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became practically worthless. Pelatiah Webster in "Political Essays" says:
"If it saved the state, it also polluted the equity of our laws; turned them into engines of oppression and wrong; corrupted the justice of our public administration; destroyed the fortunes of thousands who had most confidence in it; enervated the trade, husbandry, and manufactures of the country; and went far to destroy the morality of our people."
This statement of the effect of a depreciated currency, made by a writer in 1791, might be applied with equal force to the Germany of to-day.
Professor Edwin R. A. Seligman, of Columbia University, speaking of this same period in our history, says:
"The spurious prosperity occasioned by the high prices during the war soon vanished and turned into the contrary after the collapse of the paper money. During the eighties the suffering was extreme. Only with the greatest difficulty could the Revolution be brought to a successful close; while the ensuing business depression and universal distress well-nigh destroyed the very fabric of the state. So alarming was the situation that almost the first thing accomplished by the convention which framed the new constitution was to prohibit the issue of bills of credit by the States and to adopt a provision which was supposed to apply the same inhibition to the Federal Government as well. And when the National debt was funded in 1790 the remnants of the old paper money were accepted at the rate of 100 to 1. Thus came to an end an inglorious chapter in our fiscal history."
France had a similar experience during her Revolution. The treasury then issued the famous assignats or paper money presumably based on public lands. The original issue of 400 million livres steadily grew until it reached the The enormous total of 452 billions. inevitable depreciation rapidly took place and the bills became practically worthless. A French writer, M. Marion, describes the result as follows:
"It was now that there appeared in all their gravity the innumerable calamities, political, administrative, economic, moral, and social, which inevitably follow the ever-growing issue of a depreciated paper money; the ruin of the treasury, crushed, on the one hand, by the insignificance of the revenues paid in paper of a nominal value, and, on the other, by the growth of the expenditures necessarily met in actual values; the increasing difficulty of procuring food, the commodities fleeing from a paper sunk so low; impotence and inertia of the administration deprived by the worthlessness of this paper of all its means of activity; the upsetting of fortunes; the sudden enrichment of all debtors except the state; and the ruin of all creditors through the payment in illusory values of sums contracted for and expressed in real values; universal demoralization, fever of gambling and stock jobbing taking the place of
SEVEN-ROOM HOUSE No. 702
USE FACE BRICK -Peys
Designed for the Service Dept., American Face Brick Assn.
This attractive Dutch Colonial Bungalow is one of the ninety-six beautiful homes shown in our "Face Brick Bungalow and Small House Plans." The charm and simplicity of the exterior suggests the coziness and comfort of the interior. The grouping of the living room, dining room, porch and hall is one of the distinctive features of this house.
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GERMAN MARK? (Continued)
the love of work and the practice of thrift."
Is not the above statement fully as applicable to the Germany of to-day?
The monetary history of almost all civilized governments contains similar examples of the evil effects of a fiat paper currency.
And now, with the above economic and historical background, what can we reasonably expect to be the outcome of Germany's experiment with a depreciated paper currency? Depreciation of the mark has reached almost ludicrous proportions. We have the now familiar example of Russia before us, where the printing-presses find it impossible to keep up with the demands for a constantly depreciating currency. Russian rubles are now the "stage money" of the world and have little more value than the paper on which they are printed. The German Government appears to be following the same path of illusion which leads to the graveyard of the paper mark. It was recently reported that the great German Central Bank, the Reichsbank, was compelled to shut its doors and refuse payment of currency to its depositors because of an actual deficiency in the available supply of bills. In other words, depreciation had gone so far that the printing-presses were unable to keep up with the demand for paper money. The measure of depreciation is shown by the present quotation of seven one-hundredths of one cent for a mark which has a normal or par value of 23.3 cents. Thus far has the mark plunged from the gold unit of world value toward the abyss of oblivion. With the issue of billions of paper marks still unchecked, ultimate redemption in gold has become an impossibility.
As an evidence of this tremendous inflation, it is reported that the Reichsbank's note circulation in the last week of July increased over 12%1⁄2 billion marks. Between July, 1921, and July, 1922, the note circulation increased over 122 billion marks, and discounts of treasury bills and private loans increased nearly 128 billion marks. The total outstanding bank notes on September 15 amounted to the incredible total of over 271 billion marks.
The best that the "investor" in marks can look for is partial redemption at a greatly reduced ratio. This is in effect partial repudiation. But more probably the paper mark will be almost if not completely repudiated and a new currency standard set up. In our opinion, therefore, the holder of marks has very little to hope for and his best course would seem to be to find some method of investing his holdings in German property or industrial securities which have some measure of real value. This of course is not an easy thing to do. We might state, however, that a company has just been formed in New York for the purpose of investing American holdings of marks in German securities. It remains to be seen whether such a venture will prove of any success.
The best that the business man who
"I Will Put My Insurance in Trust"
GERMAN MARK? (Continued) for is that the German Government will be able to find some means of stabilizing its currency so that a measure of price stability can be attained. Here again this will probably be brought about by a partial or total repudiation of the paper mark. In any event, no improvement can be brought about until the German Government calls a halt on the printing-presses and in good faith makes the attempt to re-establish its monetary system on some basis of real value.
We can learn much from history, and history teaches us that a fiat currency has always invited disaster.
THE SUBSTANCE AND THE SHADOW
BY NOEL SARGENT
THEN a certain business man died, about two years ago, his wife received a considerable sum of THE author has recently made some insurance money. Knowing little about investments, she consulted her brother. He recommended that she purchase stock in the company of which he was president.
Last year the business went into the hands of a receiver. The widow's income has ceased, and her principal is practically lost.
Such cases as this point the moral that it is often as essential to provide for the future protection of insurance money as it is to pay the premiums.
One of the many important services rendered by trust companies is the care of life insurance. Trust companies are today the trustees for many millions of dollars of insurance money.
Your insurance can be made payable to a trust company as trustee. The company will invest and distribute it according to such instructions as you leave, by which you can provide for many possible contingencies.
The trust company will protect your insurance fund by all the safeguards with which it surrounds the administration of estates and trusts.
interesting investigations into what might well be termed the "practical" side of the open and closed shop controversy.
Fifteen cities in which building is at least seventy-five per cent on an openshop basis were compared with the same number of cities where at least threefourths of the construction in 1921 was performed under closed-shop conditions. The former group included Minneapolis, St. Paul, Detroit, Atlanta, Milwaukee, Richmond, San Antonio, Grand Rapids, Seattle, Duluth, Salt Lake City, Spokane, Akron.
The closed shop cities listed were: Cleveland, Indianapolis, Newark, Kansas City, Missouri, Chicago, Cincinnati, Dayton, Pittsburgh (including McKeesport), Syracuse, Louisville, New Orleans, Providence, St. Louis, Scranton, Butte.
Lest it may be alleged that the cities were "hand picked," we must note that twenty-five of the thirty (a majority in each group) are among the fifty largest cities of the country, and that twentyone, or seven out of each ten, are among the forty largest, according to the 1920 Census figures.
The "American Contractor" in a recent issue presents statistics as to building wages prevailing in different cities December 31, 1921. Figures were presented for nine of the open-shop cities and eight of the closed-shop cities. purposes of comparison, the author has selected six Occupations-carpenters, hod-carriers, plasterers, painters, bricklayers, and plumbers. The average hourly wages were as follows (in two of the cities, both upon an eight-hour basis, the "day" rate instead of the "hour" rate was given in the "American Contractor"):
depend upon it
With Listerine near at hand in your home you enjoy that comfortable feeling of knowing the antiseptic you use is both efficient and safe. It's been that way for half a century-always uniform, always dependable.
Some of its many uses
As a gargle for sore throat to
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MADE ONLY BY
THE SUBSTANCE AND THE SHADOW
popular cartoonist, "it doesn't mean
The average per capita building per-
Which is best-to have 16 per cent higher wages-"on paper" or to have 56 per cent more building in actual practice?
Let us take 100 building workers in an average city in each group. In the closed-shop town they work 100 hours for $1.16 an hour-a total of $116 received by the group. During the same period the workers in the open-shop city, receiving only $1 per hour, can work 156 hours, receiving $156. Thus the total wage of the group of workers in the open-shop town is 34 per cent greater than the group wage in the closed-shop town. To which group would you prefer to belong if you were a worker?
THE AMERICAN MECCA
BY ELIZABETH CANEY PARKER
E had to go to Oyster Bay. It was
one billet to another, and there was
Walter Baker & Co. Ltd. the little village of Oyster Bay.
DORCHESTER, MASS. Booklet of Choice Recipes sent free
So a hot Sunday afternoon found us tracing and retracing our way around Other cars were turning and backing at every crossroad and lane, as there were no signs to guide us. But our general drift was the same, and we came finally to a shady three-corners, where dozens of cars were parked, incongruously enough, in that quiet country spot. Limousines with correct chauffeurs glided into place, middle-class cars exuded large family
BE AN ARTIST parties, and uncountable Fords, backing
Comics, Cartoons, Commercial, Newspaper and Magazine Illustrat
and starting noisily, filled every space.
Just across the road at a little gate a
We went up the little winding path in
THE AMERICAN MECCA
Adv. No. 1
WITH FACTS BEFORE YOU, it is the other-or, if so, it was through the honor of Uncle Sam-of justice for
Roosevelt's eyes. How I hated it at first, that shuffling, heterogeneous crowd where I had expected peace and no other people! Only for a minute; then I gloried in the fact that only at a Roosevelt's grave could such a thing be-all humanity paying its homage-and that I was a part of the throng.
Roosevelt's grave-a plain slab with simple name and dates of birth and death, and under his name that of his wife, the eagle's mate, with date of birth. A high iron fence surrounds the grave, on which were stately wreaths placed there by the rich and great of the world. And through the fence had been thrust every variety of growing things from orchids to little flowers and bits of shrub picked by the roadside.
We walked slowly around the
There are not "two sides" to such questions. That is why we meet no opposition but "silence"side-stepping-camouflage. The book more than confirms every claim of the advertisements.
The Gist of It All
The nation has had a Postal Savings Bank since January, 1911.
Every other savings bank in the world makes at least the pretense of serving the interest of depositors, getting for them the largest possible returns consistent with safety and availability.
The Postal Savings Bank has been shackled by the opposite rule, attempting to get from depositors as much money as possible for the least possible interest, in-paying them only 2 per cent per annum, on money left in the bank at least one year. In practice this return is less than 12 per cent. Furthermore, the law per
closure and there was no sound. Then a woman sniffed, a man cleared his throat, and presently each tributed a gulp, a sob, or a frantic blow-mits the funds now in the Postal Savings ing of nose.
Real grief, real sorrow,
for a man most of us had never seen was in every heart. Each person stood beside the grave of his own dead. But for all the sorrow there came a feeling of renewed strength and vigor. It really seemed that even after death that tremendous personality gave us a power as Mother Earth did to Antæus.
Then down the slope we made our way and heard such bits as these. An Italian said to his boy, "Verra brav' man, verra brav'." An old Irishwoman to a young girl, "He'd a-sittled our throubles fer us, wan way or anather." A Frenchman to his friend, "A personality of a greatness indescribable." A plain American to his boy, "He loved kids and he loved animals, son, and he always played the game." A sailor to another, "Gee, I felt a lot surer of what I was working for when he was alive." One man answered his wife's question with: "Darned if I know what his religion was. Whatever it was, it took in all of 'em."
An Oyster Bay woman said to me: "He was big and famous and clever and President and author and statesman and fighter and all that, I know. But we Oyster Bay people lost the best neighbor in the world, and none of the rest of it means much to us."
As we all drifted apart I heard a scholarly-looking old man say to his companion, "He truly loved the world and lived for it."
Bank to be loaned to commercial banks at 24 per cent, the banks loaning it to the Government, and to the people, at anywhere from two to four and five times that rate, and yet at no time has the market price for money on the solidest security been less than 32 to 4 per cent, and today, as everyone knows, is 61⁄2 to 8 and 9 per cent. It is now proposed:
First-The Postal Savings Bank shall be open and accessible to all without limit as to amounts that may be deposited, and interest thereon paid for any period of time, as is customary with commercial banks.
Second-These deposits shall be loaned at the market price for money on security that is good beyond question. This should make, in these times, the net income for deposits at least 6 per
a question of conscience-of patriotism-of ALL who toil with hand or brain.
Incidentally, it is a question of dollars in your pocket-many of them-reduced taxes, better business, because of general prosperity.
cent, gradually diminishing to 5 or less as world prosperity returns.
Third-Four per cent semi-annual compound interest will go directly to depositors.
Fourth-The balance of the profits shall be paid twice a year into the United States Treasury, thus making possible the reduction of taxes and thereby benefiting the whole citizenship, including, of course, the depositors. This, it is estimated, should bring into the U. S. Treasury, without taxing anybody one cent, an annual income of at least $120,000,000, to possibly $300,000,000 or more.
Fifth-Every banking institution in the United States in good standing may become an agent for the Postal Savings Bank, both to receive deposits and to make loans, receiving for such service a small commission on both deposits and loans.
The Postal Savings Bank will thus become the greatest and strongest bank in the world, one vast national reservoir of the people's savings, available for loans to all who furnish proper security. There will be no favoritism to any class or interests-practically no limitation to loans except the limitation of good security and use in harmony with public good.
Sixth-The present gold standard is not affected and will be permanently maintained, yet gold is made no longer either fetish or a scarecrow.
Seventh-The Postal Savings Bank will be placed beyond the power of domination by any interest or class. It will have no power of either inflation or contraction, these powers being left in the exclusive possession of the existing Federal Reserve Banks.
Eighth-It will quickly mobilize and put into ordinary bank channels over three billion dollars ($3,000,000,000) of money not now in any bankthe identical kind of money that is now the foundation resource of all banks.
Ninth-With this bill in operation there will be scores of millions of depositors, instead of half a million as at present, with deposits exceeding thirty billions, possibly soon nearer one hundred hillions, instead of one hundred and fifty-five million deposits as when this is written.
For details, facts uncontroverted, arguments unanswered-unanswerable-see "THRIFT AND PROSPERITY." by Senator Morris Sheppard, of Texas, and John B. Alden, Neshanic, N. J., farmer, exeditor and book publisher; $1 at book stores, or free at Public Libraries.
PUBLIC OPINION is irresistible. YOU help make it. READ the book for facts, simple, overwhelming logic. SEND THIS to Congressmen, Senators, Editors, Public Men; ask them "Why not?" Tell your thought. Inclose in all letters. Discuss with neighbors. These slips for letters at rate of 5 for 1c, postpaid, from Alden.
Honesty is the best POLICY. Godliness is PROFITABLE-economic truth, not buncombe, not cant. Pleased customers more PROFITABLE that "skinned" customers. Dropping water wears stone-Keep at it. Ink beats dynamite. Pen mightier than sword-swing it!
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