“15--Thus, rising prices, by diminishing the incomes of ‘safe’ investments in ‘gilt-edged’ bonds and stocks and by increasing the profits of speculators encourage extravagance, recklessness and thriftlessness. “16--As rising prices decrease the purchasing power of debts, and thus aid debtors at the expense of creditors, they discourage saving and thrift. “17--Rising prices, then, by promoting speculation and extravagance, increase consumption, especially of luxuries, and, therefore, stimulate production. “18--Rising prices, then, result in what is real prosperity for many industries; but what is for a nation as a whole, artificial or sham prosperity--the result of marking up prices rather than of increasing production. “19--With prices, wages, rates and industries always imperfectly adjusted to the ever depreciating value of gold, and with instability and uncertainty throughout the financial world, there cannot but be a great shifting around of values and of titles to property. “20--As this shifting is to the advantage of the debtors--the rich--and to the disadvantage of the creditors--the great middle class--it results in rapidly concentrating wealth in the hands of a comparatively few. “21--For all of these reasons a prolonged period of rapidly rising prices is reasonably certain to become a period of unrest, discontent, agitation, strikes, riots, rebellions and wars. “22--A rapidly depreciating standard of value then, if long continued, not only produces most important results in the financial, industrial and commercial world, but is likely to result in changes of great consequence in the political, social, and religious world. “In view of all the facts, results and possible consequences connected with the increasing output and supply of gold, The Wall Street Journal was right when, on December 4, 1906, it said that ‘No other economic force is at present in operation in the world of more stupendous power than that of gold production.’” IV Money From the viewpoint of the speculator, money conditions require constant consideration. It goes without saying that no sustained bull market is possible unless money conditions favor such a movement. We find that at the end of a period of inflation, the credit situation is always strained, while a general recession in business will usually cure the evil.