Milford chronicle., 1957-12-20
Babson Discusses
Tight Money


difficulty today is not tight
money-". Money rates are like the
temperature recording OF a ther-
mometer or the air pressure read
ing by barometer. Tight Money"
is not a cause, but only an effect of
some underlying wrong.
Many Basic Facts Are Optimistic
We hear much about the popu-
lation growth ahead of us. This is
an optimistic factor: but many
populations and are living in pow
erty. To benefit from a large popu-
lation, the people must have sane
education and sane religious
faith.
Our democratic government is a
basic reason for optimism. The
American Way of Life, with free
dom OF enterprise and equal op-
portunities for all, must continue.
However, Rome, Greece and other
nations also had democracies. But
the people lost interest in exercis-
ing their precious right to vote;
they discarded their religions; they
deteriorated spiritually and col
lapsed.
Great Funds Spent Upon Research
Many financial experts today
consider the large appropriations
being spent upon research as in
surance against depressions. ! be-
lieve research spending is now
approaching S10,000,000 per
year. This, however, will not save
US. The development of printing,
the scientific work of Sir Isaac
Newton, the discovery of America,
the harnessing of steam by Watt,
and the electrical. age by Edison
gave great periods of prosperity
However, their effectiveness weak
ened because they were not used
for spiritual advancement.
/ might add other causes of So
called prosperity, such as the
growth of installment selling, radio
and TV advertising, high wages
without a corresponding increase in
production. All these things may
have their usefulness, but they lead
TO imitation and higher living costs.
Imitation is like stimulation by
liquor. We need only look at
Europe to realize the curse of
slow imitation. To try to remedy
tight money" by issuing more
money is suicidal.
Can We Depend Upon Legislation
To Prevent DepressiOnsa
History shows clearly th26 all
such legislative attempts have been
useless. Several have been suicidal.
The fixing of prices, wages, and
rents have been tried many times
during preceding centuries. All have
| failed. So will our attempts to fix
or subsidize farm prices likewise
fail. Unemployment insurance and
pensions seems to be worthy legis-
lation, but they have not worked.
They were tried in Rome, France,
England, and even in Germany be-
fore World War I.
Such legislation was usually
blamed on tight money, as was
the socialist movement led by Will
liam Jennings Bryan in the early
Nineties. They were backed by
selfish groups seeking feather
bedding" without regard for the
good of the nation as a whole.
Manufacturers fought for tariffs;
home builders for 95 per cent
loans; while labor unions succeed
ed in remaining exempt from
anti-monopoly legislation. Frankly,
these false movements were due
to lack of real religion, which
caused the tight money" of those
days.
Material VS.. Spiritual Growth
History proves that these two
must progress together. When a
nation is actuated by sane religi-
Gus growth based upon the Ten
Commandments, it enjoys contin-
ued material growth. On the other
hand, when material growth ex-
ceeds spiritual growth, then de-
preston follows with it's falling
prices, unemployment, and busi-
ness failures. The real reason why
money is tight" today is because
most people have gone haywire
materially seeking money, enter
tainment, and more gadgets, in
cluding stylish clothes, autos, TV
sets, and all the other things their
neighbors have.
Church leaders quote statistics
on church attendance, but church
attendance is largely the 'froth" of