Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1895-09-05

q lot OF silver bullion and wanted It
coined In those years into silver coin.
Now z or 3 per cent. premium for
silver would be no inducement 10 that
man to ship that bullion to London
that Is where this premium was; it
wasn't here o in New York. The
freight and insurance and expressage
would more than consume that 2 or 3
per cent, not to speak of being out of
the use OF his money in the meantime.
Hence he would take it to the United
States mint and have 1t coined into
money that he could use Immediately.
(applause.)
HARVEY DEALS IN BIG FIGURES.
ut is in effect admitted by the other
side that it is not, but they say bank
credit with the check system supplies
the balance. The Coinage Laws and
Appendix we have been using, pages
215 and 24O-I now hand the book to
Mr.. Horr-show the total deposits OF
the people in the United States at q
certain day in 1893 In banks of all
kinds we're A,848,8626S0. This is in
face Of the fact that there is only g..
6O,Om,@ Of money Of all kinds in
circulation; and It, as we keow, is not
all deposited in the banks. This
leaves at least 8,3OO,OO,m, more
money subject to check than there is
Of our whole stock Of money. The sur.
plus is what is known a. bank credit
and check system. It also indicates
what Is q normal amount of money foE
the transaction Of the business of the
country. Give it your impartial Judge.
ment and you cannot escape the con.
clusion that the 1850, 100000 approx.
mates the quantity necessary. You
cannot say that it is In existence, FOL
it is not. You cannot say that it Is
the capital Of the business men, on
which they are transacting the bust
ness Of the country. You can only say
that experience teaches US that sc
much is necessary. You cannoc say
that it exists. It represents the
amount Of cash capital necessary fol-
the business of the country, but it is
not cash capital. It is one-third
money and two-thirds bank credit
There is one-third enough money to
furnish capital for and facilitate the
business of the country, and the banks
with their credit system, furnish the
other two-thirds. On the one-third
we pay no interest. It Is not interest.
bearing money; it is the money of the
country. We pay interest on the other
two-thirds. To say there is S4,S00,OOO,-
coo deposited in the banks is to say at
the same time the banks are drawing
interest on S3,3OO,OOO,m of it. 1t
works this way:
"a deposits $4,000 in bank. B Dor.
rows the $4,000 from the bank, but
does not take the money-it is placed
to his credit. Now the $4,000 has
swollen to $4,000 on deposit. Interest
is being paid on $4,000 Of it. A has
$4,000 to his credit, the capital in his
business, on which he is paying nc
interest. B and G have each $4,000 to
their credit as capital in their bust.
ness, and they are both paying interest
1.-THE country needs e4,8OO,OO,OOO to
meet the normal demand for money.
1t needs it just as it needs q normal
supply of wheat or anything else. II
you want to confirm this take the
loans given on the same page last re.
ferred to, showing that the loans OF
all banks at this date yer 64,769,S79,.
485. With S1,6OO,O0O,OO0 in the coun.
try they are loaning three times that
sum. This money is furnished how!
The banks furnish it with the credit
system, by which onedollar is made to
circulate in place of three that are
needed, and the banks collect interest
on two of the dollars. For each dollar
in existence we are paying the u
interest on two dollars. This is the
way the banks work the actual volume
of money in existence up to the normal
volume. With 5~1,6O0.OO0,OO in exist
ence the people are using it and pay
ing interest on s., 300, 100000 additional.
This interest varies from 6 to II per
cent. At 6 per cent it is a tax OF $685.
100000 annually to support TINS sys-
tenn in supplying the shortage IN our
money volume. The banks are inter
ested in holding down the volume OF
money and supplying the remainder
needed with their aystem. They take
the quantity of money in existence
and stretch it like q piece OF rubber.
And they sometimes let loose Of their
end"
THINKS HARVEY WILL GIVE UP I DISGUST.
Mr.. Horr-That whole question
whether banks are q curse to the word,
and as to the credit Of the country be-
ing the country's life blood, will come
later In this debate. When ! reach 1t
in the regular order daughter and ap-
plause) it will be presented to MT
Harvey's perfect satisfaction. Laugh,
ter and applause.) Indeed, l DOUBT
whether he won't leave the Dom IN
perfect DISGUST with himself tor having
entered into this debate. daughter.
/ now proceed to the question was
talking about.
at is all idle talk, Brother Harvey,
about silver costing % an ounce. TO
add to the cost OF producing an article
all the money that has been lost II
mining speculations and gambling Is
too ridiculous to permit a child, ever
though his name be Coin. and though
he be inspired, to announce as an
economic proposition. Gamblers ar
not producers. The men who manag
and operate silver mines will not %
diverted by such nonsense as thai
There are mines in the United States