The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1898-11-18
e BANE d ENTERPRIsE
ueEs-IdIe Money and Idle aIen
Co Hand in Hand.

| 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, but 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 a 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-
posts Of idle money that cannot be
loaned on good security at q low rate
I Of interest. They insist that the pres
ence Of large deposits in the banks at
/ the money centers is conclusive evil
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
| eenters 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
tiers, 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, when
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-
PIOy money probably in production;
that falling prices bring TO enterprise
/ disappointment and loss, causing the
multiplication of bankruptcies and
driving business men to the wall. The
| experience of a few years under fall
| ing prices, with its carnival of bank
ruptcy, teaches men the hazard Of
| business ventures, puts a check upon
| enterprise and limits production to the
| imperative demands of daily life. With
! the progress of time under a diminish
| ing money volume money must tend
more and more to accumulate in idle
boards at the money centers, as expe-
rience under d 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 10 use money
can only secure 1t from the banks by
dePositing a well-secured note obligat-
ing himself to return IL 10 the bank in
| a period of time varying from 80 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-
payment of the money natures than IL
was at the time Of the purchase. There
fore, in order to return the borrowed
money to the bank, the borrower is
/ forced to suffer a loss. Therefore 1t 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 a ma
tion are not dependent upon whether
prices be high or low, providing that
the general level Of prices be main
tanned aud 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 n peo-
pie, develop the resources Of a coun-
try, furnish employment for all work
ers and increase the sum Of human hap
IlilCSS- OU the contrary y. " uCl through
the failure or exhaustion OF the mines
money supply has been cut of and the
general level Of prices commenced to
fall, the activities Of people are only
SXerted while they can be upheld by
private credit. which is at such times
put into the breach to supply the place
Of money The use of private credit
serves the purpose Of continuing pro-
duction and creating wealth for very
few years. at the end Of which time the
men who have thus used their credit
become bankrupts and are driven out
Of the business arena. Following this
comes a period Of universal depression
that 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
abundant because the rate Of interest
Is low. When the money volume Is d.
ninishing and prices are falling bust
ness cannot be conducted at a profit
and return borrowed money without
paying any interest on the money at
all. On the other hand, when prices