The herald., 1896-01-20
Some Sound Sense

What is wanted to make times good and
the people everywhere prosperous. is not
an increased amount of money, but gen.
eral confidence in the stability of the
money standard and the establishing of
credit for all who deserve it. A vast
amount of business is constantly carried
on with limited amount of money. By
the use of bank checks and clearing
houses, the actual money passed from
hand to hand in the business which is con-
Quoted in any commercial city In the
United States is not one-tenth OF the
values exchanged in the business itself,
The comparison OF money in actual cir
culatic n TO business and property values
and actual wealth is not more than 81 to
100000. Now there was no lack of money
TO do business before and up to the finan-
cal panic of 1898; and at the worst time
of the panic there was just as much money
as there ever had been during the flush
times. The only difference was the lack of
confidence that prevailed in business cir
cles. There was no reduction in the volume
of money. but there was general absence
of business confidence, and, as a result,
those VINO needed money were not able to
get it. Imagine time when all industries
are being actively conducted and the
masses of the people are earning wages.
AS result every honest working man can
the grocer. the butcher, the baker, the
milkman and other providers of neces-
saries. On the basis of this fact the retail
ers of all sorts can get credit from the
wholesalers. The wholesalers can get
credit from the manufacturers and the
manufacturers can borrow money from the
banks. Thus trade is all bound together
by golden chain. Everybody has credit
because everybody pays when his debts
are due and they all pay because they are
earning money and are honest. But only
let break occur in this golden chain of
business, and then confidence is withdrawn
and prosperity comes to an end. For
instance, real estate, mining and
stock excitements, initiation of values
the inability of the individual to
borrow money on inflated values; the
boom bursts with severe losses to many.
The banks of course become scary, call in
loans and refuse to make more, except
upon unusual securities and rates of inter-
est. Then the manufacturers become I'M
able to secure money to buy raw material
and shut down their works or discharge
large bodies of employees, who at once lose
credit with their tradespsople because they
are no longer earning wages. The retailer
quits buying and the wholesaler quits sell
ing; and thus the whole commerce of the
country is greatly disturbed. and prosperi-
ty takes wings and flies away, not for the
lack OF money, put Tor the loss OF con-
fidence. 1t may be said that if any indi-
vidual had all the money be wanted there
would be no need for credit. But this is
absurd. Money would have no value if
everybody had plenty of it. Money can
not be used save to exchange for what is
needed, and if everybody had it its ex-
value would be gone. What is
needed is final settlement of the national
finances on basis of sound money, every
dollar of which shall be as good as gold and
a restoration of condition which will bring
back general confidence and credit. Then
there will be prosperity, and only in some
such way can it be secured -Porcupine.