The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1891-01-22
THE USE OF MONEY.
It's Importance in the Transaction
of Business.
An Estimate of the Amount OF Currency
in Circulation In the Unit cd states
The f,xten. CT Bank
ing Facilities.

IN CrculBttOD IN the tnitrh StHtCS
The fIXten. CT Bank
ing Facilities.
It is a common saying that money Is
the ruling element in the life of the
American people Our foreign critics
have urged it against us. and we too
often are apt TO give y tacit assent to
the charge But while, in reality the
accusation of being a Nation given up
to the pursuit and capture Of dollars is
manifestly unfonndcd. ther ere certain
elements in our social condition which
would tend to give color to such view,
at least in the eyes Of those unacquaint-
ed with the real conditions of our social
existence The United States. taking
it for all in all. says writer in Once a
Week, contains the most radically iu-
dustrial and commercial people in the
world In no other land is idleness
counted such sin, and nowhere else
does the force of example and the
pressure Of public opinion unite with
such force to make every man. even
every woman, it might be said, worker
Our millionaires in their social life may
initiate the customs of the aristocracy
of Europe. But even the Vanderbilts,
Astors and Goulds are workers They
do not, as is the case with the wealthy
classes of Europe, commit the charge of
their vast possessions to the care Of
stewards and agents They give their
business interests close, personal
supervision and Il is the rule to find in
the third and fourth generation of
American families of wealth. energetic,
successful and busy men of affairs
Eliminate the offensive sense contained
in the word money, or better still,
translate it to it's real significance that
is, business-and the alleged accusation
is not only true but is something of
which our people can be proud
But, leaving aside this exceptional fact
in our National life. that we have really
no leisure class and very little need for
one, there are some curious circum.
stances in the relations of the American
people to this article of money We
talk about it great deal. and we of
course are forced to use it at every turn
of the existence of each individual
among us. But, after all, it is only
symbol 1t is the measure with which
things Of value are compared, and the
symbol which represents their CONNER
cial status. Money is the counters
with which the great and exciting game
Of business is played One hears OF the
money market, and learns from time to
time that the commodity It deals in is
plentiful, or the reverse II is even
urged that there Ia not enough money
to satisfy the actual requirements Of
the country, and Congress is called
upon to meet the need by providing
additional money But the fact re.
business for satisfying the immediate
requirements of our vast population
actual money is not the largest item in
the world OF business The largest
transactions are uniformly effected by
another set of counters, which repre-.
sent money, just as money represents
value, either intrinsic or based on the
credit of the Government
The actual money Of all kinds, metal
lie and paper. in circulation in the
United States at this time Is near a
billion and three-quarters of dollars
OF this the United States Treasury gen.
fifty million as reserve and for other
purposes, while the banks and other
financial institutions scattered through.
out the country are obliged to hold
permanently probably double that
amount. The actual money in circula-
tion in the hands of the people would
therefore seem to be close to a round
billion. But even allowing for the
freest circulation Of this stock O; cur.
rency among fifty millions of people, the
amount seems very small in comparison
with the aggregate value of the bust.
ness transactions OF the country The
real fact OF the matter Is that the bulk
OF our business is carried on through
the highly artificial medium afforded
by the use OF banks and the facilities
which they afford in the way of drafts
and checks Every one knows that It
Is unusual to pay amounts of over few
dollars In actual money All
the great transactions of commerce
and speculation are effected through
banks. They furnish the means by
which the use OF money is economized.
and the limited amount of available cir.
culating medium is made to perform
many times the work it could do by
itself
Moreover, there is a means by which
the extent of this work can be guessed
In all Of the large cities of the country
the banks have formed associations
known as clearing houses A great
deal OF their business naturally consists
OF the receipt on deposit of checks
drawn on other banks Now. to collect
such checks in each instance would in.
volve endless work, and necessitate the
transfer of vast amounts of money every
day The clearing house is an agency
to which all the banks Of given city
are able to compare the amounts Of
each others checks in their hands, and
to effect settlement Of the balances
only Statistics are therefore available
from all the clearing houses to show
the amount Of such exchanges The
figures from forty cities show that last