Weekly Chillicothe crisis., 1885-04-30

as1.:s.a......ssas
drafts. clearing houses, &C., answers
the purpose Of $40 per capita in France
without these appliances.
Irepcat, then,th prices will always
fall when the money volume is under
going contraction, and rs prices begin
to fall money withdrawn from invest
mcnt and boarded in idlcncSS. Why?
Because investment is not safe. 1t is
neither profitable nor safe to put mon
ry into property that is falling in value
nor to employ it in business. PrOduc-
ton is therefore checked or stopped.
For if what is produced one month is
worth less the next, who wants to in
vest money in production That road
need only be followed long enough to
carry any one into bankruptcy. 1t has
already carried thousands there, and
has Just carried the great firm Of Oliver
Bros. " Phillips, of Plttsburg, into that
pitfall,
No, money is not invested, because
when price, are falling it is not prolita
ble or safe to invest it, 1t is profitable
at such times to lock up money, because
although it may draw no interest it is
increasing in purchasing power. 1t is
gaining in its power of command ov-
cr property. In short, to use it is to
lose, to lock it up is to gain. 1t is the
buried talent that, under such circum-
stances, gains other talents, and the ac-
tive talent that loses. Hence it is that
a contraction Of Sl0,0O0OOO leads to
locking two, three, or five times as much
which react, to reduce prices still low
cr. And this operation will continue
Just so long aS contraction continues,
whether it he one year or ten years
Instinct "a, to money is always acute,
In 1874 heard gentleman of wealth
say he had placed in the Bank of Eng
land Il million dollars at per cent
lust as money is now being sent to En-
gland to be loaned. When | asked him
"why he did not invest it here he re.
piled, "Why expect to be able to buy
next wear for 100000 more property
than can luy now for million. y He
was right. But people say there is a
""t .h W. inrnstnWt, ,"t, nU
or in businos, when prices are falling!
And if one having money of his own
will not invest it, who will want to Dor.
row on "gool security to invest?
, Is tito he wondered then that inter.
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' har- W ,jra . omd Ln,in"ss ~, j.; cdnso ,,o
uurncc has brcomc starnapt. then in
trrest falls for thc reason have riyen
I Grorrn Ward Norman. in his eyidcnc,
n brfore ,br parliamentary Committee o
5 1887 stated that rate Of interest did no
n dnnend an the ommnt of currency
ILL., soIJ Isno noqe AIS nuesti9,
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lIhr al ID al lne!c's ;. I'G.n'i,T u, 80 m lol
rrarhl'@, VI ~ Iuinous i III Ill.,, l's GoI'. ,,'
Iucnc,,'n> in',IN'm2 Inn IG,ulIe ,iI Si IN ii?n ;;
l. Iy' MONEY Is 'l'e ,''r-ploou % :; VI VI a.. ., IN
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y, "wal IT u l'I' 1" cNeIS WI. anu "itel t,
ol lrauG; n,oP rontrIc'Ioi i.! unn any, } 1us
N mes, WI miIl revive anu INDUSTRIES Will 'no'
lc new me-
M have spoken only OF the effect {