The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-25

declared that required NO more currency TO DO the
business OF Great Britain now than did twenty years
ago. when the business was only half as large. There
viii DO found in OF shs parliamentary reports Of 1858
ber Of arm in London largely enpaged in commercial
ranging over several mill ions sterling
In the ordinary course OF business when carefully ana
lyzed held the following ratio for ONE hundred parts
Bank OF England notes. ....9... 7per cent.
Gold and silver. ACKNOWLEDGEMENTS. 8 per cent
Bankers drafts and checks............ 90 per cent
Total. .,....................1 100 psr cent
PcyaAs,s
Bank OF England notes. per cent.
Bills Of exchange and checks. o. per cent
The business Of this firm analogous 70 that OF any
OF our large merchants traders In New York, and
proves conclusively that the credit and capital Of the
people are used to an extent Of ninety 10
per cent IN ordinary mercantile transactions, and that
neither gold and silver nor paper convertible into gold
aud silver IS used Tor circulating medium beyond from
three 70 ten er cent This fact strkingy illustrated
by The New York bank exchanges money transactions
1sss amounting ssl, 29l i3l which was pcriolm med
by the use OF s2s07, 500 in money. In the year
and the balances or money Used daily We're Under
81, 0o0, 000 For this data indebted 10 n former
eminent member OF this House Colonel stcbbins, This
experience Of New York talies very closely with the
testimony IN the parliamentary report, u only
quircs about three per cent in money 10 iquidae all
payments IN modern trading. II IL were not mschiev
II would DO rdculous TO claim thai there
silly for the continuance of present excessive
OF paper money. Sir. Charles Butler In the House OF
Common stated that the amount Of bank paper in 1894
bot woen f23 900 900 and G27 900 900, while thu
amount OF Bills OF exchange In circulation at ooe time
the year was f13 % 600 I've times the amount
Of bank notes On the 1st day Of January 1886. the
whole bank capital Of the country amounted to S4o3
7,346, but much moro active and larger capital
made up OF Individual deposits which the same date
amounted 10 $5i360S, 8Ss BY Of the checks Of
Of other I'd deoos,ors or other bsnIahIe funds
an equal amount may DO deposited Al tho
time is perfectly safe for any bank TO calculate
that at the close Of business each day the total Of
the deposits will remain nearly unchanged and thereby
the basis OF discounts is very much enlarged Thus the
credit OF individuals at the banks plays by far the most
important figure IN modern financial TRANSACTIONS. and
does away with the necessity Of large volume Of bank
note circulation besides than doubling the agere
standard OF money has been the desderatum OF tho
world; bu, il has not yet been found Cold and silver
have been almost universally accepted the nearest APP
Proclamation 10 that end. because these metals have
greater intrinsic vaas 10 proportion 10 weight and are
long settled counties has been considered
varying Of prices than god the ground
dncc IT, But uniform standard. however desirable,
appears impossible. Labor In one country is
in ctcs and towns than in rural districts, because
money hcrc abundant and purchases less OF the
absolute necessaries Of fc Educated and skilled labor
Is liable than The uneducated because more
productive. Labor Is worth moro in tue SPRING time
aud harvest than winter, Notwithstanding II costs tue
aborcr in clothing food and exposure because IN
the winter unemployed aborers become abundant. Ag
ricultura labor beng interrupted many who follow 10 IN
s pursue the tradc OF artisans during the winter
aud thereby depress the prices Of such labor In
towns aud cities Prstre lands combined with labor
saving agricultural implements have reduced the price
distant transportation prevents any srgc reduction
In the prices which The world a large continues TO pay
day % work in the United States may be worth twice
as much 10 Mexico, but one thousand men in
tLss unitsa States produce one thousand ounces
OF D;d silver Tor the same amount Of labor requires
Ia Mexico to produce two hunursd ard nifty
ounces transportation no LONGER intorieres, and the
price IN Mexico will fall one half or II will take twcc
much gold silver to make the same purchase be-
fore II rs 10 be noted however, that Chinese labor be-
ing shat largely employed ~ our mining regions IL quite
cheap that employed in Mexican mines In point
Of fact the SURPRISING abundance OF the precious metals
especially that Of gold, discovered within the last
eighteen ycarsCslfornA being already eclpsed by the
colonies OF Great Bsitan--and the facility and cheap
with which thoy obtained, has 30 cheapeued
the markets Of the world that gold itself has rapidly
would 1850 So copious are the supplies multiplied
suddeny ri 50 many different points Of tho globe,
that may be s.psctsd a. an early day to 30 valued
extraction. Whether the enormous increase OF the
precious metals msy NOT ultimately destroy them
ss measure Of value. Is wa. ,spprehended upon
California and Australia, remains yet 70 be Soon Tho
extraordinary drain Of silver to the Asiac nations will
S connns FOL snort
time longer that all nations will either abandon the
OF silver coins they must speedily debass them
owfreney value compared With gold they win be melted
up In 1900 tho value of god produced stood 10 that OF
silver In tho proportion OF "a TO " IN total OF
ss4 OOo but In 1868 when tho production had been
eusntpped, the proportions nearly reversed and
gold stood 81 10 IS In che increase OF silver u
small, while gold has qusdruplcd. Mscanisys New
Zealsnder may hnd. among other wonders thOusand
wears hence y pound of silver valued fifteen pounds
gold. In 1890 10 was estimated that for the preceding
nineteen years tho sycrage annual production Of the
precious metals had fallen oil about eSl 900 from
xha Al n had been that time.