The times. [volume] (Richmond, Va.) 1890-1903, 1894-08-14

Almost every day we nea- some per-
fectly sincere man say what we need
is an increase in the volume of the cur
,ency." That is true in one sense, but
absolutely untrue IN the sense in which
IL Is meant. The idea in the minds OF
those who say this is that we need
great increase in standard money, ana
in that sense no greater error ever he'd
possession OF the human mind. The old
and universal belief that the sun went
around the earth was in no degree more
essentially an error. And until the public
mind gets right about this, and under
stands that it is more currency that Is
needed, not alone In the sense of the
notes that we are accustomed TO call
money, but I'm the broad sense OF perfect
freedom in transferring credits, but not
more money. we shall never have any
peace and order in this country. Money
is the standard OF value. .rhat is. il
takes a certain amount OF labor TO get
q $40 grains of gold out OF the earth, ana
we determine arbitrarily that we Will
name that amount Of gold a dollar II
takes the same amount Of labor 10 pro-
duce a bushe OF wheat: whereupon We
say that a bushel of wheat is worth a
dollar THAT is only another way OF
saying that il takes the same amount OF
labor 10 produce a bushel Of wheat that
IT takes 10 produce d dollar. and that one
is consequently eXchangeable for the
other. Now. this being so. If all the
money in the world were Only one gold
dollar ii would serve as well for deter
mining the value Of a bushel of wheat
as an unlimited number OF dollars. ana
as by the same process, the value OF
bushel of corn or oats, or anything else
is determined, that one dollar would nave
answered as well as a million to deter
mine the value of a bushel Of corn "
oats. and a scale would have been thus
established by that one dollar for swap
ping wheat for oats and barley for corn
etc But these swaps are troublesome ana
announcement. and so men want thing
easily portable which VIII serve their
purpose for getting wheat when they
want IL when they have not at hand
some corn to exchange for IT, Conse-
ouentIy they want a number of those
dollars which are easily carried about
But when the number Of them is sufii-
clent TO answer all the demands for their
purposes OF exchanging commodities. then
any addition 10 their number must be
superfuity. In barbarous ages and coun-
tries the number OF these dollars must
be very great If there IS much trading.
because they are the only agencies Tor
effecting exchanges of commodities. But
when we get steam and electricity the
need for actual dollars dimlnishes enor-
mously-almost disappears, indced-be-
cause we make checks and diatts on
banks take their place. \ bank may DO
an enormous business In the way IF
being the clearing house between parties
who are exchanging commodities ana yet
never see or handle one dollar of money
A has handsome residence on Franklin
street. worth $1,000 lie goes 10 his bank
and asks loan of $1,000. The president
knowing that owns this house. ana
being perfectly confident that A viii not
cheat him. lends him the money-that Is.
puts $4,000 10 his credit on his books. a
gives his checks all around for things
that he purchases in his business. These
checks are deposited by the persons TO
whom they are given in their banks
Next morning all the banks meet together
and exchange the checks each has on
the other. at the end of which IL is found
they exactly balance. and all the trans
actions which have grown out of A giving
those checks are settled up and not a
dollar OF money has changed hands
Meanwhile A owes the $1,000 and has the
articles he bought with the checks ne
gave ON 1t. lie sells those articles Tor
N.veo and receives I'm payment Tor them
the checks OF the persons who buy his
articles. lie deposits them in bank nno
thus pays his debt 20 the bank and
mas N,vv over TO the good. Meanwhile
the bank meets the other banks next
morning. exchanges these checks with
them and balances up accounts. and the
whole transaction, as far as A is con-
cerned, Is closed up. He has made 81 ooD
and not dollar OF money has ever VET
been used Now, whoever will think WIN
- mat transactions like this constitute