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Rh money, but its value would decrease notably,—would fall, that is to say, from its abnormal, artificial, government-created value, to its normal, natural, open-market value.

FREE TRADE IN BANKING.

To the Editor of Liberty: It is much to be regretted when Liberty is wounded in the house of her friends. This is caused by those who regard liberty as a panacea for every ill, or perhaps it would be better to say who regard the inevitable vicissitudes and inequalities of life as evil. There is no more philosophical reason for believing that all men can be equal, rich, and happy than for believing that all animals can be equal, including, of course, that they should all be equal to men.

Freedom is exceeding fair. It is by far the most excellent way. Under liberty the very best possible results in every department of human activity, including commerce, will be obtained. But it won't make fools successful. One of its recommendations is that folly will more surely be remedied by getting its medicine than by the grandmotherly plan of pro- tection in all directions. In many cases cure is better than prevention. Little burns, we may be sure, save many lives, (1)

It seems to be a fashion novadays amongst reformers to rail at our existing systems of currency and to regard government interference here as greater and more pernicious than in many other matters. The truth, however, is that there is scarcely anything which more completely illustrates the powerlessness of government to establish code in opposition to custom than the unvarying failure of unsound currency enactments, and the concomitant dwindling of monetary law into a mere specification of truisms, a registration of established practice, or a system of licensing certain individuals to carry on certain kinds of trade. But all these are evils not perculiar to the money trade, nor do they here produce more injurious results than in the cases of priests, doctors, accountants, lawyers, engineers, and other privileged faculties. (2)

Schemes to bring about the abolition of interest, especially when the authors promulgate this as a necessary consequence of free trade in banking, are pernicious, and in their ultimate effect reactionary. Low rates of interest depend upon the magnitude of the mass of capital competing for investment rather than upon the presence or absence of the really trifling interference of governments with the modes in which debt may be incurred. What is called free trade in banking actually means only unlimited liberty to create debt. It is the erroneous labelling of debt as money which begets most of the fallacies of currency-faddists, both coercionary and liberationist. (3)

The principal error of the former is that they advocate schemes for the growth and preferential marketing of government debt. The ignis fatuus of some of the latter is a vision of people both using their property and pledging it at the same time; (4) while some go so far as to dream of symbolical money of indefinite value. Thus we have Mr. Alfred B. Westrup contributing "Citizens' Money" and "The Financial Problem,