Financial responsibility

“ The economic financial incubuses you have created now control your lives, from the day of your conception, until long after your death. With your money they directly control your most essential industries; and indirectly hold ownership through their loans, and mortgages, of your business, your homes, farms, stock, lands. ”

“ The entire case may be presented by the statement that the day of sensible and sound financial methods will not dawn upon us until our Government abandons the banking business and the accumulation of funds and confines its monetary operations to the receipt of the money contributed by the people for its support and to the expenditure of such money for the people's benefit. ”

“ Under this system all the various revenue officials and tax assessors and gatherers would be dispensed with, and a vast system of economy inaugurated, which, in a few years, would transpose us from a borrowing to a loaning nation, making us the financial example for all the world. ”

“ In the course of my task I shall describe such parts of the general financial structure as will place my readers, especially those unfamiliar with its more complicated conditions, in a mental state to comprehend the methods by which the savings they think are safely guarded in the banks, trust and insurance companies, are so manipulated by the votaries of frenzied finance as to be in constant jeopardy. ”

“ With ten, or twenty millions! My system is similar to that of the State: the higher the debt of a country, the higher stands her credit; therefore, what is credit?—wealth! This is elementary, not counting that it involves a high question of moral philosophy. But I shall explain my financial and philosophical ideas on a more favorable occasion. Go to Mariette, and report to me later. As for me, I have promised to take my little shop-girl out on a new saddle-horse which, by the way, cost me an outrageous price. ”

“ As to a fundamental principle, the large majority are of the opinion that such a plan results in a financial loss to the employer, he being recouped if at all in non-computable ways. Those which continue the plan do so, not as a matter of philanthropy, but as a matter of justice if not of business. These are about equally divided in their opinion as to the direct financial benefit of the plan to the firm. ”

“ And further, as opportunity offers, to effect such an organization of our financial relations as will enable us, as far as practicable, to hold all the money that comes into our hands, as a sacred trust, to be used only in the payment of taxes, and of debts in all cases where the creditor cannot be induced to take some other form of payment. ”

“ The necessity of practising economy should be evident to every one, whether in the possession of an income no more than sufficient for a family's requirements, or of a large fortune, which puts financial adversity out of the question. ”

“ Is it for the best financial interest of the company to borrow on short or long time, to create a floating or a funded debt, etc.—these points require consideration and can, of course, be answered only in the light of the conditions prevailing in each case as to the status of the working capital requirements. ”

“ The work that you do – enhancing financial stability among consumers, providing investment counsel, and in many cases, educating consumers on something as basic as the need for a savings account – promotes the American dream of opportunity for all our citizens. ”

“ In financial legislation every measure in the direction of greater fidelity in the discharge of pecuniary obligations has been found by experience to diminish the rates of interest which debtors are required to pay and to increase the facility with which money can be obtained for every legitimate purpose. Our own recent financial history shows how surely money becomes abundant whenever confidence in the exact performance of moneyed obligations is established. ”

“ Their own importance has vastly grown as their companies' assets have piled up. A man with $400,000,000 or $500,000,000 under his control, with an annual income of $60,000,000 requiring investment, has become a financial giant. ”

“ By installing governmentwide cash, credit, financial, personnel, payroll, and productivity systems, we've brought common sense to the way we handle over $2 trillion that pass through the Government annually. ”

“ The report names two reasons for recommending contributions to the fund by employers: first, “the employee should not in our judgment be re [Pg 119] quired to reduce his earnings further by the payment of contributions into reserves”; second, “the employer’s financial liability under the plan would operate as a continuous incentive to prevent unemployment as far as practicable.” ”

“ In the present financial condition of the country I am persuaded that the welfare of legitimate business and industry of every description will be best promoted by abstaining from all attempts to make radical changes in the existing financial legislation. ”

“ One of those principles is what the President and the Secretary spoke about today, which was how do the American people feel confident in a financial system where they become -- through extraordinary assistance -- a lender to a bank in order to stay healthy in this financial system. ”

“ So this financial reform refocuses the financial sector on what’s really important: getting capital to entrepreneurs who want to grow their businesses, and financing to millions of families who want to buy a house or send their kids to college. ”

“ He will most require this aid in the making of leases, deeds, agreements, and other legal instruments.
The balance of cash, which may often be considerable, ought not be allowed to lie idle in the house. All money is part of the vital blood of society, and should be kept in circulation. ”

“ Being able to buy food where it is grown, cuts down expenses to a very small amount comparatively. When I told them this, one of them acknowledged that he could see that they would have less expense, but that they would still have need of money. ‘You bind us to take all we earn in scrip or shares for our labor?’ one of them asked of me. ‘Certainly,’ I said, ‘that is the protection of the society.’ But I told them they could buy money with their scrip. ”

“ Then not only has the nation a smaller dead loss, but the owner also has a smaller annual expenditure for his combined contributions toward the losses, the management of his insurance, and the protective measures. ”

“ Without care and method, the largest fortune will not, and with them, almost the smallest will, supply all necessary expenses. As far as you can possibly, pay ready money for everything you buy and avoid bills. ”

“ It is through the expenditure of public money that the State works in all of its activities, and it is the first duty of the science of finance to determine their nature and scope. Finance accepts public expenditures as a fact. ”

“ Whether we regard the distressed condition of our labourers at home, or look to the disturbed state of affairs abroad, the importance of closely and earnestly considering what may be the wisest course to take, in order to improve our finances, must be equally apparent. ”

“ And so it goes in every business but finance—finance, the most important of all, the business into which is merged all other businesses, the business of taking and preserving the results of all other businesses, of all other human endeavor. ”

“ It has already been shown that capital, saved by thrifty folk, is essential to industry as society is at present built and worked; and the financiers are the people who see to the management of these savings, their collection into the great reservoir of the money market, and their placing at the disposal of industry. ”

“ Maximum of responsibility, minimum of risk, maximum of publicity. To secure the maximum of responsibility, unlimited liability has been accepted by the members in many cases; that is, each one pledging his all for the good of all; and, second, to secure the minimum of risk, character is made the basis of membership and good habits the prime requisite for membership. No investments are made in speculative enterprises, and the purposes for which the money is borrowed are closely inquired into and due care taken that the funds shall be applied for such purposes only. ”

“ The application of an accumulated fund by the Government to the payment of its running expenses is a duty. An individual living beyond his income and embarrassing himself with debt or drawing upon his accumulated fund of principal is either unfortunate or improvident. ”

“ The factor, if he be a man of money, and answers their bills, fails not to make them pay for advancing; or sells the goods to loss to answer the bills, which is making them pay dear for the loan; or refuses their bills, and so baulks both their business and their credit. ”

“ In the former case, the wealth of individuals insensibly increases, and income keeps ahead of expenditure. But in the latter instance, debts have been contracted, engagements made, and habits of expense established, in reference to the existing state of wealth and of its representative. When these come to be greatly reduced, individuals find their debts still existing, their engagements unexecuted, and their habits inveterate. ”

“ You will, therefore, show the necessity of setting our credit upon a firm basis, the prospect we have of accomplishing it, from the great confidence in the integrity and abilities of the financier, from the economy which is introduced into our departments, from the industry which money excites, and which a fluctuating medium had destroyed, and from the total debility which much attend another shock to public credit. ”

“ The distribution of provisions, money, and merchandise in just proportions, according to times and places, is the true secret of finance and the source of wealth, provided those who administer it have foresight enough to suffer a present apparent loss, in order really to obtain immense profits in the future. ”

“ While they have not always recognized it, the problem which they are called upon to solve is really twofold—it concerns the safeguarding of their private fortune and the wise disposition of their business surplus. ”

“ Is private credit the friend and patron of industry? That most useful kind which relates to borrowing and lending, is reduced within the narrowest limits, and this still more from an opinion of insecurity than from a scarcity of money. ”

“ And further, I apprehend that their confidence of being helped out in the event of ill-fortune, will mainly depend on their opinion of their own individual credit, with, perhaps, some consideration, not of the quantity of the currency, but of the general state of the loan market. They are aware that, in case of a commercial crisis, they shall have difficulty in obtaining advances. ”

“ Whatever is spent, cannot but be drawn from yearly income. The whole and every part of the wealth produced in the country, forms, or helps to form, the yearly income of somebody. The privation which it is supposed must result from taking the amount in the shape of taxes is not avoided by taking it in a loan. ”

“ Let us hope our moral principles are not yet in that stage of degeneracy, and that in instituting the system of finance to be hereafter pursued, we shall adopt the only safe, the only lawful and honest one, of borrowing on such short terms of reimbursement of interest and principal as will fall within the accomplishment of our own lives. ”

“ If the whole or any part of that income be saved, so much new capital is generated,—the infallible operation of which is to lower the value of money, and consequently to conduce towards the improvement of public credit. ”

“ Moreover, the settled prices prevailing throughout the country allow of assured calculations and precautions as to business ventures, and permit such a ratio to be established between expenses and income, that at the end of the fiscal year a profit, not a loss, may be counted upon. ”

“ All that is required is such a business organization as will cover the entire ground demanded by absolute justice. It must look to the elimination, as rapidly as possible, of the elements of interest, profit and rent. To avoid the payment of interest it is necessary to minimize the use of money, and as soon as debts are paid, refuse to use it at all. To avoid profits, you must purchase your supplies and sell your products through your own exchanges. ”

“ The rules of private finance, it such there be, have not yet been formulated, and it is indeed only in recent years that economic writers have sought to coördinate the rules and principles of public finance into a science of finance. ”

“ In computing either the gross or the neat revenue of any society, we must always, from the whole annual circulation of money and goods, deduct the whole value of the money, of which not a single farthing can ever make any part of either. ”

“ Eliminating from interest the element of insurance, and regarding only interest proper, or the return for the use of capital, is it not a general truth that interest is high where and when wages are high, and low where and when wages are low? ”

“ Next, my Remedy will benefit that great middle class whose savings go to make up the billions in the savings-banks, national banks, trust and insurance companies, which are used by the "System" to secure for themselves a hundred, a thousand, and ten thousand per cent. interest on their capital, while the owners of these billions must be content with two and a half to four per cent. per annum ”

“ It is clear that we must stabilize the government's finances consistent with our ability to tap legitimate sources of revenue and the judicious outlay of funds to meet current and future needs, with open accountability for our obligations at home and abroad. ”

“ It should insist that our finance and currency concern not alone the large traders, merchants and bankers of our land, but that they are intimately and every day related to the well-being of our people in all conditions of life, and that, therefore, if any adjustments are necessary they should be made in such manner as shall certainly [32] maintain the soundness of our people’s earnings and the security of their savings. ”