The Elk Mountain pilot., 1921-01-27
lq@S Current Comment
Il MST1A RyNalfer Thomas Nils.
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THE GAMBLERS srRANeLE GRIP
IyWaHer 771on1dsM Nils.

THE GAMBLERS STRANeLE GRIP
In this modern world each useful
person renders at least some single
service or produces some single COM
modify which he can exchange in the
market for all of the things and SER
vices he needs for his own and for
his family's use. AS producer he
may produce but a single thing. but
as consumer he uses many things.
Each one produces for the many in
turn, each producing a single COM
modify, provide the many things for
each consumer.
Each useful person is able to buy
out of the market because he puts
something into it. When he lets go
of the one thing he produces, he
must obtain for it some sort of
thing which in turn will be receiv-
able in the markets in exchange for
all his supplies. Money is just such a
something. 1t is nothing other than
an order for goods which can be
transferred without Endorsement and
is universally acceptable. A bank
check is such an order, with the
exception, however, that it is trans
ferable only by Endorsement.
/,
Money or its equivalent should be
always obtainable in consideration
of goods or services already delivered
In such a case it is cash transac-
tion. Credits should be obtainable
only in consideration of goods OF
services already in storage, or in
process of production, or within the
certain reach and ability of the Dor
rover to produce.
1t is the business of bank te
deal in credits. Interest is a pay.
ndent for the use of credits. Under
our present banking system the
Federal Reserve Board has the pow
er greatly to deflate these credits
that is, greatly to increase or great
ly to decrease the volume of credits
available for the transaction of bu:i-
ness.
An increase in credits leads to an
increase in prices. A decrease in
credits leads to a decrease in prices
If debts are made when prices are
high, the burden of debt is greatly
increased when prices fall. If debts
are made when prices are low, the
burden of debt greatly decreases as
prices rise EVERY INCREASE OR
DECREASE I'M THE GENERAL
AVERAGE OF PRICES, AND
HENCE EVERY INCREASE OR DE-
CREASE IN AVAILABLE CREDITS
MEANS AN INJURY TO SOME
ONE.
Il 1t is a crime that has been re-
peatedly committed, it is an out
rage now definitely provided fol
under our laws, that the manipula
tion of prices thru constant shifting
in the volume of credits can con
tinuously involve productive work
ers in great liabilities assumed
when prices are high and then forct
them into certain ruin as price.
fall.
1t was in the midst of situation
of this sort that the Populist part,
demanded the establishment OF
national warehouses and the grant
ing to producers of ample credits
to be secured on their warehouse
receipts. That would have made
possible exchanges directly between
the producers and it would have
placed forever the means of pay.
ment and the volume and contro
of credit in the hands of the useful
people.
The Popu lists were abused, mis-.
represented, laughed at and finally
betrayed, but what the Populists
propro!ed for the producers, the
Federal Reserve Board provides fol
the gamblers, with the provision that
warehouse receipts can be made Tho
basis of credits only after. ths own
ership of the products has passed
from the hands of the farmers.
Only a little while ago the Press
was filed with declarations that the
only way to return of prosperity
was thru increased production. Pro
duction was increased. The gran
aries are full. The warehouses ars
bulging with untaken goods, ant
some four or five million of produc
tive workers are out of employment
They are beginning to beg for bread
They are forming in breadlines. ALI
THIS BECAUSE 1T WAS DECIDED