The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-11

upon It world commerce has become
~ oNtensive aud 40 complex that
credit is the real ally ~ commerce
and without ~ trading Of men with
one another on n large scale and
tho huge facilities for Transporting
commodities would lauEu.Bh ana
dwindle AWAY. The roRl nature "
credit. being not mater al but Epir-
itunl has gone beyond the grasp
~ the casual thinker and bocHusr
Of ignorance es to ~ nature and
uses, mishaps have como upon our
commerce. We are today suffering
a depression because commercial
credit was over extended and put ~
uses for which It lis ueithor designed
nor intended for credit cannot be
manufactured; tho printing presses
Of Russia may turn out paper rublcs
by the trillions, but there IL no hu.
man power In Busaia that can force
the exchange OF its fiat money for
commodities ~ It's face value. Credit
IL founded ON real value and iH
never better nor worse than its I'M
dcrlying value. When the govern
mcnt Of tho bolligercnt nations bOr-
rowcd billions OF their people for
the purchase 81 war munitions and
'V' hffN iNtu ulfl ~ liF llfiNs lH'N
we've asking u form OF credit cx-
tremely dangerous IN character for
II inevitably meant credit Initiation.
There was no underlying value, the
redemption of these credit oblign-
iions was "a rest on the taxing pow
ors of the nations and these powers
az we now know are subject To ana
affected by social and political
About Credit.
when the promoters Of an indus.
try need capital they offer stock.
when they wish 10 borrow they
offer bonds. borrowing on the So
curity OF bond is credit transac-
tion. Selling shares Of stock In an
Industry Is n capital transaction.
Credit ~ not capital and the great
error OF the post war period was nm
attempt to make credit do tho work
of capital, Credit has "A definite be-
ginning and ending. IL should Sxist
no longer than its underlying value.
Credit must be liquidated at spo.
cific periods, and also frequently IN
order that II he kept fluent and
sufficient for the needs OF com
merco. Credit is the ally ~ mod.
ern commerce. This should be pat
ent to the rcadey who should under
stand how much safer he will be
II he appreciates fully tho real ma
turo Of credit and It's proper uses.
OF nll commercial transactions a.
least 92 per cent are credit transac-
tlons. One Of the most impressive
thinrs IN modern life is the extent to
which credit has become lnterwov-
en- IN world commerce enabling us
to expand our indus ries aud our
agriculture 20 a point that was never
dreamed Of by our progenltors.
Credit "a Means.
Credit has given us facilities for
creating a huge national wealth. bu'
we must remember that credit is
but IA facility; u IL not Itself wealth
and must never he reckoned as a
part OF tho nations wealth. II must
he considered servant of the ma
tioa and = means for producing cap
ital
We have endeavored to present
the subject IN way that would be
lucid to the lay reader. Though
credit In technical because OF It's ma
ture, yet after all. when reeognis-
ing how deeply credit penetrates into
the welfare OF every person no mat
ter whether he he employer of em-
plOye, capitalist or laborer, We con-
slider II a worthy project to arouse
interest In knowing jug what credit
IN and what big part II has played
In modern commerce.