Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1881-08-30
THE LIMITED USE OF ACTUAL MON
Ely IN BUSINESS.
LErom the BOSTON Journal. ]

IL during that period OF business depres-
sion in which the advocates of currency eN-
mansion declared that liberal issues oil green
hacks could alone restore the country TO
,,ras narity. il could have been impressed
upon the people that u comparatively sihaii
amonnt of real money is employed IN those
large business transactions which keep the
rreat industries of the country IN motion,
that assumption could have been shown 10
ne fallscious 10 all reasonable men. III, NJ
the present time, the general public could
be made TO appreciate the fact that nation,
al hanks aud bankers are agencies auu
agents TO economist the use OF actuai
money. those whose occupation IL Is 10
howl about such institutions would nave
even less hearers than they now nave
Nothing short of the actual figures can
rive an adequate idea OF the very smai1
proportion OF the business OF banking which
i done by the use of coin or its paper rep
resentatives The bank check Is the great
lYstrument OF exchange, while In the cities
the actual money in the control or the banks
remains for the most part In their vaults
The address OF Comptroller Knox, deliver
ed at the Bankers Convention Thursday
will illustrate this point June 80, ISL the
COMPTROLLER required all the natonal BANKS
IN return TO him statement showing the
receipts and payments made by them that
day. Responses were received lrom 1906
nj the 9IO6 national banks, showing th-t
their receipts for that day were s2>l, IT.
lO-. or this sum 81 .s64, los was in gold
coin. s44O.9g. was silver, Sll,554, ii' IN
paper money, and the rest $40, sol, l6o)
was In checks and drafts, which included
about nine miliioas cf clearing house GER
,ifcates. In other words only ~ per
cent. OF the receipts or the banks In all
parts OF the country were coin and paper
money, while 9j.l3 per cent. were checks
au! traits. The receipts of the Boston
national ba.ss that day were s$3,Oss, Oso'
of which checks and drafts constituted 300
per cent, while these Instruments OF eN-
change constituted 9Ss per cent. o! iEe
receipts OF the New York banks, ~ per CT,
OF those OF Philadelphia. el.9 OF those OF
Chicago. 97.S per cent. OF all the receipts
of the banks in the principal cities and ST.
per cent. OF national banks elsewhere.
These figures show that the great busi-
ness transactions OF the country are anect-
"a by tie use OF those instruments oil eN-
change kroyr ., drai.s and checks, which
are made to cancel obligations AID transfer
money through The ssenc! o. Lhe Dan.is
aud their clearing houses in the cites.
They will convince any candid man thAt
the banks and bankers, in the prosecution
of their business and by the mac. merry
which they have devised for the transfer OF
money and the settlement OF balances, have
not 'ou.y facilitated the adjustment oil &C
counts between business men widely sep
arated. but have economical tie DE ~ &C
tual money In the transaction OF busines.
70 an extent almost impossible 10 estimate.
In ,se much abused banks were abolished
and bankers we're treated something -
outlaws. - dcmasoags. represented them
20 be duringthe imitation craze. .sa. would
bsnall the business and Industry OF .Ge
country: Suppose that on the 10Th OF June
tbs business men In all parts OF the coun-
Try bad seel required 10 pay any consider.
able portion OF the receipts OF the nst.onSl
hanks ~ that dag s2s,, l4i,oOl IN actual
mouey-wh,t would have been IT, rSSqhf
II l. true that there = N the county near
Iy - yOO. OOO COO OF coin and paper money,
but what would ihi. do toward discharglns
obligations OF nearly threa hundred NIL
lions a day or large business sSGouhtS'
making no mention OF the large sE404nts
necessary for retail trade, the payment o.
wages. and smaller transactions!
Those who have always been accustomed
20 the facilities which banks afford Tor the
discharge OF obligations are In no condition
10 realize the effect which any bEeak!n. up
OF the present admirable system OF eE,
changes would have upon the business and
industry OF the country. We may Imagine
the obstacles In the Way OF the extension
OF business Il every retailer were compelled
TO collect actual money OF all his custom
crs, aud send the same by express 10 us
customers. instead OF taking lt - bank,
which can place Il In its vaults aud adiust
the amount due the creditor by It's checs,
leaving 1, 10 the machinery OF the banking
system 10 make payment by 4 series OF ex-
changes without the use OF real money.
The extent 10 which this machinery Is used
~ make the payments OF the commercial
world is shown by the figures of Comptroi-
Ter Knox, which are given above.