Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-08-02
ENTRiNAGANCE.

A rather curious, but not uncommon.
observation that Is current especially
among working men. consists of the
assertion that since money spent Is
money circulated, therefore the spend
ing OF money, ana even its extraNagant
dissipation and waste, ought not to
create hard times nor add in general
to the cost OF living. They admit that
waste and extravaganza will ruin the
individual addicted TO these financial
vices; but they imagine and argue that
free spending must beneht the COM
munlty az whole by putting money
in circulation.
But those who have to do with the
finances OF the people know much bet
ter; and the president OF the Iowa
Bankers association attributes the
present lightness of the money market
to four conditions: First. the shortage
OF 1903 corn crop; second the high
err cost Of living. or rather. as he ex-
presses II, the cost of higher living;
third, the increased migration Of
fowans to the new lands OF the North
west ana the Southwest; and fourth,
the large sums invested I'm automo-
bles. MIR. stevens points out that
practically so per cent of last years
corn crop was left in the fields while
a great part of this has not yet been
turned into money. lie says: Banks
loaned heavily In anticipation of a
good crop and many are still carrying
the loans paid by them which they
expected paid last fall Then on March
LIST disbursements came on this spring,
with the banks unprepared to handle
the large loaus and. In consequence.
they found Their reserves badly de-
pleted and they still remain that way.
\ large shrinkage in the ordinary sur
plus of live stock for market has pre-
vented bringing into the state the
usual amount OF money from this
source and is In itself an excuse for
the shortage in the money supply"
In relation to the movement OF farm
ers from the United States into canada
he makes this remark;
THE papers tell Of Minnesota
colony Investing a million dollars in
one locality in South Dakota the past
amount OF money taken out Of Iowa
for this purpose the past few years
we would be staggered. Simply multi
ply the amount taken from your bank
by the number OF banks In the state
and read the answer
Extravaganza is shown 10 contribute
TO the observed effects on banking ball
snces The growth Of the automobile
industry represents a great deal that Is
mere luxury. Iowa has registered In
the Office Of the secretary OF state from
January let Co June LIST of this year
i169 new automobiles SAY that these
cost including accessories. an average
OF $500 each. and YOU have over So
o00,0O IN this itcm-moncy sent out Of
the state never to return" Mr.. stew
ems does not wish TO be understood as
decrytng this great Industry. but he
mentions it as one of the causes FOR
close money and as an evidence u
"uur cxtrayagant style OF living" He
includes the purchase by farmers Of
hiEh-priced live stock TO eat tho soft
corn left over from last year as an
other factor
established They demonstrate anew
the folly Of eNtravagsnt living They
refute the deeply roted but silly soph-
istry that money spent is not money
consumed, because 1t ~ stnl in exist
ence somewhere This is just like say
ing that clothes worn out are not con
sumed. since they SIN exist In each
instance, however. in order to render
available either the money spent or the
clothes frayed out, some one must work
again II IL the labor that has dis
appeared. and II Is the labor that tx
lost and gone forever. The money stir
exists just a. the particles which made
up the clothing are not annihilated;
but 1t will require labor and capital to
replace c!thcr one when once It has
served its use, by bcing either spent or
worn out
When man buys a bushel of pota-
toes and consumes them. the fact that
the bushol basket in which they were
measured still exists does not
replace the potatoes; they must
be reproduced by the employ
mont Of land. labor and capital.
When he buys suit of clothes the
money is simply the measure Of their
value like the bushel basket. Il is only
the sign Of wealth. and not wealth it.