The midland journal. (Rising Sun, Md.) 1885-1947, 1891-08-28
Money.

"Money makes the mare CO." whatever
that may mean. 1t makes men go, business
go: we all understand this. Without money
work will almost come TO stand still. If
money is scarce, an expression we often
hear made use Of, work is scarce, business
is dull and Jrags. Some people, who are IN
business, buying and selling will say,
s'there is plenty Of money. If you have
something 10 sell that people want, you can
sell it," So you cantor some price. Often
it has to be sold on credit and at a very low
price. The reason is there is not enough Of
money in the country to transact the bust
ness. The person who buys on credit has
to wait till his turn comes to use part OF
the small quantity Of money in circulation
small in proportion TO the goods and labor
depending on il to be moved, and activity
of trade.
Money to trade is like the water IN
stream to mill. Ifthere is plenty Of water
the mill can go on grinding steadily. Ii
water is low and scarce in the stream the
mill must shut down and wait till the dam
fills up. If the employer cannot get money
10 pay his hands he must discharge some OF
them or pay all lower wages. Ifthe banks
have not money to loan him all he could
use in employing labor he must stop part OF
the work or underpay all his employees.
On account Of the scarcity of money last
fall in New York during the Barings' panic,
call loans went up to 1SS per cent. A call
loan is loan on condition that the money
borrowed shall be returned 10 the lender on
demand at a moments notice, the loan being
made for NJ specified length Of time. When
money is in a normal condition the rate
of interest on call loans is about two per
cent. Country banks keep on derosit
to meet drafts and checks, drawn by the
customers Of country banks to pay bills
in the large cities, and they also loan
on call large quantities of money to city
banks at those seasons of the year when
business is slack in the country, and they
cannot use all their deposits at home. As
business expands throughout the country
more money is needed and the country
banks draw In their funds from the city
banks. This depletes the city banks and
they have not funds to supply their CUSTOM
ers. Business houses go under which have
the best Of securities 10 pledge for money,
but the money cannot be had. There is
not enough in the whole country to supply
the demand. Work stops in large part,
men are idle, business is narrowed, wages
fall; The prices Of all produce fall. People
buy on credit and discount the future to
supply present needs. Those who have
money can purchase more property with it,
Those who have only their produce and
labor to sell sre made poorer and those who
are called rich grow richer. The latter class
are the men who are always talking Of
''honest money" of gold alone constituting
money. The reason is l.lain. There is NOT
gold enough in The world to enable the in
dustrial, producing classes 10 ever get out
of debt, and they must from the very nature
of the case sink into hopeless bondage to the
debt holding few. All they can earn and
produce viii not sell for enough to pay the
ever consuming interest, much less the
capital. Piece by piece their property goes
till they in the end have nothing and their
children are cast out to join the millions
who are in search of work that is not to be
found. The farmers are on the brink Of
this dark gulf Of want and hopeless poverty
10 the next generation, and are recoiling in
horror and alarm. seeking some means of
escape.