Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-03-09

IT is with regret the commercial por-
ton Of the public see that the course of
currency continues to set In, like con-
slant tide, toward the banks. 1t is not
the amount OF money nation may own
that, by itself, makes the nation pros
porous, bat the amount of circulation.
Suppose a citizen to pay tomorrow
morning debt o! ten dollars he owes,
and the receiver OF it 60 dispose of the
ten-dollar note by doing the same thing
on his part, a1d during the day eight
more individuals should uss that same
note in ideRtically the same way, what
would be the result? There would have
been circulation of one hundred dol
lars, in the first place, while, il the note
had been suffered to lie In the bank all
day, there would not have been circu-
lstion of one cent from the ten-dollar
note we are speaking of. Bat this is not
all the ten.dollar note has done. 1t has
paid debts to the amount Of one hun
dred dollars. Ten citizens go in bed
at night owing each ten dollars less
than they owed when they awoke in the
morning. This incident shows how un-
fortunate is the effect Of money seeking
the banks instead Of going into circula-
ton. The money that Lies unused in the
banks is adding nothing to the resources
OF the people, contributing in no way
toward the general prosperity. Under
standing this point, the reader will see
the bearing of the following from the
New York Tribune of Monday last:
"Money continues plentiful at low rates,
both on cal and for the best grade of
commercial paper, tae shrewd capital
lists IS yet preferring to keep their cash
under control, and accepting three to
five per cent. Interest rather than take
the risk, in the present condition
Of affairs, Of embsrking in either iegiti.
mate trade enterprises or Speculation"
The New York Times, Of the same day,
said: notwithstanding the COM
parstively limited demand for
money on the stock exchange and
from the merchants, the loans show an
increase OF one million six hundred aud
eighty-two thousand eight hundred dol
lars, which can be traced to the pur.
chsses Of bonds, chiefly of the United
States, some OF the banks choosing this
course of investing their surplus capital. |
Purchases of bonds to nearly the full ex-
tent OF the increase in loans can be |
traced to q few leading banks. The
Times also stated: 1.-THE monetary sit. |
uatiOn has been Characterised by large |
plethora of funds offering 10 borrowers
at low rates of interest, most of the busi- |
nasa having -haan at three to four per |
csnt., with exceptions at five aud two
per cent" Similar statements we could
copy from papers in all parts of the
country, and our own banks in Mem
phis tell the same story. The problem,
that now offers itself to our
statesmen and capitalists. is, how to draw
money from its Incidence in banks, and |
bring 1t into active circulation. There is
also a lesson in this that shows what
every citizen may do to promote pros
oerity and bring more animation into
.rade. Every citizen by paying at once
4 debt that he owes puts it into the
lower Of another citizen to discharge a
iebt due by him. In this way the cir
,ulation Of mOney-which is the very
hing We now want to give US activity
n business-would be- promoted Be-
yond this excellent result those who
we're relieved of debt would obtain a
addition to their credit.
Zach one whose liabilities were light
ned by the benefcent interposition of
he ten-dollsr bill we have spoken of,
would therefore be able to do an in,
reased business, prOpoItioned to the
made to his credit. "God
elps those who help themselves" and
re see by the considerations now pre-
ented that, without waiting for what
ongress and any other authority in
money matters may do, every Individual
itizen can add to the circulation and
id to the amount Of public credit by !
aging what he owes. II one ten-dollar
ote has the wonderful power in circu- :
ation we have here shown that it pos
esses, what would be the effect OF ten
lousand ten-dollar notes being sent off j
q thsir snimating mission?
-a@s.za~zn~s
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