The midland journal. (Rising Sun, Md.) 1885-1947, 1892-10-14

placed 10 the banks there, and if not check.
ed out 10 pay for goods there, the deposition
is given certificate of deposit by the bank.
He brings that certificate to this country
and deposits it in one of our banks. The
bank credits the depositor and charges the
foreign bank. The foreign bank is notified
of the fact and transfers the credit Of the
shipper TO the account of the American
bank. Here we have the entire transaction
f" foreign exchange" If Mr.. Sherman
had been entirely honest he would have
told his audience that gold coin is not used
20 effect foreign exchanges between CON-
mercial nations, but its sole use is by the
bankers of those countries to squeeze the
people of their respective countries by
manipulating debt. interest and discount,
all of which call for gold payments, while
all business is done by the people with
whatever money is legal tender or received
by them in exchange for what they haye TO
sell.
1t is not by money that exchanges are
effected by the people of one nation with
the people of another nation, but by ex-
change of products. If money were used
for this purpose any nation which attempted
it would be bankrupt in few months and
business would come to standstill in that
country. Mr.. Sherman says, they" the
nations, shave as yet agreed upon no me-
dunn of exchange except coin, and by
nearly all commercial nations it is gold
COIN" They have agreed on no such thing.
Gold coin is a commodity when it passes
from one nation to another, and is received
at its market price, which has been fixed by
act of the English parliament at 3 pounds,
II shillings and 9 pense per ounce. 1t is
taken as commodity to pay balances be-
tween banks if any balances are to pay ana
no tcredits of other merchandise to draw
upon. Wheat or cotton would pay just as
readily. Silver pays the same at its com.
mercal value and if its price was fixed by
act of congress at 81 90 per ounce it would
pay at that rate in evening up balances
among the banks, as gold does.
This speech of Sherman admits what the
Peoples party contends for, that every
nation should make its own legal tender
money out Of paper for the use of lis own
people and discard gold altogether as a
necessary money, for the latter is scarcely
in use as money and has become rather a
hindrance than benefit. Mr.. Sherman
closes this part of his remarkable speech
with this declaration:
NOW the conditions of our finances and
the certainty Of the payment of our national
debt open to view not only an international
unit Of coinage but an international paper
money that will be recognized among all
commercial nations as equal TO the best gold
of any mint, and will be received and cir.
culated as the representative of such coin.
This is not fanciful dream. When
recall the conceded fact that 95 per cent
of all the payments in the United States are
by checks, drafts and commercial paper,
and that in the great cities of the world
money is used only for the market and
credits for nearly all business transactions,
it is not improbable that foreign exchange
will be, as most of them now are, made in
paper. Business men now watch the move
ment of gold across the water as an element
of fear or hope, and so it will be until some
credit money recognized by leading COM
mercial nations shall. take the place of coin
in the ebb and flow of commerce."
"Credit money" says Mr.. Sherman.
What does he mean by ''credit money!?
The coin in its ebb and flow is but merchan-
disc. 1t is only money when the stamp Of
some government is on it, and legal tender
money only in that country. The "credit
money" Mr.. Sherman speaks OF is real
money, the emblem of the law making
power of the government proclaiming il
shall extinguish all debt and pay all taxes
in the nation whose emblem it bears
There can be no international money. Nc
nation can make legal tender money fol-
other nations.