Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1893-01-25

developing new industries or in OPEN
ing up and sustaining new business
Its volume will increase as population
increases and any safe money system
must count on this as a permanent fact.
1t must SO fix the volume as to provide
working cash capital perpetually
above the pocket reserve.
''The reserve money in the national
treasury, in banks and in the pockets
of the people is and always must re-
main dead money. 1t is held to meet
imaginary demands or runs. 1t is held
to inspire confidence. Let me present
you picture, in figures, of the money
situation in the United States, gold,
silver and paper, July l, 1891. See
treasury report: Total stock, 81, 1885,
224, 075; per capita, SS4. 81.
This is the delusive plethora Of
money spoken of. Look again. This
money is located as follows: United
States treasury, S697, 7S3, 36S; per capita,
$1,000; in circulation, 81, 497. 40, 7O7; per
capita, S23.41; purported amount, S2,-
195.224, ,075; per capita, s34 81.
"Of the money in the United States
treasury the following amounts are
duplicates That is, the gold and silver
represent gold and silver held for their
redemption and either they or the gold
and silver should not be counted, for
only one can be used as money.
THE case stands as follows: Gold
certificates, 1852, 46S, 429; silver, $685.
715, 1s5; total duplicate, s467, ,2o1,6
Taking the reported general stock
and deducting the above duplicate we
have: Reported general stock, 81, 1885,
224, o75; duplicate, $467, POI, ,614: actual
general stock, s1,72S, O22, 461; per capita,
$254
''Deducting this duplicate stock from
the total amount in the United States
treasury we have: Apparent stock
United States treasury, S697. 7S3, 36S;
duplicate stock, s467, POI, GA; actual
money in United States treasury, $780,
5s1, ,754
But from this amount must be de-
Quoted certain sums specially held to
redeem or cancel other paper money as
follows: To redeem green backs, $780,
100000. This leaves the United States
treasury powerless to aid new business
with money.
Let us now examine the purported
amount in circulation and see what
amount is tied up in reserves. October
81, 1891, national bank reserves, $780,
sos, 737; state bank reserves, SS3, 495, 551; !;
total reserves, $500, 1894, 2SS; deduct this
from general circulation, 81, 497, 44O, 707;
per capita, S23 4; deduct $500, 1874, ,2SS;
per capita, S47; balance, 1,197, ,O46, 419;
per capita, S17.1.
This volume must suffer another re-
duction before we reach the legitimate
amount available for actual new busi-
ness with which to develop the new
business of the country.
''The treasury reports can find in the
entire banking system of the United
States only the following amounts of
in circulation July 1, 1891: National
banks, 1913, 451, ,5O7; state and other
banks, s165, 1854, OS1; total, s479, Os5, ,5SS;
deducting this from amount reported in
circulation we have balance of 81, ,O1s,-
355, 149; per capita, 1851.
THE whereabouts of this balance is
unknown. 1t includes an unknown
amount of lost or destroyed money, un-
recorded exported money by travellers,
etc, and the pocket and store reserves
in the country. 1t is not available for
any new business The known amount
as shown in all the banks of the United
States is S479, 0S5, 5SS; per capita, $3.50;
of this there is tied up in reserves,
$500, 1874, 2SS; per capita, 81. 20; this leaves
a working cash capital of SITS, ,691, 800;
per capita, 81. so.
This is the most favorable possible
e l,Eyfh ha 70 ic{i TIL,
1, 1891.
''The statistics for October 81, 1891,
show only half of the last results of
81. 40 per capita and is worked out from
the detailed report of the banks and is
more nearly correct
From this it appears that the figures
upon which we must do our banking
business show from $1.40 to 81 so per
capita as the working cash capital for
new or current business
THE treasury report of S34. 81 per
capita of general stock, or of $23 Al per
capita in circulation while true as a
treasury balance sheet, which alone it
is, cannot be used as a basis for esti-
mating the working money capital of
this nation. With this vivid picture In
our minds as to the actual volume of
money in the business world, its distri-
button and the amount available for &C
tive business and held as reserves, lost,
destroyed, exported and tied up in
pocket and till reserves, let us next ex-
anime the business activity which calls
this money into use.
THE volume of business in the United
States Is vastly above $170, 600, 600, 600
annually. Our total volume of money
represents only six mills on the dollar
for actual business. But if you take
the actual volume of money available
for business it will represent such
small fraction of cent that we cease
to wonder at the impossibility of moving
the volume of trade, and only wonder
that business is not totally paralyzed.
Gas bankers you understand that the
actual volume of money holds the same
relation to the volume of business, that
of the cash reserve of bank holds to
it's deposits.
There can be no permanent pros
perity until our volume of available
money is increased. Increasing dis
asters are abundantly stored in the
future, on the present relation between
the volume of money and business
You might as well try to run the rail-
road business of the United States with
a 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 heretofore had about 2H
per capita in money for business. Now
they will draw immense volumes from
the money stock of the more advanced
nations Nothing can stopit India ia
recent years has absorbed over q, ,O0O.-
600, 600 OF coin money 4 A volume which
has not even filed the pocket and till
reserves of that nation. China is alb
sorbing hundreds of millions, and its
presence among its vast populatioD IL