New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-10-02

OF giving Vi uoueJ
toll What distinguishes themi The anonymous cnar-
horse ordering Jones Co. To Mr. Price sS he has
the likelihood Of s having s # Jones COS That
money does circulate That Is not money. There
lore come now TO what meant by saying what did
MIR. OpdykeyIn what class would you place the paper
promises Issued by the Government VI the United states
thar are made legal tendersi
Prof. Prce-They come under the definition that
| have gwen OF money IN the secondary sense They
roll about Just like coin and taken from hand TO
hand was that estimated the money In use by
banker as one-thrtieth. little time after SIR John
Lubbock OF Rooars Il Co.. snalyz,d the receipts OF
100000 OF that firm. and found that IN That amount
| E3 IN Eco were cash, and ten shiings oniy
were coin There was only three per cent said
& So do on not deal n OUT Se
Is not their business what are these 81 things which are
their stapei What 10 baDki The answer Will depend
upGu these 81 things They are one aud all debts TO
correct pieces OF paper pushed IN upon the counter al
owe me lot Of things. Yon 20 and collect these debts
for me. That IL bankers business; to collect pieces OF
thing Is what does banker dol Does be 90 and get
the money which he has right 10 on all these pieces OF
botheration. what he does Is this cotton man
has Just thrown down 9J0c worth or bills upon the
counter Of the hank VINO is dealer in silk turns
upp five minutes after and says this: = want 70 buy
silk, but have not the wherewithal' will hold you
a5e Wh sH' dSes he banker DO He
give inc these securities; you don't want to sell them;
bills know he Will not draw any checks upon these
for at least month Go aud buy silk for month and
Will checks" The banker debts COZ
lect and now he collect themi BY creating fresh
debts IN which he is the lender. That Is banking
BANKER ESSENTIALLY BROKER
define in my book bank as institution for the
transferring debts better H. institution for
the transferring of credits but still better one Is the
following which 1 prefer: A banker ia essentially
broker That is his character aud nature an in
termediate agent between two principals Here Is MS
relation to the cotton You have given me $4,000
worth OF cotton bills collect. understand from your
month. am responsible to you for this, but know |
shall have II at my hand" To the other man ne IL
be done q The man who sold cotton mas purchasing
power He has the power OF buying $4,000 worth OF
banker do Mt want TO buy ANYTHING for mouth and
shall not AK you for The OF taes Ps f9I
worth and that he transfers to the banker aud
the banker To The silk merchant 10 buy SILK me trans
fer from the banker to the silk merchant is
buying power 1t consists Of the bills OF cot, COT,
he paid for and are paid for in silk.
This how get these great conclusions that man an
trade and all selling is the exchange OF equal goods.
That the meaning Of the word selling Tae banker Is
sk; so the silk changes hands by virtue of the cotton
The banker is merely intermediate agent broker:
| buying power" The cotton buys the silk There Is a
tremendous number Of conclusions to come our OF mat
What of thsl The explosion OF That delusion
which nfests the Cts OF London and the neWsdper OF
England that banking an affair Of currency an ahlr
Of money and that when there are disorders te cure
In currency In the full light OF the l9 century, tbis
believed by every trader IN the United Ringdon and so
when the crisis comes they wake the Chahceor Vi ge
Exchequer out OF his bed and say 10 hn' 70, OF
Gods sake let the Bank OF England Rab isiae
| has nothing to do with money, except III
one single point cannot thorougy explain that now;
them the public. Every note that IS issued oy Tue
Bank OF England or the United states OF
banker the buyers. He collects their olls ana ne
pays them in his oils 10 that extent mere That
source IN the banker who lends upon discount iutt.
tent know is limited In many cases. IL mas uisap
peaFed in England frp Ran the Of Egr1ad that
| power OF selling notes TO the public ~ hnled 10
| lending upon discount. But otherwise banking n a
nothing do with currency II very true mat le
Sc are Barring Brothers. 40 IL every trader in tue
Kingdom II Is perfectly possible that to-orro" noi
nx at 10 o'clock every creditor IN the Kingdom can ask
Tor gold. He would have TO take Da1h no'e ou' Nc
| can get the money from the Bank OF England. w..
reference has IL crises This that rs said before
as banking is the region for the eommerclA typaoons
upop banking and 1t Is not from such ruDDsh as cr
tain quantity OF bank notes, certain things 10 tne -
goods are property goods sold, parted WIN dud the
contract expressed pieces OF paper 70 pay money on
banking and. therefore, gentlemen, II banking Is
| abundant IL is because many goods nave
been SIu o. n ANU much Let me repeat it, Banking
easv discount easy the rate OF interest Is low I'D th
proportion that have given away tner goOus ana
re nor disposed 10 buy corresponding full extent OF
other goods. Then bankers have mucn 10 lend bIt
| this is when the ldrDec La sicut
M b anfi IN caring for mis- farm and Dad and
naughty weather comes IN August and Tue corn -
MAILED then the poor farmer Is IN very ull-
ferent circumstances with his banker WIN u
good harvest he has plenty OF un e. ,n no wan wan
perhaps his old horse u place win new one
aud he puts nothing in his banker MANS 1a o ~ tne
effect upon the banker His means are rtduceu oeeusS
the farmer -, dePS 6d@ he %as end Ta
me ans for banking and poor means Tor DdhHIns'
THE PREVENTIVE OF PANICs.
Mr. Dodce-rhe point we woud like to get at now. il
this Can anything b. done 10 prevent the panics'
Prof Price-Then must pass over TO the other SIDE
and take up the silk The banker mas 5000 to
o, for the cotton dealer he collects t by giving
IL 10 the silk man TO buy silk II the silk man Is doing
good business there is no destruction When payday
comes he has sold his silk and there Il 10 dsdster
Tine huylng and selling equtlze one ahother sup
nose the banker lends 20 a gentleman OF great
estate 10000 a year. whose land Il capable o. great
deal Of improvement, ana VINO wants 70 nay OHt 1920 -
upon H. The banker is satisfied WIKI mo soitlJ oI He
sdaire ana lends him The 10000 TO drain nj, ahG WIN,
nns iaborers TO work Tney eat they DRINK they wear
their rG Clothes ne v our Wha b.: been going on
great destruction OF property when Is not repro
dueed;; "o r. Won were TO set all tue inhabitants
making holes Ia the ground and then 10 M tAem up
@ 6% iii starve You would get your
coins ready you have been eating up all your
no,rng Ar all Then how is Mr.. Banker IN his
position. The squire cannot Pay: HIS draining
| cnme I'VE years hence. But the food and cloth
tng of the wOrKlngmen has been USED up:
w. this making Of railroads, warehouses. beautiful
"vns etc are not foolish things. out they are things
which destroy and DO not replace ana thtt Is poverty
pHyertv means that there are no goods 10 sell, ana
yben there are no goods sell there are no goods 10
buy with The bankers resources IAN therefore Ihen
cn;1c tbe crises. They tho consequence OF the
destruction Of property when is not replaced lhey
ara The true children OF poverty ana that klnd OF
nnvertv which produces never more Iostered
fban when bankers encourage usefni thlngs tAugs
nsefu twenty years from thIs day The railroad does
not rrnlace IL money for nifty years Ii Tue actual