The King Who Got Squeezed by "Tight Money' There once lived a King who always 'Tight Money' to nine words: 'There got everything he wanted. is no such thing as a free lunch. When he wanted a new carriage At first the King was furious. He he bought it. When he wanted new turned a Royal Purple. robes, he bought them. When he wanted a new castle, he had only to But even as he raged, he was sign on the dotted line, and it was busy thinking about what the econ- his. omist had said. (After all, you don't get to be a first-rate King by When he was a little short of being thick between the ears!) cash, he simply said, "Charge it, please." And lo, it was charged. For Suddenly his anger subsided. the King had always been a Good "Aha!" he exclaimed. "I think you Credit Risk, and everybody really have something! Say on-" liked to lend him money. So the economist continued, Then one day things changed. "When people attempt to borrow more than they are saving, soon The King wanted to buy some- there is a shortage of money to thing, and said, "Charge it, please," borrow." as usual. But the seller dumb- founded him by replying, "Oh "And then even a King can't King, I'd like to do this for you, but borrow, unless he is willing to start I'm a little tight for cash myself!' up the printing presses, which brings Inflation, said the King, The King was so hurt by this wisely. "For as I said before, that he decided to Take His Custom 'There is no such thing as a free Elsewhere. lunch. So he went to another place, "A wise saying, Oh King," said down the street. But there he was the economist, nodding enthusias- again rebuffed. When he said, tically, "but if people were to save "Charge it, please," in his most more then there would be plenty ingratiating manner, the man hung to lend and Inflation could be back, murmuring about "Tight avoided. And soon our 'Tight Money." Money' should go away." The King departed in a huff, "All it takes is more savings!" drawn by six horses. the King beamed. At his castle, he summoned his "Indeed, Your Majesty said it," Chancellor of the Exchequer. quoth the economist. "Money is Tight," he told him. "Ink up the Royal Press and let's So the wise King opened a savings run off enough for everybody." account himself, and began putting some of his paycheck away each The Chancellor paled. "That payday. And he decreed that each would bring Inflation, Your of his subjects should do likewise. Majesty,' he quavered. "Re- member what happened to the And sure enough-before long, Kingdom next door when they had money stopped being "Tight." their Mild Inflation?" This explains two things. One is The King nodded. "Mild Infla- "Tight Money," and what to do tion got to be Wild Inflation. about it. The other is how the King's Money was so cheap, you were beautiful daughter happened to better off with a basket full of po- marry a junior economist. tatoes." He frowned. Then, since the problem was be- ginning to look a little Complicated, he simply commanded his Royal Economists to go and prepare a short, simple text on 'Tight Money-What it is and what to do about it. After many weeks they brought him many volumes, filled with charts and graphs. But they were all written over the King's head. In fury, he banished one econo- mist after another, until finally he MORAL: had only one left. If each of us Kings will save some- Trembling, this junior economist thing extra each payday, we too will appeared before the King. put an end to our "Tight Money." "Your Majesty," he quavered, So how about starting with you-this have reduced the subject of payday? HARRIS Trust and Savings B Organized as N. W. Harris & Co., 1882.