The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1904-12-22

Any reasonable man knows we are
experiencing the harctimes that try
mems souls Here we are In the
richest spot OF all the world from
the standpoint OF natural resources.
and there Is not money enough in the
country 10 put our wealth In the
channels Of commerce. You must
admit reason for this local condi-
ton OF trade.
There exists a feyerish prosperity
In the great financial centers OF the
country. This abnormal condition,
OF sectional activity. Is due TO the
promotion Of gigantic system OF
credit. The Fundamental. principle
OF money adjustment OF balances has
been eliminated from the business
affairs OF the trade eenters, and a
clearing house system OF endless
chain balances has been substituted
for the final money adjustment OF ac-
counts. The business OF the county
is carried by the banks, and this
credit money does not reach to the
corners Of the commonwealth.
Our practical money system Is not
defined by any federal statute or de-
partment ruling. 1t is creature OF
prevailing conditions which have
been forced upon the ''frenzied finan-
ciers" by the nature and magnitude
OF their transactions. While we have
no central national bank that is au-
thorized by law 10 extend unlimited
credit, We have practical counter
part Of the plan that once brought
great disaster TO France under the
John Law regime. Our money infia-
ton Is dangerous experiment Ia
political economy. The historical ex-
amples have all been based upon the
credit OF the governments In which
the vagaries were promoted. Our
imitation without an asset or statutory
base Is natural outgro~th OF the
contraction OF currency far below the
demands OF our commerce,
The state aud wildcat hank In.
fations were conservative In compar-
ison with the unsecured credit india.
lions Of the present day. One dollar
in gold in the money centers carries
800 In credits on an average. A loss
or gain Of 500, 600, 600 on Wall Street
calls for less than one per cent OF
gold In the adjustment OF accounts.
In this Illustration the average mar
can realize the gain to the capitalist.
and the banker from contracted
currency. He can realize too VIII,
times are harder than they should b,
under normal conditions In the coun.
try districts, and why interior de
yelopment Is neglected as bad re
suit OF our money system. The spec
ial character OF imitation that enables
a financier to do great business IL
New York naturally confines him L
bis real capital when he would make
In other words IL requires a hundred
times as much cash to do the sam,
business In the interior than Is re,
CURED where the bank credit Il
available for the adjustment o
monthly balances.
While business can be done In tn,
commercial centers with the cheaI
credit currency all OF our trade i
confined to the contracted gold basis
AS long as stocks and bonds boom w
will be piDched harder and harder a
every advance Of the so-called sccur
tiles.
Our war greenback system OF iniia
ton Is the only example Of h!stor.
that ever passed through the ordea
OF adjustment without disaster to Tia
country. A national issue OF metal
lie or pap er money to an.eliorate tn
condition that has driven money on
OF trade is the only logical remcd
for this dangerous imitation.
1t is an memorable law OF commerce
that credits In these endless chat
systems increase as long as they run
and until finally adjusted by the act
uai paymen, Of money In full.
The credits based on stocks an
bonds OF the country. and carried b
the banks are now beyond any none
supply OF the country. That suppl
Is being contracted by every mean
possible at the instance OF the bank
ers to squeeze the debtor class.
The credit class has enlisted III
government in the stock iobbin
scheme. Who can doubt that tn
result will he as IL was in France, a
IL was under the old state bank sy,
TEN and unoer the wildcat polio
OF our pioneer days?