The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-10-10
RELATIONS OF MONEY TO BUSINESS

In the chicago Huef-OceI, VI Oe'o"A -
was an article on "Gold as Measure OF
Values, Astounding in figures and statistics,
by which the writer aims to show
Il. That the total gold coin and bullion In the
world has scarcely doubled In twenty-seVeh
years. g.,o ,ro,,a
exc usve OF gold, has al least quaH upiou IL
twenty-seven years. 80 ,.,1 !,
8. That the outsts nding public and railroad
Indebtedness of the world is at least three times
as much as it was twenty-seven years ago.
q. That the traffic oil the world, as SHOWN py
the yalue Of railroad tonnage and receipts, Dy
the import and export movements OF various
countries and by the increase OF clearlngs 81 inc
banks, has increased at least tenfoid IN 'ne iast
quarter of a century since steam peSah " III
part its stimulating effects
From these minor conclusions hs deduceS
another, "that the increase of wealth, traffic,
and indebtedness has been SO vast IN proper
tion TO the increase Of gold, that the latter Is
Inadequate 10 fulfill its function of q measure
Of values without great decrease OF trade,
and consequent decline of prices OF COM
modities as measured by gold.
The writer appears to have overlooked an
important fact and its influence, to-wit: that
business is transacted with more than twice
the rapidity that it was twenty-seven years
ago. and 10 therefore done with less money In
proportion. The "nimble sxpence OF 1875
ia in trade more than an equivalent to the
"slow shilling" of 1S48. He shows how
railroads in the United States which in 1850
were 1O. 982 miles long, and worth $50, TO-
600 have stretched out to r. 623 miles, and
are worth fifteen thousand millions OF dol
lars.
The same increased rapidity has taken
place in water travel and tran sportation, car
risge by steamers having to great extent
superseded that by sailing vessels. Products
now reach their market, on an average, five
times more speedily than they did in 1850,
and the wares of manufactures reach con-
sumers in the same lessened period. The
same sum of gold in the Bank of England
which now, by means of telegraphic transfer,
will settle debt in New York OF equal
amount in one hour, would have required in
1850 ten days or more to effect the transfer.
The same sum which was used without
moving once in ten days, can now be sent ten
times every day in both directions. The noble
ladies' of San Francisco, in July. 1874, gave
$4,000. in gold for the victims of the great
overflow, collected by means OF fair. Ii
was transmitted the day after by telegraphic
transfer, and was received in New Orleans,
converted into currency, and deposited in the
relief fund, at the bank of Pike, Brother x
Co. before the close of business hours of that
day. In 1850, the same gold could not have
been made available here in less than twenty
DAYS from the time of its actual departure
by steamer from San Francisco.
Let gold be restored as measure OF values
and it wi be apparent that the same amount
will now do great deal moro business, four
or five times more, than it could in 1850.
Now as then evidences of debt would form
much the larger part of general circulation,
and especially in all heavy transactions, but
these evidences would be of debts that are
real and that are fxed by the worlds unvary-
ing standard of solid stamped gold.
II the gold coin of the world has only
doubled in amount in TWEEN y-seven years,
and if the business of the world has quad
rupled in the same period, the rapidity of
transfers of money and property having in
creased in the same great ratio, the actual
gold of the world is still adequate to the in
creased business.
The writer of the elaborate article referred
to says, that if gold and redeemable paper
alone are employed as currency, the business
of the world must decrease, conclusion
which is not supported by facts.