The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1891-04-23
LIE USE OF MONEY.
it's Importance in the Transaction
Of Business.
An Estimate of the Amount OF Currency
In Circulation in the United States
The Extent of Bank
Ing Facilities.


have urged it against us, and we too
often are apt to give a 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 unfounded, there are certain
elements in our social condition which
would tend to give color to such view,
al 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
Week, contains the most radically in
dustrial and commercial people IN the
world. In no other land is idleness
counted such a sin, and nowhere else |
loes 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, a worker
Our millionaires in their social life may
initiate the customs of the aristocracy
If 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 it 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 its real signiticancc-that
is, business-and the alleged accusation
IL 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 q 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. It 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. 1t is even
urged that there is 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-
mains that apart from its use in retail
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 th'
credit of the Government.
The actual money of all kinds, metal
lie and paper, in circulation in TIN
United States at this time is near
billion and three-quarters of dollars
OF this the United States Treasury gen
orally holds about two hundred an
fifty million as reserve and for othe
purposes, while the banks and othe
financial institutions scattered through
out the country are obliged to hol
permanently probably double tha
amount. The actual money in circul;
ton in the hands of the people woul
therefore seem to be close to a roun
billion. But even allowing for tn
freest circulation of this stock of Gu
rency among fifty millions of people, tn
amount seems very small in compariso
with the aggregate value of the bus
ness transactions of the country. II
real fact of the matter is that the bul
of our business is carried on throuo
the highly artificial medium affordc
by the use of banks and the faciliti
which they afford in the way of draf
and checks. Every one knows that
is unusual to pay amounts of over fe
dollars in actual money.
the great transactions of CONNER
and speculation are effected throus
banks. They furnish the means
which the use of money is economic
and the limited amount of available G
culating medium is made to perfor
many times the work it could do
itself.
Moreover, there is means by viii
the extent Of this work can be gucssI
In all of the large cities of the cou.iti
the banks have formed associate
known as clearing houses. A gre
deal Of their business naturally consi!
Of the receipt on deposit of chce
drawn on other banks. Now, TO coll,
such checks in each instance would
volve endless work, and necessitate {
transfer Of vast amounts of money eve
day. The clearing house is an a.sen
to which all the banks of given G
are able to compare the amounts
each others checks in their hands, a
to effect settlement of the balan
only. Statistics are therefore availa
from all the clearing houses to sh
the amount Of such exchanges. !
figures from forty cities show that /
year the total exchanges of che,
amounted to over fifty billions of {
lars, while the balances paid in c
nection with them foot up over six
lions. This of itself shows a mass
business transactions fifty til
larger than the available supply
currency. Indeed, it does not
clude the checks drawn directly
banks, nor vast volume of b
ness through drafts and other c,
mercial methods, that supplement-
economy in use Of money, displayed
the clearing house returns. It VIC
not seem to be overestimating the Il