The midland journal. (Rising Sun, Md.) 1885-1947, 1893-07-07
Money VS.. Credit.

Mace in the world is hurrying TO climax.
It has passed the mark of "free coinage
and "gold basis,' and is now out on the
broad ocean of money or credlt-which?
Js the moiety of gold in the world that can
be appropriated as coin, daily growing less
TO be used to keep up the delusion, while
uhantom money of banks known as credit
takes the place of actual money
We have reached the bare, naked question
at last. Shall the government provide the
necessary money for the people to transact
b,siness with. or shall a system OF banks,
private corporations, furnish credit money
Every dollar of the phantom, or credit
money issued by the banks costs the user
;pte,est-all he is able 10 pay-the rate OF
interest being regulated by the dispensers OF
the credit money, as the railroad fares are
regulated on the principle of all the traihc
will bear.
The contest is, on the part of the money
traders. that the moiety Of gold in the world
shall be the only tangible money in exist
ence. and every other species OF so-caiieo
money shall be tokens of money receiving
its representation of value from Its ale
eiauce to, or ''promise 10 pay" gold. The
value Which gold bears to the products oil
labor this token money will reflect. Hence
as labor and labor-savlng machinery null
,;olv the products of labor, the price OF
everything created by human hand and
brain power must steadily decline. The
credit and debt obligations incurred by the
,aboring millions will be measured ana
determined by the relation which the guam
titv of gold visible in the world will bear to
the quantity of commodities which must he
exchanged for each other. This condition
Il sill be seen must steadily tend to lower
nriees. More labor ard the products Of
labor will be required to buy money as the
tagging feet of debt laden time drags by.
It must be kept steadily in mind that
barter as factor in business is almost obso-
le,e. Everything is now sold by the pro-
ducer before it reaches the consumer, and
often sold several times before it reaches
him. Every sale means profit added to
the commodity Is cost, and if all that money
is credit money, it is drawing interest 10
she banks which it represents and laying an
additional tax on the producers and users Of
this wealth, the product of human hands
and brain.
That it is not confidence" or "credit'
that is needed, but money, and that neither
confidence or credit can take the place Of
money is proven by few extracts tiom
Wall street correspondent 10 one of the
daily papers, Lwho stood in this money
centre and faithfully noted events as they
TRANSFERRED. This correspondent says:
81 know in some cases merchants--very
strong merchants, too-with abundant col
laterals were unable TO borrow money even
for week upon them, and as they must
have funds they went upon the floor OF the
Exchange, ready TO pay even as much as
go per cent interest for a supply. offering
gilt edged securities"
There was no lack of confidence or credit
in these cases, but the want of money which
no amount of property -"gllt edge prop
erty too-could take the place of and for
this want these men were being robbed to
the amount Of 60 per cent interest to save
their business from utter destruction, and
men who cornered money and held it out Of
circulation were enabled to perpetrate that
robbery with IMMUNITY and with law all on
their side. This is one of the Legitimate
fruits of credit money; or credit in place o.
money.
To show how completely this system o.
credit money, which is bank monopoly.
over. rides law, we haye but TO note few
more paragraphs from the same correspon-
dents letter describing the process, He
says:
$50 far fifteen banks, members of the
Clearing House Association, have taken ou
certificates, and, with perhaps two eYcep
tions, not one of them was compelled to dc
so by its own financial condition. OF course
IL Is HOT tAdCtly COlISSl W say IHat tHi
action has been taken in a purely philan
thropic spirit. There is sense of protec-
lion which is at the bottom of this act
since it is felt that unless extraordinary
means are taken to sustain credit the bottom
may fall out, and then every bank may b'
placed, if not in peril, at least in embar
rassment, both by the destruction of credi
and the Withdrawal of deposits"
Here is revealed the sandy foundation
this bank credit money rests on. For wan
of real money these associated banks do no
hesitate 10 violate law and issue what they
call Clearing House certificates. These
they use in place of money and loan tbs
reserve money to their customers, which
when the pinch comes, there is nothing
found to take the place Of. Confidence and
credit will not answer. Nothing bat money
These banks have gone on loaning theil
confidence" and "credit," till the debt
they have built up becomes top heavy, and
there is nothing left for them but violate the
fae law and make money with their own
printing presses, all of which shoH.d pay a
tax Of 10 per cent, but no officer of the COY
eminent demands it. If confidence" j: