Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1896-10-22
Credit Rests on Money.

Credit Rests on Money.
The second thing that Is lost sight OF by
those people is that the enterprise, indus
try and business of the world is always SO
great that 1t exceeds the credit which a
dollar can carry. In other words, the en-
terprise, the business and commerce of the
earth are always carried to the uttermost
point possible They load every dollar up
with all that 1t can carry, and therefore
when you strike out any dollar from un-
der this load a certain part of the load
must come down. When the amount of
checks or drafts Is increased, does 1t not
release certain amount of money and
cause 1t to lie idle The enterprise Of men
will Immediately reload all the money that
is 50 released with every bit of credit 1t
can carry. That Is always the condition Of
the commercial and manufacturing world
in prosperous times 1t therefore follows
that when you reduce the amount Of mon
ey in the world under these conditions 1t
is a much moro serious matter than 1t
would be If there were not these checks,
drafts and other evidences of credit, be-
causo you destroy not only the given
amount OF money, but you pull down 30
much Of the whole fabric of creditor busi-
ness, If you please, which has rested on
that money. So when you increase the
volume Of money, you not only make 1t
possible to increase the amount of bust
ness In proportion, but you mako 1t posi-
BILE to increase the business 30 times as
much as the actual increase In money, be-
cause overy dollar of money will again be
instantly loaded with credits
Opening the nrints VIII Increase Credits.
Therefore we say that opening the mints
to silver will add to the stock Of primary
or legal tender money, and this will again
be loaded with credits which will make
possible an increase Of business 20 times
ns great as the increase In money. Wc
sometimes hear 1t asked, "How will you
get that money into circulation, or what
good will this increase in money do you If
you have not anything to get 1t with, II
you have no property or any collateraR'
That question is purely American and
shows that In some thugs at least we are
yet now.
How Money VIII Get In Circulation.
1t needs but moments reflection to see
that the additional money will get into
circulation just as the money that is In
circulation got there, and that when men
again coin silver bullion into dollars or
get certificates for 1t, which are legal ten
der, which can be used in paying taxes,
which can be used In paying duties at the
custom house, which can be used In pay
ing de2ts, they are not going to let that
money lie idle, because 1t will not make 1t
profitable any longer to have 1t SO. Money
will cease appreciating in value then, and
they will go to building houses, building
shops, building railroads, manufacturing
and doing business; they will start activi-
ty in 200 channels and 1000 fields That
will be the result There will be an Inn
mediate demand for brains and muscle
There will be an immediate demand for
engineers, for skilled men, for clerks for
mechanics and for day laborers, and in
stead Of laborers being Obliged to tramp
around over the country In search of work
which they cannot find they will be sought
for at their homes and requested to come
over and go to work. The man who has
nothing to sell except his muscle will find
a market for that muscle The man who
has nothing to sell except skill will find
market for that knowledge and very soon
the whole community will feel the vivify-
ing and the electrifying effect of an In
crease Of blood and vitality in its veins
Other Statesmen.
Iwould like to read to you the language
OF MIR. Goschen, q great banker Of London
and lato chancellor of the British ex-
chequer, one of the great statesmen and
nnanciers Of the world today should
Hike to read to you the language of Mr..
Gifen, the statistician Of the British board
of trade. should like to read to you the
report Of the royal commission on gold and
silver made to parliament in 1888. I
should like to read to you the language of
a number Of other great economists and
hnanciers, men who for years have been
assisting In the management Of the
worlds affairs, who for years have had
their finger upon the pulse of the COM
merce and the business Of the earth, who
have watched the circulation of its blood
and have felt its heartbeats, men who are
not theorists hut who are first students
and then practical men, and you would be
astonished to see how their views are all
in accord upon this great question. They
hold that the law Of supply and demand
does apply to money They hold that
when the governments by law demonetize
silver or wipe out any other actual money
the governments thus by law reduce the
worlds supply of money. They hold that
when the governments adopt q gold stand
ard and make it the only legal tender
money the governments by law increase
the demand for gold, because by reason of
the law more people must thereafter have
gold than formerly had to have it.
Increasing Demand For Gold.
The work that was formerly done by
silver has thereafter to be done by gold,
and the necessary consequence of this Is to
increase the Importance Of gold to double
the number of people who have to have
1t, and In the end double the purchasing
power of the gold dollar. Now, we insist
that In harmony with the worlds basic
law of finance, In harmony with the en-
tire experience of mankind, In harmony
with the expressed views of the great
est statesmen, living or dead, the de-
monetization of silver doubled the pur-
chasing power Of gold, so that 1t took
twice as much Of the products of the earth
TO get gold dollar and pay debt or pay
taxes thereafter. twice as much labor as 1t
formerly did
Destruction of Home Market.
The consequence was not only to do an
injustice to the whole debtor world, but
inasmuch as taxes, interest, debts and fix
ed charges remained the same 1t destroy
ed the purchasing power of the whole pro.
ducing classes, because 1t took all they
could scrape together to meet the fixed
charges This first destroyed business and
necessarily forced the manufacturers to
shut down because there were no longer
purchasers for what they made SO, that in
CAsToRIA..