Part 2

Keep Money Rolling

by PR Sarkar Icon

23 March 1986, Calcutta

Kátiká in Sanskrit means a business that is built with the help of loans.

  • “Kátiká vyavasá” is a business built by someone through a loan.

Many countries suffer from financial stringency.

  • This is why they take loans from other countries.
  • These loans are then used for ventures like constructing large dams on their rivers.

Economics teaches that:

  • the rolling of money should never be blocked by any sort of non-productive investment.
  • loans taken for business investment should:
    • always be utilized for productive purposes
    • never be utilized in any unproductive venture.

Sometimes people misuse loans to construct an unnecessary buildings or a new showroom for their business.

  • This prevents the possibility of reinvesting the capital and increasing their wealth.

Foreign loans, for example, should never be invested in constructing large railway stations instead of railway lines.

The most fundamental principle of economics is that the value of money increases with its mobility.

  • The more that money changes hands, the greater its economic value.
  • The more that money is kept immobile in a safe, the more it loses its utility
    • Its economic value decreases.

The banking system is indispensable for promoting both:

  • collective welfare and
  • the all-round economic advancement of people.

The maxim, “Keep money rolling,” is as true as the proverb, “Keep the wagons moving.”

The banking system must be vigilant of 2important points:

  1. The intrinsic demonic greed of the banks must not be allowed to jeopardize the life of the common people.

This defect only ruins low and middle income groups, but also impoverishes wealthy people.

In the past in most countries of the world the banks threatened the life of the common people. This more or less still occurs today not only in undeveloped countries, but also in developing and developed countries.

  1. The banks must not allow unwise administrators or governments to print monetary notes indiscriminately without reserving the proportionate amount of bullion in their treasuries.

This defect destroys the very life of society.

It leads to widespread inflation, which in turn jeopardizes internal trade and commerce as well as foreign trade and barter.

Even if there is abundant production in a country, the common people do not benefit. The rich become richer and get more scope to continue their merciless exploitation.

In state capitalism, the exploitative rulers tighten their grip over society even more. State capitalism may call itself capitalism, socialism or communism, but ultimately it stands before the masses as more dangerous and bloodthirsty than bloodsucking ghouls and demons. The banking system must continue, otherwise the mobility of money will be hindered.

If people oppose the banking system because they are guided by selfish whims or any other sentiment, then their economy will stay in the dark ages. They are bound to lose equipoise and equilibrium in the physical sphere, remain lopsided in the psychic and spiritual spheres, and reduce themselves to objects of ridicule. It is very sad to imagine such a state.

Let governments be active.

Let people purchase as much rice, pulses, vegetables, oil, salt, sugar, etc., as they can with money.

Let money go to the grocers, the sugar cane vendors, the confectioners, the factory workers, the labourers and the weavers. And let the colourful saris of the weavers be purchased and worn by the newly married brides, adding to the beauty and prosperity of society.


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