the general welfare. But in addition to this, in area controlled by Government within more thickly populated districts there is probably a total value of at least 20 billion “1920” dollars.[1]
It should be a pleasant thought to dwell on—the reassuring fact that behind the currency already issued there is actually salable community property, instead of gold belonging in some measure to the more astute and less patriotic citizens of other countries.
If it became necessary to expand the volume of our currency, to provide for the increasing activity which would arise from liberated demand, the procedure would be much as it is today in method, but not in principle.
Today a Member Bank of the Federal Reserve System comes forward with the following security:
- ↑ In 1913 the properties and assets of States, counties and municipalities was estimated as $6,152,572,013 and in the previous year (1912) the total wealth of the United States shown as tax exempt was $12,313,519,502. The latter item includes the real property of religious, charitable and educational institutions, and probably includes also the former item. (See “Wealth, Debt and Taxation,” 1913, Bureau of the Census. Vol. 1, page 15; Vol. 2, page 14, Washington, D. C.) However, these totals have undoubtedly swollen in the same ratio as all our other “values,” giving us ample security for an issue of 6 billion dollars’ worth of our “1918” brand of currency.
