Free Money First

Excerpted from the book;

Individual Liberty
Selections From the Writings of Benjamin R. Tucker
Vanguard Press, New York, 1926
Kraus Reprint Co., Millwood, NY, 1973.

J. M. M'Gregor, a writer for the Detroit Labor Leaf thinks free land the chief desideratum. And yet he acknowledges that the wage-worker can't go from any of our manufacturing centers to the western lands, because "such a move would involve a cash outlay of a thousand dollars, which he has not got, nor can he get it." It would seem, then, that free land, though greatly to be desired, is not as sorely needed here and now as free capital. And this same need of capital would be equally embarrassing if the eastern lands were free, for still more capital would be required to stock and work a farm than the wage-worker can command. Under our present money system he could not even get capital by putting up his farm as collateral, unless he would agree to pay a rate of interest that would eat him up in a few years. Therefore, free land is of little value to labor without free capital, while free capital would be of inestimable benefit to labor even if land should not be freed for some time to come. For with it labor could go into other industries on the spot and achieve its independence. Not free land, then, but free money is the chief desideratum. It is in the perception of this prime importance of the money question that the greenbackers, despite their utterly erroneous solution of it, show their marked superiority to the State Socialists and the land nationalizationists.

The craze to get people upon the land is one of the insanities that has dominated social reformers ever since social reform was first thought of. It is a great mistake. Of agriculture it is as true as of every other industry that there should be as few people engaged in it as possible; that is, just enough to supply the world with all the agricultural products which it wants. The fewer farmers there are, after this point of necessary supply is reached, the more useful people there are to engage In other industries which have not yet reached this point, and to devise and work at new industries hitherto unthought of. It is altogether likely that we have too many farmers now. It is not best that any more of us should become farmers, even if every homestead could be made an Arcadia. The plow is very well in its way, and Arcadia was very well in its day. But the way of the plow is not as wide as the world, and the world has outgrown the day of Arcadia. Human life henceforth is to be, not a simple, but a complex thing. The wants and aspirations of mankind are daily multiplying. They can be satisfied only by the diversification of industry, which is the method of progress and the record of civilization. This is one of the great truths which Lysander Spooner has so long been shouting into unwilling ears. But the further diversification of industry in such a way as to benefit, no longer the few and the idle, but the many and the industrious, depends upon the control of capital by labor. And this, as Proudhon, Warren, Greene, and Spooner have shown, can be secured only by a free money system.

In answer to my article, "Free Money First," in which was discussed the comparative importance of the money and land questions, J. M. M'Gregor, of the Detroit Labor Leaf, says: "I grant free money first. I firmly believe free money will come first, too, though my critic and myself may be widely at variance in regard to what would constitute free money." I mean by free maney the utter absence of restriction upon the issue of all money not fraudulent. If Mr. M'Gregor believes in this, I am heartily glad. I should like to be half as sure as he is that it really is coming first. From the present temper of the people it looks to me as if nothing free would come first. They seem to be bent on trying every form of compulsion. In this current Mr. M'Gregor is far to the fore with his scheme of land taxation on the Henry George plan, and although he may believe free money will be first in time, he clearly does not consider it first in importance. This last-mentioned priority he awards to land reform, and it was his position in that regard that my article was written to dispute.

The issue between us, thus confined, hangs upon the truth or falsity of Mr. M'Gregor's statement that "to-day landlordism, through rent and speculation, supports more idlers than any other system of profit-robbing known to our great commonwealth." I take it that Mr. M'Gregor, by "rent," means ground-rent exclusively, and, by the phrase "supports more idlers," means takes more from labor; otherwise, his statement has no pertinence to his position. For all rent except ground-rent would be almost entirely and directly abolished by free money, and the evil of rent to labor depends, not so much on the number of idlers it supports, as on the aggregate amount and quality of support it gives them, whether they be many or few in number. Mr. M'Gregor's statement, then, amounts to this: that ground-rent takes more from labor than any other form of usury. It needs no statistics to disprove this. The principal forms of usury are interest on money loaned or invested, profits made in buying and selling, rent of buildings of all sorts, and ground-rent. A moment's reflection will show any one that the amount of loaned or invested capital bearing interest in this country to-day far exceeds in value the amount of land yielding rent. The item of interest alone is a much more serious burden on the people than that of ground-rent. Much less, then, does ground-rent equal interest plus profit plus rent of buildings. But to make Mr. M'Gregor's argument really valid it must exceed all- these combined. For a true money reform, I repeat, would abolish almost entirely and directly every one of these forms of usury except ground-rent, while a true land reform would directly abolish only ground-rent. Therefore, unless labor pays more in ground-rent than in interest, profit, and rent of buildings combined, the money question is of more importance than the land question. There are countries where this is the case, but the United States is not one of them.

It should also be borne in mind that free money, in destroying the power to accumulate large fortunes in the ordinary industries of life, will put a very powerful check upon the scramble for corner-lots and other advantageous positions, and thereby have a considerable influence upon ground-rent itself.

"How can capital be free," asks Mr. M'Gregor, "when it cannot get rid of rent?" It cannot be entirely free till it can get rid of rent; but it will be infinitely freer if it gets rid of interest, profit, and rent of buildings and still keeps ground-rent than if it gets rid of ground-rent and keeps the other forms of usury. Give us free money, the first great step to Anarchy, and we'll attend to ground-rent afterwards.