South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-03-19
CREDIT, ALLY OF
MODERN BUSINESS,
NEEDED FOR TRADE
Head Of Credit Mems Organi-
cation Tells of Dangers
When Misused.
BY y. IT. TREGOE.
treasurer National Association Of
Crndif NIcnA
Special 70 The News-Times.)

special 70 The News-Times)
CHICAGO. March 1S-The indus
ira. system OF the world would 90
crashing into chaos tomorrow II
credit were destroyed
The actual cash transactions OF the
world today arc small in comparison
with It's credit transactions. Wipe
OFT credit and its issues and our
uIoucy-except gold and silver
would be worthless. our mauufac-
turing plants would be forced TO
close. our stores 10 shut up. our rail-
roads cease 20 run, industry, busl-
mess. manufacturing production,
would be halted. there would be no
'J0bs." no incomes. and in place Of
Fvstem wEuld reign anarchy.
credit \ not a tangible asset. II
is a spiritual thing more delicate
than breath and vet strong enough
TO govern a worlds work II was
. endangered in the Worlds war and
tile mere appearance OF danger has
been enough 70 upset the economic
balance OF our country today.
The public ar large cannot realize
to- immensely Of the credit system
and how indispensable 10 has be-
come TO commerce. Running sack
in history 90 the days when living
Was simple and human needs few.
the exchange Of commodity for com
modify. which we term barter. was
fuHcie-t 90 crafty the wants Of
men. Under such method there was
10 commerce as we think Of It and
social advancement was slow.
Modern System.
with the increase Of human wants
aud as society became more complex.
the exchange Of commodity for com
modify was insufficient 70 satisfy
mems needs. and needs are usually
satisfied. In substitution for barter
therefore. forms Of money began to
bc introduced as mediums OF ex-
change. In the period OF handcraft
when articles of dress and for the
satisfaction Of peoples wants were
produced I'm homes, money as con-
trasted with credit was sufficient for
tho conduct Of business. 1t was not
sufficient, however, to stimulate COM
1nerce and bring il into a period Of
intensiveness.
With the Industrial revolution.
unen power was substituted for
haudcraft in the production OF COM
modities and steam became the mo-
tive power for the transportation OF
these commodities from the point OF
production TO the point Of distribu-
tion. money was insufficient as
Redium Of exchange and there came
into its place the credit system TO
supply the needs OF the period. This
system characterized by great flexi-
biGty developed rapidly TO serve hu-
rlgu needs
Ancient System.
From the earliest days credit in
some form was granted in the rela-
tloua Of men. As a great commercial
system. however. tt dated from the
Industrial revolution and based upon
Il world commerce has become so
extensive and so complex that credit
IS the real ally commerce and
without it tradinf II men with one
arother on a Ia. scale and the
hugo facilities for transporting com
modities would anguish and dwindle
away. The real nature of credit
being not material but spiritual, has
conc beyond the grasp of the casual
thinker and because Of ignorance
as 10 It's nature and uses, mishaps
have come upon our commerce.
We are today suffering a depression
because commercial credit was over
extended and put 20 uses for which
f. is neither designed nor intended
for credit cannot be manufactured;
tire printing presses of Russia may
turn out paper rubles by the trillions,
Tut there is no human power in
russia that can force the exchange
a. It's Hat money for commodities at
i-s face value Credit is founded on
real value and is never better nor
worse than its underlying value.
When the governments OF the bel
I.-crcnt nations borrowed billions of
their people for the purchase of war
munitions and to keep their men i'm
tus field. they are asking a form of
credit extremely dangerous I'm char
a,ter for it inevitably meant credit
iu1auon. There was no underlying