Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-12-18

ant took the paper glazed at the certifi-
cate of the bank dashed off receipt IN
full, and the mistified Englishman went
back to his employers, having perform
ed large transactions in both collecting
and paying debts, and had not seen or
handled single cent of money IN any
way. $50 f5e
Although this transaction is the ordin-
ary and usual method of doing business,
it would certainly appear peculiar TO
men who were in the habit OF using
only money, of some of the recognized
kinds, in the collecting and payments
of debts. The large majority of bust
ness men only pay debts by checks upon
their banks, not only on account OF the
convenience CT it but also throwing
around their transactions Gordon OF evil
dence of the payment, that is more con-
yenient and less liable to accidents
than the taking of receipts for every
payment. These bank checks are al
WAYS kept by the banks until they are
delivered up to the drawer as vouchers
| for their charges against him. They are
then filed away by the drawer and serve
as receipts for all time for the payments
they represent. These checks are usu-
ally negotiable by endorsement and
often circulated from one business man
to another for sometime before they get
into the bank upon which they are
drawn, and in that way they increase the
circulation of the country and render it
possible to do business.
In the business of the Clearing House
| Association, in New York, during the
first seventeen years of its existence,
exchanges were effected to the amount
of two hundred and seventy-threc thou
sand six hundred and sixty-one millions
of dollars, and in that vast amount OF
business, about four per cent was in
money, and ninety-six per cent in certi-
fled checks and drafts. It has also been
found by actual investigation, that the
actual receipts of thirty-two banks, scat
tered through the cities of New York,
Boston, Cincinnati, st. Louis, Chicago
and Cleveland, for a single period OF Sly
days, amount to one hundred and fifty.
four million nine hundred and fifty whine
thousand six hundred and eighty-hyf
dollars, or nearly one half OF the whole
greenback issue of the country, and o.
this whole sum considerable less thar
one-eighth was paid in cash, the balanc,
being in this same kind of commercial
paper that astonished our young Eng
Iish friend so much upon his first, collect
ing tour. 1t is demonstrated by the fig
ures that the amount of actual cas-
really used in the business of the eonn
try, bears but small proportion to tn
individual orders of merchants and 9th
ers, upon bankers and banking institu
tions, and it demonstrates the possibllit
of doing such tremendous business q
is being done in this country with cur
rency so limited that boarding of re-
dollars by each inhabitant wonld exhaus
the whole of it. .s,>t.
This method of doing business wit
checks and drafts will probably be cor
tinued to all time, under any system Q
currency, or under any kind of none
basis, on account of its convenience
Yet it has certain disadvantages tia
render it decidedly unreliable, as a syi
TEN. When people get up q. panic thes
certified checks are among the first
feel it. No one is obliged to take thel
and everybody distrusts all other people
and nothing but legal tenders are reall
available to pay debts or do business
and at those times the stringency is nor
sudden and is felt sooner and deeper 0
, account of such a large proportion {
business paper being made unavailsb
for any purpose. We can get along
, ordinary times with very small amour
, of money, but that only lasts while gel
eral confidence lasts, and when that
} destroyed, we have to fall back upon Il
basis of business-legal tenders. In tn
G view, then, it becomes the duty of go
: ernaent to secure for the country, ;
soon as possible, the only kind Of none
e that can be replenished in time of nee
2 from the resources of the world, to wi
e coined gold. Our peril rests now
j panics, to which every extension OF u
e credit system is an additional DANCE
}, We want flexible currency, but not
e the expense of security. 1t is better
II be safe than to cut high figure on
e insecure an element of human charact
a as mutual confidence among men.