Evening star., 1933-05-28

in settlement cf electric bills, with an
other $40 for water and gas bills.
Cigars, cigarettes and tobacco were
| purchased with $24 of the money, while
candy, ice cream and similar light re-
freshments accounted for $50. Trans
portation fares 1oca1ly-street cars,
busses and taxicabs-absorbed SIS.
Debts were paid and loans made to the
extent Of sl8, while tips accounted
| for SIT.
Furniture and hardware stores got
SIT Of the money and SIS Of 1t was paid
on medical and dental bills. Insur-
ance premiums we're paid to the extent
of SIS. Movies and other theaters
and amusements accounted for SIS Of
| the original money.
BARRIERS and the proprietors Of beauty
shops received s14 of this money. while
S13 was expended for drugs and medi-
cines. Club dues and charitable dona-
tions accounted for $40. Nine dollars
went for flowers and jewelry
Bakers took in 50 of the money and
50 of it was spent for shoes Garage
bills were paid to the extent Of So
while tailors, cleaners and laundrieS
got So. Telephone bills were paid in
the amount of S6, while radio tubes and
accessories were purchased with SIS.
Shoe shines and shoe repairs were
acquired with the payment Of IS OF the
marked money. Railway and boat
tickets accounted for IS and another
SIS turned up as payment of interest on
note. Payment on an automobile in
the sum of 81 in this money was made.
Live stock was purchased with 81.
Thus the total OF s1,425 was reached.
Circulation Must Be Maintained.
To the person who takes s100 to
| bank and puts 1t on deposit, there clings
/ the idea that the same money remains
| there. 1t does not. 1t is of the essence
Of the banking business that that same
money shall be paid out to some one
else in cashing a check or in the form
OF loan. Money to be Of any use, must
continue to circulate and, theoretically,
! there are no limits to the extent of
| this circulation, as the Milwaukee test
shows.
Starting with the $500 out Of the
original $400 which was paid in salaries,
| it can be assumed that some of it was
paid in rent. The test showed that $258
OF the money was paid in rent, but that
did not necessarily all come out of sal
| ary money. But to follow through one
single line. Assume the landlord used
some of the rent money he received TO
! pay his grocery bill. Then assume that
/
with what he had received The elec-
! trio light company owed bill for fuel
and paid over some of the money to dis
charge that debt The coal man paid
some to the hardware man for shovels.
The hardware man paid doctors bill
and the doctor bought flowers and had
a suit pressed.
Only about three days we're devoted
! to the Milwaukee experiment and yet 1t
was shown that $400 paid sl,425 in bills.
Those obligations were definitely and
finally discharged, they did not have to
be paid again, and yet no more money
was used. That is the whole theory OF
circulation and, in part, the theory of
imitation. Practically every one in the
United States is in debt With more
money In circulation and boarding
stopped, the cycle of payments can be
speeded up and, In short time, the
obligations can be discharged.
o. Henry once wrote 1.-THE Tale Of q
Tainted Tenner" His character de-
cided he would trace the source of
$40 bill he had and unless he could ap-
prove morally of each use to which it
had been he would not spend it. The
man starved to death.