deliberately placed in jeopardy to vouch for Value: Value is mobilized; and advantageous Effort is induced. Through many cumbersome agencies we are struggling toward this emancipation; but we still cling to our delusion that value must finally be measured by gold. With a rational conception of value, this sequence would be utilized even though Congress were in recess.
By the same logic it may be strongly maintained that the equally vexed question of interest-rate would also settle itself. Interest becomes simply the current value of freedom, officially certified, and this current value would be governed by measurable available supply and measurable effective demand properly coupled by the currency-issuing authority. Under such a system, with our vast store of basic economic value made apparent and subject to mobilization, it would be a little difficult to imagine call-money commanding 125 per cent interest, as we have seen happen during a panic while at the expense of the producers and the thrifty our basis of value was being brought back from Europe—in a ship—to reassure us.[1]
At the outset, the annual government charge for the certification and underwriting of value might properly be the same as the Federal tax rate on land-area, since the value certified rests wholly upon the insurance of order. Without any question the Treasury rate should be less than the open market interest rate for the certification of credit, as it is obvious that actuality offers better security than belief. The annual charge paid to the community for this underwriting and certification (which now without any justification is remitted to the owner of gold) would make a very substantial contribution to taxation or the cost of order, as it properly should. But this charge for order would fall where it belongs, namely, upon the owner of area who desired to make an advantageous use of order. Today, we find an alien owner of gold receiving his certificate free of charge, while the American farmer who controls a large share of the actuality has to pay from 7 to 10 per cent for his certificates, as well as most of the cost of order. We carry our conventions a little far.
- ↑ See footnote, page 120.
