The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1874-02-26

same pieces Of currency make many ex'
changes, or extinguish many debts
that all the money which people need
is the amount they actually use, the
amount, namely, that passes from hand
to hand, plus a certain quantity as a
reserve to meet the fluctuations OF de-
mard. From all this Mr.. PRICE iufers
that to lay down rule as to the z
AMOUNT OF CURRENCY '-..
a country needs is impossible. France
has circulation twice as large as Eng
land and does not transact as mnch
business. Spain has more currency
than the United States. The only IN
ference to be drawn from these two
facts is that credit is more developed 10
England and America than in France
and Spain.
These are some OF the results MIR.
PRICE reaches. They will be better
understood if we allow Mr.. PRICE to
develop his own views in his own or.
der. After showing that coin, or gold
or money, is a com modity like any
other, subject to the same laws OF sup
ply ard demand, and that the demand
for gold, the quantity Of it needed, If
measured by the amount of buying and
selling and paying OF debts made by
means oft, he asks the very pertinent
question: How are we going to fine
out how many dollars or other piece:
OF coin q country needs ? Anc
he answers very logically by ask
ing another question, VIZ: How
does the natter fed out how many
heads there are that require hats Z Th'
halter, he Gays, makes hats until they
cease to 60 off. Solorg ss they keel
going of, he makes more. When they
commence to remain on his hands be-
yond certain number, he takes warn
ing aud ceases TO manufacture them
OF course he must always keep a GER
tain number OF hats as a reserve, FOL
there NAV be a head needing q cover.
ing at any time. Precisely the came
with money, gold, coin, or any convert
ible currency. Gold comes into q coun-
try from abroad or from its own mines.
The Country takes into its circulation
just
THE QUANTITY IT NEEDS
to effect one class OF exchanges, viz.
the exchanges not effected or not per-
fec;ed By bills or checks, through the
agency OF banks or clearinghouse
The parallel between the hats and coin
OF country is a perfect one. Money
might have been compared to an AK
or a hammer, or shovel, just as we'll
for, as Mr.. PRICE says, it is only a too
to do certain work with. When enough
OF these golden tools have been manu-
featured to do the kind Of work they
are needed for, aud which is not done
by the greater machinery OF banks ant
clearipg-houses,-tbe instruments
which accomplish, according TO MI
PR,CE, at least
NINETY-sEyEN PER CENT.
OF eli the exchanges made in ENGLAND
all further manufacture and conse
ouent increase 0! their number is akl1
to the manufacture Of hats when al
heads are covered, or OF shoTeIs, wher
sufficient number have been made f
do all the digging and other work wbicl
shoyels are called upon TO do. Thi'
point reached in the manufacture
hats or shovels, il more are made, the.
must be stored up or exported, or the
will depreciate in value. And so tn
coin OF gold must 60 into the chests Q
bullion-dealers or lie in the vaults
banks, as useless 10 the country as al
over production OF hats in the shop O
halter. As already remarked, tn
storing up OF a limited number OF hats
as a hatter's reserve-is desirable. an
so is the storing up Of limited amour
of coin as a currency reserve, and wher
bank notes are issued, TO insure con
vertibility. The making OF hats out Q
proportion to the number demGnde
would have the effect CT lowering tb
price of hats. The coming OF gold be
vond the demand for coin would dimin
ish the value OF the coin; but tn
eheapening in the case OF gold would b
no gain, aud might be a serious incon
venience; for, while it is specific por
tons OF all other commot lilies that ar
needed, Of gold tits only specific value
Leaving the question OF metalli
currency, Mr.. PRICE takes ny
TaE sCBJECT OF BANKS
This part Of HE book is full Of insiruc
ton; full Of surprises, too. to those wh
have given little thought to the sut
iecl. Banks, our author shows, do nc
deal in money!. {. banks OF despos
at least do not, Compared with tn
amount OF business it tranaaots, ban
haudl es very little money aud has vel
little capital. Its staple is not cast
is debts. Mr.. PRlos gives us the al
slysis Of a sum of&I9.0OO.0OO paid in1
Sir JOHN LUBcocK's bink, and repre-