What are these three constituents? First is the denominator or namer of the unit—Dollar. This is an ideal or abstract term given to an intangible thing. Second, some tangible or material substance to represent the dollar, or some multiple of it; and third, its life, the legal tender function.
No two of these can make money; they must all three be named by sovereign power, Congress, or we have no money. Sovereignty is a unit and cannot be divided, nor can it be delegated. This is why National Bank notes are not a legal tender; they are simply the debt of the bank circulating as a substitute for money, so as to gratify the greed of the money sharks, and the “Power” that is aiming to be “master of our industries and commerce.”
But we are told that Congress, sovereign power, cannot make money out of nothing, that there must be intrinsic value in our monetary tokens. Let us analyze this proposition in the light of facts and logical reasoning.
The second factor in money is the material substance used to represent the dollar, or some multiple of it. This material substance does not make the dollar. Remember this.
The important factor in the dollar is its life—the legal tender function—and sovereign power alone can grant this.
Under our constitution, sovereign power is placed in the hands of the American people—the whole people, not a part of them,—and their representatives in Congress exercise that power; so that whatever Congress says shall be money is money in the United States. So it can be safely affirmed that law alone creates money. The fiat or decree of law in the United States gives us our money.
But we are told that paper money, greenbacks, is all right when they are made redeemable in coin. The word “redeem” should never be used in connection with our money here in the American Republic. According to our big dictionary, redeem means “to purchase back,” “to ransom, liberate, or rescue from captivity or bondage.” Now as we have seen, Congress issues our money and puts it in circulation among the people. Is not Uncle Sam’s stamp on a piece of paper just as good as it is on a piece of silver or gold? If not, why not? Will some one please tell us? Then again I ask, wherein is there any sense or logic in Uncle Sam, the sovereign power in the United States, buying himself back? Where has our sovereign power got to, that Uncle Sam must ransom, or rescue himself from captivity or bondage?
As we have seen, sovereign power alone can issue money. That being a fact, Congress alone should issue all our money, whether coin or paper, and it should all be made a full legal tender; and no one kind “redeemable” in another kind; with no state or National note circulation as a substitute for money.
Another very important consideration is that it should be issued in sufficient volume to effect all our exchanges on a cash basis, or as nearly so as possible; for debt and usury, now called interest, is the present curse of every civilized country on earth.
This accomplished, the Government should establish Postal Savings Banks in every city having a population of two thousand or more, where the people could deposit their surplus money, until needed, in perfect safety, paying a small per cent. just as they do for insuring their buildings.