The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-05-16
CHE g ailg Arg,ts,
INDEPENDENT III Eoerything.
Concluded from second page. J


tConciuded from second page. ee
here the fuetuating currency was source
OF wealth to the rich trader, source
OF poverty to the farmer and consumer.
All the manufacturers and merchants
have made themselves their own insurers.
They have charged the premiums. which
they themselves fixed, and the laborer
and the farmer have had to pay them.
1t Is not the worst of the farmers case
that his bushel of wheat shall not bring
him as much sugar, as many books. as be-
fore 1t costs him, alas more to grow it.
He pays more for land, for service, for
tools, for horses-more than before.
And yet the perpetuation of financial
system which robs the laburer and TIL far
mer to fill the Golfers of the merchant and
the speculator is policy urged By those
who pretend to be the enemies of the rich
and the friends of the poor
In the name, then, of the laborer who
consumes, and the farmer who produces,
whose welfare is the welfare of the coun-
try, and whose welfare is Slapped by dis
honest currency, give us currency which
has gold for its basis. This much at leas,
we can do. We cannot do all; we cannot
cure
ALL THE EVILS OF THE FINANCIAL WORLD.
Men will still fail; paDics will still blast !:
Indianapolis will still want money; corn
raised too far from market will still warm
the disappointed husbandman railroad
robbers will again drive their four-in-
hands the wicked will flourish the good
will pine; Lazarus will lie outside; Dives
will feast inside-in word, man will still
be human whatever currency triumphs
But with a redeemable currency we can
make fewer the failures, fewer the panics,
fewer the Lazaruses, fewer the Diyeses
less the suffering, less the vice. Yes, ]
admit with it-even with an honest cur.
rency-
/ WE SHALL HAVE PANICS.
A world which does it's business on a cred
1T basis cannot escape them and thi:
basis is one which grows wider as The
world grows older.
1 The demands on credit must increase
for the world does not contain money
enough to effect its business, and credit il
one of its multiform shapes must continu,
TO be the principal instrument of exchange
Only in rude barbarism does money dis
charge all the functions of exchange ant
as civilization increases the business of tn
world, credit by bill, by note, by check, b,
book account, Is forced into greater exer
else.
How large part credit plays in tn
business of our own country let the accom-
plished gentleman from Ohio tell, VIII
long ago, by careful investigation, obtaine
and recorded the figures From him W
learn that part of the currency, which
money, really so or legalized--in othe
: words, the legal tender Of a nation-beal
an insignificant ratio in the grand total {
exchanges He found that the history
the
CLEARING HOUSE ASSOCIATION
Of the New York banks showed that a
, average of per cent, in legal money W;
employed. In an existence CT sevenlee
!, years the association had made exchange
; amounting to $213, Gel 100000, and ust
$ll ,2U7, 100000.
1t IN THE REDEMPTION BANKS
he found the percentage r. per cent.
six business days these banks effected e.
: changes of 1854, 959 ,665, and used SIS
l170,T08.
IN CERTAIN COUNTRY BANKS, 3D..
, fairly selected from different States al
{ Territories as having transactions neare
10 lllS idi ulllS populdtlou- NlcIG circuit
less generally used, he found the perceu
4 age Is OF money to loo of receipts II
I receipts for six days were 81, l02, ASS, t
s. legal money $500, 1913
a. This was the humble part played by leg
IL money in our own bank exchanges. VIII
tie the exact percentage is in the sections wit
ct out banking facilities it would be difficr
to say, There it varies and in different n
~ ~ tions it varies but it is ALWAYS small,
London, Bagehot assumes the ratio of
e gal tender to total circulation is 3 per Gel
In New York, as whole, it is proper
TX assumed at per cent In other wore
= out of TRANSACTIONS involving $IUO, 0O0. "
~ not more than S5,O00,000 of coin, gree
backs, and bank notes are used. At lea
ninety FIVE out of every one hundred n
8 lions is paid by checks. drafts, BILL and t
- like. And sniall as this ratio is, as a mt
advanced civilization forces new inventio
" to add to the many forms credit can
sumo, the future will probably see tt
that part of the currency which is mon,
will, as the years go by, bear small
A. aud smaller ratio to the whole amount
o. commercial transactions
Concluded In next issue.