The herald., 1894-05-01

every body had to carry with him
leathern girdle containing q sufficient
quantity of money to pay for every COM
modify or service he bought during the
day, and every time transaction cul-
minated an actual transfer from hand to
hand of real money were necessary; or
If all the indebtedness of the world,
public and private. or even large part
of it, were payable simultaneously and
the money remained in the hand which
received it and went no further, then
indeed would an immense volume OF
money be absolutely essential. Bat we
have advanced very far from such
state.
The enlightenment of mankind has
evolved processes in the settlement OF
the transactions of life which have
eliminated the necessity for money ex-
cept for petty matters. 1t 10 only in the
last analysis OF trade, the adjustment of
the balances between individuals and
nations, that the actual use of mon ~ is
actually imperative. We have the
clearing house, the telegraph, checks,
drafts, letters of credit and similar
agencies. And the exchange of COM
modities, speaking in broad sense, ia
accomplished today by the transfer OF
credits and not of money. Nearly every
commercial, financial and industrial es-
tablishment, and to q very great extent
individuals, OF this and every other
country, pay their debts on the period.
ical or determined days OF settlement
with check, draft or bill of exchange.
The New York merchant who buys
goods in London does not send over
money for them, he only buys bill
of exchange against some wheat, cotton,
securities or other valuable property
that London merchants have bought
here, and transmits that. And thus one
commodity is exchanged for the other
and the only part the money plays is to
satisfy the deficiency which may exist
because Of one side not having sufficient
property to balance that of the other.
When q check is drawn upon bank it
does not follow that the money is to be
drawn. 1t is more frequently deposited
in the payee's bank OF deposit. And in
course Of time that check finds its way
to the clearing house, and there it is
wholly or partly offset by another. 1t
then becomes q matter of debts and
credits between the banks; and only the
difference between the checks they hold
and those out against them Is paid in
money and again, the amount OF money
requisite for the daily retail transactions
is not as large as might be inferred from
the arguments advanced by the advo-
Gates of more money.
1t is not more circulating medium we
need, it is an increased circulation of
the medium we have. The value of
money to trade is not it's quantity, but
it's circulation.
Again, ii money were Hcaroc the fact
would be evidenced by depleted bank
vaults, abnormal rates of interest aud
an exceptionally small per capita. But
these symptoms of financial famine are
absent. The bank vaults end the safe
deposits OF the country ars full to over
flowing with idle money. In the city OF
New York, tbs great financial heart OF
this country, there is in round figures
something like eighty millions of dollars
in excess of the legal reserves. In San
Francisco recent statement OF the coz
dition Of the banks alone shows an
amount relatively as large, fifteen
millions of dollars of unemployed capt.
tai. In our own city the banks are wait
ing for business, and every money
broker will readily inform you that he
has more money to loan than there is
effective demand for. The instances
cited but reflect similar condition
in every quarter where the facilities
for accumulation and storing money
are present. We have with US not only
idle labor, but idle capital as well. And
ths daily reports will show you that in
tsrsst has rarely, il ever. been 40 low az
now. And as for per capita, ours is about
$24; the greatest we ever had, except
during the era of deprecated paper
money. Our per capita is twice as great
"a it WAS in 1878 TO which some OF the
advocates OF money wish to return. Our
PER capita is greater than that OF any
other country except France, Belgium,
the Scandinavian union and Australia.
All OF which seem to have their labor
trouble just as successfully as we do.
And in Australia the distress is greater
than in this country, and their per cap
ita is $27. Adding to the volume Of
meney in this country without adding
to the circulation wiifanot benefit the
people in general. There might be
$4,000, eco, 900 and the peg capita $3.50