Daily Republican., 1881-12-19
Financial Facts.

Controller Knox in his late repor
gives some statistical tables whicl
throw important light on the subject o
fnances-information which should b
beneficial to small fry Congressmel
who favor the abolition of our admira
bic National banking institutions Mr.
Knox in order to gain important info:
nation, set apart two days, Que the 30tl
day of June and the other the 18th day
of September, on Which to ascertai,
from all the National Banks in tht
country, the amount Of money received
bythem and the di tftrent kinds received
On the day first named the receipts
were $2S4,114 OF, and on the latter
$295, 233,119, the average of these two
days being $3.50, ,973 S9S. Taking this
rs the aggregate for three hundred busi,
ness days in the year, we get the enor
nous sum of SS7 200, 600, 900 as the vol,
ume of business transacted in our Ma
tional Banks in the course of single
year. The Controller not having any
opportunity of ascertaining the amount
of business done by State Banks, Say
ing Banks and other monied institu,
tions this estimate of course does not
include those corporations. Now then let
us see of what these vast amounts Of
deposits and receipts in The National
Banks consist. On the 30th of June,
when the bank stock inS2s4 IA, OH, only
81 ,S64 l05 was received in god, S4iO.-
997 in silver and Sll,5j4, AZ in paper
money, in the aggregate SIS, 500 $40 the
enormous balance, $27o, SD, 1863, being
deposited by checks and other ey!den
ces of money. On September 11th, the
case stood thus: gold received, 81 ,O7S,-
GA; silver received, $500, ,36l, and in
paper money SlS, 02G,5 making a to
tai in actual money of Sl76O4, ,915.
Here we see that in one day transac
tions amounting to nearly three hun
dred millions of dollars, only fve per
cent. of actual money was used and in
the other case only six per cent. On an
average M,61 per cent. of the business
done on these Two days was done by
checks and other evidences of money and
only 5.39 per cent. in actual money.
Nothing more completely explodes
the idea that a government eau only be
prosperous by having a certain amount
of per capita in money for every man,
woman and child that make up its
population. If our stock of gold and
silver were doubled, it weHId not work
any change either favorable or untav-
Orable in the business of the country.
The exchanges at the New York clear
ing house are from ore hundred to two
hundred millions OF dollars every day,
and not one tenth Of one per cent. is
paid in coin. The fact is the use OF
gold and silver is confined almost ex.
clusively to the small transactions of
ordinary business life. Even bank |
notes are too slow and cumbersome |
where large amounts are insolved, and |
checks, certificates, drafts and similar |
evidences Of money take their place
a man can write check for a million
OF dollars in q minute, whereas it would
.-. 49,. clerk a .hole week to count
that sum in five dollar coins. 9hF2.s-, -,
the machinery of National Banks and
their admirable system of exchanges,
the Old theories concerning the volume
of currency have been set aside. The |
banks and bankers every day make, is
sue and retire more money than the gov
ernment can coin in a year. In other
words our coin and currency are the
smal change of business; the com merce
OF the county is done with other kinds
of money If some Of our thick headed
Congressman could onl y get these truths
beat into their heads we shall hear less
about abolishing the National Banks |
and about increasing the amount Of gold,
silver and currency to meet the dc
mands of trade and commerce. Tn,
great need Of the hour is for an honest
standard Of value in silver as well &s ,
gold, that will be recognized i'll the
great commercial centres Of the world. |
When that is provided for, then t'ade
will provide lis Own nedium of eX-
change without otiicious interference of |
legislators who are unable to distinguish !
between initiation and legitimate bust |
ness.