Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1893-08-18
THE TWO EXTREMES.
ACONSERvATIvE VIEW OF CAUSE
AND EFFECT.

We Have Lived too Fast-The Geld.
en- Mean Will he Adopted Soon
ms the Panic IL Over The True
Policy Defined.
The American people are prone to
run to extremes. 1t is we'll under.
stood fact that everybody has been
running too fast financially for
number of years past, and now that u
sudden stop has come, it hurts. 1t
is a good lesson, however, and will
teach our people to keep within their
means or certain prospects, and avoid
over-speculation and anticipation of
problematic secureties, which course
applies equally to individuals, firms
and private or public corporation.
But. as the Salt Lake Herald wisely
remarks, there is danger of a great
many people and corporations going
to another extreme. Judicious re-
trenchment is wise and in many
instances absolutely necessary. But
caution in that is commendable; il
may be carried too far for the good
OF the economist as well as the people
directly affected by it.
To live within ones means is eco
nomic. To spend what one can
afford is equally so. Hoarding is not
prudence, using money lavishly is not
necessarily extravaganza. Buying
luxuries is right if the purchaser can
reasonably afford it. What would the
world be if nobody spent money ex-
cept for articles of absolute necessity?
Science, art. all that adorns and beauti-
fies and advances the world would
perish from the earth, and for millions
there would be no employment. That
which some people thoughtlessly call
extravaganza is often the best kind
of economy.
People who have an abundance of
money should put it to use, Tied up
in napkin or locked up in a safe it
is comparatively worthless. Invested
in some enterprise that gives employ
ment, or spent to pay for something
that human labor or skill has pro-
duced, it answers the purpoes OF its
creation and benefits mankind.
"There is that that scattereth and
still increaseth; there is that that
witholdeth n,oss than is mete and it
tendeth to poverty"
That person is extravagant who
shuts up money and keeps it from
circulation. He is an economist who
buys that which he needs or reason
ably desires, with his own means,
keeping within prudent margin of
its limit. Business makes business.
In dealing with others the merchant.
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 injure self in penurious transac-
tions 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 afloat and coin
is not called for, everything goes on
swimmingly. But when there is
sudden demand for large sums of &C.
tual cash and collections cannot be
made, there is a crash and collapse
and one wreck makes another, until
the strand is strewn 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
present business troubles. 1t will pass
away, as other panics have subsided.
While it remains let everybody try to
be reasonable. Shutting off employ
ment means not only pinching to the
employed, but shrinking in general
business. Withdrawing reasonable
ventures, curtailing safe transactions,
cutting down anything that is neces-
sary, crippling any kind Of enterprise
which affects general affairs, is poor
policy and tends TO aggravate the situ-
alton.
Keep money moving, promote conf
dence by pushing trade and reviving
industry, work together with mutual
desire for reciprocal benefits and we
shall soon see lively times again and
plenty OF money in circulation.