The mirror., 1923-07-26
THE FIGURE IN BRONZE
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that twenty-five thousand should be con-
sidered a small amount.
The money king leaned slightly for
ward, and, in a manner which seemed
confding and yet a triAe patronizing, re-
marked-"The manner, or process, strip
ped of its red tape, is really quite simple.
For instance, organize with cash capi-
tai of twenty-five thousand.e This is sent
to Washington and invested in interest
bearing Government bonds. Then we is
sue our own bank paper-money, of
course-under our charter and signature,
for the full amount of the bonds which
we hold. This paper is loaned out at
interest, thus my original capital draws
interest both from the Government and
from my clients. Sort of an endless chain
conveyor of interest, operating from both
ends toward the middle-the bank Of
course. AS deposits come in and accumu-
late, we invest this money likewise in in
terest bearing Government bonds and
again issue our paper in loans to merchants
and upon first class mortgages. The en-
suing interest pays the bank expenses and
profits"
"But where does the U. s. Treasury get
the money to pay the interest upon its
bonds?" asked Justice quite meekly.
'From import tariffs, taxes, ETC." re-
sponded DePomp. eff there is de-
6ciency in Government revenue, the
Government often issues more bonds, and
that means more prosperity for us,-the
banks of course!"
"I perceive" said Justice, and then she
added as an afterthought,-"Of course
the people ultimately pay all this, do they
not?"
"Most certainly! A Government tariff,
or tax of whatever nature, is, of course,
added to the price of the goods taxed. The
merchant simply adds the amount of the
tax along with his own overhead, expenses,
and thus the ultimate price is fixed"
"That seems very simple" remarked
Justice, "but it seems also that the poor
man, the wage Garner, is the one who al
ways pays. The merchant and the banker
I presume, count their living expenses as
overhead and charge it to the goods. Am
I correct?"
"Well-yes,- s,-quite-o At least I
do. Business is business you know" re-
piled DePomp a triAe uneasily. "We all
strive to reduce our expenses of course.
Now, for instance,-a merchant can get
his private supplies at wholesale rates,
same as mercantile stock And then there is
Mayor Goodby,-I happen to know that
he orders his household supplies through
the city purchasing department, thereby
saving himself considerable money"
"But that is sort of rebate, isn't it?"
asked Justice.
"Y-e-s," stammered the banker.
"Well, Mr.. DePomp,-if your butler
directed your trade to a merchant who
gave him rebate for getting him your
business, would you consider that legiti-
mate deal,-one becoming faithful SER
vant?"
"No, by thunder! That's grafting!"
roared DePomp.
"But he might also say that business is
business" retorted Justice.
"Well,-I would discharge him in that
event, but buffers, like most people, your
self excepted, don't know very much about
the intricacies of business or finance, and
it really bores the average individual if
one mentions the subject to them When
ignorance is bliss, it's folly to be wise,
and therefore we don't care to disturb
their mental repose lest our business might
suffer in certain lines. Self-preservation,
is you know, the first law of nature"
Justice gave comprehending nod, and
DePomp continued, $50 you see that very
little of the real, main, and important