The herald., 1897-07-04
THE MONEY PROBLEM


In discussing the financial question q
broad distinction ought to be observed
between dealing in money and the using
Of money. The difference is the same as
that between dealing in farming imple-
ments and using those implements. The
one is of the merchant and the other OF
the farmer. Dealing in money is call
ing by itself. A banker is money DEAL
er, and so is lender Of money, or cap
italist who does not invest his money
in active business operations but ham
dies it for gain, as a broker handles 1t,
All persons who do not deal In money aD
an occupation, whether they have much
or little, may be called money userA
They seek to get money for the use
that can be made of it. 1t is true that
dealer in money may also be user Of
money. He may be both at the same
time, but that does not alter the fact
that the two occupations are distinct.
The farmer, the mechanic, the laborer,
the freighter, the professional man. ev-
erybody, in fact, who parts with his
money when he has it for something he
needs, without expecting a return in
kind, is money user, as is every person
who gets money with that end in view,
and not for the purpose of speculating
on it,
Besides the dealer in money and the
user of it, there is still another class.
namely, the maker, or creator of money,
just as there are, in addition to users
and traders in farming implements the
manufacturers of them. In the case Of
money, the only legitimate maker of it
is the government. The dealers and
users have properly nothing whatever
to do with the creation of money, and it
Is therefore only necessary to consider
the relations of the dealers and the users
to each other, in discussing the financial
problem. From the very nature of
things these two classes are in sort of
antagonism to each other. This grows
out of the common desire of mankind for
gain, and that pertains to both classes
alike The business of the world Is car
ried on with money, not by actually
handling it in all transactions, but new
ertheless by its use, or, what is the same.
by the use of its securities. 1t is al
most impossible to conceive of business
conducted in civilized country without
money or its representative, and really
the dealer in money Is as useful as any.
When the relations between the dealer
in money and its user are properly regu-
lated, and neither has an advantage
over the other, the best condition Of 90
ciety exists and prosperity reigns. But
when one, prompted by desire for
greater gain, obtains. in any manner, an
unwarrantable advantage over the
other, business becomes choked and
prosperity is throttled. 1t is a law Of
trade that the seller will get as much as
he can and the buyer buy as cheaply as
he can, and when one or the other has
the advantage it is nearly always trace
able to partial legislation. This most
frequently arises from contraction of the
volume of the currency, and as this can
easily be effected by legislation that is
found to be the most expeditions way for
the money dealers to augment their
wealth. Probably the most remarkable
instance in modern times of increasing
the value of money by a deliberate re-
duction of its volume was in the de-
monetization of silver. This was ac-
complished by law and with the result
of nearly doubling the value of the re-
naming lawful money and vastly reduce
ing the worth of all other property.
Gain was at the bottom of this move
ment, and enormous gains were accom-
plished by it.
In nothing is the duty Of government
more manifest than in supplying and
keeping accessible to the people in prop
er quantity the circulating medium OF
the country, and in nothing Is the gov
ernment of the United States more dere-
lict. So careless have our statesmen
been in this regard that panics. the di-
rect offspring of such carelessness have
been of frequent occurrence, insomuch
that we are stigmatized throughout the
civilized world as the country of panics
1t is the province of the government. ard
its legitimate duty as well, to supply the
people with the requisite amount OF
money for the convenient transaction OF
business as much as it Is the duty OF
government to furnish the needed postal
facilities, or to furnish the means for the
administration of justice, or to perform
any other of its necessary functions.
When government neglects this duty
and permits the dealers in money, by
scheming, to get control of it, or, what Is
infinitely worse, when 1t lends Its power
full aid to the dealers in money by enact
ing laws to aid their oppression, then all
the users of money must suffer; then
come panic, poverty, distress and
death: then comes the condition which
the American people have been suffering
under for years past, and under which
they must continue to suffer till radical
change occurs in our national financial
policy. There is much said in these
days about currency reforms; but the
only currency reform that Is needed ID
for the government to get out Of the
hands of the money dealers of the world
and to turn it, attention TO the welfare
Of the money users. the producing clase
es. the creators of wealth. and not fhs
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