The midland journal. (Rising Sun, Md.) 1885-1947, 1899-07-21
rore Money, Higher Prices and Less
Bank Credit the Demand of
Stable Business.

and industry bound forward in the crea-
ton Of wealth. There never can be an
overproduction of the things that every
body needs, but there can be and is a
shortage i'll the money which enables
them to distribute and appropriate that
apparently surplus product.
In default of money to meet the de-
mands of wealth producing industry the
banker class has invented what they call
credit. This bank credit implies the use
Of other peoples money by the banks to
meet demands which their credit loans
necessitate. When the bank makes a
loan to corporation or individual extern
sively engaged i'll a line of productive
industry, employing many hands, the
institution does not custonarily count out
the amount Of the loan in dollars and
deliver the money 10 the borrower but
charges the borrowing party with the
amount of the loan to be paid when due
and credits him with a deposit to the
same amount, less interest, When the
checks of this deposit borrower come into
the bank they are cashed from the money
deposited by actual cash depositors.
This system of loaning never adds to
the volume of money in circulation but
ties the amount down to the tangible
money III existence, while the credit or
intangible money, the banks make
believe money, serves to expand business
and increase production. The amount Of
money not increasing with the volume of
products to be distributed and consumed
bought and sold-the price must fall,
pay, be exchanged for, the goods when
they reach the consumer, therefore to
enable them to be exchanged for cash the
price must be lowered. Lower prices is
the inevitable result Of a sharp coupeti-
ton to sell. This competition caused by
steadily increasing amount of goods
placed OH the market and the non-increase
of money creating an ever increasing
strain i'll business, tempts to adulteration
Of goods, and finally forces the competing
parties to cease the ruinous war of COM
petition and form trusts. The complete
trust is master of the market and master
of production. 1t buys the raw material
from first hands at its own price and fixes
its selling price at the point it can dispose
of the most produce at the very highest
figures, aud hold production down TO that
output. This means closing mills and an
addition to the unemployed, which, pro-
ducing surplus in the labor market"
leads to a reduction Of wages. These are
the sure results of contracted currency,
which enables the banks to loan their
credit. or wind money, and by this device
gather i'll from the hands Of productive
industry hundreds of millions annually,
and by. the declining price of property
add to their possessions immensely. The
process adds steadily TO the riches of the
rich by extracting from the products of
the producers who grow poorer day by
day
The origin of the Trust is Low Prices
and the origin Of low prices is a contract
ing currency as measured by an increas-
ing producing of goods and things for
the use of the human family.
No one is benefited by low prices but
the speculator i'll money. The bank 5
credit, though its volume may not
increase, demands an ever increasing
amount of property as pledge for con-
verting its intangible, wind money into
hard cash on the day Of maturity. A
careful analysis of our national or in
truth of any present banking system, is
nothing but an amplified system Of pawn
brokerage.
The class engaged in this improved
system of pawn brokerage is the class
who are the enemies of silver money and
the champions of the gold standard, and
only so because one Of the precious metals
will supply less money for the world than
both, and they will be able to more
readily control it. That there is any
practical difference between the metals as
far as they represent money is a falacy
that none but the ignorant can be gulled
by. 1t is the increase in quantity which
is feared by the spectators in money who
desire to be classed and known as fnan-
ciers," and not the metal which standard
money is composed of.
The increase Of gold by the discovery
of more gold mines and improved pro-
cesses recently have added to the worlds
supply of money somewhat and the col
lection Of war taxes which have been put
into active circulation have served to
advance prices slightly and cause trade
and business to show signs Of life in con-
trast to the stupor they lay dormant in
for years.
But to neutralize the increase of the
gold product, the gold standard has been
extended to India and Japan, increasing
the demand for gold far beyond its III
creased production, which increased de-
mand cannot fail TO appreciate the value
of gold and lower the price Of property.
If in addition to the increase of gold
which the mines have given in the last
three years, the silver they produce was
also passed through the minis the new
life to business would increase two or
three fold, prices would rise and the pro-