The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1920-01-05
LIABILITY RATHER THAN ASSET.

Tho close OF the year 1919 found tho banks
Of the country reporting an inoronse OF t2i.-
O0O, ,000, 900 over the most prosperous previous
year Ia tho history OF the country, The comp
rollcr OF tho treasury saw In tho report an
optimistic news story--a viewpoint that tho
thoughtloss will readily share.
But the student Of economy reads In the fig
ures u menaoing liability rather than asset
TO boast of. In tho first place tho figures are
incapable of registering accurately on tho hui
man brain. The average mind dismsses them
without tho thought that here Is wealth too
stupcndous to be analysed Aud the average
mind Ia quite right
1t has only been u few years since $2i 900
was considered fortune. Then we began to
famlliarize ourselves with theoretical millions
Only "A very few men were considered In tho
millionaire class 90 years ago. To-day every
state claims scores. Almost every nolshborhood
boasts one such.
As a matter OF absolute fact. the millionaire
is almost as rare as ever. And likewise we
know as an absolute raot that no increase OF
s2i. .0OO, 100000 in the bank deposits, or re-
sources either Of the banks OF America has oo-
CURED during the last l2 months. when actual
value is considered. And there is tho vital
trouble
There has boon an initiation OF values repre-
sonted in the sum by this appalling string Of fig
uros. That imitation Is reflected in si5 shoes
against 50 shoes OF the former period In 23.cont
sugar against io-cent sugar OF tho former pc
rod, In 500 suits against $40 suits OF tho for
mcr period. And so on ad infntum, But not
one cent of added actual value is represented,
Tho country--the ontre worlds on a false.
fictitious and extremely dangerous basis. Re
Elected not only In finance but In Industry.
cicty and family customs. Tho banker counting
his surplus above tho amount fixed by law,
readily grants rash credit to the next man who
applies for funds with which to finance another
story on the pyramid OF prosperity" The
government. through the secretary OF the treas
ury with authority to issue treasury notes
against an emergency; or the federal reserve
board, pracucIng system Of financial pyu-
midlng, uttors moro promises to pay. and the
hole made In the hank balance by the bankers'
last loan Is moro than filled up. so the bank
reports increased assets.
Theoretically. the treasury notes issued by
the secretary are temporary, And they are.
They return TO the treasury--and are rchsruod
The bonded Indebtedness of the United statos
approximates $50 600 900 900. Itself uabu-
ity. Yet st Is reflected on the side OF tho
balance sheet, Tor i has been converted into a
circulating medium partially 40.
There have been two financial contests FOR
sound money in the United sntos--tho green
back contest and that against FREQ silver ,u
1896. Yet the country is today very largely
pracucng the iniquitos which tho people con-
dcmned in each OF these campaigns.
1t Is no real service to disregard this matter
1t is grave. Not a banker or financial authority
IN America but knows that there must be de.
natiou and roadJustment of values. Tho Longer
It is put off the more serious will be the con
sequences when 1t does come, AZ first steT
the congress should Immediately withdraw from
the secretary Of the treasury the authority tC
issue notes grcenbacks. That's what they are
And issues outstanding should not only be oaleC
m, but should be destroyed once they are I'm
lu this connection The federal reserve board ha
duty TO perform that IL cannot always Ignore
We wish to hang no crepe What we ask is
season OF common sense and return to prac
deal conservatism. What we demand is thai
statesmen Cult fighting synptems and addres:
homselV(s herolcally TO the disease itself