Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-07-28
Prof. J. 3. Parkinson, Of Madison

abuse" and he handled it in a master
" manner The lecture was most time
", because it dealt mainly with the
evils which result from the excessive
use of credit, from which our country Is
suffering at this present time. Among
other things the lecturer said:
"Credit is trust-confdence. In its
general sense it is implied i'll all mu-
tual helpfulness. In the affairs of life
it is reliance on the integrity. energy
and skill Of ones fellow men, and the
extent to which it may be safely
carried is one Of the highest tests Of
civilization. Commerce demands more
and more aS the years go by that men
shonld have confidence III each other
in Il business way"
The excessive use Of credit raises
prices, encourages reckless speculation
and leads to general distrust and com
mercial disaster, for credit has pur-
chasing power like money. and when
it is freely given, men are apt to pur-
chase beyond their ability until finally
some one refuses to give more credit
and the crash comes. The course Of a
business crisis is in general this: first, a
state of quiescence: next improvement,
and then growing confidence, prosper,
ity, excitement, over trading, convul-
sion, stagnation, distress ending again
in qniescene.
"Chief among the Palaces that clus
ter about the subject of credit is the
belief that evidences of debt are
wealth This cannot be true, for all
such evidences of debt may be des-
trOyed without in the least altering
the amount Of wealth in the country.
Many legislative bodies have fallen
into the error above mentioned. They
not only tax mortgages but the mort
gagged estates for their full value as
we'll"
"But it is in connection with the
currency of the country that credit
has its greater influence for good or
evil A very large percentage of the
total volume of the business of the
country is carried on by use of instru-
ments of credit, us for example where
% per cent. of all business is done
with the instruments, while money is
used in but per cent. of all transac
tionS. 1t is important that the great
est faith should be had in these credit
Instruments These are simply prom
ises TO pay. 1t is real or value money
alone that pays as it goes. Value m oney
nj no &c of
Walkers excellent definition of money,
which is, " money is that which freely
passes from hand to hand throughout
the community in final discharge of
debts and full payment of commodit-
les" Instruments of credit may do
the work Of value money, but they are
not value money"
Prof. Parkinson then went on to
show that credit instruments are dan
gerous, because they do not take the
place of value money. The present
momentous question of free coinage
comes under the head of credit. He
stated that since 1878, when the coin
age of the silver dollar was Temporal
rily suspended the value of silver has
deprecated more than 43 per cent.
In conclusion he said:
Since the silver act of 1890 we
have been adding more than $4,000
600 Il month to the circulation. This
must soon result in an excess and a
depression in the whole mass, gold in
cluded, and the gold will go abroad,
where it is worth more. The current
of gold shipments has already turned
against us. In the ordinary course of
trade this would excite no concern, for
change in the balance would soon
bring it back. Fortunately our bounti-
ful harvests of the past have very
OPPORTUNITY helped us to maintain our
gold supply. But even these are fail
ing to answer the purpose. During
the six months prior to January l
1892, our exports to Europe exceeded
our imports by more than $l15,000,00C
yet we receive in return for the same
period less than S30.000000. Our ex.
ports of gold for 1892 exceeded our
imports by more than 100000. A
good harvest this year may afford tenn.
porary relief. 1t cannot remove the
danger can Only postpone it. The
world abroad is losing confidence in
our bi-metallic system. The truth is
that we are rapidly loosing confidence
in ourselves. Our securities hello
abroad are being sent home for re
demption while gold cannot be had
\ great object lesson is now passing
before our eyes; let us profit by it.
Want of confidence caused by those
who imagine that they can force some
body to loan or issue them all the
money they need, and by the vile OF
demagogues who pander to the demand
for an unlimited amount Of cheap debt
paying money are beginning to les
sen the circulation not only of golC
but measurably of cheap money also
The credit of the community and O.
individuals amounts to a Thousand
times more than they own or owe
SO-called debtor classes could afford t
have every dollar in cash shipped GU
of the country better than they coult
afford to destroy confidence and throw
away their credit. Confidence ant
credit are the conditions upon which
the healthful circulation must at leas
depend"
1t would be well for the people o
the whole country if they would Civ
ear to the views of financiers VIII