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Show Livingon Living on Borrows Borro\Tcd Borro Tcd Borrowed BorrowedCapital BorrowsCapital , \ CapitalBy Capital CapitalLEONARD By ByLEONARD LEONARD LLONARD A . BARRLTTM'1ny BARRETT BARRLTT BARRETTMany Many M'1ny M1ny hny ' explanations e\.plnnations e.plnnations e .plnnations plnnations explanntions : . \ 111 aie ate e advanced four for forour forour p our P.l Pl . piesent present csent Ills 111s Poverty Is blamE'd blamEd blamE'dbv blamedby blambv ' , bv by a large number numberof numberof numbof of persons pcrsons Because Be Because Bcause cause people peOllo ) n a-c a c apoor - < . ( . , , poor . , due to unem unemplo unems uncrploMnent s plo plos , ment , they do donot doLew ( Lew ' t tnot not 1111 ha\c ha c hae ' \ , e monev money monevspend to tospend tospend spend A lack of ofbu ofL ibuying 1 , bu buying ing power sIob slaws sIo\\ sIo sIodo slovdow \ b ; do down " n industry industryThe I n d u s try try'lhe t rIhe ' 'lhe lhe The ' more unem unemplo unemployment uneiplo L ployment plo ment we have havthe , 3 the lesss le.5 le5 leas : . purchasIng purchasIngPO purchasingpower purchaslipower PO\\ PO POer power \ er . A sort ivicious of ofvicIous ofviciouscirclel vicIous viciouscirclel circle circliMany ' ! Many Iany belIc belle\e belle e beliee \ , e that thatspecuhtlon thatspeculation th , _ ; speculation specuhtlon wa wab was the thechIef thechief t tchief chief cause of our ourpresent ourpresent 01present present trouble Accounts became over overextcnded overextended oveextended extcnded extended 1 In h ' the security mar\.et mar.et mar .et et market marketWhen mar.etWhen marktWhen \ . When the Inevitable crash came these thesesecurities thesesecurities the ; securities had bad to be sold " , with "lth lth s ith largp large largploses largelosses lar ; losses loses : , In order to procure funds fund : . fo 1o fispeculative ' speculative purposes purpo'les purpoles ' homes " were sere ere mort mortgagpd mortgaged moigaged 1 gagpd gaged and loans lonns made be beyond , ) ond any anyrEasonable anyreasonable aireasonable rEasonable : hope of being repaid repald The Theshrinkage Theshrinkage Tlshrinkage shrinkage of values In mortgaged mortgagedproperty mortgagedproperty mortgagproperty ( property and the forced sale of securl securi securities securlties seeuities ties caused our troubles IachInery Machinery Machineryalso Machinealso IachIneryalso ] also came In for its share of the tl responsibility respon&lbIllty responlbIllty & The machine dIsphced dlspl'iced dlspliced dlspl'icedlabor dIsphcedlabor displacedlabor ' labor , thus causing tt\ tt two tt0 \ 0 serious dis disturbances disturbances disturbances turbances ; Increased unemployment unemploymentand unemplos unemplo ) ment mentand mentand and creation creat10n of more merchandise merchandisethan merchandisethan merchandisetlian than could be consumed , , which gaverise gave gaverise gaverise rise to the cry of overpro overproluctlon overproluctlonWe ] ucUon luction luctionWe ucUonWe We would venture to add anothercause another anothercause . cause seldom mentioned A word of ofadvice ofadvice oadvice ( advice offered to a young m'lrrled mlrrled m'lrrledcouple m marriedcouple ' irrled irrledcouple couple was , to spend monthly a little littleless littleless littleless less than is eained eatned e nned An accumulated accumulatedreserve accumulatedreserve accumulatedreserve reserve would thus be created crcated to meet meetthe meetthe meetthe the exigencies e\.lgencles e.lgencles e .lgencles lgencles : \ . of misfortune MIght MIghtthe Mightthe Mightthe the real cause of our ilia HIs Ills be that more moremon moremoney moremoney mon money y was W'1.S W1.S W1S svgs ' . spent than earned ? The Theexcess Theexcess Theexcess excess of money ; spent cpent sv was W'1S W1S ' is provide provided providedfor providedfor for thro throigh 19h ugh mortgages , loans , pur purchases purchases purchases chases on time , etc In short short , , , we t\ t \ tere were wereliving wereliving ere erelivIng livIng on borro borrowed " ed capital capit.ll capitll capit.llThe capitalThe capitalThe . The president preldent ' ) of the United UnItcd Sl'ltes Slltes Stites Sl'ltesChamber StitesChamber SlatesChamber ' Chamber of Commerce In a n recent ad address address address dress expressed the thought that what whatwe whatwe we \ e needed most was reco\ reco recovery recoery \ ery and not notreform notreform notreform reform Is It not a n fair question toask to toask toask ask whether we can ever have a per per- permanent permanent permanent - manent recovery until \ we e first have re reformat reformat reform form-at form at - at least n R a reform In the absurd absurdpractice absurdpractice absurdpractice practice of . living lI.vIng on borrowed capitalTo capital ? ? To our fathers t.athel's t.athels tathels . ' a debt W was J.S JS < . a debt debtand ebt , and a n mort mortgage age was dreaded like lIhe : anightmare anightmare a anightmare nightmare nightmareVcstorn nightmarefG fG @ ) WcetornhewspaporUnion \ WMtorn \Vcstorn Vcstorn Newspaper ew5papor Union |