The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1899-02-03
WHY MONEY IS IDLE.
MEN ARE IDLE FOR THE SAME
REASON. ~
Falling Prices and Industrial Enter
prise-The Paradox OF Idle Hoards OF
Money While Idle Men and Women
Suffer.

prise-The Paradox OF Idle Hoards OF
Money While Idle Men and Women
Suffer.
Falling prices is the bane of enter
prise. When prices are falling, money
locked up in Il safe or buried in the
sround VIII bring profit to its owner,
but II 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 de-
stroy'ed; and the property of the peo-
pie. is being transferred unjustly to
lHe owners of public and private debts.
Inc 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,
"nlch means that a larger amount OF
things in general must be given in ex-
change for a given amount Of money,
says the Silver-Knight Waterman.
The advocates Of the gold standard
and a contracting money volume com
pat the argument that falling prices
is caused by a scarcity of money by
calling attention to a fact, which is
frequent, THAT the banks at New York
and other money centers contain large
deposits of idle money that can not be
loaned on good security at a low rate
OF interest. They insist that the
banks at the money centers is conclu-
srNe evidence that plenty Of money ex-
lsts:. They assert that it is because
we have more money than is demand
ed 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
enterprise and. production.
In this connection attention is call
ed to another state of facts that al
ways co-eNist with large deposits Of
die money in the banks at the money
c%enters, which is. thai labor is idle,
and the wants OF the people are not
supplied, and that times are very hard
generally. The advocates of gold con
traction insist that the hard times can
not be caused by a scarcity of money,
whom JnOnnv ic in hIn1onna in The
banks at the money centers for which
borrowers car not be found at low
rates OF interest.
The answer to the foregoing argu-
ment is that when the volume of
+ money in a nation is diminishing,
changing the relation that exists be-
tween money and things in general, as
indicated by prices, which are gradu-
ally going lower and lower as time
progresses, that it is impossible for
men Of enterprise to employ money
proftably in production; that falling
prices bring to enterprise disappoint.
ment and loss, causing the multiplica-
ton of bankruptcies and driving bust.
ness men to the wall. The experience
of a few years under falling prices
with its carnival of bankruptcy, teaches
men the hazard of business ventures
puts a check upon enterprise and linn
its production to the imperative de-
mands CT daily life. With the progress
Of time under a diminishing money
volume money must tend more. and
more to accumulate in idle boards al
the money centers, as experience under
a condition Of falling. prices teaches
the people, generally that to engage in
active enterprise is to court loss and
failure. 49,
1t must be borne in mind that the
man of business desiring to use money
can only secure it from the banks by
depositing a W~ell-secured note obi.
turn the borrowed money to the banl
in a period Of time varying from 81
to 80 days. He invests the money ir
property and commodities that ar
falling in price; that will be worth
less money at the time his obligation
v ~ lSloS llSIL VI lliC lllOICS lllLl
lures than it was at the time of tn,
purchase. Therefore, in order to re
turn the borrowed money to the banl
the borrower is forced to suffer a loss
Therefore it is, that under condition!
of a contracting volume of money ant
falling prices: extending over a perio(
of years, the greater the money con
traction, the greater the hoarLs Of idl'
money that must accumulate at tn,
money centers.
The contention is not made here tina
a large volume Of money and higi
prices is of great advantage over
smaller volume Of money and lowe
prices. The activity of business AM
the progress and development of
nation are not dependent upon whethe
prices be high or low, providing tina
a general level of prices be maintaine'
~