The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-04-26

Since it is conceded by the Times
Herald that cheap money, an abund-
ance of money is desirable, why not
have the abundance of money produced
from the American mines rather than
from its importation from Scotland and
England? Leaving our Chicago con-
temporary to answer that question we
wish to point out the advantage from
having an abundance Of money and
the disadvantage of a scarcity of
money.
First, then, an abundance of money
leads to activity in all branches of in
dustry. Money being plentiful it is
easy to secure it for the development
of the country's resources. Enterprises
spring up in every direction-employ-
ment is abundant, labor is paid in
money, not promises to pay money; and
hence is contented, moral and happy.
Second, property is rising, so, too, are
market prices; the wares of the manu-
facturer and farm produce find ready
sale. The people can purchase
more of the comforts of life and en-
the laborer more to live, his higher
wages and constant employment more
than balance what at first glance
might be set down as an evil. A con-
stantly approaching market is the
safest market on which to do business;
for with prices constantly rising, there
is no danger that between the time
of purchasing his raw material and
converting it into the finished product
the manufacturer will discover that the
market value of his finished product
is less than its cost of production.
Third, When there is an abundance
OF money business is transacted on a
cash basis. and not so much on the
credit system. This results in security
and activity of trade, and if the pro-
fits are less, the returns are quicker,
and business and commercial life gen
orally is relieved of that strain which
attends the transaction of business on
a system of credit.
Fourth, an abundance of money
lessons the number of that class which
makes a business of dealing in money
by loaning it out at interest-the
creditor class; for there being an
abundance of money the profit in loan
ing it is not SO great as when there is
a scarcity of it and the rate of in
terest is correspondingly high. The
owner of money therefore finds it more
profitable to invest it directly in some
enterprise or other than to loan it out
at a low rate of interest for others to
invest ard make the profit and inter
est too out of the enterprise, and in
dustry is thus relieved somewhat of
the double burden of paying both pro-
fits and interest.
An abundance of money, however,
has its advantages even to the money
lender; for if his rate of interest is
lower his security is greater; for
continued abundance of money means
the appreciation of property values
and hence there is no danger of a de-
probation Of his securities, resulting in
their falling worthless upon his hands
With rising values in property the
creditors securities are constantly ris-
ing, and hence he is safe. And while,
as before stated, his rate of interest
may be somewhat less. the general ac-
tivity in all Industrial enterprise makes
the demand for the money holders
means constant, and approaching
values rendering his loans safe, com
pensates him for fall in interest, which
if said fail becomes too great he may
remedy by himself becoming directly