The midland journal. (Rising Sun, Md.) 1885-1947, 1893-03-17
Why Money Collects in Money
Centres and the Rate of Interest
at Those Places is Quofed tow.


P. Prentice in a very able article pub
llshed in the PIaindealer, Cleveland, Ohio,
shows very plainly why money is plenty a.
commercial centres, and rates of interest
nominally low, while 1t is scarce and cannot
be profitably used in productive industry.
Al those so-called Money Centres money is
used chiefly for speculative purposes. We
quote from the article:
As 10 demand and supply the particular
notice that the large surplus CT money in
the loaning market is not supply of money
that is for sale-to exchange for goods.
Such accommodations of money in money
centres solely for loan and at low rates of
interest, are sure indications of scarcity of
money offering to exchange for goods and
property-of falling prices and hard times.
They loan their money with string to
iD at low rate, because money is appre-
ciating, (rising in value), rather than buy
property that is depreciatipg Calling in
price,, and their heads are level.
Increase the volume of money in circula-
tion so that prices show healthy increase,
then business will be good, the rates of in
terest higher, because business men can then
afford to pay more interest and the conges-
ton of loanable funds at money centres will
disappear because of the money being out
among the people doing its legitimate work
Borrowing money is quite different
thing from buying money. The producer
should be able to get ia remuneratve price
for his products and not have to become
chronic borrower, which means disaster and
ruin to him.
The farmers "wages" are his products
and if he gets no more than actual cost Tor
less) for his products he gets no wages.
The Democrats claim that the Mckinley
bill has raised prices and cost of living, and
therefore hurt the country.
The Republicans claim thati has reduced
prices, and therefore blessed the country,
both thereby agreeing that falling prices are
best for The country. But falling prices is
exactly the same thing as approaching
money Increasing its yalue), and appre-
ciating money means ard is, deprecia.ing
homes, farms and Notwithstanding their
selling price.
During the last twenty years prices have
gone down about one-thrd in all gold STAN
dard countries of the world, and remained
normal in the silver standard countries.
Have gone down in protected as we'll as free
trade countries, and it is manifesty absurd
to say that the Mckinley bill did it.
The effect is world vide and the cause
must be the same. The scarcity of money is
caused by the demonstration of silver and
the shrinkage caused by a single gold
siapdard.
With the advent free coinage of silver
prices will rise the demand for labor
increase and business improve.
II is the interest of every laboring man,
farmer, mechanic, merchant, debtor and
country banker to have silver restored to
free coinage.
1t is the interest of every large city
banker Spectator and stock and produce
gambler, option dealer, money trader, debl
holder, salary grabber, all who subsist OF the
products of others toll to have money clear
and oppose free coinage.
Farmers. mechanics. country merchants.
when you find newspaper yeIping against
free coinage spot that paper. 1t is your
worst enemy, a minion of the great gold
ring Sanhedrim that is pcudering the
world.