The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1878-03-20
)fIlcial Press Of King County.
Wednesday, March 20, 1878.
ADVANTAGES OF A BANK.

Truly selfsupporting and indepen-
dent countries-those, that is. that have
the means within themselves of supply
ing the most of each Others wants. as
England, have little use for specie, and
their money, as 8 consequence. is plen-
tifully offered for loan on all sorts of
securities.
II is only in proportion to the depen-
dency Of q community and the degree
to which ii has to buy everything it re-
qnires abroad, that gold is Of prime
importance. the chief necessity of gold
being 10 settle adverse balances of trade
held against as by foreign or distant
States. Hence. in proportion as COM
munity can become self-supporting and
independent--able to supply its varied
wants from the diversified products Of
ito own workers. will it begin to be-
come prosperous and able to accumu-
late surplus capital.
Apropos of how easily an independent
community, having wsli-dsve bped
and varied industry, is enabled to have
. Plethora Of money capital for loan
and investment, and what . wonder
fully wealth-subserving and economi-
sing instrument to q community is a
thorough banking system, let us pre-
sent simple illustration in point. For
instance. we have in our town eight
men-A. farmer B, retail mer-
chant G., a boot manufacturer d, O
tanner Z. a builder +, machinlst /;
q, an iron dealer, and IL @ miner, each
having an ordinary deposit of 81 ,009
with u. banker. A. the farmer, has
q balance of trade against him on the
books of Il. the merchant, of 1000,
which he settles ut the end of the year
with check on the bank c has an
account against B of 81 1000 for boots
and shoes. which he settles in the same
way, and G in turn gives q check on
the bank for the Same amount to ID, the
tanner, for leather purchased but d is
in debt $1,000 to L. for account of
building, and Z gets his check, but
draws his own in favor of +, N achi-
mist. for services in his line, and the
latter does the same by q. the iron
worker. for materials. and G gives his
check to III. the collier, for Goals fur
nished him; and II meanwhile has
been purchasing supplies from A. the
farmer. to the extent of 81 geo during
the year. who gets his check for the
same amount. Meanwhile all these
checks come in at the bank counter to
be cashed, or to be- duly debited or
credited to the proper accounts. Sup
posing them to be for 81 900 each. HIS
check cancels off AS. AS cancels B's.
BIS cancels C's. and so on down to G,
whose check Offsets HIS. Thus, all
these parties, in this particular case,
have done business with each other for
. year. and been benefited 81. 900 apiece
by their mutual trade, without one::cent
of money passing between them. but
meanwhile the $1,000 capital of each OF
them has been during the whole time
in the service Of the banker for loan ia
assist in starting new industries &c.
quired by the growing community, and
after the balancing of accounts still 70.
mains with him intact. together with
the interest. The principle is the same
however the particular amounts may
vary. Thus. industrial communities
grow in wealth without the agency OF
great amounts Of money.