New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-12
Nlb4 3DY, IDA"
SS.4O2,U20
$50 80 So. -
l4,632,O96s
b,9SS,25O

on that date ' VI paper '"'ieny ''0 S"'0 "'
The % 9s saan Of Gs Sens the ea9 se are
1t was on November l, 1850
II the amount of coin and currency in the Treasury
and the banks is deducted from the total esl-
mated to be in the country, given in the first table,
tue remainder will give the then the hands of
the people outside Of the repositories, ms follows:
Gold coin 1921 900, s74
SILVER SILVER coin a6sds92a
Legal tender and National bank notos.. 53i'6I3,393
Total 1871 49,, 794
OF the gold the Treasury and the banks held, on May
l. SOS 600 OOO and the people 5000 COO 900: of the sill
Yer, the Treasury held Se8 600 900 TIE banks nearly
sHbsdary coin OF the paper Money GG n
Gliding silver certificates the banks and the Treasury
$572O00OO0 These amounts have all inc eased since
Novem6er the circulation of the National banks now
being 1888 100000 the largest amount ever issued Int
the proportions held by the Treasury and the and
sinec May of the present year ''''Se'
The people throughout the country everywhere
mand, and like difficulty in inducing their dealers to
GGI ThS C 4 House vault in
the amount OF balances in gold coin paid to and received
fifteen and onenal TONS and the 2d of last
Clearing House banks received from the Assistant Treas
The Assistant Treasurer in New York pays to the banks
daily of ton and hall of coin, which form of
payment is relic of barbaIism that could be easily
edied by legislation authorizing the issue of sufficient
amount of certificates receivable for customs Even
preference of the Treasury itself for paper money
great that il only recently that the banks have
permitted to redeem their circulation the Treasury in
the gold coin of the Constitution.
years the people who had hardly gold com during
that period, would welcome back the yellow metal
with eager hands. But the habits of the people are
stronger man me love OF gold ANA convertible payer
new thing 1t existed in tins country before the Dec
arai of Independence, and has grown be bone of
thot the revolt from the mother country account
S S sa Of the S B"d G Rt the over
that the ateup of the mother country to enforce the
was the immediate cause of the Revolution. our
fathers it is true hated taxation without representa-
al rs nft yor1 nutth av ,ot.d
ton even with the right of Representations do not pro
pose at the present time TO discuss the question the
amount OF convertible paper currency required for the
business of the country but should be glad to the
lead many people to believe that National bank notes
and legal tenders real money instead OF simply
promises to pay money on demand There is danger
ing and paying prolnses-to payas money, will again
lead to overissues of nconverbc money If occasion
nue. 10y some form of taxation and such would
certainly involve new and enormous losses TO the
Try ana the people.
REPRESENTATIVE MONEY.
Checks, certificates of deposit, and drafts bills of
exchange which, of late years, have been omewhat in
correctly termed Representative money" are the most
important and useful parts of the machinery the bank
The issue of circulating notes not essential feature
of banking; for you know there than 600
State ana Savings Banks In this country chiefly ncor
porated under State laws which do such notes
But checks and drafts almost Indispensable
as capital or deposits to the successful conduct of the
business Of banking.
In This country, in 1880, were 6532 banks and
bankers distributed throughout ali its principal cities
and villages and the number of checks and drafts in
daily use ny our own people consequently Tar
than anywhere else in the world In some countries all
deposits offered are received and charge made the
deposition for keeping his In Others bank ac-
troduced and it is believed that his account win be OF
considerable pecuniary benefit 10 the bank IL this
country also, the bank is In many instances a con
venience TO the depostor rather than the depostor OF
of the deposor and pays out amounts upon his
order, ana at his request returns to him his checks
a. vouchers or receipts for the payment of his debts
How largely checks and drafts and certificates are
are no published statistics this subject, except
YORK Ciearing House in $50 VIE az re T tt
a and the amount Of Sance ore nail tn
money was more than $780, 100000. The average
average daily balances maid In ,nnnev ,rrrn huf
Sl9oO00o or only ITO per cent of the amount of the
The transactions Of the London ClearngIIouse which
large ana inc balances ale settled by check the Bank
OF England without the handling of money while those
An article by D. r Bailey in Tie B9fcts MGGas Sif for
naf St Ino pt res ear gyfs some ntereSns nor
THAT there 20 Clearing Houses in the United States
representing J94 banks, and having capital of nearly
100 10000 @$24l9sl $50 and surplus OF nearly
500 % 9l57to The capital represented in
the banking capital of the United states Tine ratio Of
era cities for a series Of years are given as follows Bos
ton - per cent Pnadeipha' .; ST Louis 20 Gin
have said that there are no published statistics ex
hibting the extent which checks. drafts and cert
Gates are used in the business OF banking TO state
in information given by sir John Lubbock an eminent
banker who Is president of the Bankers In Lon
DON in reference To the business of his bank during the
last few days of SG4, which statement is published I'm
The London Statistical journal for transactions
to the amount Of 9230000O0 effected by the use of
coin and documents, shown in the following
statement Checks and bills passed through the Clear
Ing House. 7OS per cent checks and bills cleared
I'D; Bank OF England notes, coin O6 country bank
notes, O3 The receipts of money from his town Gus
toners during those days amounted 10 100000 and
when ANAL zed the following results Checks and
bills 96S per cent Bank OF England notes. % coun.
try bank notes. Oh com, O.6.
Jevons, in his book on Money and the Mechanism OF
Exchange says " IL IA not for moment to be sup
posed that these figures represent the use of coin
In banking transactions The proportional amounts of
Inherent Kinds OF money and commercial documents
used in different parts OF the country different trades
or in banks of different size and character differ widely
1t much to be desired that bankers and others who
nave the facts before ITEM should publish copuus
information the subject"
The second exception Is the following: In 1871 n gen
teman IN this country, then member of Congress col
lected some data upon this subject. He has been
since about the time OF the of the National
act and notwithstanding that his residence has been in
section the country where his financial views arc nt
IN harmony with those of large class of tho people
has made record for consistency sOundDess In This
respect not eXcelled by that of any public of the
uy may add IN this connection that he has long
leader among men, and has recently become endeared
to the whole American people by the high qualities
ply, with one exception, unknown To the pub
ho men of this country. 1t il not necessary
In his noted speech resumption delivered i'm the
House OF Representatives November lG 1877 he
on Banking and Currency, asked the Controller OF the
Currency to issue order naming hfty-two banks
which were 10 make an analysis OF their receipts
leced three groups The hrst the city banks The
second consisted OF banks in cities OF the of Toledo
may coin word selected the conntriest banks, the
smallest that could be found, away from rail
roads ana elegraphs The order that those banks
shoud hnayzc ali therreceps FOR six consecutive days.
putting INTO one list all that can he called cash either