ranches, businesses and homes at high prices, making small down-payments with the little money they have, giving many vendors lien notes for balance. The bankers generously buy your notes with new money they create, inflating volume of money still more, sending prices still higher, until their intended harvests are ripe; then they quit making loans and call in loans, taking money out of circulation. Prices drop. Farms, and homes bought on 30c. cotton, $2.00 corn, and $1.20 an hour wages, can't payout on 10c. cotton, 65c. corn, and 30c. wages. So the bankers start their harvesting machinery. And that's the third reason why private banking must go. No group of men should be permitted to exercise such baleful power. As in 1929 Panic, thousands will hold on to their inflated shares too long and faced with poverty will suicide, while millions will suffer years of privation and want. Not so with all inner circles of banking — the stock market manipulators and their inner circles, the holding companies and their inner circles, the stock-floating corporations and their inner circles, and insurance companies and their inner circles and a few smart individuals—they are unloading their corporation stocks and bonds quietly and in small quantities, so as not to attract attention, and are buying tangible assets—farms, mines, houses, small debt-free businesses. That started a high land-price spiral. When the rank and file discover what these inner-circle folk are doing, they will rush their holdings on the market. It will be too late for them. A few columnists are hinting at the truth we have been shouting for years that too much money makes high prices. Below we quote one of them.
Henry Hazlitt in Newsweek "European governments today. . . decree that regardless of how much they have debased (by creating too much) their currency, prices in terms of those currencies must not rise. . . . They are united in the cry that there is a money shortage, implying that it can only be cured by further big loans from America. Our own government accepts this "dollar shortage"' explanation. Yet there are more outstanding dollars today than ever before. Between June of 1939 and June of 1947, total demand deposits and cash outside of banks increased