The Tiffin weekly tribune. (Tiffin, Ohio) 1859-1868, 1866-03-15
WHO USE THE CURRENCY 2

hN1tAAN AahNh AANAN W viz ahNN
i um Of circulation than the same nun
: Der packed into small space. II
plain that they need moro carts an
e wagons, which arc a part of the m,
:. chinery Of exchange, as money is ni
c other part. The report Of the Ne
York clearing house for the week CT
- ding February "a, 1866, shows th,
the clcarings---that is, the exchange
r Of checks between the Banks Of tba
| city--during the week amounted e
sI97 ,i56, ,0S7 03. The balances fol
the same time amounted TO sl9,iT6,
! lS9 IL, or one to twenty-five, as nea,
as may be, of the clcarings. Thi,
means that every dollar serves in tn,
course of the day to effect exchange
to the amount of s25; for the state
inent is made by adding the clearing,
aud balances for each day in the week
! aud they are in the general proper.
ton above stated. The circulation OF
the New York Banks during the same
week was s22, ,959,9ls; but each bank
reports as circulation all of its bills
which are outside of its own vaults [;
the fact being, that the great part are
in the vaults of other banks, and n
small portion only in the tills and
pockets of the people that is, actu.
ally circulating.
If honorable gentlemen can af.
ford us their attention for a minute,
we think we can show them how il is
that one dollar multiplics itself into
twenty five, and what is of more con.
sequence, how is itthat the small dea.
lers-thc democracy of trade and pro.
duction-uso monCy, grcenbacks, "
or othor representative, while the ma
bobs use next to none, deal in per
sonal or corporate credit instead of
cash or national credit, aud are there
fore very much rccoucilcd to a pro.
cess of depicting the currency. which
affects them very little, while il crush.
cs out the small folk. The small folk
being the immense majority, aud hav.
ing votes, we venture TO hint to hon
oroble gentleman that it may bc worth
whho to know how they sand nirec-
ted, though having no organs, they
seem to DO mute aud uncomplaining
I" \ large merchant wants to buy
say, TEA. lie takes to bank his
note for s25 ,000and has Il discounted
Thcrcupon, s25, 900 is entered to his
credit on his pass book, and on the
bank ledger it is entered that he has
deposited S25, 200, the proceeds of the
discount of this note. Thcrcupon he
marches into an auction room buys
Tea to the value of S25, 900, draws
his check for the sum aud sends it to
the auctionecr, who, in his turn, hands
II over to the importer who brought
tho tea from China. lie deposits the
check in the bank where he keeps his
account, and thereupon hdtbonk find,
its deposit account swelled by S25,
600. Thus far there are deposits ia
two banks, amounting in the nggre.
gate to $4,000, aud not one silver OF
money" grocnback," or national
bank bill--has been used in the tran
sactions.
"lf the seller of tho tea, and the
purchaser, keep their account in the
same bank, the result is that at night
the credit is transferred from the nc,
count of one TO that of the other but
tho upshot is still this the bank
stands charged, aud reports itself Il.
having deposit of s25 900, apparent
| ly money; whereas it has only tn,
Ipromissory note of the tea merchant
II, On the other hand, tho Importer
keeps his account in different bank
the check of the tea merchant is sent
| by II to tho clearing house; u thou
sand transactions OF the Same naturc
are Offset one ogaist the other, aut
p 81 900 balances the account bo,wco,
5 the two banks--for this it appears i
y the proportion Of balances TO clear
Il ings,
1t would be great mistakcto sup
n pose that the bank which is found 4
! be 81 600 short-that is, which find
at the clearing house s25 900 Q
A checks drawn against it by its custo
r. mcrs, and carries them ouly $4,000
|. of checks drawn by the customers @
" other banks against their deposits
N actually pays over 81 900 in coin @
n in "grcen backs Not bit oft
~ only passes over check on the Esp,
sr cial deposit y of coin aud greenbacl
ct which it keeps at the Clearinghouse
II and the next day, very likely, it b,
y comes creditor on the clcarings, au
I, its check is handed back TO il. The,
y clearing checks are engraved in sum
i oc 81 GOO each, to facilitate what,
'e the long run, CONES to an adjustmer
'y OF accounts, and very rarely to th
&c delivery OF mosey, for so,no sma
le proportion of the temporary balar
Q. ces.