The circle banner. [volume] (Circle, Mont.) 1914-1939, 1922-10-27

care for her little children stretchin.
a dollar to make it go as far as ter
will. Or if a father is worked out anC
thrown on the human junk heap be
fore middle age, or if the gutter is
full of homeless orphans, they have
been ground up in the mill of Nam.
mon into profit, and when they can't
care for their children any longer
then they are cared for by charity.
But 1t matters not because as long as
they consume they are profitable to
business and capital gets its pound of
flesh. Where Capital Gets its Profits
from Capital has three sources from
which its profits come. Capital takes
all the product and pays the produc-
ers fixed price or wage that will not
buy back all his product or its EQUIV
alent so when the producer has ex-
hausted its buying power the product
representing the profit of capital is
still left to sell and no money to buy
it with. Then they can build new in
dustries, or sell in foreign countries
for gold, or saddle the public with a
debt. The first is alright for tempor.
airy relief but makes it worse later ON.
The second is alright for us but II
piles up debt in the foreign country
where it is sold and the third is the
seed of the systems own destruction
Now we see that when we have pro-
duced more than we can rebuy and
consume so capital has a surplus. then
we have unemployment ana depres-
sion and stagnation in business until
we go in debt either as private or
public and work off the surplus pro-
duct, representing the profit of can |
ltal. Now every time we go In debt
1t is an interest bearing debt and that |
reduces our purchasing power and in
creases the surplus that has to be |,
worked off and that has gone on /
until We cant pay interest and taxes.
We are carrying an Indebtedness of
approximately One Hundred Billions 4
Of dollars. Interest at per cent will
be 100000 year. The value of
Ill farm produce including livestock is
only between five and six billion dol
ars year so it would take all wealth
produced by agriculture just to pay
interest, and then we have six bill .
on or taxes year to pay and it all
las TO come out of industry between
he producer and consumer Is it any
wonder that the gap has broadened
'etween producer and consumer that
lelther can live? We of the farms pro-
uce all 1000 IN the raw state in
reat profusion and we grow it be-
DIV cost of production and we can't
rford to market it. People in the
tiles are in dire need of it and yet.
1ey cannot afford to buy it. The work
RS IN the cities produce the finished
roduct below cost of production that
e on the farms are in dire need of
Ut cannot afford to buy just because
e all have to produce below cost of
reduction, and then go in debt to
ny the surplus, so capital can get its
oft. But this cannot go on indefin-
ely When anybody, whether private
public gets in debt so he can't pay
terest then his credit is ruined and
can't go in debt any more. Now
at is just about where we are at
lis is not an accident. 1t is deliber-
ely planned. 1t must be so and kept
or the system will not work If we r.
'uld get cost of production, which &'
cans living and all overhead ex-
nses and depreciation all tolled up
At is what it has cost us to pro- r
&c what we have. Now If all got RE
st of production there would not
any way for capital to make us
y its surplus. So when a surplus a !
they cut wages and be
ow men out OF work SO they have I'm
money to buy our farm produce wit
n and prices go down till we istl
i not afford to- market it and it is / Mo
to rot in our fields and gardens. Z
is then that we have to mortgage ant
farms and livestock or whatever mo
have, go in debt to live and help far
TX off the surplus. Most of the in a r.
lrlai workers nave no property or sou
y little to mortgage SO our states c
4 and representatives invent and
for the public to go in debt is
employ the idle workers so they MOI
live and help work off the sur mes
5. And when it is worked off the q
eels Of industry start turning again four
we have what we call prosperity. Eas
the public are In debt a little recc
per and most individuals who had thin
security. During the war the de- suIt
Id was great. Wages high and Was
es high The end of the war cd
sht them with large surplus on max
d, our foreign markets gone, so tana
: had to make us buy it at home. sena
he deflation period came and put a
ybody producing below cost of man
uction. Ton.
~ lneie nau ne" conultlon arls- shou
since last we were normal. Our Anne
btedness had multiplied tenfold, dick
takes nearly all for interest and tana
S, SO no matter how bad we are nava
eed we can't buy to any great tbize
ut, and it gets harder for capital Fo
ct its profit because production and
OF keep pace with the profit TAX name
Of capital. When capital has alb ,rice
I'd all wealth tangible, intangible, Ridd
onal and real, and there is moth truth
more for it to get, then the sys- anne,
will cease to function and we worlx
have money and bonded aris- With
cy on one hand and a nation OF nubli
" 'io o'noi' w nave just ABOUT and
led that stage. All that is left Mvar
n