Norwich bulletin., 1912-11-25
LETTERS TO THE EDITOR.
The Connecting Link.

MT. Editor: In my last article showed the debt creating system of loaning money into circulation by pri- vate agencies. I will now give some figures from the Report of Real Estate Mortgages, 1890. On page 309 l find the following figures: The mortgage debt was $6,019,679,9S5. The debt of quasi public corporations was $6,O00,- 000,000. The remainder of private debt is estimated at $5,000,000,000. The public debt at that time was $2,O27,- 170,546, making a total minimum debt, public and private, of $19,027 ,17O,546. The total wealth of the country was estimated to be 65,151, ,497,7 ,791. The debt on this wealth was 29.21 per cent. of the country's wealth, almost one third. So much for the wealth and debt in 1890. Increase of mortgage debt" On Jan. 1. 1880. the real estate mortgage debt was $2,494,S7O,0SS. The real estate mortgage debt increased from 1880 to 1890. ten years, $3,524,- S09,S97. This was an increase of 141.2S per cent. in ten years, while the total wealth increased only 49.24 per cent, and the population increased only 24S6 per cent. In other words, the real estate mortgage debt increased about one and half times, the total wealth increased about one-half, and population increased about one-quar- ter.
 Now suppose an individual being in business, and his debts increase three times as fast as his income, it is not hard to tell the result. The same prin- ciple applied to the nation will pro- duce the same result. It is not a YN1a ha dah in about three times as fast as the wealth and about six times as fast as the population.
 Mortgage debts bear interest. The average rate was about per cent. The same principle obtains as illustrated by the $1,000 and eleven men. That the debt is created by private owner ship and loaning money is proved on page il as follows: Tn other words, mortgages are made most freely in times of business confidence and busi- ness expansion" The meaning Is that when business is booming and pros perity in front, the mortgage debt in creases fastest. It cannot be other wise. The better the business the more money is borrowed. The more money borrowed, the larger the debt the deeper the root of the cancer is OIliOCudGu III ll16 UOuy pOlIllC. GN61 y time a person borrows money he is helping to feed the cancer.
 Under the present system of private ownership of all money. and loaning it through private agencies, the interest constitutes a debt that cannot be paid with money. The interest must be paid. In order to collect the interest the money owner either directly or in- | directly, controls the money and die tates the price the producer shall get and the price the consumer shall pay l The late lamented James A. Garfield said: The power that controls the issue and volume of the currency is | absolute dictator of the business an( l finance of the country" This is the connecting link between the private owners of money and the high cost O. | living. Having the power to fix tht price for both producer and consumer it puts the two prices far enough apart to add it's interest, and occasion. ally, if not often, it adds little more as in the case of eggs, where the diff ference between the buying and sell ing was 176 per cent Paid 17 cent per dozen. Sold for 47 cents.
 J. C. VALLETTE.
 North Franklin, Conn, Nov. 23, 1912