MONEY FALLACIES. 
363 
exorbitant, there is not sufficient “ money ” procurable to 
build dwellings and offices. Surely if more money could be 
put in circulation (and the more the better) it could be pro¬ 
cured with ease, and prosperity would come with a leap and 
a bound. 
The fallacy which underlies this dismal view of the reality 
and hopeful view of the possibility may begin to appear if 
we look at other portions of the country. In any of the great 
cities of the eastern and central states a merchant or manu¬ 
facturer of good standing has no difficulty in obtaining all 
the money he wants at 4 or 5 per cent. The banks are full 
of it. If we look into the accounts of the New York banks 
we shall find that there is hardly a southern or western bank, 
whether national or private, that has not a deposit or credit 
there. It is no uncommon thing to find this money loaned 
out in the city, or even outside of it, on call, at 2 or 3 per 
cent. Here there is no scarcity of money, but rather a seem¬ 
ing redundancy. High interest is not a proof that money is 
scarce, for any one of many causes may make it high; but 
low interest is proof positive that money is abundant, for in 
order that interest may be low all causes must conspire to 
make it so. Money, therefore, is not scarce in all parts of 
the country, but only in some parts of it. But why should 
this be so ? Why should money be abundant in the mer¬ 
cantile centers and scarce elsewhere? Because money is the 
medium of exchange and naturally goes where the exchanges 
are made. Where the exchanges are, there will the money 
be also. If the western parts of the country have wheat and 
corn, pork and beef, gold and silver, wool and hides, to ex¬ 
change ; if the southern parts have cotton and oil, iron and 
lumber to offer, the whole money supply of the world is open 
to their drafts, and if they want the cash in gold coin or in 
paper money they have but to say so and it is on the way to 
them as fast as steam can carry it. 
So, then, it appears that the asserted scarcity of money in 
some parts of the country is not because of a general or uni¬ 
versal scarcity; for all of the money in the world is at their 
