The Hawaiian gazette., 1870-11-30
NhaI il Money

Is the sabjec, Of s paper roAd before
the Liverpool Chamber Ct Commerce, by
Bon2my Price. Tie deiuc,ions arrived
81 by the autbor 2re Sonevhz- s; variance
with the popular notion u the Uses Of
money. bui are sustained BY sound argu-
ments, thSs seem Incous1overtible.
CON ! money. L i the form IF money
shout whirh there Is no difference II
opinion IS to rs fune;ious.-i,s sole one
beng 70 facilitate exchanges Bank no,eS.
checks, and 81 o,her paper devices. sre
used a. representatives Of ooin. and IS
salrs,i,u,es-for II; hence their circulation
sud their Influence upon business ar sub
. jest to the same principles that pertain
10 coin.
CON Is manufactured 70 else, $ service:
!, Is TOOL m45e II orier 10 perform s Ger
tain work: Sa iu>,r,neu; Of tie sane
class 5 $ ship, cart Or railway: s means
Of conveyance Locked up in wants. 1t
Is useless and uupro5ue,ive, Ss would be
8 ship laid aside from her work It's only
value in vaults Is tbst Of forming -
ouri,y. for which purpose. !; h4> no 2d-
vSot2ge over many other kinds Of nal OF
chattel property. which. while serving =
security. i AZ The saze time productive.
Money, then. i 8 tool for exchanging
properly. for eaabling s man who has
property which he dos uot wsat. To Oh
tain Other property in exchange for It,
When s country ha< $ sufficient guzn-
ti,y. Of coin. OF Is substitutes. 10 e.ec; an
the exchanges re9uirej by t. domestic
OF fo1eiEu basiresS. al additions 70 the
stock Of coin, OF Of currency. + positive
loss Such excess remains unused: Il II
be coin. which 70 gs,. mus, e:st It's equiv
silent n corn. wheat. OF some other form
Of domes,i-proiloe, II i the Substruc,ure
Of Just tLas much produce. thai may he
available for many uses. for coin tba, has
but one uSe. and can be rendered pro
duc,ive only when us@i In isciIiiating ex-
changes: II It be eaTeney, II can not be
kept afoat. bat returns 81 once to the
vaults Of the Issuing bSnk
An sSoeSS Of money does no, oreate
productive Industries. II merely stimu-
laisS reckless Speculz,iorS. thai IN the end
depseciate the nal wealth Of = country.
and end IN 5 commercial storm that
SWEEPS away the Accumulated wealth Of
s prosperous period Il i successful IN
iuS,r.sS. p&ying euPloymea,s. thzt create
the cnlv sound demand for money. snd
enFloy 1t ls-iiima'ely-
As money ! merely the tool with which .
exchanges are effected. It follows that
multiplying the tool can n0t IncrsAse the .
work to be done such course Is placing
sSeet for csuse. s similarly 5 farmer .
would DO who should seek 70 increase his
harvest by multiplying his wagons Tie
buying and selling Of coamoiities / the
foundation Of the ned for the use Of
money; when these transfers Isngui<h. OF
The buying i N excess Of tie selling.
business languiSbeS. and TINES are bsr,l
L Is no- money that creates OF DESTROYS
hard times. bui the state o. trade Itself:
nor : It possible for money alone 10
ehsngs these results. because BY no pro-
aeSs esn II be substituted for commodities.
n which alone the re2l Transfers Of value
reside
Bank notes are not capital, SAYS sn
author: neither are title-5eeds. OF Cor
sois. o. Government Bonds The tue
,hsrzcter q = Bank : summed I'D n the
definition that It / sn Institution for the
rsnsfer Of debts Sir John S1Eo-k, an
diving the results q his own hank.
reached the fact THAI II q business footing
y SIS. Oo0.0lQ. only 1hree per cent was
sssh- Three pats only II , hundred ooa-
sisted q eoin and hank notes OF this
.m0zut q cash, one sixth only ~zs con
,osed Of ooin: the remzindar consisted Of
so;e. snd As bank notes are nos mons7.
MY one half per cent, or ten shlIines IN
hundred ponds. can Be considered As
money
In bAnking, les ; certain bslznoe r.
si1sd s. 3 reserve, the advances equal
he receipts, and the settlement Of both
; Effected b. setting one Of against the
sber, 80 thai each cancel the other.
The belief that bank notes are money
81 not help generziing the inference that :
bandsBee PIX notes / an zb1ndznoe :
I wealth. nat the money market / !:
irong and s.fe ~hen plenty Of bank I
otes are n the hands Of the bankers.
issues means pleshOTz Of
for loans and disoOznts. TIA Al :
s. the sumuir L rszehed II the ex- 7
zis1te idea that the n0st violent con Il
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