The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-11-21
BARTER

01A4sA hAs
There is always some other way, and where there is . viii
there is a way, and the Germans are proving the truth Of these
aphorisms. They need raw material and they have no money with
which 10 buy it. The German mark is degraded IN all markets
In default OF money they were thrown back upon the ancient
practice of barter and exchange, which means that labor is made
the medium of exchange,
Germany was bsrefooted, and had neither hides nor leather.
She bought hides in Holland, shipped them home and tanned them,
then sent the leather to her factories and made it up into boots
and shoes. A sufficient number of these shoes were then shipped
back to Holland and used to pay for the raw hides, In this
way labor Is made the medium Of exchange, because the finished
product eventually goes to consumers who have good money with
which to pay 10. it.
The iaboring people do their part, They work eight hours
a day, for which they receive pay, and then they work two or
three hours more for the Fatherland, Barter is a very old way
Of doing business, and it has been used in all pioneer countries.
The Indians used wampum, strings OF beads or shells for cur
rency, but among white men the days work was often the medium
OF ~eAehange, III man desired to buy a sheep, a hog or any article
that he needed he gave N exchange q certain number Of days
work in payment for it, In seine places tobacco was used as
noney, even in the very important matter Of buying wives, who
were considered to be worth 4 pounds Of the epsd weed.
In Davy CraGketts time the coon skin was the current coin Of
the realm. and that IS not so very tar away OF long ago, and even
to-day, while money is plentiful and transactions are based on cash,
barter is really practiced.
The. Southern planter receives cash for his cotton, which is
a temporary payment. This cash he %surFenders for the finished
product when it comes back to him ready for use, The manufac.
ture or conversion of raw material into the finished product is
called, technically, manipulation, and this is much more profitable
than production of the raw material A pound Of steel is measured
by a few cents, but when this steel is manipulated and converted
into watch springs or razor blades it brings several hundred dol
lars. This is why capital has accumulated in the manufacturing
centers, while it is always scarce in the sections where the raw
material IS produced and sold IN its raw state, The hardwood sold
IN Memphis Tor shipment away amounts to a very large sum, but
ii this wood was manipulated into finished products the amount
would increase many fold Manufacturing at home also saves the
great expense OF freight rates both ways, and keeps the money at
home TO finance other enterprises.
Germany, being without capital must resort. to barter, making
OF her labor 4 medium OF exchange, To do this she must have
credit, and credit, when properly used, represents capital Many
philosophers hold that money is never a final payment. The final
audit comes only when some other product is purchased and used
Germany is making strenuous efforts to ~rehabiitate her
economic structure, which is much better business than building
UP a great military machine.