Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1891-01-22

vulsiOns with the least possible dis
turbance. The experiences of the last
few weeks have afforded too much
evidence that they are far from posses
sing such perfection. So far as respects
England, the perils-so narrowly
escaped b9 such extraordinary exped-
tents IS the Bank of England getting
help from the Bank of France and pro-
curing authorization to issue notes in
disregard of law have opened the eyes
of the banking community, of statesmen,
and of the press to the necessity for
Immediately broadening she powers of
the national bank and allevia ting the
onerous restraints imposed upon it
under Sir Robert Peel's Bank Act.
What can be done to increase the elas-
ITCHY Of our financial instrunentalities?
has become the most urgent question
of the hour in this county. 1t
would be fortunate if the judg-
ment of the public on this ques-
tiOn were commensurate with their
anxieties. The truth muse be confess
ed, however, that popular conceptions
of the nature of the problem are SO
vague aud wild that any remedy pro-
vided through legislation is likely to be
Of doubtful efficacy. Probably two
thirds of our people are persuaded chat
the whole evil lies in SD insufiiciency of
currency. and hence congress is dis
tracted about the ~ags and SDeasls of
indefinitely initiating Che circulating
medium.
If currency could have eitheE present
ed or cured the present unfortunate Sit
uation, there would have been nothing
to complain about at ehis mOmenS.
For, according to the annual report of
Secretary Window, there was an in
crease in the circulation in actual use,
during the three months next proceed
iEg the crisis. amounting to oyer 6s
millions; which extraordinary imitation
produced no perceptible effect whatever
upon the universally stringent condi-
tion of the money market. For years
past, the circulation bas been increas-
ing out of all proportion 60 the growth
Of population, the amount in actual use
OH October /, 1856, having been
S1.264, 900, 900, and on che lst os Octo-
ber last 81 ,49s, 900, 900, shaving gain
OF S2af:000, 900, or 10 per cent, Within
four years; which is dO9bie the ratio of
growth of population. These sacts
prove that it was through 40 deficiency
of circulation that the panic occurred
or tbat it was not more easily held in
check. 1t may we'll 0he asked what
would have been the condition of the
affairs in London uaGer the lace up
heayal, had the market been as directly
dependent as this theory assumes oD the
volume o. circulation, seeing that at the
beginning OF November the paper cir
culation of Great Br6tian was
$40 ,0O0, 900 less than the specie in the
Bank oI England, s42 ,OOO, 600 less than
were those respective items ten years
before. What support does tho demand
for q large continuQus increase of tSe
currency receive from Che fact that
England constantly is largely augmente
ing the volume of her business. with
stationary and at times yetrogressiye
volnme of circulations
! And the same question may apply
with similar foIce to the circulation of
the Bank of France lthe only issue Of
paper money i'll France), whose volume
of outstanding notes a;,st November
was about the same as in that Monsb of
1888. The notion that money is
essential to all the transactions OF busi-
ness is productive OF endless miscon
eeptioal about the workings of finance.
Money is merely aSol for the small
payments of society; while all the large
transactions of trade aAd finance are
settled by checks, notes, bill Of ex-
change, or the transfer of book
accounts; and it is eXclusively these
latter instruments that are concerned
in the development and settlement of
iuaucial crises. In the use of these
| instfnments Of the large transfers, there
fore, must be sought a revisioD which
will secure better control over such
conVulsions as the one which has recent
/ ly shaken the foundations Of cpnh-
depce on both sides Of the Atlantic and
among one hundred millions of COM
! Msrcial population.
! Nevertheless, by purely artificial
expedient. money is made to play very
important part in disturbances of cerdi,
operations. The national banks OF
New York. at which the larger half OF
the whole banking operations of the
country are transacted, are required 10y
law and under threat of suspension tG
hold an amount Of lawful money equa
to not less than 25 per cent. of their
net deposits. When the reserve:
trench upon the lssgai limit. the law
compels the banks to stop lending, and
J the money that might be used Tor salts
! flying the wants of borrowers is KEPT
idle at the bidding of authority. Ii
this sense at Lines and indeed too fire.