Mexico weekly ledger., 1895-04-18
Money. Banking and Currency.
From Harper Weekly.

that will be accepted confidently by
the various persons whose industry
and products are the subjects of eN-
change. Let us apply the principle
on a larger scale. This country carries
on an enormous business. Its foreign
commerce last year amounted to ST.
al, 00O, 900. Three-fourths of Il ex-
ports were of agricultural products.
How much money was employed Ill
carrying on this trade? The exports
and imports of gold will not begin TO
pay for all this business. In 1894 the
total gold exports amounted TO ST.
1852, 22s, and the net gold exports 10
s4,l72,6 65. In 1898 the net gold eN-
ports from this country amounted to
$50, 1897 ,275. Much of the gold that
went from this country was for the
payment of debts represented by Sc
curities which the foreign holders sold
because they were afraid that Il cur
rency was about to deteriorate, that
we were about to become a silver
country. Much more went abroad be-
cause we had too much money i'll this
country. The result OF this surplus
was that interest abroad was higher
than interest in the United States, and
consequently, while n good many of
the financiers who devote their time
and energies to surrounding the money
question with mystery were crying
out that we had not money enough,
our surplus money was seeking en-
ployment in Europe. 1t is evident
that our foreign commerce was o en-
tirely carried on with real money, nor
did the national banks of the country
carry on all their transactions in such
money. On October 2, 1894, as we
learn from Secretary Carlisle's report,
the national banks had loaned S2,007,-
122, l91. But the money OF all kinds in
the banks amounted to S422, AIS, 1872 on
ly. In September, 1894, all the money
in the United States amounted to 81
413, OOO, 900. This was a little more
than the sum that was then out on
loans by the banks. But wen this
amount was not all used in business.
The amount in circulation in Septem-
Der, 1894, was 81, 655, 039 900. Although
the silver men were crying out for
money, the country was not using all
the money then in existence, and yet,
Judging from the amount of loans and
discounts alone, it was using tools of
exchange that represented much more.
Moreover, we had and continue to
have q greater amount of money per
capita than any other country except
France, the Netherlands and Belgium.
The amount of money in the United
States was S25.07 per capita, while
Great Britain possessed S19.9S per
capita. Our stock of gold is the largest
in the world, except that of France.
Our stock OF silver of full legal tender
is actually the largest, if we except
India and China. At the same time
our stock of uncovered paper is larger
than that of any other country except
Russia and the South American States.
For a long time u company in the
money market has been questionable.
The foreign commerce of the coun-
try is based On the fact that there are
many thousands of foreign people who
want our meat, breadstuffs and cotton,
and that there are many thousands of
persons in this country who want
wooden goods, cotton goods, silks,
velvets, iron and steel ware from Eu-
rope and other parts of the world.
These articles are exchanged with
each other. The transactions, meas
ured in money, amount TO a much
greater sun than the money itself
which passes between the countries.
The balances only are settled in bills
of exchange, az already explained.
Whatever grand balance there may
exist at the end Of the year between
two countries like Great Britain and
the United States does not depend
wholly upon the commerce that has
been carried on between them, for
Great Britain invests u good deal of
money in this country in securities, in
business concerns, in real estate, so
that while what is called the ''balance
of trade" may be in our tavor-that is,
we may have exported more goods
than we have unprecedented Britain
may nevertheless still be our creditor.
Whatever we have imported in
goods is wealth. Whatever Great
Britain has received from us in gold is
a means of gaining wealth. Every
piece of cloth, every suit of clothes,
every mechanics tool, every rail, is
something that we want and that
makes Us better off. Every shipload
of grain that England receives from
the United States is SO much food for
the hungry. But il We sold all this
grain for gold, and received it, what
good would the gold alone do us? 1t
Is not a pile of gold that brings pros
perity; it is the qualification of our
own and others desires through the
exchange of commodities. The worlds
commerce is the trade of a simple
community amplified. 1t is an ex-
change of products and such exchange
Is facilitated by the use of credit, of
mutual confidence, represented large
ly by bankers bills Of exchange that
do not depend for their validity, or for
the trust felt in them by the mercan-
tile communities on the two sides of
the ocean, either on the amount of
gold in the Golfers of the bankers, or
on the fiat of the government, or ON
any legal tender quality bestowed up
IN them by law, but upon the general
belief in the willingness and ability of
the persons ON whom the bills are
drawn to meet them when are pre-
scented for payment.
What is true OF simple trade and Of
commerce is also true of the
OF a mans labor for wages. The
man who works with his hands, or the
professional la who works with his
brains, wants food, raiment, shelter,
books, education for his children. He
buys all these things with his labor.
He digs in the field, writes or paints,
argues in the courts, or breaches in
pulpit for these things. He could
not go to the tailor, or to the butcher, /,