The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1891-08-21

o., 1891.
/ lrrom she National Executive SILVER comnl''es.l
/ FACTS ABOUT SILVER.
| BANK CREDITS.
| 102. But gold. silver and paper are
4 not the only Kinds Of money that act on
prices. Bank credits, or credits on the
books OF banks subject TO check, per-
form. within certain limits, the CHIEF
| fu nctions OF money. They not only
take the place Of money, but they effect
4 Exchanges and close transactions the
! came e actual money, and to the extent
they do this they affect prices the same
% 90 much money would.
] l03 So that the real effective cur.
|lrency, acting on prices. is made up o.
gold, silver, paper and bank credits'
!, which might fittingIy be called conf
ldence money. since the extent o. tnis
character Of currency depends largely
on the confidence people have In Il.
\ lO4 The relative proportion OF this
lcredit currency 70 the actual money In
1.-THE country IL di6icult to state accurate.
.lly, but the report Of the Comptroller Of
1.-The Currency shows that in October,
1850, the s,546 national banks had on de-
! posit, subject to check, 81 SOC, OOO'OO0'
! and that eli other banks and trust CON-
psnies bad on deposit, eubject to check,
!. exclusive OF savings deposits. $l.Oi4,'
100000. The deposits in savings banks
1 was d .624,0OOO00.
! Against this credit money tho national
I lbanks held Of actual money gold, eli.
flver. greenbscks and bank notes. $3.50
! 500 900. and ell other banks $lS5,25t.
ZOO
Thus. altogether. the banks held but
''ls475 .6s9. 600 Of actual money, and or
Ithis built up a structure ofcredit money
!. OF o2,604, COO 900. or. including saving'
I deposits, of $4. .126, 100000.
Il II is impossible TO give the RELATIVE
! efficiency OF this credit currency and
! actual money, but IL performs verI
4 l,Iarge per cent. Of ell transactions In tn
!. large cities.
II los. The real condition OF the cur
!. lrency Of the United States last Octobe
: NAV. therefore, he stated In round mum
:lbcrs, 80 follows:
RI Actual money In the hands
Of the people, s1,095. 900, 90
I oh. Of bsoks. 475,ooo.Oo
2 Total actual money. l,sooo0o.oo
Io,Bsnk credits, subject q g.
0l dIvidual cheek, 304QOO.O 90
aI0ayineo deposits su6jece b
ntI oall o. vaFiouo condition, LEA 90
al II W leave o1t tho savfngs deposit
I've stiIl have credit currency create
yoIby the banks from Sl75 000, 600 OF actui
s-!monev. OF e2 6O4 100000, or, deductin
1.-The t475 10000, and We have . pureI
Icredit currency Of $2.l29,O0O.00O.
wi This is currency as much % II not,
were issued for this amount-currcns
= As much as were ever the old State bar
Issues and il initiates and contracts
ithe same way.
rvI LOG. This volume OF credit u ere
a. ltion from nothing on con
Cd Idence alone, aud amounts 10 moro thi
tle 1--WE dollars TO one Of the money II
vs. based upon, and II savings bank depos
- be included, Is amounts 10 20 l.
tIe A withdrawal OF $lOO00O .00O Of actu
n money from the banks, therefore, col
of lpels the contraction Of their credit W
,lv lume Of from Eve hundred TO eight hu
AZ Idred millions! Il is plain enough to Z
ver THAT right here, in this purely cree
,n- Icurrency, IL where all sudden contri
,ev Itiou and expansion OF money taI
IA lplsce. Il is in this credit currency Il
vel ell our money troubles originate. LII
lhc len panics begin.
tol 107. II 10 by loaning this credit At
nue lterest, this currency created from no
nd ling, that banks derive their largo di
ess dcnds. Their loans must DO largely
ose call, 90 that when confidence is shaI
llv they can call IN their loans and let
lie borrower take the consequences.
han DANGER TO SAVINGS DEPosIroRs.
COS Il is claimed that the restoration
ow silver would reduce the value Of the :
e. Iings of poor people 10 savings bal
cry and trust companies.
tol But who ever sustained loss fror
y Ibank's having too much actual money
IersIits vaults, or from too much gold /
pie. lsilver 10 country The real dam
yer and the only danger TO savings dep
Wall tors, comes from the over-expsnsi0n
bank credits, and not FROM too o.
gold and silver money.
~ WHAT THE BANKS WANT.
l0e. The great banks Of the ci
iew want the single gold standard mi
has ltained, silver and paper restricted
tax lmadc redeemable 10 gold. and the .
doIply Of currency left for them to prov
Gers In the manner just set forth. This 10
! its English system, only their bank ere
tax reach 10 to Of actual money.
and WHICH SHALL 1T BE?
70 100. Which, then, shall II be, an
mo- -llargement Of basis, primary money,
law cessible 10 al through the mines,
usiy bank credit currency created, coutras
not-aud expanded, - the interest Of
= n banks alone may dictate.
nted The wise thing TO do at once, il we
q y seem, would be TO restrict bank ere
that and enlarge proportionally the mott
are basis, aud IL this IL not enough, TO N
statcIup for the restrictions Of credit, cnll
ches the volume Of paper money.
SON 10. This would DO but substituti