The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-02-17

TEN, however. it dated from the in
dustrial revolution and based upon il
wrold commerce has become so cNten-
sive and SO complex that credit Is the
really ally CT commerce and without
it trading Of men with one another 90
a large scale and the huge facilities
for. transporting commodities would
langulsh and dwindle away. The real
nature of credit. being not material
but spiritual, has gone beyond the
grasp CT the casual thinker and be-
cause of Ignorance as to its nature
and uses mishaps have come upon OH"
commerce. We are today suffering a
depression because commercial cred
was over extended and put to uses for
which it is neither designed ncr in
tended for credit cannot be manufac-
tured: the printing presses of Russia
may turn out paper ruMes by the
trilliOns but there is no human powe.'
in Russia that can force the exchange
Of it's fiat money for commodities at its
face value. Credit Is founded on real
value and is never better nor worse
than its underlying value. When the
governments OF the belltgerent nations
borrowed billions of their people for
the purchase Of war munitions and tc'
keep their men in the field. they were
asking form OF credit extremely daE-
gerous in character for it inevitably
meant credit imitation. There was no
underlying value, the redemption or
these credit obligations was to rest
en- the taxing powers OF the nations
and these powers as We now know are
subject to and affected by social and
political changes.
When the promoters of an industry
| need capital they offer stock. When
they wish to borrow they offer bonds.
Borrowing on the security of bon'l
Is credit transaction. Selling shares
of stock in an industry is capital
transaction. Credit is not capital and
the great error CT the postwar Pc
riod was an attempt to make creai'
do the work of capital. Credit has a
definite beginning and ending. II
should exist no longer than it's under
lying value.
Credit must be liquidated at spec.
tic periods. and also frequently In or
der that It be kept fluent and suit
cient for the needs ct commerce. Credi
is the ally of modern commerce.. Thi!
Ishould be patent to the reader wht
should understand how much safer h
l
real nature of credit and it's prope
uses. OF all commercial transaction
at neast 80 per cent are credit trans
actions. One Of the most impressiv
, things In modern life IL the extent t
. which credit has become Intervene,
in world commerce. enabling us to ex
: pand our industries and our agricultur
D to a point that was never dreamed q
> by our prcgenttors.
81 Credit has given US facilities ft'
creating a huge national wealth. bu
= we must remember that credit Ia bu
h a facility: 1t Is not itself wealth. an
] must never be reckoned as a part {
a the nations wealth. 1t must he cor
!, sidered a servant Of the nation and
I. means for producing capital.
o We have endeavored tc present III
subject in a way that would be lucl
v to the lay reader. Though credit
/. technical because Of its nature. y
!. after all. when recognising how deel
!. lily credit penetrates into the welfal
J.. of every person. no matter wheth'
a ne be employer or employee, capitali
J. or laborer. We consider It wortl
project to arouse interest in KNOWN
just what credit IL ana what big pa
it has played in modern commerce