The advocate and Topeka tribune., 1892-11-02

1 VIZ
civilized nations--in the United States, and
In each state?
Then, after giving statistics show
ing the volume as above, Mr.. Widney
continues:
The treasury report Of $3431 per capita
of general stock, or Of $23A per capita in
circulation, while true as q treasury balance
sheet, which alone il is, cannot be used as
basis for estimating the working money
capital of the nation. With this vivid pic
ture In our minds, as 70 the actual volume
of money in the business world, it's distri-
button, and the amount available for active
business and held as reserves, lost, de-
stroyed, exported and tied up in pocket and
till reserves, let US next examine the bust
ness activity which calls this money into
use.
The volume Of business in the United
States is vastly above $l700O0 100000 an
nuslly. Our total volume Of money repre-
sents only six mills on the dollar for actual
business. But IL you take the actual vol
ume Of money available for business, it will
represent such small fraction of cent
that we cease to wonder at the impoasibility
Of moving the volume of trade, and only
wonder that business is not totally para
lyzed.
As bankers you understand that the actual
volume of money holds the same relation
TO the volume of business that the cash re-
serve of bank holds to its deposits.
There can be no permanent prosperity
until our available money is increased. In
creasing disasters are sbundsntly stored in
the future, ON the present relation between
the volume of money and business.
You might as well try to run the railroad
business Of the United States with few
hundred cars.
When you loOk over the commercial
growth of the world, the danger Is more
apparent. South America, India, Asia and
other minor communities which have been
in commercial sleep for ages are suddenly
awakening TO activity and life.
They have hitherto had about 21s per
capita in money for business. Now they
will draw immense volumes from the money
stock Of the more advanced nations. Moth
ing can stop IL. India in recent years has
absorbed over 1,0O0. 900, 900 Of coin money,
volume which has not even Alled the
pocket and till reserves Of that nation.
China 10 absorbing hundreds Of millions,
and its presence among the vast population
is hardly detected. The redistribution Of
the worlds coin money is hardly COM
menced, and the nations having more than
their per capita must surrender more and
more until somewhat of an equilibrium is
reached. While this international disturb
ance is occurring. there is similar one 90
curing in the United States. The south
and west are dev eloping with phenomenal
vigor and rspidity. They are absorbing
vast amounts Of material and money. They
must draw ON the volume ofthe other states.
| y
Various methods have been suggested to
furnish money supply.
Erroneous ideas at this critical point re-
suit, not in producing money, but an
erroneous substitute for IL, which, when
used in the commercial world, sooner or
later breaks down to society'S injury. !
know Of no definition of money that in
Cludes all that should be included and ex-
cludes all that should be excluded. Isub-
NIT the following as correct definition of
money:
Money 10 that article in nation with
which debtor can extinguish debt with
out the consent Of the creditor at q Axed
unit of value. In other words, it is legal
tender by the supreme law of the land. As