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 is trying to deflect things a little to his own advantage. Everywhere too one finds the stupid egotist ready to take fright and break into panic. Consequently we presently discover the state encumbered by an excess of currency, which is in effect a non-interest-paying debt, and also with a great burthen of interest upon loans. Both credit and currency begin to fluctuate wildly with the evaporation of public confidence. They are, we say, demoralized.

The ultimate consequence of an entirely demoralized currency would be to end all work and all trade that could not be carried on by payment in kind and barter. Men would refuse to work except for food, clothing, housing, and payment in kind. The immediate consequence of a partially demoralized currency is to drive up prices and make trading feverishly adventurous and workers suspicious and irritable. A sharp man wants under such conditions to hold money for as brief a period as possible; he demands the utmost for his reality, and buys a reality again as soon as possible in order to get this perishable stuff, the currency paper, off his hands. All who have fixed incomes and saved accumulations suffer by the rise in prices, and the wage-earners find, with a gathering fury, that the real value of their wages is continually less. Here is a state of affairs where the duty of every clever person is evidently to help adjust and reassure. But all the traditions of private enterprise, all the ideas of the later eighteenth century, went to justify the action of acute-minded and dexterous people who set themselves to accumulate claims, titles, and tangible property in the storms and dislocations of this currency breakdown. The number of understanding people in the world who were setting themselves sincerely and simply to restore honest and workable currency and credit conditions were few and ineffectual. Most of the financial and speculative people of the time were playing the part of Cornish wreckers—not apparently with any conscious dishonesty, but with the completest self-approval and the applause of their fellow men. The aim of every clever person was to accumulate as much as he could of really negotiable wealth, and then, and only then, to bring about some sort of stabilizing political process that would leave him in advantageous possession of his accumulation. Here were the factors