The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1922-03-03
..FlAT" MONEY

minds of the timorous the most alarm
ing; apprehensions.
In the hands of the wizards Of fl
nance it, has been the scarecrow OF
the centuries.
There is not now and never has
been such thing as natural" money
Money does not take root and grow
ON trees 1t is not the product of the
soil like fruit, flowers or grain. II
is created by man and to s. pass cur.
rent with the merchant, "Nas was said
of old, it must bear the superscrip
ton of some government.
The coin that was brought to Christ
bore the superscription of Caesar. The
sid and silver coin of which we are
familiar bears the stamp or super.
scription of Uncle Sam in the shape
of the American eagle.
| The raw metal contained in the sill
yer dollar was kept on a parity with
the raw metal contained in the gold
dollar until disturbed by congressional
Legislation.
If there had been no legislation en-
actment the parity would have re-
manned the same without deviation
or fluctuation for all time.
But the trade and commerce of the
world have outgrown both silver and
gold as the medium of exchange and
paper has become the money of civil
cation.
One OF our exchanges says as kind
of witticisIh that the burden that is
crushing German finance is a paper
weight meaning paper money, and
| the esteemed Pensacola News says
that Germany is learning that even
a sovereign government can not make
money out of nothing '-meaning that
lit can not make money out of paper
that will pass current
But Germany's paper money does
pass current.
Mr. Harold j. Dreher, vice.i resident
|of the Federal International Banking
Company of New Orleans, has beer
in Europe for number of years study
ing its economic and financial condi-
tons and he says that Germany has
financed the peace as she did the war
-by the imitation and consequent de-
probation of her currency, and though
she lost the war. it may be said that
she has won the peace.
BY imitation this financier says Ger
many is redeeming both her war and
peace debts. This policy has kept
her people fully employed, and has,
by capturing the markets of the world,
caused economic distress in the vic
tors countries.
No one, says Mr.. Dreher, except the
blindly optimistic holder of marks
believe that Germany is ever going
to put twentysfour cents worth of
value into mark that is paying her
debts, external and internal, at u cent
per mark.
Note what the policy of initiation has
done for Germany and compare it
with what the policy of deflation has
done for the United States.
+ We learn from Mr.. Dreher's report
that Germany's transportation is in
fair condition. New locomotives and
freight cars are much in evidence
Labor is working well. The textile
Industry is active. New ships are in
process of construction. Contract ar
rangements are being made with va
rious foreign countries for the estab-
lishment of joint shipping services to
South America and far eastern ports.
Consider, if you please, how pros
porous our country was before the
tragedy of defiation began its deadly
work.
The farmers were getting magnifi-
cent prices for their products and
were buoyant, happy, prosperous and
contented.
The merchants were selling their
goods at profitable and most salts
factory prices and were rapidly gather
ing in wealth as likewise were those
engaged in all other branches of trade.
There was absolutely no sound bust
ness reason for the regional and pre-
dominating banks of the big cities
to suddenly enter upon a policy of
restriction and withdrawal of credits.
Mr.. John Shelton Williams, for the
period of eight years comptroller of
the currency during the administra-
ton of Woodrow Wilson. a friend of
the Federal Reserve system, is on
record as publicly stating that instead
of contracting the currency those in
control of it could have safely issued
two billions OF dollars and saved the
nation from the tragedy that the
policy Of contraction has brought
upon IL.