Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1908-06-25
PUZZLE IN FINANCIERlNG.

Editor News:
Permit me to give your readers a
lesson in finance. There is limit TO
the amount of money in existance, In
the United States we have according
to the secretary's report, nearly three
thousand million dollars, all told, gold,
silver, nickle, copper and paper mon
ey to pay debts, taxes and develop the
resources of the country. In order
to simplify the lesson | viii take
81, 900 as an example and say it is all
the money in the world. This money
before it gets into circulation belongs
to the man who dug the gold and sill
yer out of the ground. He takes the
metal to the mint, gets it coined into
money and sets up bank to lend to
people to do business. Banking rules
deduct the interest on loans in ad-
vance.
A gives his note for 800 and gets
800 to go into railroad building.
B gives note for 800, gets 800
Also G, d, E, F, G, H, I, J. and
K, making eleven notes for one hun
dred dollars each, and nine hundred
and ninety dollars in circulation to
build railroads, open up mines build
factories, manufactures, etc. This
amount 5000, deducted from the 81 900
in the bank still leaves ten dollars in
the hands of the banker. AT the end
of the year, like good and true men,
A, B, G, etc, all down the line, take
800. 90 out of circulation and pay in
Jerest and renew their notes. 500 ad-
ded to the ten dollars already in the
bank makes $109. L wants to do bus
iness gives note for 800 and gets 800,
which added to the 1891 in circulation
after notes we're renewed, would put
circulation at 1881. Money would still
be plentiful to carry on business, de-
veloping industries of the country,
yet the banker has twelve 800 notes
with $40 cash in his banks. At the
end of the second wear $4,000 is taken
from the 1881, which leaves 1851. The
1920 interest added to the $40 in bank
gives the banker, $139. M wants to
go into business, gives note for 800,
receives 800, which added to 1851
makes 1851 in the hands of the bust
ness world. At the end of the third
year $3.50 is taken to pay interest tc
. renew notes, which leaves 1921, anG
! the bank has $179 N gives note fol
800, gets $780, which leaves $3.50 in the
4 bank and $911 in the business world
The fourth year $40 is paid to banl
in interest, added to the $50 in banl
! makes 1929, in the bank, and $771 il
e circulation. o and P give notes 70,
+ 800 each and get 800 each This $1S'
n added to the $771 makes 1851 in circu
g lation. You see we have sixteen note
! for 800 each in the hands of the bank
, ers, while the circulation is still owe
n 5000. You can continue the process
d clear through the alphabet, giving tn
: banker twenty-six notes of one hund
T red dollars each, and yet the circula
ton would not be under 5000. | wan
u to ask your readers how we are to pa
II the SO, 800, when there is only 100
t all told to pay within 1t is done
l. mean the notes are paid. Can you
it readers tell how. The indebtedness
% of the people of the United States a
g mounts to about sos, 600, 600, 900. w
;, have $3, 600, 600, 600, to pay it with c
q three dollars in money to pay 81
!. debt.
+. "Uncle Tom," "Uncle Cid an
It "Cold Wave will please answer no,
is we are to pay it. Everyone ought t
1t study the money question as the vo
d ume of money controls prices. All th
is wealth of the United States is value
IS by the money of this nation.
Y MORE ANON