Money, after all, is extremely simple. It is a part of our transportation system. It is a simple and direct method of conveying goods from one person to another. Money is in itself most admirable. It is essential. It is not intrinsically evil. It is one of the most useful devices in social life. And when it does what it was intended to do, it is all help and no hindrance.
But money should always be money. A foot is always twelve inches, but when is a dollar a dollar? If ton weights changed in the coal yard, and peck measures changed in the grocery, and yard sticks were to-day 42 inches and to-morrow 33 inches (by some occult process called "exchange") the people would mighty soon remedy that. When a dollar is not always a dollar, when the 100-cent dollar becomes the 65-cent dollar, and then the 50-cent dollar, and then the 47-cent dollar, as the good old American gold and silver dollars did, what is the use of yelling about "cheap money," "depreciated money"? A dollar that stays 100 cents is as necessary as a pound that stays 16 ounces and a yard that stays 36 inches.
The bankers who do straight banking should regard themselves as naturally the first men to probe and understand our monetary system—instead of being content with the mastery of local banking-house methods; and if they would deprive the gamblers in bank balances of the name of "banker" and oust them once for all from the place of influence which that name gives them, banking would be restored and established as the public service it ought to be, and the iniquities of the present monetary system and financial devices would be lifted from the shoulders of the people.
There is an "if" here, of course. But it is not insurmountable. Affairs are coming to a jam as it is, and if those who possess technical facility do not engage to remedy the case, those who lack that facility may attempt it. Nothing is more foolish than for any class to assume that progress is an attack upon it. Progress is only a call made upon it to lend its experience for the general advancement. It is only those who are unwise who will attempt to obstruct progress and thereby become its victims. All of us are here together, all of us must go forward together; it is perfectly silly for any man or class to take umbrage at the stirring of progress. If financiers feel that progress is only the restlessness of weak-minded persons, if they regard all suggestions of betterment as a personal slap, then they are taking the part which proves more than anything else could their unfitness to continue in their leadership.
If the present faulty system is more profitable to a financier than a more perfect system would be, and if that financier values his few remaining years of personal profits more highly than he would value the honour of making a contribution to the life of the world by helping to erect a better system, then there is no way of preventing a clash of interests. But it is fair to say to the selfish financial interests that, if their fight is waged to perpetuate a system just because it profits them, then their fight is already lost. Why should finance fear? The world will still be here. Men will do business with one another. There will be money and there will be need of masters of the mechanism of money. Nothing is going to depart but the knots and tangles. There will be some readjustments, of course. Banks will no longer be the masters of industry. They will be the servants of industry. Business will control money instead of money controlling business. The ruinous interest system will be greatly modified. Banking will not be a risk, but a service. Banks will begin to do much more for the people than they do now, and instead of being the most expensive businesses in the world to manage, and the most highly profitable in the matter of dividends, they will become less costly, and the profits of their operation will go to the community which they serve.
Two facts of the old order are fundamental. First: that within the nation itself the tendency of financial control is toward its largest centralized banking institutions—either a government bank or a closely allied group of private financiers. There is always in every nation a definite control of credit by private or semi-public interests. Second: in the world as a whole the same centralizing tendency is operative. An American credit is under control of New York interests, as before the war world credit was controlled in London—the British pound sterling was the standard of exchange for the world's trade.
Two methods of reform are open to us, one beginning at the bottom and one beginning at the top. The latter is the more orderly way, the former is being tried in Russia. If our reform should begin at the top it will require a social vision and an altruistic fervour of a sincerity and intensity which is wholly inconsistent with selfish shrewdness.
The wealth of the world neither consists in nor is adequately represented by the money of the world. Gold itself is not a valuable commodity. It is no more wealth than hat checks are hats. But it can be so manipulated, as the sign of wealth, as to give its owners or controllers the whip-hand over the credit which producers of real wealth require. Dealing in money, the commodity of exchange, is a very lucrative business. When money itself becomes an article of commerce to be bought and sold before real wealth can be moved or exchanged, the usurers and speculators are thereby permitted to lay a tax on production. The hold which controllers of money are able to maintain on productive forces is seen to be more powerful when it is remembered that, although money is supposed to represent the real wealth of the world, there is always much more wealth than there is money, and real wealth is often compelled to wait upon money, thus leading to that most paradoxical situation—a world filled with wealth but suffering want.
These facts are not merely fiscal, to be cast into figures and left there. They are instinct with human destiny and they bleed. The poverty of the world is seldom caused by lack of goods but by a "money stringency." Commercial competition between nations, which leads to international rivalry and ill-will, which in their turn breed wars— these are some of the human significations of these facts. Thus poverty and war, two great preventable evils, grow on a single stem.
Let us see if a beginning toward a better method cannot be made.