New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-11

PAGER on Money and its Legitimate Uses" He
was moi pJesen end his paper ordered to be
printed. ihaPrncipal points in the paper are given
IL tha following summary:
WHIST ' m0nrv} Ii IS the measure of value and a
men "f exchange. 1t is that which distributes wealth
ara @nppys taptti. \ hundred years ago Indian corn
Cold ana slvcr money, because they rattle and
fr0u4h he ogeneb o Mnt 2ut becase Pa yen
iron or 6"T WI BUY certain quantity Of
limited for if we send to Europe a steamer
aaGq Win Hour we may not then that the Gourls
itSeiI money. But when undertake purchase
'gsh wares with oar -four, then because it has pur-
it becomes money it is medium of exchange meas,
noe oi is onS s n q So r 6an mote or
ne p4rc9asng power bat in this country there is IS
So to be money The W" n n one cancels e otneT
money must he valuable the world over. 1t must in
precious metals have become acected eycTywhere for
haese pGrosts They are in limited supply and hence
nave value; they are hard and do easily out;
e{ f ngS s T ne as Ven as counted also true
standard The hank note or zeal tcn ps il th %
promise or shadow of money. So il q bill exchange
snp} b request 10 pay, while at the first hands it may
For the past few years much confusion has arisen
among Ignorant people, which has by lena-
mind that a bank note, better s a Government
m was fqnivaent to coin and vastly better for
Gisclcs FORGET that only part of great world
our banks by forgetting that we ssIe ONLY nTbms@ f
pay anu not those things which the ultimate appeal
Mr.. Gould continued and explained the daily use
of a National bank, and in doing so skctched the
history of a bank from its foundation He devoted
much time to the consideration # the profit of cir
cuation to bank, and showed that bank with
capital of %250,C00 under he National law
Would be allotted only B19S0OO in bills
for circulation, and that $4,000 of thai
amount is locked up dead and prolitIcss in
Washington so that all the bank has to use of its
original capital is $18S, 100 These facts were men
ti,,, - IL, .l...A
paying taxes. He admitted, however, that the
banks make money out of their circulation but he
contended that they paid fully for their privileges
He added:
1t is not possible for to start to-day and
business and make any money ont s 10 rcnoteS
one can to-day rs things are, run bank quickly
to the story When bank obtains circulation loans
the money derived from i'll community, the people in
t ,,e s region are helped. The bank is entitled
it, some bank sndFc has EI the pr"at and it secures
and its deposits loan. But 1st as to it's raptal in
the ease Of oaning its $3.50 padn
amount OF circulating notes received from Washington,
THe hap rop It's bonds bought with all OF its capital
ment by Its act OF buying 25OOOO bonds, drawing four
per cent Of interest that the receives four per
cent on this amount wcll what II can make on its
circulation B. II has its deposits to loan that saw
altcr rcnervng what IL prudent amount for the ordi
nary calls of its depositorst nvest the balance
such manner that 1t can bo relied upon in of need.
a brief discussion following question raised
by Chauncey Whitney, of Adrian, Mich as to re-
ceiving at par merchants checks other banks
sent from the country to the city in payment for
goods 1t was cOntended by some that such checks
should be charged at the same rate as bills of ex-
change while Others thought that it was matter
which should be left to the discretion of the cashier
Ne action taken. Thomas f. McGrew, of
Ohio, suggested that in view of cheap
transportation facilities for products from the West
to the seaboard md the thoroughness and complete
ness of the American banking svs that IL will
he impossible for pancs to in this country in
the future.
II was announced from the platform that Sccrc- |
rs Window had sent a paper and il wouId be |
read rom the platform tomorrow. Controller |
Knox Will also read paper the currency. and |
George G. Coe will speak of the currency of the
future.