Iron County register., 1898-11-17
THE BANE OF ENTERPRISE.
ns Prices Mean Death to Busi-
ness-Adle Money and Idle Men
Go Hand I'm Hand.

AoShCu VI III q Sa1e or buried IN the
ground will bring profit to its owner,
but If employed in the production of
wealth its owner is certain to suffer
loss. When prices are falling debts and
taxes are absorbing the substance of
the people; equities are being destroyed
and the property of the people is be-
ing transferred unjustly to the owners
OF public and private debts.
The price of a single commodity may
rise or fall in response to the varying
supply or demand for that particular
article, bat when the general level of
prices is sinking it is money, which is
the pricing instrument, that is becom-
ing scarce and consequently dear, which
means that a larger amount of things
in general must be given in exchange
for given amount of money.
The advocates of gold standard and
a contracting money volume combat
the argument that falling prices is
caused by a scarcity of money by call
ing attention to a fact, which is fire.
quent, that the banks at New York and
other money centers contain large de-
posits of idle money that cannot be
d
of interest. They insist that the pres
ence of large deposits in the banks at
the money centers is conclusive evi-
dence that plenty of money exists.
They assert that it is because we have
more money than is demanded by the
business of the country that these
large boards accumulate in the money
centers awaiting the call of persons
who require money for use in enter
prise and production.
In this connection attention is called
to another state of facts that always
coexists with large deposits of idle
money in the banks at the money CEN
ters, which is that labor is idle and the
wants of the people are not supplied,
and that times are very hard generally.
The advocates of gold contraction in
sist that the hard times cannot be
caused by a scarcity of money, WHIT.
money is in abundance in the banks at
the money centers, for which borrow
ers cannot be found at low rates of in
terest.
The answer to the foregoing argu-
ment is that when the volume of money
in a nation is diminishing, changing
the relation that exists between money
and things in general, as indicated by
prices which are gradually going lower
and lower as time progresses, that it is
impossible for men of enterprise to en-
ploy money proftably in production;
that falling prices bring to enterprise
and loss. causing the
multiplicatio of bankruptcies and
driving business men to the wall. The
experience of a few years under fall
ing prices, with it's carnival of bank
ruptcy, teaches men the hazard of
business ventures, puts a check upon
enterprise and limits production to the
demands of daily life. With
the progress of time under diminish
ing money volume money must tend
boards at the money centers, as expe-
rience under q condition of falling
prices teaches the people generally that
to engage in active enterprise is to
court loss and failure.
1t must be borne in mind that the
man of business desiring TO use money
can only secure it from the banks by
a well-secured note obligat-
ing himself to return it to the bank in
a period of time varying from 30 to 90
days. He invests the money in prop
erty and commodities that are falling
in price; that will be worth less money
at the time his obligation for the re-
of the money natures than it
was at the time of the purchase. There
fore, in order to return the borrowed
ha fc
forced to suffer a loss. Therefore it is
that under conditions of a contracting
volume OF money and falling prices, ex-
tending over a period Of years, the
greater the money contraction the
greater the boards of idle money that
must accumulate at the money centers.
The contention is not made here that
a large volume of money and high
prices is of great advantage over a
smaller volume of money and lower
prices. The activity of business and
the progress and development of ma
ton are not dependent upon whether
prices be high or low, providing that
the general level of prices be main
tained and a general fall of prices be
avoided.
The progress of the world has been
made at such times as money supply
was abundant and prices were advan-
cling. This condition has never failed
to call forth all the energies of peo-
pie, develop the resources of coun-
try, furnish employment for all work
ars and increase the sum of human hap |
piness. On the contrary, when through !
The failure or exhaustion of the mines |
money supply has been cut off and the |
general level of prices commenced to |
'aIl. the activities of a people are only |
.xerted while they can be upheld by |
private credit, which is at such times |
put into the breach to supply the place |
If money. The use of private credit |
serves the purpose of continuing pro- |
iuction and creating wealth for very |
lew years. at the end of which time the |
men who. have thus used their credit |
become bankrupts and are driven out /
If the business arena. Following this /
comes a period of universal depression
hat is never arrested until a new
money supply is found to arrest falling
prices and restore conditions under
which it is possible for enterprise to be
conducted without loss.
Again, we are told that money is
Ibundant because the rate of interest
5 low. When the money volume is di-
ninishing and prices are falling busi-
.ess cannot be conducted at profit
md return borrowed money without