The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-08-03
ExTRAyAGANcE AND RETEENCH-
MENT.


+ Everybody has been running too fast
financially. Now folks have come to a
sudden stop and the jar is hurting them.
That will be all right II they learn good
lesson from it. To keep within ones
means or certain prospects, and avoid
over-specuiation and anticipation of in
secure probabilities, is a proper course
for individuals, firms and private and
public corporations.
But there is danger of a great many
people and associations going to another
extreme. Judioious retrenchment is wise
and in many instances absolutely neces-
able; it may be carried too far for the
good of the ECONOMIST as well as the peo-
pie directly affected by it.
To live within one's means is economic.
To spend what one can afford is equally
so. HoaTdirg is not prudence, using
money lavishly is not necessarily ex-
trayagance. Buying luxuries is right If
the purchaser can reasonably afford it.
What would the world be if nobody spent
money except for articles of absolute
necessity? Science, art, all that adorns
and beauties and advances the world
would perish from the earth, and for
millions there would be no employment.
That which some people thoughtlessly
cali extravaganza is often the best kind of
economy.
People who have an abundance OF
money should put it to use. Tied up in
a napkin or locked in safe it is compar-
q alxv h T,r-o cd on
terprise that gives employment, or spent
to pay for something that human labor
or skill has produced, it answers the pur-
pose of its creation and benefits man
kind. '.There is that scattereth and still
increaseth; there is that withholdeth
more than is mete and it tendeth to pow
erty.''
That person is extravagant who shuts
up money and keeps it from circulation.
He is an economist who buys that which
he needs or reasonably desires, with his
own means, keeping within prudent
margin of its limit. Business makes bus
iness. In dealing with others the mer-
chant, the trader, the banker, all classes
should remember that the prosperity Of
each means the prosperity of all, and
should not become so contracted as to in
jure self in penurious transactions with
Others.
Extravaganza has been rampant because
people and communities and nations have
been running into debt. There is not
enough metallic money in the world
to pay its debts, scarcely enough
gold to pay the interest on them. When
paper is afioat and coin is not called for,
everything goes on swimmingly. But
when there is a sudden demand for large
sums of actual cash and collections can
not be made, there is crash and col
lapse and one wreck makes another, I'M
til the strand is strewed with the debris
and the whole world is shaken by the
storm.
Fear has taken hold of the hearts of
men and the effects are almost uni
versally felt. That is at the root of
away, as other panics have subsidized.
While it remains let everybody try to be
reasonable. Shutting off employment
means not only pinching to the employed,
but shrinking in general business.
withdrawing reasonable ventures, cur
failing safe transactions, cutting down
anything that is necessary, Gripping any
kind of enterprise which affects general
affairs, is poor policy and tends to aggra-
vate the situation.
Keep money moving, promote conf
dence by pushing trade and reviving in
dustry. work together with a mutual de-
sire for reciprocal benefits and we shall
soon see lively times again and plenty of
money in circulation.