Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-07-22
Is It A Sin To Make A Fortune?

ment in turn is supposed to supply indus
try with the money dt needs. The result
is that the rank and file of the people
will never get ahead. None can ever
achieve wealth or even old age security
from savings invested at two or three
percent.
We were interested in the comments
of Chase National Banks Winthrop w.
Aldrich on "easy money" some time ago.
He said: ut was assumed by the advo-
Gates of the easy money thesis that the
reduction in rates OF interest, accompany
ing the increase in member bank excess
reserves, would stimulate business &C
tivity. Business men would be induced
to borrow, the construction industry
would be stimulated and the capital
market revived. 1t was assumed, too.
in consequence of the increase in the
price of gold and silver and the in
crease taking place in bank credit that
commodity prices would rise. Price in
dices were to be restored to what was
considered normal level
How far these policies have fallen
short of announced goals is well known
Business activity continues at a low ebb
The capital markets have not experienced
a strong revival. The commercial loans
of banks remain disappointingly low.
This situation. of course. is but proof
of the old adage that business men viii
not borrow despite low interest RAJ
levels. unless attendant circumstances a.
such as to inspire them with confidence
regarding future business prospects,
Easy money" has sharply reduced
investment return Look at the big oil
companies and scores of others they
have retired all of their high interest
securities with low-interest securities
The investors have no alternative. They
MUST accept the low-interest bonds which
are offered in exchange for the highly
desirable high interest bonds The cor
Dorations cannot be blamed. But what
happens to John @. Public. whose money
has financed every one of these corpo-
rations In their infancy?
The wealth of this country has come
from development of NATURAL RE-
SOURCES. 1t takes more than money
changing to make wealth. Were the
people forced to invest all of their money
in government securities. this nation
would soon be bankrupt BECAUSE THE
EARNING POWER OF THE PEOPLE
WOULD BE so LOW THAT THEY
COULD NO LONGER SUPPORT THE
GOVERNMENT.
One school of thought seems to be
that the only income the people should
have is that from wages or salaries. It
is an established fact that none ever
became wealthy from wages alone. Even
among the highly paid professional men
we know-their wealth has resulted
from SUCCESSFUL INVESTMENTS,
which investments surely paid more than
bank interest.
The man who would finance a new adj
venture today is faced with the hardest
hurdles in history beginning with the
attitude of politicians who keep their
jobs and salaries by promising: "it will
be GIVEN to you" Secondly. the capt.
tai gains tax-which has produced little
revenue to the government-has prac-
tically driven risk" capital out of in
dustry It is "nisk" capital that nor
mally goes into the new. untried enter
prises, which furnish the background
for the great employing industries of
tomorrow. Under it's terms, the man
who takes a chance on a new thing must
absorb all the loss df it fails. If it sue